Mill Levy Correction

Mill Levy Correction refers to a legal and legislative directive to correct an interpretation of statute by CDE that led to a historical undercollection of property taxes in education in Colorado school districts. Mill Levy Correction will be implemented starting in the 2021 tax year.

Legislative Timeline

June 2020:   HB20-1418 signed (see Section 33). The 2020 School Finance Act required districts to levy the number of mills specified by the requirements in the bill, including the establishment of temporary tax credits, if necessary, to correct historical errors.

December 2020:   If required, districts included temporary tax credits when certifying property tax mills related to the local share of total program for the 2020 tax year.

March 2021:   HB21-1164 introduced. The Total Program Mill Levy Tax Credit bill required CDE to implement a correction plan for districts with temporary tax credits. Specifically, the plan must ensure that districts incrementally reduce the temporary tax credits “as quickly as possible but by no more than one mill each property tax year,” beginning in the 2021 tax year.

May 2021:   Colorado Supreme Court ruled in an interrogatory that HB21-1164 is constitutional.

June 2021:   HB21-1164 signed into law.

Resources and Technical Assistance

Letter sent to districts in July 2021 outlining requirements and next steps (PDF)

Mill Levy Tax Correction Target Mills and Temporary Credits - December 2021 (XLS)

Mill Levy Tax Correction Target Mills and Temporary Tax Credits - Refinements of December 2020 Certifications - December 2021 (XLS)

Mill Levy Tax Correction Target Mills and Temporary Tax Credits - as Certified December 2020 (XLS)

PSFU Office Hours: Mill Levy Correction – August 10, 2021, 11am

• Download Presentation (PDF)
• View Recording (link)

CASB Conversations Webinar: What You Need to Know About the Mill Levy Correction - August 23,2021

• Download Presentation (PDF)
• View Recording (link)
• Additional Resources:
  • Financing Public Schools FY 2021-22 (LCS)
  • School Finance Booklet (LCS)
  • CSFP Mill Levy and Tax Credits for Colorado districts
  • CSFP Tax Effort and Fiscal Capacity - 2020-21

Questions?

General Questions:     Kate Bartlett, [email protected]  

  Glenn Gustafson, [email protected]

Technical Questions:  Tim Kahle, [email protected]