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Second Regular Session

Sixty-first General Assembly

LLS NO. R98­0731.01 ABA

STATE OF COLORADO




BY SENATOR Norton;

also REPRESENTATIVE Anderson.

EDUCATION

SENATE CONCURRENT RESOLUTION 98-004

SUBMITTING TO THE REGISTERED ELECTORS OF THE STATE OF COLORADO AN AMENDMENT TO SECTIONS 3, 11, AND 20 OF ARTICLE X OF THE CONSTITUTION OF THE STATE OF COLORADO, CONCERNING PROPERTY TAX REFORM, AND, IN CONNECTION THEREWITH, MODIFYING THE VALUATION FOR ASSESSMENT PERCENTAGE FOR RESIDENTIAL PROPERTY, ESTABLISHING A HOMESTEAD EXEMPTION FROM PROPERTY TAXES LEVIED FOR THE FUNDING OF PUBLIC SCHOOLS FOR A PORTION OF THE ACTUAL VALUE OF OWNER­OCCUPIED RESIDENTIAL PROPERTY USED AS A PRIMARY RESIDENCE, ESTABLISHING A STATEWIDE PROPERTY TAX MILL LEVY FOR THE FUNDING OF PUBLIC SCHOOLS; AND, FOR THE PURPOSE OF FUNDING PUBLIC SCHOOLS, AUTHORIZING THE STATE TO RETAIN UP TO SEVENTY­FIVE MILLION DOLLARS FOR THE 1997­98 STATE FISCAL YEAR AND FOR EACH STATE FISCAL YEAR THEREAFTER, NOTWITHSTANDING ANY STATE RESTRICTION OR LIMITATION ON SPENDING OR APPROPRIATIONS, INCLUDING WITHOUT LIMITATION THE RESTRICTIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION AND THE STATUTORY LIMITATION ON STATE GENERAL FUND APPROPRIATIONS.


Resolution Summary

(Note: This summary applies to this resolution as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

For property tax years commencing on or after January 1, 1999:

$ Eliminates the requirement that the general assembly annually adjust the ratio of valuation for assessment for residential real property so that the percentage of the aggregate statewide valuation for assessment that is attributable to residential real property remains the same as it was in 1985;

$ Specifies that residential property shall be valued for assessment at 9.6% of its actual value;

$ Establishes a homestead exemption from property taxes levied for funding public schools for the first $75,000 of the actual value, or an amount equal to 30% of the actual value, whichever is less, of residential real property that is owner­occupied and used as a primary residence;

$ Establishes a statewide property tax to be phased in over 5 years for the funding of public schools.

For each fiscal year commencing on or after July 1, 1997, in which state revenues exceed the constitutional limitation on state fiscal year spending, authorizes the state to retain the lesser of $75 million or the amount of state excess revenues for that fiscal year for the funding of public schools.


Be It Resolved by the Senate of the Sixty­first General Assembly of the State of Colorado, the House of Representatives concurring herein:

SECTION 1.  At the next election at which such question may be submitted, there shall be submitted to registered electors of the state of Colorado, for their approval or rejection, the following amendment to the constitution of the state of Colorado, to wit:

Section 3 (1) (b) of article X of the constitution of the state of Colorado is amended, and the said section 3 (1) is further amended BY THE ADDITION OF A NEW PARAGRAPH, to read:

Section 3.  Uniform taxation ­ exemptions. (1) (b)  FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER JANUARY 1, 1999: Residential real property, which shall include all residential dwelling units and the land, as defined by law, on which such units are located, and mobile home parks, but shall not include hotels and motels, shall be valued for assessment at twenty­one NINE AND SIX­TENTHS percent of its actual value. THE GENERAL ASSEMBLY SHALL ENACT LEGISLATION TO IMPLEMENT THE PROVISIONS OF THIS PARAGRAPH (b). For the property tax year commencing January 1, 1985, the general assembly shall determine the percentage of the aggregate statewide valuation for assessment which is attributable to residential real property. For each subsequent year, the general assembly shall again determine the percentage of the aggregate statewide valuation for assessment which is attributable to each class of taxable property, after adding in the increased valuation for assessment attributable to new construction and to increased volume of mineral and oil and gas production. For each year in which there is a change in the level of value used in determining actual value, the general assembly shall adjust the ratio of valuation for assessment for residential real property which is set forth in this paragraph (b) as is necessary to insure that the percentage of the aggregate statewide valuation for assessment which is attributable to residential real property shall remain the same as it was in the year immediately preceding the year in which such change occurs. Such adjusted ratio shall be the ratio of valuation for assessment for residential real property for those years for which such new level of value is used.

(e)  FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 1999, THE FIRST SEVENTY­FIVE THOUSAND DOLLARS OF THE ACTUAL VALUE OR AN AMOUNT EQUAL TO THIRTY PERCENT OF THE ACTUAL VALUE, WHICHEVER IS LESS, OF RESIDENTIAL REAL PROPERTY THAT, AS OF THE ASSESSMENT DATE, IS OWNER­OCCUPIED AND IS USED AS THE PRIMARY RESIDENCE OF THE OWNER SHALL BE EXEMPT FROM PROPERTY TAXATION BY THE STATE FOR THE FUNDING OF PUBLIC SCHOOLS. THE GENERAL ASSEMBLY SHALL ENACT LEGISLATION TO IMPLEMENT THE PROVISIONS OF THIS PARAGRAPH (e).

Section 11 of article X of the constitution of the state of Colorado is amended to read:

Section 11.  Statewide property tax mill levy for public schools. (1)  The rate of taxation on property, for state purposes, shall never exceed four mills on each dollar of valuation; provided, however, that in the discretion of the general assembly an additional levy of not to exceed one mill on each dollar of valuation may from time to time be authorized for the erection of additional buildings at, and for the use, benefit, maintenance, and support of the state educational institutions; provided, further, that the rate of taxation on property for all state purposes, including the additional levy herein provided for, shall never exceed five mills on each dollar of valuation, unless otherwise provided in the constitution.  FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER JANUARY 1, 1999, THE STATE SHALL LEVY A STATEWIDE PROPERTY TAX FOR THE PURPOSE OF FUNDING PUBLIC SCHOOLS. THE GENERAL ASSEMBLY SHALL DETERMINE ANNUALLY THE STATEWIDE PROPERTY TAX RATE, AND THE TAX RATE MAY INCREASE WITHOUT NEED FOR ADVANCE VOTER APPROVAL AS OTHERWISE REQUIRED FOR TAX RATE INCREASES UNDER SECTION 20 (4) OF THIS ARTICLE. THE STATEWIDE PROPERTY TAX SHALL BE PHASED IN OVER FIVE PROPERTY TAX YEARS AND THE UNIFORMITY REQUIREMENT SET FORTH IN SECTION 3 (1) (a) OF THIS ARTICLE SHALL NOT APPLY TO THE STATEWIDE PROPERTY TAX RATE DURING THE PHASE­IN.

(2)  FOR PURPOSES OF ADVANCE VOTER APPROVAL FOR A NEW TAX UNDER SECTION 20 (4) OF THIS ARTICLE, APPROVAL BY THE REGISTERED ELECTORS OF THE STATE OF THE AMENDMENT TO THIS SECTION SHALL ALSO CONSTITUTE ADVANCE VOTER APPROVAL OF THE STATEWIDE PROPERTY TAX FOR THE FUNDING OF PUBLIC SCHOOLS.

(3)  ALL MONEYS COLLECTED FROM THE STATEWIDE PROPERTY TAX SHALL BE DEPOSITED IN A PUBLIC SCHOOL FINANCE FUND CREATED IN THE STATE TREASURY AND MAY BE EXPENDED ANNUALLY TO FUND THE PUBLIC SCHOOLS OF THE STATE.

(4)  THE GENERAL ASSEMBLY SHALL ENACT LEGISLATION TO IMPLEMENT THE PROVISIONS OF THIS SECTION.

Section 20 (4) (a), (7) (d), and (8) (a) of article X of the constitution of the state of Colorado are amended to read:

Section 20.  The Taxpayer's Bill of Rights. (4)  Required elections.  Starting November 4, 1992, districts must have voter approval in advance for: (a) Unless (1) or (6) applies, any new tax, tax rate increase, mill levy above that for the prior year, valuation for assessment ratio increase for a property class, or extension of an expiring tax, or a tax policy change directly causing a net tax revenue gain to any district. VOTER APPROVAL SHALL NOT BE REQUIRED FOR INCREASES IN THE STATEWIDE PROPERTY TAX FOR THE FUNDING OF PUBLIC SCHOOLS ESTABLISHED UNDER SECTION 11 OF THIS ARTICLE.

(7)  Spending limits. (d) (I)  If revenue from sources not excluded from fiscal year spending exceeds these limits in dollars for that fiscal year, the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Initial district bases are current fiscal year spending and 1991 property tax collected in 1992. Qualification or disqualification as an enterprise shall change district bases and future year limits. Future creation of district bonded debt shall increase, and retiring or refinancing district bonded debt shall lower, fiscal year spending and property tax revenue by the annual debt service so funded. Debt service changes, reductions, (1) and (3) (c) refunds, and voter­approved revenue changes are dollar amounts that are exceptions to, and not part of, any district base. Voter­approved revenue changes do not require a tax rate change.

(II) (A)  FOR EACH STATE FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 1997, IN WHICH THE AMOUNT OF STATE REVENUES FROM SOURCES NOT EXCLUDED FROM STATE FISCAL YEAR SPENDING ARE IN EXCESS OF THE FISCAL YEAR SPENDING LIMITATION IMPOSED UPON THE STATE BY PARAGRAPH (a) OF THIS SUBSECTION (7), THE STATE SHALL RETAIN AN AMOUNT OF SUCH STATE EXCESS REVENUES EQUAL TO SEVENTY­FIVE MILLION DOLLARS OR THE AMOUNT OF STATE EXCESS REVENUES FOR THAT FISCAL YEAR, WHICHEVER IS LESS.

(B)  STATE EXCESS REVENUES RETAINED PURSUANT TO SUB­SUBPARAGRAPH (A) OF THIS SUBPARAGRAPH (II) SHALL BE TRANSFERRED TO THE PUBLIC SCHOOL FINANCE FUND CREATED PURSUANT TO SECTION 11 (3) OF THIS ARTICLE. SUCH REVENUES SHALL NOT BE SUBJECT TO ANY STATUTORY OR CONSTITUTIONAL LIMITATION ON SPENDING OR APPROPRIATIONS.

(C)  THE GENERAL ASSEMBLY SHALL ENACT LEGISLATION TO IMPLEMENT THE PROVISIONS OF THIS SUBPARAGRAPH (II).

(8)  Revenue limits. (a)  New or increased transfer tax rates on real property are prohibited. EXCEPT FOR THE STATEWIDE PROPERTY TAX FOR THE FUNDING OF PUBLIC SCHOOLS ESTABLISHED UNDER SECTION 11 OF THIS ARTICLE, no new state real property tax or local district income tax shall be imposed. Neither an income tax rate increase nor a new state definition of taxable income shall apply before the next tax year. Any income tax law change after July 1, 1992 shall also require all taxable net income to be taxed at one rate, excluding refund tax credits or voter­approved tax credits, with no added tax or surcharge.

SECTION 2.  Each elector voting at said election and desirous of voting for or against said amendment shall cast a vote as provided by law either "Yes" or "No" on the proposition: "AN AMENDMENT TO SECTIONS 3, 11, AND 20 OF ARTICLE X OF THE CONSTITUTION OF THE STATE OF COLORADO, CONCERNING PROPERTY TAX REFORM, AND, IN CONNECTION THEREWITH, MODIFYING THE VALUATION FOR ASSESSMENT PERCENTAGE FOR RESIDENTIAL PROPERTY, ESTABLISHING A HOMESTEAD EXEMPTION FROM PROPERTY TAXES LEVIED FOR THE FUNDING OF PUBLIC SCHOOLS FOR A PORTION OF THE ACTUAL VALUE OF OWNER­OCCUPIED RESIDENTIAL PROPERTY USED AS A PRIMARY RESIDENCE, ESTABLISHING A STATEWIDE PROPERTY TAX MILL LEVY FOR THE FUNDING OF PUBLIC SCHOOLS; AND, FOR THE PURPOSE OF FUNDING PUBLIC SCHOOLS, AUTHORIZING THE STATE TO RETAIN UP TO SEVENTY­FIVE MILLION DOLLARS FOR THE 1997­98 STATE FISCAL YEAR AND FOR EACH STATE FISCAL YEAR THEREAFTER, NOTWITHSTANDING ANY STATE RESTRICTION OR LIMITATION ON SPENDING OR APPROPRIATIONS, INCLUDING WITHOUT LIMITATION THE RESTRICTIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION AND THE STATUTORY LIMITATION ON STATE GENERAL FUND APPROPRIATIONS?"

SECTION 3.  The votes cast for the adoption or rejection of said amendment shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress, and if a majority of the electors voting on the question shall have voted "Yes", the said amendment shall become a part of the state constitution.