Proposition JJ on Colorado’s poll asks electorate to make a decision whether or not the state must proceed returning extra sports activities having a bet tax earnings to casinos — or stay the cash to spend on water tasks.
Colorado electorate in 2019 legalized sports activities having a bet on-line and within the state’s 3 gaming cities — Cripple Creek, Black Hawk and Central Town. The authorization allowed the state to stay as much as $29 million in tax earnings from playing each and every 12 months however mandated that it go back any tax proceeds above that cap to casinos and sports-betting operators.
Tax earnings surpassed $29 million within the state’s 2023-2024 finances 12 months and is projected to extend in coming years, consistent with the state’s Blue E book voter information.
Colorado lawmakers positioned Prop. JJ at the poll. Because it proposes a metamorphosis to state regulation, it wishes a easy majority to cross.
What would Prop. JJ do if handed?
Beneath the measure, all tax cash accrued from sports activities having a bet can be retained via the state and used for water tasks. Passing Prop. JJ would now not affect people’ taxes or tax refunds below Colorado’s Taxpayer’s Invoice of Rights.
Sports activities having a bet internet earnings — which is benefit after paying federal taxes and profitable bets — is taxed via the state at 10%. The state in finances 12 months 2023-2024 accrued $29.9 million in sports activities having a bet taxes. Beneath present regulation, it should go back any quantity over the $29 million cap to playing operators.
If Prop. JJ passes, that cap would leave.
Tax earnings from sports activities having a bet is estimated to be $30.2 million in finances 12 months 2024-2025 and $31.5 million the next 12 months, consistent with the Blue E book. The passage of Prop. JJ would yield an additional $3.7 million for water tasks in the ones years.
The place would cash from Prop. JJ move?
The cash would pay for water tasks defined within the Colorado Water Plan, akin to expanding water garage capability and drought making plans.
The Colorado Water Conservation Board distributes cash for water tasks. Final 12 months, it funded tasks to toughen water infrastructure and toughen the potency of water use in houses and in agriculture.
What do supporters say?
Supporters of the proposition span political events, industries and Colorado’s city and rural communities. Supporters come with the Colorado Cattlemen’s Affiliation, Conservation Colorado, Industry for Water Stewardship, and Democratic and Republican lawmakers from main towns and rural Colorado.
“Balloting Sure on JJ will reinforce our water sources, offering the vital sources to safeguard our water for long run generations,” Erin Karney, govt vp of the Colorado Cattlemen’s Affiliation, stated in a information liberate. “It’s an funding within the long-term sustainability of our ranching heritage and a dedication to the communities that rely on it.”
The group representing casinos and sports-betting operators in Colorado does now not object to the modification, Colorado Gaming Affiliation govt director Peggi O’Keefe wrote in an e mail.
What do combatants say?
No organizations have pop out against Prop. JJ.
One argument towards the proposition, as defined within the Blue E book, is that “if the state refers a poll query with a restricted quantity of recent taxes” — as came about in 2019 — “it must keep inside that prohibit.”
Keep up-to-date with Colorado Politics via signing up for our weekly publication, The Spot.
At the start Printed: