Colorado Legislative Council Staff



(replaces fiscal impact dated January 27, 1999)

No State General Fund Impact

Drafting Number:

Prime Sponsor(s):

LLS 99-0624

Sen. Arnold

Rep. Plant


Bill Status:

Fiscal Analyst:

February 4, 1999

Senate Transportation

Scott Nachtrieb (303-866-4752)



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund



State Expenditures

General Fund



FTE Position Change

0.0 FTE

0.0 FTE

Other State Impact: None

Effective Date: Upon the Governor's signature

Appropriation Summary for FY 1999-2000: None

Local Government Impact: Tax increment financing

Summary of Legislation

            This fiscal note has been revised to update the amount of revenue authorities receive from tax increment financing. The bill would allow for the creation of metropolitan districts within the Regional Transportation District (RTD) for the purpose of constructing light rail systems. Projects could not duplicate or interfere with another project. If a project were to include more than two counties, the plan may be submitted to the RTD for approval. If a project were to include counties outside the RTD area, the plan must be approved by the Board of County Commissioners within the affected counties. Any transit station plans would have to be submitted to the planning commission of any city planning commission for comment or a county planning commission if the station is located in an unincorporated area. Planning commission comments would have to be submitted within thirty days.

            A metropolitan district board would designate transit stations and develop station plans, financing, and construction. An area one mile from the center point of each station would be a transit station impact area. A parcel could only be included in one impact area. A public notice in a local newspaper and a public hearing would have to be held for each transit station. The metropolitan board would have to submit a report to the Board of County Commissioners concerning the timetable for project completion, an estimate of the property tax increment generated in the impact area, and estimates of other impacts on county services or revenues. A local government planning commission would have to approve the development of open parcels into transit stations as necessary to the community. Any taxes imposed on a transit station impact area would be divided between the taxing entity and the metropolitan board for up to twenty five years. The incremental increase in property taxes in the transit station impact area would also go to the metropolitan district.

Local Government Impact

            The bill would allow the formation of a metropolitan district to develop a light rail transit station and utilize tax increment financing (TIF). TIF financing would give the district the authority to collect property taxes from the increased assessed value of property that is attributable to the development of the light rail station. The rationale for establishing a tax increment financing area is that the additional assessed value would not occur without the development of the infrastructure improvements. Without the infrastructure improvements, there would not have been any increased property values. Other existing taxes would be collected and distributed under current law to the appropriate taxing entity. Therefore, there is no revenue loss to existing taxing entities. If the incremental tax revenue diverted to the metropolitan district were to go to the existing taxing authority, the existing taxing authority would have to adjust their mill levy downward in order to receive the same total property tax revenue.

            There are approximately 30 urban renewal authorities in the state that have assessed valuation attributable to tax increment financing. The existing authorities receive approximately $21.2 million in revenue.

State Appropriations

            This fiscal note implies that no appropriation would be required to implement the provisions of this bill.

Departments Contacted


            Local Affairs  Revenue