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March 27, 2024 HB 24-1172
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated February 15, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0252
Rep. Taggart; Bird
Sen. Kirkmeyer; Mullica
Date:
Bill Status:
Fiscal Analyst:
March 27, 2024
Senate Local Govt. & Housing
David Hansen | 303-866-2633
david.hansen@coleg.gov
Bill Topic: COUNTY REVITALIZATION AUTHORITIES
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill allows for the creation of county revitalization authorities and the use of tax
increment financing in these districts. It conditionally decreases certain local
government revenues and diverts them to revitalization authorities, and increases
state and local expenditures.
Appropriation
Summary:
No appropriation required.
Fiscal Note
Status:
The fiscal note reflects the reengrossed bill.
Summary of Legislation
The bill allows counties to create county revitalization authorities (CRAs) to promote economic
revitalization in unincorporated areas of the state. CRAs may use resources like tax increment
financing (TIF) and private financing to conduct revitalization projects according to approved
plans. Plans must be reviewed by county planning commissions, be the subject of a public
hearing, and be approved by the board of county commissioners. Similarly, projects conducted
according to a revitalization plan must be presented at a public hearing and approved by the
board of county commissioners to promote sound growth of the county, improve economic and
social conditions, and further the health, safety, and well-being of the public. The bill outlines
the requirements for counties choosing to create and administer a CRA. Creating an authority
may be initiated by petition from county voters or by a resolution.
Under the bill, CRAs do not have the power to levy or assess property taxes or any other taxes.
Taxing entities that overlap a CRA, other than the county itself, may request to join the authority
and can join through a public hearing held by the authority. Tax increment financing approved
with a county revitalization plan is limited to a 30-year period under the bill.
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March 27, 2024 HB 24-1172
Background
Tax increment financing. In Colorado, tax increment financing (TIF) is a tax incentive
mechanism utilized by cities and towns for redevelopment projects within an urban renewal area
(URA) or a downtown development authority (DDA). TIF is used to promote capital development
by dedicating growth in property or sales tax revenue to finance projects within the boundaries
of the authority. This allows developers to use a portion of the revenues to pay expenses or debt
with the expectation that revitalization of the surrounding area will improve the local economy
and increase tax revenue for local governments. The portion used for redevelopment is the tax
increment, or the difference between the actual amount of revenue collected after the TIF is
established and the base year tax revenue, with adjustments.
Under current law, tax increment financing may be used in a DDA for an initial 30-year period,
after which municipalities may adopt 20-year extensions. Urban renewal plans within URAs are
limited to a 25-year period.
State Expenditures
Division of Property Taxation. The bill is expected to minimally increase workload in the
Department of Local Affairs’ Division of Property Taxation. Workload will include reviews and
updates of procedures, forms, and manuals, and to provide technical assistance and training to
local governments. The workload increase can be accomplished within existing appropriations.
Local Government
County and special district property tax revenue. The bill will conditionally shift revenue from
counties and special districts to CRAs. The property tax revenue impact will depend on the
extent to which tax increment financing is utilized within CRAs.
Revenue impacts also depend on the building and development that occurs, both in CRAs and
in the surrounding areas from the presence of a CRA, that would not have occurred in the state
otherwise, and the extent to which sales in the CRA do or do not divert sales from other areas.
Property tax impacts also depend on factors that add or subtract from the base and incremental
valuations over time.
County sales tax revenue. The bill conditionally diverts county sales tax revenue generated
within a CRA to the authority for use in TIF, but results in no net change in county sales tax
collections.
Expenditures. The bill conditionally increases workload for county assessors to administer
assessments and reports, and to perform other duties needed for TIF districts.
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March 27, 2024 HB 24-1172
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 Assessors County Clerks
Economic Development Education Information
Local Affairs Municipalities Property Taxation
Revenue Special Districts
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 the General Assembly website.