First Regular Session
Sixty-second General Assembly
LLS NO. 99-0348.01 Jane Ard-Smith HOUSE BILL 99-1177
STATE OF COLORADO
BY REPRESENTATIVE Zimmerman
LOCAL GOVERNMENT
A BILL FOR AN ACT
101 CONCERNING A LIMITATION ON THE AGGREGATE AMOUNT OF
102 GOVERNMENT TAX INCENTIVES GRANTED FOR THE PURPOSE OF
103 ENCOURAGING LAND DEVELOPMENT.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Limits the aggregate amount of tax incentives that the state
government and local governments may grant to individuals, estates,
trusts, domestic C corporations, or foreign C corporations for the purpose
of encouraging land development to 25% of the aggregate tax revenues
that such development is expected to generate. Limits any tax incentive
granted by the state or by a local government to a period no greater than
5 years. Repeals these limitations on December 31, 2009.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Title 29, Colorado Revised Statutes, is amended BY
3 THE ADDITION OF A NEW ARTICLE to read:
4 ARTICLE 3.6
5 Tax Incentives For Land Development
6 29-3.6-101. Legislative declaration. THE GENERAL ASSEMBLY
7 RECOGNIZES THAT TAX INCENTIVES ARE A LEGITIMATE MEANS OF
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
1 ATTRACTING NEW DEVELOPMENT TO THE STATE AND OF ENCOURAGING
2 LAND DEVELOPMENT IN PARTICULAR AREAS. NEVERTHELESS, THE
3 SHORT-TERM BENEFIT OF LAND DEVELOPMENT MAY EXCEED THE
4 LONG-TERM PUBLIC COSTS OF SUCH DEVELOPMENT. THE STATE
5 GOVERNMENT IS OFTEN IN THE POSITION OF PAYING THESE UNANTICIPATED
6 COSTS. THEREFORE, THE GENERAL ASSEMBLY FINDS AND DECLARES THAT
7 IT IS A MATTER OF STATEWIDE CONCERN THAT THE AGGREGATE TAX
8 INCENTIVES GRANTED BY THE STATE GOVERNMENT AND BY LOCAL
9 GOVERNMENTS FOR LAND DEVELOPMENT PURPOSES SHOULD NOT EXCEED
10 A PORTION OF THE TAX REVENUES THAT SUCH DEVELOPMENT IS EXPECTED
11 TO GENERATE.
12 29-3.6-102. Definitions. AS USED IN THIS ARTICLE, UNLESS THE
13 CONTEXT OTHERWISE REQUIRES:
14 (1) "LOCAL GOVERNMENT" MEANS ANY AUTHORITY, COUNTY,
15 MUNICIPALITY, CITY AND COUNTY, DISTRICT, OR OTHER POLITICAL
16 SUBDIVISION OF THE STATE OF COLORADO, INCLUDING SCHOOL DISTRICTS
17 AND SPECIAL DISTRICTS; ANY INSTITUTION, DEPARTMENT, AGENCY, OR
18 AUTHORITY OF ANY OF THE FOREGOING; AND ANY OTHER ENTITY,
19 ORGANIZATION, OR CORPORATION FORMED BY INTERGOVERNMENTAL
20 AGREEMENT OR OTHER CONTRACT BETWEEN OR AMONG ANY OF THE
21 FOREGOING.
22 (2) "STATE GOVERNMENT" MEANS ANY STATE AGENCY,
23 DEPARTMENT, BOARD, OR COMMISSION, THE GENERAL ASSEMBLY, THE
24 GOVERNOR, OR ANY OTHER OFFICER OF THE STATE OF COLORADO.
25 (3) "TAX INCENTIVE" MEANS ANY INCOME TAX CREDIT, PROPERTY
26 TAX CREDIT, SALES AND USE TAX RATE REDUCTION, DEFERMENT, OR
Page 3
1 ELIMINATION, TAX REFUND, TAX EXEMPTION, DIRECT PAYMENT, OR ANY
2 OTHER FORM OF PREFERENTIAL TAX TREATMENT OR MONETARY INCENTIVE
3 GRANTED TO AN INDIVIDUAL, ESTATE, TRUST, DOMESTIC C CORPORATION,
4 OR FOREIGN C CORPORATION.
5 29-3.6-103. Limitations on tax incentives for land development
6 - repeal. (1) NOTWITHSTANDING ANY PROVISION OF LAW TO THE
7 CONTRARY, BEGINNING JANUARY 1, 2000, THE AGGREGATE AMOUNT OF
8 TAX INCENTIVES GRANTED BY ALL LOCAL GOVERNMENTS AND BY THE
9 STATE GOVERNMENT FOR THE PURPOSE OF DEVELOPING OR ENCOURAGING
10 THE DEVELOPMENT OF LAND SHALL NOT EXCEED TWENTY-FIVE PERCENT
11 OF THE ESTIMATED AGGREGATE TAX REVENUES GENERATED AT THE STATE
12 AND LOCAL GOVERNMENT LEVEL BY THE PROPOSED LAND DEVELOPMENT.
13 IN ADDITION, NOTWITHSTANDING ANY PROVISION OF LAW TO THE
14 CONTRARY, ANY TAX INCENTIVE GRANTED BY A LOCAL GOVERNMENT
15 SHALL BE FOR A PERIOD NO GREATER THAN FIVE YEARS. THIS SECTION
16 SHALL NOT APPLY TO ANY TAX INCENTIVES GRANTED BY A LOCAL
17 GOVERNMENT PRIOR TO JANUARY 1, 2000.
18 (2) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2009.
19 SECTION 2. Title 24, Colorado Revised Statutes, is amended BY
20 THE ADDITION OF A NEW ARTICLE to read:
21 ARTICLE 75.5
22 Tax Incentives For Land Development
23 24-75.5-101. Legislative declaration. THE GENERAL ASSEMBLY
24 RECOGNIZES THAT TAX INCENTIVES ARE A LEGITIMATE MEANS OF
25 ATTRACTING NEW DEVELOPMENT TO THE STATE AND OF ENCOURAGING
26 LAND DEVELOPMENT IN PARTICULAR AREAS. NEVERTHELESS, THE
Page 4
1 SHORT-TERM BENEFIT OF LAND DEVELOPMENT MAY EXCEED THE
2 LONG-TERM PUBLIC COSTS OF SUCH DEVELOPMENT. THE STATE
3 GOVERNMENT IS OFTEN IN THE POSITION OF PAYING THESE UNANTICIPATED
4 COSTS. THEREFORE, THE GENERAL ASSEMBLY FINDS AND DECLARES THAT
5 IT IS A MATTER OF STATEWIDE CONCERN THAT THE AGGREGATE TAX
6 INCENTIVES GRANTED BY THE STATE GOVERNMENT AND BY LOCAL
7 GOVERNMENTS FOR LAND DEVELOPMENT PURPOSES SHOULD NOT EXCEED
8 A PORTION OF THE TAX REVENUES THAT SUCH DEVELOPMENT IS EXPECTED
9 TO GENERATE.
10 24-75.5-102. Definitions. AS USED IN THIS ARTICLE, UNLESS THE
11 CONTEXT OTHERWISE REQUIRES:
12 (1) "LOCAL GOVERNMENT" MEANS ANY AUTHORITY, COUNTY,
13 MUNICIPALITY, CITY AND COUNTY, DISTRICT, OR OTHER POLITICAL
14 SUBDIVISION OF THE STATE OF COLORADO, INCLUDING SCHOOL DISTRICTS
15 AND SPECIAL DISTRICTS; ANY INSTITUTION, DEPARTMENT, AGENCY, OR
16 AUTHORITY OF ANY OF THE FOREGOING; AND ANY OTHER ENTITY,
17 ORGANIZATION, OR CORPORATION FORMED BY INTERGOVERNMENTAL
18 AGREEMENT OR OTHER CONTRACT BETWEEN OR AMONG ANY OF THE
19 FOREGOING.
20 (2) "STATE GOVERNMENT" MEANS ANY STATE AGENCY,
21 DEPARTMENT, BOARD, OR COMMISSION, THE GENERAL ASSEMBLY, THE
22 GOVERNOR, OR ANY OTHER OFFICER OF THE STATE OF COLORADO.
23 (3) "TAX INCENTIVE" MEANS ANY INCOME TAX CREDIT, PROPERTY
24 TAX CREDIT, SALES AND USE TAX RATE REDUCTION, DEFERMENT, OR
25 ELIMINATION, TAX REFUND, TAX EXEMPTION, DIRECT PAYMENT, OR ANY
26 OTHER FORM OF PREFERENTIAL TAX TREATMENT OR MONETARY INCENTIVE
Page 5
1 GRANTED TO AN INDIVIDUAL, ESTATE, TRUST, DOMESTIC C CORPORATION,
2 OR FOREIGN C CORPORATION.
3 24-75.5-103. Limitations on tax incentives for land
4 development - repeal. (1) NOTWITHSTANDING ANY PROVISION OF LAW
5 TO THE CONTRARY, BEGINNING JANUARY 1, 2000, THE AGGREGATE
6 AMOUNT OF TAX INCENTIVES GRANTED BY ALL LOCAL GOVERNMENTS AND
7 BY THE STATE GOVERNMENT FOR THE PURPOSE OF DEVELOPING OR
8 ENCOURAGING THE DEVELOPMENT OF LAND SHALL NOT EXCEED
9 TWENTY-FIVE PERCENT OF THE ESTIMATED AGGREGATE TAX REVENUES
10 GENERATED AT THE STATE AND LOCAL GOVERNMENT LEVEL BY THE
11 PROPOSED LAND DEVELOPMENT. IN ADDITION, NOTWITHSTANDING ANY
12 PROVISION OF LAW TO THE CONTRARY, ANY TAX INCENTIVE GRANTED BY
13 THE STATE GOVERNMENT SHALL BE FOR A PERIOD NO GREATER THAN FIVE
14 YEARS. THIS SECTION SHALL NOT APPLY TO ANY TAX INCENTIVES
15 GRANTED BY THE STATE PRIOR TO JANUARY 1, 2000.
16 (2) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2009.
17 SECTION 3. Safety clause. The general assembly hereby finds,
18 determines, and declares that this act is necessary for the immediate
19 preservation of the public peace, health, and safety.