Data Used to Determine Revenue
The data certified by the assessor to a taxing entity is used by the entity to determine such information as the amount of revenue that can be generated from the taxable property within its boundary, the maximum revenue and spending increase over the prior year’s revenue and spending, and the mill levy needed to generate the desired revenue.
Each year, taxing entities are required to develop a budget for the upcoming year. Once the projected expenses have been determined and the budget is finalized at a public hearing, revenue must be generated to fund the expenses. Most taxing entities derive some of their operating revenue from property tax. The data furnished by assessors is essential to the process.
Tax Increment Financing
The Colorado General Assembly has authorized the use of a form of financing known as “tax increment financing” by urban renewal authorities (URA) and downtown development authorities (DDA) in the State of Colorado.
Tax increment financing (TIF) provides a method whereby certain types of public improvements intended to promote urban redevelopment may be financed through the issuance of tax exempt revenue bonds. It involves the creation of a special fund comprised of increases in ad valorem property taxes or municipal sales taxes, or both such taxes, generated within the tax increment financing area. The increases in such taxes presumably occur as a result of the expenditure of bond proceeds. The increases in tax proceeds are then pledged to pay debt service on the bonds.
Boulder County 2016 Summary of TIFs
|Lafayette Old Town URP||$11,364,332||$4,604,022|
|South Boulder Road Revitalization Area||$6,392,672||$4,061,627|
|Longmont Downtown Development Authority||$31,647,397||$9,551,103|
|Highway 42 Revitalization Area URP||$37,239,976||$9,413,158|
|Nederland Downtown Development Authority||$4,470,337||$1,726,621|
|Superior Town Center||$26,142||$8,633,072|
|Twin Peaks Mall Urban Renewal Authority||$8,499,934||$8,373,102|
|Lyons Urban Renewal Authority||$7,064,165||$87,061|
|Highway 287 Urban Renewal Authority||$0||$0|
|Four Corners Urban Renewal Authority||$1,642||$0|