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Legislators

Colorado House Approves Six Bills to Close Budget Gap

Strategic Insights

— 2 min read

As part of the ongoing special legislative session, the Colorado House of Representatives has given final approval to six bills aimed at raising additional state tax revenue to help close the state's nearly $800 million budget hole. The budget shortfall was triggered by federal tax code changes, and lawmakers are working to address the issue. The bills, which were approved in party-line votes, focus on various tax-related measures, including expanding the list of tax havens and repealing tax incentives for certain industries.

Key Takeaways:

  • The Colorado House of Representatives approved six bills to raise additional state tax revenue and close the state's nearly $800 million budget hole.
  • The bills, which were approved in party-line votes, focus on various tax-related measures, including expanding the list of tax havens and repealing tax incentives for certain industries.
  • House Bill 25B-1001, which makes permanent an add-back for federal qualified business income deductions on state taxes for high-income taxpayers, is estimated to raise $46 million in the current fiscal year and $95 million in the next one.
  • House Bill 25B-1002, which expands the list of countries that the state considers to be tax havens, is estimated to bring in $36 million in state tax revenue for the current fiscal year.
  • House Bill 25B-1003, which repeals a tax incentive for insurance companies, is estimated to raise $44 million for the state in the current fiscal year and $91 million the following year.
  • House Bill 25B-1004, which allows qualifying companies to pay certain state taxes early at a discount, is estimated to raise up to $100 million during the current fiscal year.
  • House Bill 25B-1005, which repeals a provision in state law that allows retailers to keep 4% of their sales tax collections, is estimated to raise $28 million in revenue for the state in the current fiscal year and $57 million the next year.
  • House Bill 25B-1006, which loans $100 million from the Unclaimed Property Trust Fund to prevent major health insurance premium increases, passed the House in a 41-22 vote.

Statistics:

  • The state's budget hole is nearly $800 million.
  • The six bills are estimated to raise a total of $346 million in revenue for the state.
  • House Bill 25B-1001 is estimated to raise $41 million in the current fiscal year and $95 million in the next one.
  • House Bill 25B-1002 is estimated to bring in $36 million in state tax revenue for the current fiscal year.
  • House Bill 25B-1003 is estimated to raise $44 million for the state in the current fiscal year and $91 million the following year.
  • House Bill 25B-1004 is estimated to raise up to $100 million during the current fiscal year.
  • House Bill 25B-1005 is estimated to raise $28 million in revenue for the state in the current fiscal year and $57 million the next year.
  • House Bill 25B-1006 loans $100 million from the Unclaimed Property Trust Fund to prevent major health insurance premium increases.

Sources:

  • https://leg.colorado.gov/bills/HB25B-1001
  • https://leg.colorado.gov/bills/HB25B-1002
  • https://leg.colorado.gov/bills/HB25B-1003
  • https://leg.colorado.gov/bills/HB25B-1004
  • https://leg.colorado.gov/bills/HB25B-1005
  • https://leg.colorado.gov/bills/HB25B-1006
  • https://coloradonewsline.com/donate/?oa_referrer=midstorybox

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