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March 29, 2023 HB 23-1255
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0548
Rep. Lindstedt; Dickson
Sen. Gonzales
Date:
Bill Status:
Fiscal Analyst:
March 29, 2023
House Trans. & Local Govt.
Colin Gaiser | 303-866-2677
colin.gaiser@coleg.gov
Bill Topic: REGULATE LOCAL HOUSING GROWTH RESTRICTIONS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill prohibits local governments from enforcing local housing growth restrictions.
Beginning in FY 2023-24, the bill may increase state workload and local government
revenue and expenditures on an ongoing basis.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Summary of Legislation
The bill prohibits a local government from enforcing or enacting any local housing growth restriction.
In the event of a declared disaster emergency, the local government may enact a temporary growth
restriction for no more than one year after the disaster declaration.
State Expenditures
Starting in FY 2023-24, the bill may increase workload in the Department of Local Affairs to provide
training and technical assistance to local governments, and address increased demand for grant
funding for planning and land use code updates. Any workload increase is absorbable within existing
resources. To the extent the bill increases local property tax revenue, the bill may decrease the state’s
share of public school funding under the School Finance Act. Any impact on state education spending
cannot be estimated.
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March 29, 2023 HB 23-1255
Local Government
The bill may impact local government revenue and expenditures, as described below. Impacts are
primarily in jurisdictions that have implemented local housing growth restrictions, but some impacts
will have affect local governments across jurisdictions.
Local revenue. By restricting local governments from enacting or enforcing local housing growth
limits, the bill is expected to increase local property and sales tax revenue on net, though impacts may
vary across the state. To the extent that there are more building permits issued, local governments
will receive more revenue from building permits, property taxes on new construction, sales and use
tax revenue from building materials, and other fees for various local government services. To the
extent that property values increase, property tax revenue will also increase unless constrained by
local TABOR limits.
The bill's impact on existing property and housing developments that would have already been built
is indeterminate. Property values may increase due to a broader array of permitted uses, or may
decrease relative to current law if the demand for housing is met by additional new construction
elsewhere.
Local expenditures. The bill may increase workload to local governments to process additional land
use applications and building permits once restrictions are lifted. Staff may be needed to update land
use codes and ordinances. In addition, the bill may add workload and expenditures for local
governments if they are required to update resources and infrastructure to support new development.
However, these costs cannot be estimated.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State and Local Government Contacts
Counties County Clerks District Attorneys
Information Technology Judicial Law
Local Affairs Municipalities
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.