BOARD00489

• Board Meeting Date: 7/24/2000
• Description: Impacts of Initiative 205 on Water Districts
• Board Meetings - Doc Type: Memo

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TABLE 2
Examples of Tax CUTS Reductions

Estimated Tax Redllction f(ll lIollseholds ~ith the
FolI(l~ving Chll.ladelistiu. ~ ~ ~
II~)j1J",h.3Id 1. S;ugl", (.".,IO:>VII, Iu.....vJu.... $:5,988, 1 Vdl.;d..., R......L, UJI
apluLul",uL m $t49 $Z63-
IIoduhala 2. ryllhl;~d ,",vupl..., lu",vuIG. $75,888, Z VGL;d.:..:>, 0.....:> u
$lSe,8S81.vm(,. ~ $5-te ~
I16I:1u.hold 3. ~tu.II:...d ....vtlj:)k, I,K,)H~.... $1:5,f)(38,:: \',J.;",k!, Oy..~.:> u
$:88,8881lVUI\.... ~ $633- $%1

Estimated Tax CUTS Rcdll<:tion for Households with the
Following Characteristics: 2001 2002 2003
Household 1: SINGLE PERSON, OWNS AN II-YEAR OLD CAR, RENTS AN
APARTMENT, AND HAS AVERAGE MONTHL Y UTILITY EXPENSES OF $100 $77 $154 $209
Household 2: SINGLE PERSON, OWNS A 3-YEAR OLD CAR, OWNS A HOME
AND PA YS PROPERTY TAXES TO FOUR DISTRICTS, AND HAS AVERAGE $126 $380 $578
MONTIlL Y UTILITY EXPENSES OF $158.
Household 3: MARRJED COUPLE, OWNS A 9-YEAR OLD CAR AND A 3-YEAR
OLD CAR, RENTS AN APARTMENT, AND HAS AVERAGE MONfHL Y UTILITY $124 $279 $410
EXPENSES OF $100.
Household 4: MARRJEDCOUPLE, OWNS A 3-YEAR OLD CAR AND A I-YEAR
OLD CAR, OWNS A HOME AND PAYS PROPERTY TAXES TO SIX DISTRICTS, $151 $555 $862
AND HAS AVERAGE MONTHLY UTILITY EXPENSES OF $158.

State replacement of local revenue. The proposal provides that state replacement
of local revenue cannot reduce taxpayer refunds and that the state MAY <:an limit local
actions that increase STATE replacement costs. However, the proposal does not specifically
direct the state to provide money to offset local government tax reductions.

Arguments For

I) State and local taxes are too high and should be reduced. COMPARED
WITH OTHER STATES, Colorado's local sales taXes PER PERSON are the 3RD z.m' highest in-the
comltt) AND TOTAL LOCAL 1'.0]:>'. ty taxes are the 9ill ~tlt highest, WHILE and state income
taxes are the 15TH 25tlt highest. State tax revenue has quadrupled in the last 20 years AND
INDIVIDUAL INCOME TAXES ARE SEVEN TIMES HIGHER THAN 20 YEARS AGO. This proposal
saves the average family over $450 in the first full year and higher amounts in following
years, giving Coloradans more money to spend or save as they choose.
2) State and local revenue WILL EXCEED $25 BILLION IN 2001 AND WILL

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