Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Legislative Council Staff ∙ 200 E. Colfax Ave, Room 029 ∙ Denver CO 80203
Fiscal Note
Memorandum
April 16, 2024
TO: Members of the House Finance Committee
FROM: David Hansen, Senior Economist
david.hansen@coleg.gov | (303-866-2633)
SUBJECT: Fiscal Assessment of Proposed Amendment L.003 to SB 24-111
This memorandum is an assessment of the fiscal impact of the attached proposed amendment
L.003 to SB 24-111. This fiscal assessment is for the impact of the bill with inclusion of this
amendment only. Any other added amendment could influence the fiscal impact.
Summary of Proposed Amendment L.003
The amendment changes who is eligible for the qualified-senior primary residence real property
classification, from those who previously qualified for the senior homestead exemption in 2016
or later years but are currently ineligible, to those who qualified in 2020 or later years.
Fiscal Impact of Amendment L.003
The amendment reduces the number of taxpayers that would benefit from lower assessed
values under the bill, thereby reducing the expected decrease in property tax revenue. A smaller
decrease in property tax revenue reduces the amount of TABOR refunds paid for
reimbursements to local governments, and reduces the corresponding decrease in the six-tier
sales tax refund mechanism. With the amendment, the bill would increase property tax refunds
by $34.1 million in FY 2025-26 and $43.3 million in FY 2026-27, down from $65.8 million and
$75.0 million under the reengrossed bill. The amendment does not change the amount required
to be refunded under TABOR. Refunds for the property tax reductions, paid via reimbursements
to local governments for their losses, will continue ramp up by about $9.3 million per year
through FY 2030-31.
A forecast of TABOR revenue is not available beyond FY 2025-26. For future years when the
state refunds a TABOR surplus, the bill as amended would continue increase the amount
refunded to taxpayers via local reimbursements and decreases the amount refunded via the
six-tier mechanism, as described above. For future years when the state does not refund a
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TABOR surplus, the bill increases General Fund expenditures to reimburse local governments for
lower property taxes, and reduces the amount otherwise available for the General Fund budget.
Bill’s Revised Fiscal Impact with Amendment L.003
The fiscal impact of the bill with Amendment L.003 is shown in Table 1.
Table 1
State Fiscal Impacts Under SB 24-111
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Revenue - - -
Expenditures General Fund - $151,832 $54,642
Centrally Appropriated - $5,232 $6,976
Total Expenditures - $157,064 $61,618
Total FTE - 0.3 FTE 0.4 FTE
Transfers - - -
Other Budget
Impacts
General Fund Reserve - $22,775 $8,196
TABOR Refunds – Property Tax Subtraction - $34.1 million $43.3 million
TABOR Refunds – Six-Tier Mechanism - ($34.1 million) ($43.3 million)
Net TABOR Refund Change - $0 $0