Laserfiche WebLink
<br />the case of larg$ municipal and industrial water supply projects <br />and, to some e}Ctent, in the case of projects which have a <br />hydropower component. <br /> <br />The Role of Tax Revenues <br /> <br />Given that a major portion of Colorado's water project <br />financing needs cannot be met through revenue financing for want <br />of sufficient project revenues, the only alternative left--if <br />Colorado is to proceed with water project development, especially <br />for the benefit of irrigated agriculture and rural communities-- <br />is the consideration of,tax revenues. There are two key issues <br />to be explored in this, regard: <br /> <br />(1) Should Colorado continue its historical policy <br />of "pay as you go" financing for major capital <br />investments or should it embark, on a program of raising <br />capital in private financial markets through general <br />Obligation financing (i.e., creating indebtedness)? <br /> <br />(2) What tax source or sources should oe utilized for <br />either or both of these two financing approaches? <br /> <br />with respect to sources of tax revenues, there are three <br />general categories: <br /> <br />(1) General tax revenues (e.g., income taxes, sales and use <br />taxes, "sin" taxes, etc.), <br /> <br />(2) "Economic rents" for the use of publiClY owned <br />resources (e.g., severance taxes, mineral leasing fees, <br />etc. ), and, <br /> <br />(3) Property taxes <br /> <br />Each of these is briefly discussed below. Appendix A summarizes <br />the estimated revenues which increases in various taxes would <br />yield. <br /> <br />General Tax Revenues. The state obtains ,revenues through a <br />wide variety of general taxes: income taxes, sales taxes, use <br />taxes, liquor and cigarette taxes, inheritance taxes, etc. These <br />tax revenues can be appropriated both for everyday governmental <br />functions (i. e., j)ersonnel and operat ing expenses) and for major <br />capital investment projects such as buildings, parks, and <br />streets. For example, the General Assembly has appropriated <br />$78.6 million from general tax revenues since FY 72-73 for the <br />benefit of water development through the Colorado Water <br />Conservation Board construction fund (including the $30.1 million <br />transferred from the construction fund to the Water Resources and <br />power Development Authority by S.B. 19, 1981 Session). <br /> <br />-5- <br />