Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund	$10,186,199	$10,352,199
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon signature of the Governor; beginning with the 1999 property tax year.
Appropriation Summary for FY 1999-2000: A General Fund increase of $10,189,199 for Public School Finance, Total Program.
Local Government Impact: Local governments (other than school districts) will experience property tax revenue losses estimated to be $14.48 million in CY 2000, and $14.71 million in CY 2001. There is no state “backfill” provision in the bill for this revenue loss.

This bill establishes a credit against property taxes paid, based on the actual value of the qualified individual’s single-family, owner-occupied dwelling that is used as a primary residence. A qualified individual must be 65 years of age or older who has resided in Colorado for at least ten consecutive years immediately preceding the beginning of the property tax year for which the property tax credit is claimed, and whose federal adjusted gross income for the prior year was $30,000 or less. For qualified individuals, the value of the property tax credit would be:

• 30 percent of the property tax liability if the actual value of the residence is $100,000 or less; and

• 25 percent of the property tax liability if the actual value of the residence is more than $100,000.

The taxpayer may claim the credit from the county treasurer, who would apportion the amount of the property tax not collected based on the amount that each taxing entity levies on the property in proportion to the total amount of property tax levied on the property.

The amount of the property tax backfill for school districts is estimated to be $10,186,199 for FY 1999-00, and $10,352,199 for FY 2000-01. This will be a state General Fund obligation. A further description of the bill’s impact on school districts and other local governments is provided in the Local Government Impact section of the fiscal note below.

The property tax credit is estimated to be $24,663,920 million for CY 2000 and $25,066,422 for CY 2001. The amount of property taxes levied for school districts, on a statewide basis, is 41.3 percent of the total amount of property tax levied by local governments in the state. The School Finance Act requires the state to make up for any lost operating budget property tax revenue. Therefore, beginning in FY 1999-00, the state may be required to reimburse lost property tax revenues with General Fund moneys to school districts that are affected by the bill. The amount of the property tax backfill for school districts is estimated to be $10,186,199 for FY 1999-00, and $10,352,199 for FY 2000-01.

Property tax revenue losses for non-school local governments and for debt is estimated to be $14,477,721 for CY 2000, and $14,714,223 for CY 2001. There are no backfill provisions in the bill for revenue losses to non-school local governments.

The fiscal note implies that the General Fund appropriation for Public School Finance, Total Program would increase by $10,186,199 in FY 1999-00.

Page 2 of the bill provides the addition of a new section 39-22-522. This reference is in the income tax section, and should be a part of the property tax section.