If this AMENDMENT to the state Constitution TAX INCREASE is approved by voters, this establishes new tax brackets and raises taxes for the funding of P-12 public education.
- Amendment 73 increases state income taxes only on households and businesses who make more than $150,000 /year
- Currently, Colorado’s income tax rate is a flat tax rate of 4.63 percent
- Amendment 73 adds new state income tax brackets
The measure then increases state personal income tax rates on federal taxable income by the following graduated rates, beginning in tax year 2019:
Add the following percentages to the current state income tax flat rate of 4.63%:
0.37 percent increase for income between $150,000 and $200,000;
1.37 percent increase for income between $200,000 and $300,000;
2.37 percent increase for income between $300,000 and $500,000;
3.62 percent increase for income above $500,000 and no cap
All revenue from this individual and corporate income tax increase is deposited in the Quality Public Education Fund and may be retained and spent without further voter approval.
The measure also increases the state corporate income tax rate for domestic C corporations and foreign C corporations doing business in Colorado by 1.37 percent, to 6%, beginning in tax year 2019. This is a 30% increase!
If Amendment 73 passes, it would place Colorado in the top 10 states (#8) for highest tax brackets and puts Colorado in the company of New York, New Jersey and California
Colorado’s top state income tax rate will be 8.25% for those earning over $500,000
New York has an 8.25% bracket, but it is for those earning over $1.2 Million
Colorado business taxes would be the highest in our region, hurting the State’s ability to retain and attract companies
Provides for all voters to vote to
increase the taxes of a few (just what our founders warned about)
Increases state income taxes only on households and businesses who make more than $150,000 /year, which is middle class, not the rich.
Would increase the current flat income tax rate of 4.63 percent additional incremental tax rates depending on taxable income.
Dooms any future attempt to pass a local MLO or Bond by the school district.
Tax dollars leave Douglas County and only a limited portion returns for education.
For every $5 dollars Amendment 73 takes out of Douglas County, only $2 comes back in..
Not indexed for inflation so it will ratchet down to eventually affect individuals currently making less than $150,000 now, but will be in future years
Amendment 73 would harm police and fire budgets, and other local government –
- Currently the Gallagher amendment in Colorado requires
that 55% of the state’s property tax comes from commercial property and 45% from residential.
- The non-residential rate is set constantly at 29% (of assessed value) and the residential rate adjusts to stay consistent with the
mandated 55/45 split.
Currently, without Amendment 73, residential property tax is assessed on 7.2% of residential value with that number estimated to drop to 6.1% next year (2019) which is an assessed rate reduction of 15%.
- However, if amendment 73 passes, Gallagher will become even more complex, and reduce funding for first responders and other non-school district taxing budgets in the near future. As previously stated, commercial property is taxed at 29% today. Gallagher would create a new category which would tax “school
district property tax levies” at 24% for non-residential and 7% for residential property.
- If amendment 73 passes the assessed non-residential rates for school districts and all others will be frozen at 29% and 24% in our constitution. The school district levy for residential will be locked in at 7% and the only rate that can adjust year-by-year is the non-school district residential property rate, (tax dollars that fund police, fire and other essential local government services.) TABOR restricts that number from ever ratcheting up, so it can only go down. This puts the non-school taxing authorities in the cross-hairs to collect a reduced amount of property tax to keep the 45/55 ratio as required by the Gallagher amendment, passed in 1982.