Budget & Taxes

The act creates the cradle to career grant program (grant program) in the department of human services (CDHS) to provide grants to a local government, local education provider, state institution of higher education, Indian tribe or tribal organization, or community-based nonprofit or not-for-profit organization (eligible entity) to promote coordinated community-based supports and services that open opportunities for economic mobility from poverty. The grant program must connect children and youth with high-quality educational and extracurricular programming and families with key health and social services in order to improve prenatal and early childhood outcomes, student achievement, workforce readiness, and wealth-building opportunities.     The act creates the cradle to career advisory council (council) to approve or disapprove CDHS's potential grant recipients and to collaborate with CDHS to develop grant program guidelines and criteria for awarding grants. Council members must be Colorado residents and must not provide financial support for the grant program.     To receive a grant, an eligible entity must submit an application that includes an economic mobility needs assessment and a comprehensive proposal to address the needs within its designated service area. The application must identify prospective community partners and subcontractors. The act caps the amount that CDHS may award in connection with a single grant application at 49% of available grant program money.     A grant recipient must comply with various health and safety, financial responsibility, and anti-discrimination safeguards. Each grant recipient must annually report to CDHS addressing the recipient's progress using a set of performance indicators to assess the economic mobility outcomes and impacts associated with the grant award. CDHS must make a related report to the health and human services committees of the general assembly and the governor each year.     CDHS may seek, accept, and expend gifts, grants, and donations for grant-program-related purposes. If CDHS does not receive $900,000 for those purposes on or before December 31, 2028, the grant program is repealed. The general assembly shall not appropriate general fund dollars for grant program operations.(Note: This summary applies to this bill as enacted.)

Real property or buildings used to provide dwelling accommodations that substantially benefit persons with low income (project property) that is owned, leased, or under construction by a local housing authority, or an entity that is partially or wholly owned by a local housing authority, is exempt from property taxation. Section 1 of the bill clarifies that a "senior cooperative housing project" may qualify for such property tax exemption as a "project" of a local housing authority. A "senior cooperative housing project" is defined as a multi-unit residential building or complex occupied by qualifying seniors that is owned by a cooperative or cooperative housing corporation. A "qualifying senior" is an individual who is at least 65 years old and of low income.The affordable rental housing component of property in a public-private partnership between the middle-income housing authority and one or more public or private entities or persons is exempt from property taxation. Section 2 clarifies that a "senior cooperative housing project" that otherwise meets the qualifications and is selected by the authority may qualify for such property tax exemption as an "affordable rental housing project". "Senior cooperative housing project" has the same meaning as in section 1. A "qualifying senior" also has the same meaning as in section 1 and includes an individual who is of middle income. (Note: This summary applies to this bill as introduced.)

Current law restricts the annual amount of property tax revenue that a local government or a special district may collect to the amount of property tax revenue collected in the previous year plus 5.5%, with certain adjustments. This statutory limit does not apply to school districts or home rule municipalities. The limit may be waived by voter approval of the voters of the taxing entity (waived jurisdictions).Current law also restricts the annual amount of property tax revenue that a waived jurisdiction may collect to the greatest amount of qualified property tax revenue collected by the taxing entity in a previous property tax year increased by 5.25% multiplied by the number of property tax years in a reassessment cycle. Similarly, the annual amount of property tax revenue that a school district may collect is limited to the greatest amount of the local share of statewide total program property tax revenue collected by a school district in a previous property tax year increased by the greater of 6% multiplied by the number of property tax years in a reassessment cycle or the sum of the percentage by which the general assembly annually increases the statewide base per pupil funding for public education from kindergarten through twelfth grade and the percentage increase in pupil enrollment for both the relevant property tax year and the other property tax year in the same reassessment cycle. Both of these statutory property tax revenue limits may also be waived by voters, except that individual school districts are not able to locally waive their individual property tax limits and, instead, must seek statewide voter approval to waive the school district limit.The bill temporarily reduces the operative percentage adjustments in these 3 statutory property tax revenue limits to 4% for property tax years beginning on or after January 1, 2027, but before January 1, 2033.(Note: This summary applies to this bill as introduced.)

The bill creates three enterprises (enterprises) in the behavioral health administration; the:Beer, cider, and apple wine impact and recovery enterprise;Spirits impact and recovery enterprise; andWine impact and recovery enterprise.The enterprises collect a fee from licensees that are manufacturers and wholesalers that distribute alcohol in Colorado, and use the fee for services described in the bill.The bill creates an alcohol impact and recovery enterprise board that governs the enterprises.The bill requires the state auditor to conduct an audit of the enterprise in the 2032-33 state fiscal year and each fourth state fiscal year thereafter.(Note: This summary applies to this bill as introduced.)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated for capital construction information technology projects. The capital construction fund, cash funds, and federal funds portions of the appropriation are increased.     The 2024 general appropriations act is amended to balance and make adjustments to the total amount appropriated for capital construction information technology projects. The capital construction fund and federal funds portions of the appropriation are decreased.(Note: This summary applies to this bill as enacted.)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the department of higher education. The general fund and reappropriated funds portions of the appropriation are decreased, and the cash funds and federal funds portions are increased.     The 2024 general appropriations act is amended to make adjustments to the amount appropriated to the department of higher education.(Note: This summary applies to this bill as enacted.)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the department of early childhood. The general fund, reappropriated funds, and federal funds portions of the appropriation are decreased, and the cash funds portion is increased.(Note: This summary applies to this bill as enacted.)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the department of human services. The general fund and federal funds portions of the appropriation are increased and the cash funds portion is decreased.     Amends House Bill 25-1154, concerning communication services for people with disabilities, and, in connection therewith, creating the communication services for people with disabilities enterprise, to decrease the FTE related to the appropriation to the fund.     Amends House Bill 25-1154, concerning communication services for people with disabilities, and, in connection therewith, creating the communication services for people with disabilities enterprise, to increase the FTE to the communications services for people with disabilities enterprise, and to change the appropriation from the wireless trust to the telephone disability access charge cash fund.(Note: This summary applies to this bill as enacted.)

Under current law, residential real property that is classified as qualified-senior primary residence real property is subject to a reduced valuation for assessment for property tax years beginning on or after January 1, 2025, but before January 1, 2027. The act ends the qualified-senior primary residence real property classification for property tax years beginning on or after January 1, 2027, and changes related requirements for county assessors, county treasurers, and the property tax administrator so that the classification and all related administrative and reporting requirements end on dates that align with the end of the reduced valuation for assessment.     The act changes the state property tax exemption for business personal property, commencing on and after January 1, 2027, by setting the exemption at $58,000, without an adjustment for inflation. The act also sets the reimbursement for property tax losses due to the exemption, for property tax years beginning on and after January 1, 2027, at the reimbursement amount for the 2026 property tax year.(Note: This summary applies to this bill as enacted.)

Effective July 1, 2026, the bill defines "premium cigar" and reduces the statutory excise taxation rate on premium cigars to 20% of the manufacturer's list price (MLP) from the current rates for all non-cigarette tobacco products other than moist snuff of 36% of the MLP from July 1, 2024, through June 30, 2027, and 42% of the MLP on and after July 1, 2027, effectively rolling back the increases in the statutory taxation rate for such tobacco products since 2005. The bill does not affect taxation of premium cigars under the state constitution, which imposes an additional 20% tax.(Note: This summary applies to this bill as introduced.)