Colorado Legislature might curb multimillion-dollar incentives to big business
“Tax breaks, such as the $53 million Fort Collins has pledged to developers of Foothills Mall, would be more difficult to get in Colorado under legislation expected to be introduced next year.
Statewide, nearly $1.4 billion in revenue that would have gone to schools, services provided by city and county governments, and other entities has been diverted to tax breaks for businesses during the past 25 years, according to a report by the Larimer County Budget Office. Under current law, most taxing authorities whose money is being doled out as business incentives are powerless to stop it.
With that in mind, state Rep. Dickey Lee Hullinghorst, D-Boulder, plans to propose a law change that would give each entity that stands to lose revenue a say in whether tax breaks should be awarded to businesses.
At the heart of the conflict is tax-increment financing, which enables authorized businesses and developers to retain a percentage of sales tax they collect for up to 25 years or affords discounts on property tax.
The incentive is viewed in economic development circles as a tool to kick-start new development or enable expansion of existing businesses.”
Malone, Patrick. coloradoan.com 7 September 2013.
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