Federal Tax Legislation Interested Persons Memo

The passage of the federal Tax Cuts and Jobs Act (TCJA) is expected to increase Colorado’s state income tax revenue beginning in FY 2017-18 through at least FY 2026-27.  Revenue impact estimates are currently unchanged from those published in the December 2017 Legislative Council Staff forecast.  However, these estimates are subject to downside risk, where unexpected shifts in taxpayer behavior could result in significantly smaller revenue increases than those estimated.