Gov. Jared Polis, the outgoing governor of Colorado, has proposed increasing the state’s tax on casinos ahead of his term’s end in January. The governor is pushing for a progressive tax, up from the current effective rate of 16.1%, moving it closer to the country’s average, which is 26%.
The proposed effective rate of the tax would be 23%. The progressive tax, though, would be higher – 35% in cases of a casino’s earnings exceeding a certain threshold.
According to the governor, this move could raise $80.2 million a year in new revenue to fund childcare and preschool programs. In a statement, the governor’s office detailed the plans by preceding it with the good that has come from Gov. Polis’ policies so far:
“Since Governor Polis took office in 2019, Colorado has increased average per-pupil funding by more than 50 percent – from $8,137 per student in 2019 up to $12,325 today.”
“This budget increases the State Share of Total Program funding by $154.7 million, including $125 million from the General Fund, bringing average per-pupil funding to $12,814, an increase of $488 over the current school year and over 55 percent higher than when Governor Polis took office,” the statement further noted.
However, the feasibility of implementing such a measure depends on how well legislators respond to it. For the time being, there has been no movement on the issue. Specifically, Gov. Polis is proposing that casinos pay a progressive tax, based on how much they earn.
For example, casinos earning between $20 million and $100 million annually would be taxed at up to 27.5%, and those earning more would have to pay a 35% tax.