HomeMy WebLinkAbout770659.tiff j^ r,,,� STATE OF COLORADO T sg
COUNTY OF WELD r
mEMORAf DUIYl oted WN�� Y3,��7e Board
of County Com m�ssioners
Illifie To BOARD OF COUNTY COMMISSIONERS Date November X23, 1 CLERK AND RECORDER
and TOM DORITY, FINANCE DIRECTOR By
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COLORADO From Thomas 0. David, Weld County Attorney
Subject: Question Regarding 5% Limitation on Ad Valorem Taxes
You have posed the question as to whether or not the 5% increase
limitation on ad valorem taxation, as provided by Section 14-7(1 ) of
the Weld County Home Rule Charter, should be applied to each separate
department's budget, or must be applied to the overall budget for
Weld County for fiscal 1978.
The pertinent section of the Weld County Home Rule Charter reads as
follows:
Section 14 - 7 -- Limitation on Annual Tax Levy
(1 ) Limitation. Except as otherwise provided herein, all ad
valorem tax levies for county purposes, when applied to the total
valuation for assessment of the County, shall be reduced so as to
prohibit the levying of a greater amount of tax revenue than was
levied from ad valorem taxation in the preceeding year plus five
percent (5%) except to provide for the payment of bonds and interest
thereon.
This particular section of the Charter was obviously drawn to affectuate
the limitations as set forth in the State statute in effect at the time
of the adoption of the Weld County Home Rule Charter, which statute reads
as follows:
ANNUAL LEVY - INCREASE OR REDUCTION - LIMITATION
29-1-301 . Levies reduced - limitation. (1 ) Except as otherwise
provided, all statutory tax levies when applied to the total
valuation for assessment of the state, each of the counties,
cities, and towns, and each of the fire sanitation, irrigation,
drainage, conservancy, and other special districts established
by law, shall be so reduced as to prohibit the levying of a greater
amount of revenue than was levied in the preceding year plus five
percent except to provide for the payment of bonds and interest
thereon.
(2) If an increase over said five percent is allowed by the
divison of local government in the department of local affairs or
voted by the electors of a taxing district under the provisions
of section 29-1-302, the increased revenue resulting therefrom
shall be included in determining the five percent limitation in
the following year.
770659
A : o,r•.i QFt,A /1/
3/77
.-\
Board of County Commissioners
and Tom Dority
November 23, 1977
Page 2
It is to be noted that Section 29-1-302 was amended in 1976 to provide
for a 7% increase (which is not applicable to Weld County) but the
statute remains basically the same.
An examination of the statutory law reveals no cases decided on the
particular question which you have posed, and it is my opinion that
no cases have arisen because of the plain and concise language of the
statute which simply provides that the total TAX REVENUE which is levied
from AD VALOREM TAXATION may not exceed the prior year's revenue PLUS FIVE
PERCENT.
It is, therefore, my opinion that the 5% limitation may only be applied
against the total tax revenues levied from ad valorem taxes in the pre-
ceding year, and that the budgeting authority is not restricted to a 5%
increase on a department-to-department or line item-to-line item basis.
( -
-THOMAS DANK --Th if fyyry C
Wel ounty Attorney
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