Pelton’s legislation could mean 1-time tax credit of surplus general funds

Rep. Rod Pelton, R-Cheyenne Wells, scored a bipartisan victory in the House Finance Committee on March 17, with approval of House Bill 1129.

The bill sets up a one-time income tax credit of surplus general funds — the dollars the state gets from corporate and individual income taxes and sales taxes — to taxpayers.

“This bill couldn’t come at a better time, with all the people hurt through shutdowns, businesses closed, and the state realizing a surplus over and above what we thought we would get,” to the tune of $1.8 billion, Pelton told the committee.

Pelton said the bill is intended to direct the money to those who pay taxes. Pelton’s bill deals with the projected general fund surplus for 2021-22, a $3 billion pot of one-time money that lawmakers are planning to spend in the 2022-23 budget.

By sending those dollars back to taxpayers, it means the state cannot save that money for future obligations, according to the bill’s fiscal analysis.

Money would go back to taxpayers regardless of level of income, so even if someone was doing well during the pandemic they’d still get a tax credit, according to Rep. Matt Gray, D-Broomfield, who questioned why the bill doesn’t set up “means testing,” which would consider income levels.

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