2023 Colorado Revised Statutes › Title 24 - GOVERNMENT - STATE (§§ 24-1-101 — 24-116-102) › STATE FISCAL POLICIES RELATING TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION (§§ 24-77-101 — 24-77-204) › Article 77 - State Fiscal Policies Relating to Section 20 of Article X of the State Constitution (§§ 24-77-101 — 24-77-204) › Part 2 - SUBMISSION OF BALLOT ISSUE - VOTER-APPROVED REVENUE CHANGE - PROPERTY TAX REDUCTION BACKFILL (§§ 24-77-201 — 24-77-204) › Section 24-77-203 - Retention of excess state revenues - transfer to state education fund - local government reimbursement - legislative declaration

(1)
(a)
If a majority of the electors voting on the ballot issue vote "Yes/For", then for each fiscal year commencing on or after July 1, 2023, the state is authorized to retain and spend all of the state surplus that is less than the proposition HH cap, which is:
(I)
For the 2023-24 fiscal year, an amount equal to the excess state revenues cap for the 2022-23 fiscal year, adjusted for inflation plus one percentage point, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes; and
(II)
For the fiscal year 2024-25 and each succeeding fiscal year, an amount equal to the proposition HH cap for the prior fiscal year, adjusted for inflation plus one percentage point, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes.
(b)
(I)
Notwithstanding subsection (1)(a) of this section and except as otherwise provided in subsection (1)(b)(II) of this section, if the general assembly does not enact legislation to establish valuations for assessment for the property tax years commencing on and after January 1, 2033, that are less than or equal to the temporarily reduced valuations for assessment established in sections
39-1-104 (1)(b)(V)
, (1.8)(a)(III), (1.8)(a)(IV), and (1.8)(b)(VI) and 39-1-104.2 (3)(q)(III) and (3)(r)(IV) in Senate Bill 23-303 for the property tax year commencing on January 1, 2032, for the same classes of property, then, for the fiscal year commencing on July 1, 2032, and each fiscal year thereafter, the proposition HH cap is an amount equal to the excess state revenues cap.
(II)
If the proposition HH cap is reduced by operation of subsection (1)(b)(I) of this section, the general assembly may, without additional voter approval, enact legislation to restore the cap for a fiscal year to an amount that is less than or equal to the amount that the proposition HH cap would have been for the fiscal year under subsection (1)(a)(II) of this section if subsection (1)(b)(I) of this section had not applied if, for the property tax year that ends during the fiscal year, the general assembly:
(A)
Establishes valuations for assessment that are less than or equal to the temporarily reduced valuations for assessment established in sections
39-1-104 (1)(b)(V)
, (1.8)(a)(III), (1.8)(a)(IV), and (1.8)(b)(VI) and 39-1-104.2 (3)(q)(III) and (3)(r)(IV) in Senate Bill 23-303 for the property tax year commencing on January 1, 2032, for the same classes of property; or
(B)
Reduces the valuations for assessment differently from the valuations for assessment established in Senate Bill 23-303, but the aggregate reduction in the valuation for assessment statewide from the reductions is greater than or equal to the estimated aggregate reduction in the valuation for assessments from the minimum reductions in valuation for assessment necessary to meet the condition specified in subsection (1)(b)(II)(A) of this section.
(c)
For purposes of the calculation set forth in this subsection (1):
(I)
Inflation and the percentage change in state population are the same rates that are used in calculating the maximum annual percentage change in state fiscal year spending pursuant to section
24-77-103
; and
(II)
The qualification or disqualification of an enterprise or a debt service change affects the proposition HH cap in the same manner as the change affects the limitation on state fiscal year spending.
(2)
This section does not affect the amount that the state is permitted to retain and spend under the authority conferred by the voters' approval of section
24-77-103.6
.
(3)
(a)
The proposition HH general fund exempt account is hereby created in the general fund. The account consists of an amount equal to the amount of state surplus that the state is authorized to retain and spend under this part 2 for the prior fiscal year, if any. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the proposition HH general fund exempt account to the account.
(b)
The money in the account for each fiscal year beginning with the 2023-24 fiscal year must be used as follows:
(I)
The money is first used to provide reimbursements to local governments under section
39-3-210 (4)(a)(II)
;
(II)
If there is any money remaining after the allocation set forth in subsection (3)(b)(I) of this section, the state treasurer shall transfer an amount equal to the remainder, five percent of the total amount in the account for the fiscal year, or twenty million dollars, whichever amount is the least, to the housing development grant fund created in section
24-32-721 (1)
to be used to reduce the amount of property taxes that are paid as a portion of a tenant's rent through a program established under subsection (2)(d)(VI) of said section; and
(III)
As soon as possible after receiving the report from the property tax administrator in accordance with section
39-3-210 (3)
, the state treasurer shall transfer the amount, if any, in the account that is in excess of the amount that will be used in accordance with subsections (3)(b)(I) and (3)(b)(II) of this section to the state education fund created in section 17 of article IX of the state constitution.
(4)
The general assembly hereby finds and declares that:
(a)
Public school funding consists of a combination of state and local school district revenue;
(b)
Under the current school finance formula, an increase in state funding can backfill a decrease in local property tax revenue;
(c)
Reductions in property tax valuations reduce the local property tax revenue collected for local governments, including school districts;
(d)
Money in the state education fund is used to provide funding for local school districts; and
(e)
It is the intent of the general assembly that transferring a portion of the money from the account to the state education fund in accordance with subsection (3) of this section provides additional funding to local school districts in order to backfill property tax revenue reductions resulting from property tax changes enacted in Senate Bill 23-303 and that the money so transferred shall not supplant general fund appropriations made for school districts' total program, as defined by section
22-54-103 (6)
.
Added by 2023 Ch. 258,§ 3, eff. 5/24/2023.