The Colorado constitution authorizes limited gaming in specific geographic areas of the state. There is a tax imposed on limited gaming, the rate of which is set by the Colorado limited gaming control commission, but the constitution provides that the rate may not exceed 40% of the adjusted gross proceeds. The proceeds of the tax are credited to the limited gaming fund where the expenses of the commission are first paid and then the money is distributed 50% to the state share, 28% to the state historical fund, 12% to Gilpin and Teller counties, and 10% to the cities of Central City, Black Hawk, and Cripple Creek.
The state share is transferred for various items, with the remainder being credited to the general fund, including $5 million to the local government limited gaming impact fund. This fund is administered by the department of local affairs and is used for grants to eligible local governmental entities for documented gaming impacts.
The bill annually increases the amount of money credited to the limited gaming impact fund by an amount equal to the growth of the state share from the previous fiscal year.
The bill also makes adjustments to the statutory definition of 'documented gaming impacts'.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)