Staff Reports
As the 2024 legislative session in Colorado approaches its conclusion, bipartisan support is coalescing around two bills aimed at reducing taxes for residents of the state. Republicans are championing Senate Bill 24-228 as a historic tax cut for Colorado, while Democrats are hailing House Bill 24-1134 for its provisions offering significant tax credits to middle- and lower-income families.
Colorado legislature turns focus to tax cuts, credits with days left in sessionhttps://t.co/3twX6mkZqE
— The Center Square (@thecentersquare) May 1, 2024
The Senate bill, encompassing 42 pages, proposes further reductions in income taxes through the Taxpayer’s Bill of Rights (TABOR). It aims to decrease sales and use taxes as part of the existing TABOR refund system and temporarily lower the state income tax rate from 4.4% to 4.25%. The bill includes seven triggers to temporarily adjust the tax rate between 2025 and 2035 based on specific benchmarks linked to state revenues. Additionally, it introduces a new TABOR refund mechanism to decrease state sales and use taxes if revenues surpass certain thresholds.
Senate Minority Leader Paul Lundeen, a sponsor of the bill, underscores the significance of providing relief to Colorado residents and allowing them to retain more of their earnings.
The House bill, spanning 25 pages, seeks to consolidate two current state income tax credits for child care expenses into a single credit beginning in 2026. It also aims to raise the state earned income tax credit as a percentage of the federal earned income tax credit. Furthermore, the bill proposes alterations to the state’s corporate income tax reporting standards.
Democratic Representative Jenny Williford expresses satisfaction with the bill's potential to offer substantial tax relief for working families and children, thereby enhancing Colorado's affordability.
Both bills contribute to ongoing endeavors to alleviate the financial strain on Colorado residents and bolster the state's economic competitiveness.
