While the impact of each new regulation has not been fully valued yet, efforts to comply with them will cost many individuals and businesses billions of dollars in total, likely even more than the $2.1 billion in direct costs. New net direct costs, which will exceed $2.1 billion in 2023, comprise only part of the financial burden facing Coloradans and Colorado businesses-they do not include the indirect costs of numerous new laws and regulations. Overall, the 2021 legislative session resulted in an additional $699 million dollars in new taxes and fees, but, through both an increase in income tax deductions and a temporary 2-year property tax cut, there is also a projected $397 million in tax cuts in FY23.ĭirect Taxes and Fees are Just the Tip of the Iceberg of New Costs This evades the need for approval by Colorado voters which 2020 Proposition 117 now requires. In addition, each of the 6 new enterprises created during the 2021 session are estimated to generate less than $100 million individually over their first five years.As shown by Figure 3, the state income tax rate would need to increase by 1.23 percentage points to raise the same amount of revenue ($2.2 billion ) that pending fees from the last four years are projected to raise.

08 percentage reduction in the state income tax just approved by voters last year under Proposition 116 raising $255 million through the state income tax would require a rate increase of. This figure is relevant to two ballot measures passed in 2020.

New fee-based revenue from the 2021 session is projected to be over $255 million annually. The Challenge of Economic Recovery Continues to Grow under New Regulatory Burdens and More than $2.1 Billion in New Taxes and Feesĭespite tax revenue to the state’s General Fund rebounding to more than $2 billion above pre-pandemic levels and a surge of more than $65 billion in federal funds to Colorado, the 2021 legislative session, which ended June 8th, resulted in an additional net tax burden of $302 million (in FY23) on individuals and businesses.

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