Colorado Proposition 103: A proposition to increase funding for education throughout the State of Colorado “Shall Colorado state law be changed to increase the taxes on the money you earn (from 4.63% to 5%), the sales tax you pay when you buy something (from 2.9% to 3%), and the use tax for things like rentals (from 2.9% to 3%) for five years? These additional funds will go directly to the State of Colorado and would be used for pre-school through 12 th grade and for college and university education.”

What does it propose? That the state would increase the taxes on: 1. Income taxes - the money you earn from 4.63% to 5% 2. Sales tax - the money you pay when you buy something from 2.9% to 3% 3. Use tax - for things like rentals from 2.9% to 3% Proposition 103 will generate approximately $536 million a year for five years. This money would be used to fund pre-school through college and university education in Colorado.

Is this the same as property tax? No. There are different kinds of taxes. Income taxes – tax on money you earn Sales taxes – tax on money you spend to buy stuff Use taxes – tax on money you spend like rentals Property taxes – tax you pay based on property you own Proposition 103 raises income, sales, and use taxes.

Why is it proposed? The Colorado Legislature has cut $500 million from the education budget over the last three years. That has made it very difficult for local school districts to operate as they have in the past. A 1992 amendment to the state constitution prohibits the Legislature and local lawmakers from increasing taxes without voter approval. The state is responsible for 64 percent of education funding. The state has had a shortage of revenue to cover those costs.

Why is it proposed? (continued) Colorado spent $1,809 less per pupil in kindergarten through 12th grade than the national average of $10,591 in 2009, the most recent year for which data are available. Only 10 states spent less. About $200 million in cuts in the 2012 fiscal year forced some of the state’s 178 school districts to fire teachers, suspend textbook purchases, institute transportation fees, freeze salaries, lower graduation requirements and reduce the length of the school week.

Why is it opposed? Opponents argue that raising taxes will stall the state’s recovery from the recession by causing businesses to think twice about hiring more workers or relocating to Colorado. Opponents believe raising taxes over five years would slow Colorado’s economy and lead to 27,000 fewer people working by Other opponents suggest that tax increases are dangerous in a weak economy and that education is not lacking funding, it is lacking structural reform.

What will it cost you? It will depend on the two taxes: The income tax on how much money you earn The sales tax on how much money you spend

Change in Income tax Everyone’s income tax is slightly different, but it is estimated that the difference will be about $21 per $10,000 in what you earn. For example: If your income is $28,000 per year, you will probably pay $60 more in income tax each year If your income is $45,000 per year, you will probably pay $97 more in income tax each year

What is the sales tax difference on a $15 book or audio CD? Current tax rate $15 x 2.9% = $15 x.029 =.435 rounds to = $.44 The difference Proposed tax rate $15 x 3% = $15 x.03 =.45 = $.45 is $.01 (one cent)

What is the sales tax difference on a $55 video game? Current tax rate $55 x 2.9% = $55 x.029 = rounds to = $1.60 The difference Proposed tax rate $55 x 3% = $55 x.03 = 1.65 = $1.65 is $.05 (five cents)

What is the sales tax difference on a $725 laptop computer? Current tax rate $725 x 2.9% = $725 x.029 = rounds to = $21.03 The difference is Proposed tax rate $725 x 3% = $725 x.03 = = $21.75 $.72 (seventy-two cents)

What is the sales tax difference on a $7500 used car? Current tax rate $7500 x 2.9% = $725 x.029 = = $ The difference is $7.50 Proposed tax rate $7500 x 3% = $725 x.03 = 225 = $225 (seven dollars fifty cents)

Each voter needs to decide If he or she can afford more taxes and If he or she thinks it should support education