Colorado Voters OK Proposal to Keep Sports Betting Tax to Fund Water Projects

Colorado’s voters had an extra box to tick on the November 5 ballot, with voters having to decide if they support Proposition JJ, a ballot measure that seeks to change the state’s laws so as to allow Colorado to retain sports betting tax revenue exceeding the initially set $29 million cap.

Colorado Passes Proposition JJ to Help Fund Water Projects

The cap was introduced by the Taxpayer’s Bill of Rights back in 2019 when the Centennial State was looking to regulate its sports gambling industry, but the amount generated by Colorado’s sports betting industry has grown exponentially ever since and is projected to grow even further.

Realizing their mistake, lawmakers have pushed for the introduction of Proposition JJ was sponsored by Speaker of the Colorado House, Julie McCluskie, and found broad bilateral support, which saw it added to the ballot measure easily. Proposition JJ is now expected to help Colorado raise an additional $900,000 in tax money that will go straight for water conversation projects.

Proposition JJ is seen as a seminal piece of legislation that will allow Colorado to plough more resources into its water conservation efforts. Because of the Taxpayer’s Bill of Rights, Colorado needs to refund taxpayers, both private businesses and citizens, for any taxes collected above a certain predetermined threshold.

When the state first legalized sports gambling, it set $29 million as a reasonable projection, but reassessing the industry’s growth in recent years has prompted lawmakers to raise this even more. To help solve future issues that involve a mismatch between the Taxpayer’s Bill of Rights and the future growth of the industry, which could once again exceed initial projections.

Therefore, Colorado has simply sought to bypass the entire legislation, choosing instead to retain the tax on the “excess revenue,” leading to a more streamlined taxation structure for everyone involved.

Lawmakers Welcome Extra Funding for Water Projects

Lawmakers have welcomed the approval of the ballot measure, arguing that it would help address Colorado’s water needs. “This is an exciting and important day for Colorado’s water future,” added Sen. Dylan Roberts, another Democrat.

Chris Woodka, senior policy and issues manager at the Southeastern Colorado Water Conservancy District, has noted that Proposition JJ will indeed do a lot of good for the state’s future, and attempts to ensure that the state can provide fresh water for its growing population.