Attention: This is not a current document. It is an excerpt from the Web page of the former Colorado governor, Roy Romer. It is displayed by the Colorado State Archives for its historical value.

June 1, 1998

The Honorable Colorado
House of Representatives
Sixty-first General Assembly
Second Regular Session
Denver, CO 80203

Ladies and Gentlemen:

I am returning to the Secretary of State House Bill 98-1266, "Concerning an Exclusion of Certain Income from Colorado Taxable Income, and, in connection therewith, Excluding Certain Interest Income, Dividend Income, and Net Capital Gains from the Income Tax Imposed on Individuals, Estates and Trusts," which I vetoed today at 1:20 P.M. . This letter sets forth my reasoning for vetoing this bill.

For a five year period, H.B. 1266 would have allowed individuals to exempt up to $2,300 per person in interest earnings from Colorado taxable income. This bill would cut about $40 million in the first full year from the general fund, and could amount to more than $200 million in the in the five years, with the bulk of the benefit going to those with a higher income.

Enacting H.B. 1266 would diminish several options Colorado has to deal with the current budget surplus. In November, voters will have the opportunity to decide whether $200 million per year for the next five years should be invested in transportation, public school buildings and higher education capital construction. I believe these investments are necessary.

I also believe that we should return the remainder of the surplus to citizens each year. Since the TABOR surplus comes from many revenue sources, the refund should be broad based and as fair to as many people as possible. The General Assembly was unsuccessful in enacting an equitable refund during the regular session, and I intend to call a special session later this summer for us to work together for a better solution.

H.B. 1266 is, in effect, a method of distributing the surplus. It is not broad based and gives too much benefit to those with higher incomes, consequently reducing the share of the surplus available for other taxpayers. I believe our efforts should be focused on developing a broader solution.

For these reasons, I am vetoing H.B. 1266.

Last modified June 18, 2003