AGO 86-9.

• Case Date: August 12, 1986
• Court: Colorado

Colorado Attorney General Opinions 1986. AGO 86-9. August 12, 1986Department of Law Attorney General Opinion FORMAL OPINION of DUANE WOODARD Attorney General Opinion No. 86-9 AG Alpha No. ED AD AGAPK Calvin M. Frazier Commissioner of Education State Office Building 201 East Colfax Avenue Denver, Colorado 80203 RE: School district tax levies for capital reserve and insurance reserve funds.Dear Mr. Frazier: This letter is in response to your request for a formal opinion on the effect of H.B. 1003, passed by the 55th General Assembly (hereafter "H.B. 1003") on school district tax levies for capital reserve and insurance reserve funds. QUESTIONS PRESENTED AND CONCLUSIONS Whether H.B. 1003 authorizes school districts to follow the procedures for exceeding tax levy limits set forth in section 29-1-302, C.R.S. (1977 & 1985 Supp.), as amended by the bill, for their capital reserve and insurance reserve funds. No. What limits apply to such funds for levies made in 1986 for collection in 1987? The capital reserve and insurance reserve fund levies are limited by a formula which combines the respective 4 or 1 1/2 mill limit with the 7 percent increase limitation specified in sections 9 and 10 of H.B. 1003. ANALYSIS Whether school districts may exceed statutory limits on taxes levied for capital reserve and insurance reserve funds involves the interplay of sections 2, 4, 9, and 10 of H.B. 1003. Sections 2 and 4 of the bill contain amendments to article 1, part 3 of title 29, C.R.S., which imposes revenue raising limits and prescribes procedures for exceeding such limits for the taxing entities subject thereto. Sections 9 and 10 of H.B. 1003 effect changes in sections 22-40-102(4)(a), C.R.S. (1973) and 24-10-115(3)(a), C.R.S. (1982) regarding limitations imposed on school districts for their capital reserve and insurance reserve funds. Pursuant to sections 9 and 10 of the bill, the 4 mill and 1 1/2 mill limits on capital reserve and insurance reserve funds, respectively, are eliminated. Effective January 1, 1987, school district tax levies for such funds are limited to the percentage increase as may be thereafter prescribed in section 29-1-301(1); H.B. 1003 secs. 9, 10, and 16. In my opinion, the only relevance of sections 2 and 4 of H.B. 1003 to school districts is through the references in sections 9 and 10 of H.B. 1003...