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State and Local Tax

Colorado, Ohio, Texas Voters Decide Tax-Related Ballot Questions

Checkpoint State Tax Update Staff  

· 5 minute read

Checkpoint State Tax Update Staff  

· 5 minute read

Taxpayers in Colorado, Ohio and Texas voted on tax-related ballot questions on November 7, 2023. The unofficial results, as of the time of this publication, are listed below.

Colorado.

According to the Colorado Secretary of State website, Colorado voters rejected Proposition HH, which would have allowed the state to reduce property taxes for homes and businesses, including expanding property tax relief for seniors, and backfill counties, water districts, fire districts, ambulance and hospital districts, and other local governments and fund school districts by using a portion of the state surplus up to the specified cap. As a result of the rejection, the enabling legislation, L. 2023, S303 does not take effect.

Colorado voters approved Proposition II, which, without raising taxes, allows the state to retain and spend revenues from taxes on cigarettes, tobacco, and other nicotine products; maintain the tax rate on cigarettes, tobacco, and other nicotine products; and use these revenues to invest in the voluntary Colorado preschool program and make it widely available for free instead of reducing these tax rates and refunding revenues to cigarette wholesalers, tobacco product distributors, nicotine products distributors, and other taxpayers, for exceeding an estimate specified in Proposition EE (approved in the 2020 election). As a result of the approval, the enabling legislation, L. 2023, H1290 takes effect.

Denver voters approved Referred Question 2P, which, without raising additional taxes, allows the existing voter-approved 0.15% sales and use tax dedicated to funding the Denver Preschool Program, and set to expire on December 31, 2026, to be permanently extended until such authority is altered or repealed by the Denver City Council or Denver voters.

Ohio.

Voters approved Ohio Issue 2, a marijuana legalization initiative, which legalizes and regulates the cultivation, processing, sale, purchase, possession, home grow, and use of cannabis by adults who are at least 21 years old, including approving a 10% tax on adult use cannabis sales by dispensaries. The tax is in addition to existing state and county sales taxes. All revenue collected from the 10% tax will be deposited into the adult use tax fund and distributed quarterly: 36% to the cannabis social equity and jobs fund, 36% to the host community cannabis facilities fund, 25% to the substance abuse and addiction fund, and 3% to the division of cannabis control and tax commission fund. A new Division of Cannabis Control within the Ohio Department of Commerce was established to complete the rulemaking and licensing processes.

Hamilton County voters rejected Issue 24, which would have required an amendment to the Charter of the City of Cincinnati to raise the city income tax rate by 0.3% (from 1.8% to 2.1%) to finance affordable housing.

Texas.

Voters approved Proposition Number 2, the constitutional amendment authorizing a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.

Voters approved Proposition Number 3, the constitutional amendment prohibiting the imposition of an individual wealth or net worth tax, including a tax on the difference between the assets and liabilities of an individual or family.

Voters approved Proposition Number 4, the constitutional amendment to authorize the legislature to establish a temporary limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes; to increase the amount of the exemption of ad valorem taxation by a school district applicable to residence homesteads from $40,000 to $100,000; to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts; to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations; and to authorize the legislature to provide for a four-year term of office for a member of the board of directions of certain appraisal districts.

Voters approved Proposition Number 10, the constitutional amendment to authorize the legislature to exempt from ad valorem taxation equipment or inventory held by a manufacturer of medical or biomedical products to protect the Texas healthcare network and strengthen the medical supply chain.

 

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