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<br /> <br />rl~ <br />"-" <br /> <br />r." ~-. <br />.~a <br />"" -I <br />u'~"' '(,,- <br /> <br />el <br /> <br />TAX CUTS REDUCTIONS <br /> <br />The proposed amendment to the Colorado Constitution: <br /> <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br /> <br />.I CUTS teat/lOG, EACH tax bills by $25 each for income, property, utility, and <br />motor vehicle taxes; <br />.I increases the amount of EACH tax CUT ledud;oM by $25 PER each year; <br />.I prohibits the provisions of the measure from reducing the amount of state <br />or local revenue that must be refunded to taxpayers under current law; <br />.I requires that both a husband and wife each receive the tax CUTS / ~duGt;vu. <br />that affect state income taxes. <br /> <br />9 <br /> <br />Background <br /> <br />10 <br />II <br />12 <br />13 <br />14 <br />15 <br />16 <br /> <br />.~ <br /> <br />The PROPOSAL t'~u!..loscd I".Qu"titI1Lv(lM mu....udu.l\..-.Ld provides for an initial $25 tax <br />CUT ledt/t:ti61l. for several state and local taxes. When the state and local governments each <br />impose a particular tax, the tax CUT lcdud;uu applies to each governntent's tax. The <br />amount of the EACH tax CUT rdud';vu, increases by $25 PER each year, up to the amount <br />of the l1wl;a;bk tax paid. For example, if an annual tax bill is $70, the tax redudiou will <br />be REDUCED $25 in the first year, $50 in the second year, and cap out at $70 in the third and <br />each succeeding year. Most of the taxes to which the CUTS lcdt..Gt;vu, apply are for the <br />general operations of government, although a portion of the taxes are allocated for specific <br />putposes, such as highways and the repayment of bonds. <br /> <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br /> <br />Income tax. Three of the tax cuts affect the state's income tax. First, INDIVIDUAL <br />AND CORPORATE INCOME TAXES ARE DIRECTLY CUT BY $25. 11 tt..A ~."Jit ;. 1lIIo""d <br />in(li~~du.Ul iu1d G6.Lj-'v.LuLG !u(,V.Lw.... tlL-t.(,& pu~d. Next, lu~ additioi.LM INCOME tree TAXES ARE <br />FURTHER CUT eretIit is allo"d tv l(.b.rt<. TO RETURN the amount of sales tax that the state <br />collects on food and NONALCOHOLIC BEVERAGES drink sold at restaurants. Finally, each <br />income taxpayer WILL RECEIVE is di,,;bk fv. a AN INCOME tax CUT eredit to RETURN rebate <br />the money the state receives from the estate taX. The tllA . "dt/.:tiou AMOUNT RETURNED for <br />food and NONALCOHOLIC BEVERAGES drink-will-likely-increase to $75 per taxpayer in the <br />third year, but to less than $100 in the fourth year. The AMOUNT RETURNED FOR ESTATE <br />TAXES eslill' tltll. ...."Jjt will be $25 in the first year, but less than $50 in the second year. <br />The income tax CUTS l(,du",t~vlb begin in 2002. uud ltppl) tv botl.!. ~udi\lidu"h cluJ <br />C,Ol pO.latio.us~ <br /> <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />e7 <br /> <br />Property tax. Most local governntents impose a property tax. Property taxes are <br />reduced in two ways. Each local governntent's tax is reduced by $25 directly and then is <br />reduced a second time to rebate ANY the awuu.d of SALES TAX revenue collected by THE <br />local GOVERNMENT !;Ov"ulluClItS on food AND NONALCOHOLIC BEVERAGES sold at grocery <br />stores and restaurants. All Homeowners and businesses pay property taxes to multiple local <br />governments and will receive a $25 TAX CUT eredit FROM for each GOVERNMENT one. The <br />property tax CUTS ledud;uus begin WITH BILLS RECEIVED in 2002. <br /> <br />-1- <br />