Colorado Considers Expansion of Sports Betting Tax Revenue to Water Conservation
Colorado legislators are mulling over a proposal to extend the allocation of tax revenue from sports betting to fund water conservation projects.
Currently, revenue generated from sports betting taxes is capped at $29 million, with the funds directed to the Colorado Water Plan Implementation Fund. However, House Bill 1436 aims to remove this limitation, potentially allowing more tax revenue to be channeled into critical water conservation efforts across the state.
Bipartisan Support for Legislative Initiative
House Speaker Julie McCluskie spearheaded the introduction of House Bill 1436, which has garnered bipartisan backing. The proposed legislation seeks to empower voters to decide on utilizing additional revenue from Colorado’s sports betting tax to bolster essential water conservation initiatives.
McCluskie emphasized the significance of safeguarding water resources for environmental sustainability, recreational purposes, and maintaining the unique lifestyle synonymous with Colorado.
Tax Revenue Allocation and Projections
Since the legalization of sports betting in Colorado in 2019, a 10% tax rate has been imposed on sports betting proceeds. A portion of this tax revenue is allocated to cover regulatory costs, while up to $29 million is designated for water projects.
Despite current tax revenue from sports betting falling short of the $29 million cap, projections indicate a steady growth trajectory.
Estimates suggest an increase to approximately $31.8 million in the current fiscal year, with figures expected to rise to $36.2 million by 2025-26.
House Bill 1436 has already cleared the House Finance Committee with unanimous support and is set for review by the House Appropriations Committee. Should the bill progress further, it will undergo deliberation in the full House. Crucially, the proposed amendment will be subject to voter approval in November. If ratified, any tax revenue exceeding the $29 million cap would be redirected to support water conservation initiatives. However, in the event of voter rejection, surplus revenue would be returned to sports betting operators.
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