22-54-106. Local and state shares of district total program - legislative declaration - definition - repeal.
Statute text
(1) (a) (I) For property tax years before the 2020 property tax year, every district shall levy the number of mills determined pursuant to subsection (2)(a) of this section, and the amount of property tax revenue that a district is entitled to receive from the levy, assuming one hundred percent collection, along with the amount of specific ownership tax revenue paid to the district, as defined in section 22-54-103 (11), is the district's share of its total program.
(II) Repealed.
(III) For the 2020 property tax year and property tax years thereafter, each district shall levy the number of mills determined pursuant to subsection (2.1) of this section. The amount of property tax revenue that a district is entitled to receive from the levy, less the amount of revenue attributable to the property tax credit described in subsection (2.1)(d) of this section, assuming one hundred percent collection, along with the amount of specific ownership tax revenue paid to the district is the district's share of its total program.
(b) (I) Except as provided in subsections (11) and (12) of this section, the state's share of a district's total program is the difference between the district's total program and the district's share of its total program.
(II) Repealed.
(2) (a) Except as provided in subsection (2)(c) of this section for reorganized districts, for the 2007 property tax year and property tax years thereafter through the 2019 property tax year, each district shall levy the lesser of:
(I) The number of mills levied by the district for the immediately preceding property tax year;
(II) (A) Subject to the provisions of sub-subparagraph (B) of this subparagraph (II), the number of mills that will generate property tax revenue in an amount equal to the district's total program for the applicable budget year minus the amount of specific ownership tax revenue paid to the district.
(B) Regardless of the applicability of section 22-54-104 (5)(g), for the purposes of this subparagraph (II), a district's total program shall be the amount calculated pursuant to section 22-54-104 (2).
(III) For a district that has not obtained voter approval to retain and spend revenues in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution, the number of mills that may be levied by the district under the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution. In the calculation of local growth for purposes of determining the property tax revenue limitation imposed on a district under this subparagraph (III), a district's student enrollment shall be the district's funded pupil count.
(IV) Repealed.
(V) Twenty-seven mills.
(b) (I) (A) If a district's total program for the 1994-95 budget year was calculated pursuant to section 22-54-104.3, for the 1995 property tax year, the levy calculated pursuant to paragraph (a) of this subsection (2) shall be reduced by the number of mills required to generate the difference between the district's total program for the 1994-95 budget year, as calculated pursuant to section 22-54-104.3 (3), and the district's total program for the 1994-95 budget year, as calculated pursuant to section 22-54-104 (2). The amount by which property tax revenue is reduced pursuant to this paragraph (b) shall be counted toward the limitation on additional local revenues as provided in section 22-54-108 (3).
(B) Notwithstanding the provisions of sub-subparagraph (A) of this subparagraph (I), if the mill levy was calculated pursuant to subparagraph (II) of paragraph (a) of this subsection (2), the difference between the district's total program for the 1994-95 budget year, as calculated pursuant to section 22-54-104.3 (3), and the district's total program for the 1994-95 budget year, as calculated pursuant to section 22-54-104 (2), shall be added to the total program as calculated pursuant to section 22-54-104 (2) to calculate the levy pursuant to this subparagraph (I).
(II) If after calculating the mill levy pursuant to subparagraph (I) of this paragraph (b) the district's levy exceeds 41.75 mills, the district shall levy 41.75 mills.
(III) For the 1995-96 budget year, if the amount of property tax generated for the 1994-95 budget year by the number of mills by which the mills levied by the district for the 1994-95 budget year exceeded 40.080 mills was equal to or exceeded the difference between the district's total program for the 1994-95 budget year, as calculated pursuant to section 22-54-104.3 (3), and the district's total program for the 1994-95 budget year, as calculated pursuant to section 22-54-104 (2), the district may levy the difference between the levy pursuant to subparagraph (I) and subparagraph (II) of this paragraph (b). For the 1996-97 budget year and budget years thereafter, the district may continue to impose a mill levy that will generate the amount of revenue produced by the calculation described in this subparagraph (III) for the 1995-96 budget year. The amount of property tax generated pursuant to this subparagraph (III) shall be counted toward the limitation on additional local revenues as provided in section 22-54-108 (3)(f).
(c) (I) Notwithstanding any other provision of this subsection (2), if there is a reorganization pursuant to article 30 of this title, except for a detachment and annexation, and if such reorganization involves districts with differing mill levies, then in its first year of operation, the new district shall levy a number of mills that is based on the total property taxes collected in the preceding year from property included within the new district divided by the total valuation for assessment in the preceding year of property located within the new district but in no event more than 41.75 mills. This paragraph (c) shall not apply to any new district whose levy would otherwise be calculated pursuant to subparagraph (II) of paragraph (a) of this subsection (2).
(II) If there is a detachment and annexation pursuant to article 30 of this title and if such detachment and annexation involves districts with differing mill levies, then in the first year after the detachment and annexation, the annexing district shall calculate its levy pursuant to paragraph (a) of this subsection (2).
(2.1) (a) (I) The general assembly finds that, for property tax years 1994 through 2006, subsection (2)(a)(III) of this section, as it existed before May 9, 2007, was wrongly interpreted and applied to reduce several districts' property tax mill levies to the number of mills that a district could levy under the property tax revenue limitation imposed by section 20 of article X of the state constitution, even though the district had obtained voter approval to retain and spend revenue in excess of that property tax revenue limitation. The general assembly finds, therefore, that the reductions in district mill levies for property tax years 1994 through 2006 were not authorized by statute and are void for purposes of determining a district's correct mill levy pursuant to this subsection (2.1) for the 2020 property tax year and property tax years thereafter, and the determination and levy of the correct number of mills that a district is required to levy pursuant to this subsection (2.1) does not require action by the district other than to certify the mill levy.
(II) The general assembly further finds that immediately correcting the unauthorized reductions in mill levies by restoring the district total program mill levies to the correct numbers of mills without awarding a property tax credit would work an unacceptable hardship on district taxpayers. The general assembly finds, therefore, that it is appropriate to correct the unauthorized reductions in mill levies by requiring the department of education to adopt a correction schedule by which districts must reduce the property tax credit awarded pursuant to subsection (2.1)(d) of this section and thereby give full effect to the restoration of the correct number of mills.
(b) For the 2020 property tax year, except as otherwise provided in subsection (2.1)(e) of this section for reorganized districts:
(I) A district that has obtained voter approval to retain and spend revenue in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution shall levy the lesser of:
(A) Twenty-seven mills;
(B) The number of mills that the district would have been required to levy under subsection (2)(a) of this section for the 2020 property tax year if not for the unauthorized reductions in the district's mill levy in property tax years following the property tax year in which the district obtained voter approval to retain and spend revenue in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution, which reductions resulted from the unauthorized application of subsection (2)(a)(III) of this section as it existed before May 9, 2007; or
(C) The number of mills that will generate property tax revenue in an amount equal to the district's total program for the applicable budget year minus the amount of specific ownership tax revenue paid to the district. Regardless of the applicability of section 22-54-104 (5)(g), for the purposes of this subsection (2.1)(b)(I)(C), a district's total program is the amount calculated pursuant to section 22-54-104 (2).
(II) A district that has not obtained voter approval to retain and spend revenue in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution shall levy the lesser of:
(A) Twenty-seven mills;
(B) The number of mills the district levied in the preceding property tax year; or
(C) The number of mills that the district may levy under the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution. In calculating local growth for purposes of determining the property tax revenue limitation imposed on a district by section 20 of article X of the state constitution, a district's student enrollment is the district's funded pupil count.
(c) For the 2021 property tax year and each property tax year thereafter, except as otherwise provided in subsection (2.1)(e) of this section for reorganized districts, each district shall levy the lesser of:
(I) The number of mills that will generate property tax revenue in an amount equal to the district's total program for the applicable budget year minus the amount of specific ownership tax revenue paid to the district. Regardless of the applicability of section 22-54-104 (5)(g), for the purposes of this subsection (2.1)(c)(I), a district's total program is the amount calculated pursuant to section 22-54-104 (2).
(II) For a district that has not obtained voter approval to retain and spend revenue in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution, the number of mills that the district may levy under the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution. In calculating local growth for purposes of determining the property tax revenue limitation imposed on a district by section 20 of article X of the state constitution, a district's student enrollment is the district's funded pupil count.
(III) The number of mills levied in the preceding property tax year; or
(IV) Twenty-seven mills.
(d) (I) For the 2020 property tax year, if a district, pursuant to this subsection (2.1), is required to levy a greater number of mills than it levied in the 2019 property tax year, the district board of education by resolution shall grant a temporary property tax credit equal to the number of mills levied in the applicable property tax year that exceeds the number of mills levied in the 2019 property tax year.
(II) Beginning in the 2021 property tax year and for each property tax year thereafter through the 2039 property tax year, if a district, pursuant to subsection (2.1)(c) of this section, is required to levy a greater number of mills than it levied in the 2019 property tax year, the school district board of education shall grant a temporary property tax credit equal to the number of mills required for the applicable property tax year by the correction schedule adopted by the department of education pursuant to subsection (2.1)(d)(III) of this section.
(III) The department of education shall adopt a correction schedule to incrementally reduce the temporary property tax credits required in this subsection (2.1)(d) beginning in the 2021 property tax year. The correction schedule must apply in the same manner to each district and must ensure that:
(A) Each district is required to reduce its temporary property tax credit as quickly as possible but by no more than one mill each property tax year; and
(B) By the 2040 property tax year, each district is levying the number of mills required in subsection (2.1)(c) of this section without granting a temporary property tax credit.
(IV) Beginning in the 2021-22 budget year and for each budget year thereafter until the general assembly determines that the stabilization of the state budget no longer requires a reduction in the amount of the annual appropriation to fund the state's share of total program, the general assembly shall ensure that any amount of savings to the state share of total program that occurs as a result of the decrease in the district property tax credits pursuant to subsections (2.1)(d)(II) and (2.1)(d)(III) of this section continues to be appropriated as a portion of the state share of total program pursuant to this section.
(e) Notwithstanding any other provision of this subsection (2.1) to the contrary, for the 2020 property tax year and each property tax year thereafter, if there is a reorganization pursuant to article 30 of this title 22 that results in the creation of a new district, then in the first year of operation the new district shall levy the lesser of:
(I) Twenty-seven mills; or
(II) The number of mills that will generate property tax revenue in an amount equal to the district's total program for the first year of operation minus the amount of specific ownership tax revenue paid to the district. Regardless of the applicability of section 22-54-104 (5)(g), for the purposes of this subsection (2.1)(e)(II), the district's total program is the amount calculated pursuant to section 22-54-104 (2).
(3) The property tax revenue a district is entitled to receive from the levy made pursuant to subsection (2) or (2.1) of this section for the 1994 property tax year and property tax years thereafter must be used to fund the district's share of its total program for the budget year beginning on July 1 of such property tax year, and the total amount of such revenue, less the amount of revenue that would be attributable to any mill levy tax credit granted pursuant to subsection (2.1)(d) of this section, is considered to be collected during such budget year for purposes of determining the state's share of the district's total program.
(4) (a) The general assembly shall make annual appropriations to fund the state's share of the total program of all districts and to fund all institute charter schools.
(b) In the event that the appropriation for the state's share of the total program of all districts, including funding for institute charter schools, under this article for any budget year, as established in the general appropriation act, is not sufficient to fully fund the state's share including funding for institute charter schools, the department of education shall submit a request for a supplemental appropriation in an amount which will fully fund the state's share including funding for institute charter schools. Such request shall be made to the general assembly during the fiscal year in which such underfunding occurs.
(c) If a supplemental appropriation is not made by the general assembly to fully fund the state's share of the total program of all districts including funding for institute charter schools or a supplemental appropriation is made to reduce the state's share of the total program of all districts including funding for institute charter schools, the state aid of each district and the funding for each institute charter school shall be reduced in accordance with the provisions of this paragraph (c). The total program of each district that receives state aid shall be reduced by a percentage determined by dividing the deficit in the appropriation or the reduction in the appropriation, whichever is applicable, by the total program of all districts that receive state aid. The state aid of each district shall be reduced by the amount of the reduction in the district's total program or the amount of state aid, whichever is less. The funding for each institute charter school shall be reduced in proportion to the reduction in the total program of the district from which the institute charter school's funding is withheld. The department of education shall see that the reduction in state aid required by this paragraph (c) is accomplished prior to the end of the budget year.
(d) (Deleted by amendment, L. 2010, (HB 10-1013), ch. 399, p. 1902, 12, effective June 10, 2010.)
(5) (a) Except as otherwise provided in sections 22-54-107, 22-54-108, and 22-54-108.5, no district may certify a levy for its general fund in excess of that authorized by this section.
(b) No district is authorized to seek voter approval to impose additional mill levies for its general fund in excess of that authorized by this section and sections 22-54-107, 22-54-108, and 22-54-108.5. Therefore, voter approval obtained by any district in order to be capable of receiving additional revenues within the limitations on the district's fiscal year spending for any budget year under section 20 of article X of the state constitution does not constitute voter approval for such district to certify a levy for its general fund in excess of that authorized by this section and sections 22-54-107, 22-54-108, and 22-54-108.5.
(6) If a district does not certify at least the mill levy required by subsection (2) or (2.1) of this section, the department shall determine what the state's percentage share of the district's total program would have been had the district certified the required mill levy. The department of education shall reduce the district's state aid in an amount that will result in the state's percentage share of the district's total program remaining the same as if the district had certified the required mill levy.
(7) For the 1994 property tax year and property tax years thereafter, all mill levies authorized or required by this section or sections 22-54-107, 22-54-108, and 22-54-108.5 shall be rounded to the nearest one-thousandth of one mill.
(8) (Deleted by amendment, L. 2010, (HB 10-1013), ch. 399, p. 1902, 12, effective June 10, 2010.)
(9) If a district reduces or ends business personal property taxes through action taken pursuant to section 20 (8)(b) of article X of the state constitution, the state's share of the district's total program for the budget year in which such action is taken and any budget year thereafter shall be the amount by which the district's total program exceeds the amount of specific ownership tax revenue paid to the district and the amount of property tax revenue which the district would have been entitled to receive if such action had not been taken by the district.
(10) (a) If a new district is created through a deconsolidation as described in section 22-30-102 (2)(a), the specific ownership tax revenue payable to the new district in the first year of operation shall be an amount equal to the ratio of the total valuation for assessment of taxable property located in the new district to the total valuation for assessment of taxable property located in the old district multiplied by the specific ownership tax revenue payable to the old district.
(b) Commencing with the first July specific ownership tax payment due after the new district is established and continuing until the new district receives its first payment of specific ownership tax revenues from the county treasurer, the department of education shall:
(I) Increase the state's share of the new district's total program by an amount equal to the ratio of the total valuation for assessment of taxable property located in the new district to the total valuation for assessment of taxable property located in the old district multiplied by the specific ownership tax revenue payable to the old district; and
(II) Reduce the state's share of the old district's total program by the same amount.
(11) Pursuant to the provisions of section 22-54-115, for each institute charter school, the department of education shall withhold from the state share of the institute charter school's accounting district the lesser of:
(a) An amount equal to one hundred percent of the adjusted district per pupil revenues, as defined in section 22-30.5-513 (1)(b), multiplied by the number of pupils enrolled in the institute charter school who are not online pupils plus one hundred percent of the district per pupil online funding multiplied by the number of online pupils enrolled in the institute charter school; or
(b) The total amount of the state share payable to the district.
(12) Any district that has obtained voter approval to retain and spend revenues in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution and that, after March 16, 2009, obtains voter approval to again become subject to such property tax revenue limitation shall receive an amount of state aid that shall be calculated as if the district levied the number of mills that it would have levied in the applicable budget year had the district maintained its authority to retain and spend revenues in excess of such property tax revenue limitation.
History
Source: L. 94: Entire article added with relocations, p. 791, 2, effective April 27; (8)(a) amended and (8)(d) added, p. 2832, 2, effective January 1, 1995. L. 95: (1)(a)(I) and (2) amended, p. 617, 18, effective May 22. L. 96: (1)(a)(I), (2)(a)(IV), (2)(b)(III), and (5) amended, pp. 1793, 1798, 6, 17, effective June 4; (2)(a) amended and (2)(c) and (10) added, pp. 64, 65, 20, 21, effective July 1. L. 97: (5) amended, p. 581, 6, effective April 30. L. 2000: (5) amended, p. 485, 7, effective April 28. L. 2003: (8)(a) amended, p. 2138, 37, effective May 22. L. 2004: (1)(b) and (4) amended and (11) added, p. 1638, 44, effective July 1. L. 2005: (4)(d) and (8)(e) added, p. 439, 16, 17, effective April 29. L. 2006: (1)(a)(II) and (2)(a)(IV) repealed, p. 625, 47, effective August 7. L. 2007: (5) and (7) amended, p. 39, 7, effective March 7; (2)(a) amended, p. 736, 5, effective May 9. L. 2009: (1)(b) amended and (12) added, (SB 09-291), ch. 368, p. 1936, 1, effective June 1. L. 2010: (1)(b) and (4)(c) amended, (HB 10-1318), ch. 34, p. 126, 1, effective March 22; (2)(a)(II) amended, (HB 10-1369), ch. 246, p. 1099, 5, effective May 21; (1)(b), (4)(d), and (8) amended, (HB 10-1013), ch. 399, p. 1902, 12, effective June 10. L. 2011: (1)(b)(I) amended, (SB 11-238), ch. 300, p. 1446, 2, effective June 8. L. 2015: (1)(b)(I), (2)(a)(II)(A), and (4)(c) amended and (1)(b)(II) repealed, (SB 15-267), ch. 295, p. 1201, 2, effective June 5. L. 2020: (1)(a)(I), IP(2)(a), (3), and (6) amended and (1)(a)(III) and (2.1) added, (HB 20-1418), ch. 197, p. 950, 33, effective June 30. L. 2021: (2.1)(a) and (2.1)(d) amended, (HB 21-1164), ch. 223, p. 1197, 1, effective June 11.
Annotations
Editor's note: Amendments to subsection (1)(b) by House Bill 10-1318 and House Bill 10-1013 were harmonized.
Annotations
Cross references: For the legislative declaration in HB 20-1418, see section 1 of chapter 197, Session Laws of Colorado 2020.
Annotations
ANNOTATION
Annotations
Pursuant to subsection (2.1), the general assembly may require school districts to gradually eliminate temporary tax credits, as provided in House Bill 21-1164, to reset the school districts' total program mill levies to the levels that would have been in effect but for the unauthorized reductions to total program mill levies in school districts that had obtained voter approval to retain all excess revenue under the Taxpayer's Bill of Rights (TABOR), art. X, 20, of the state constitution. In re Interrogatory on House Bill 21-1164, 2021 CO 34, 487 P.3d 636.