JOINT RELEASE: SIGNED! Bills to Protect Colorado’s Water
DILLON, CO - Governor Jared Polis today signed three bills to protect and conserve Colorado’s water resources.
HB25-1115 will improve how Colorado measures snowpack and our water supply HB25-1311 will phase out sports betting tax incentives to capture more revenue for water conservation, and SB25-040 studies the future of severance tax revenue to create a sustainable funding stream for water projects.
“Water is a part of our Western identity, and we must take steps now to preserve and protect the water resources we have,” said Speaker Julie McCluskie, D-Dillon, sponsor of HB25-1115 and HB25-1311. “To effectively manage Colorado's water supply, we need all the research and data available to inform our decisions. These bipartisan laws increase funding for essential water conservation efforts and research. We’re taking action now to better protect the freshwater Coloradans rely on for ourdoor recreation, agriculture and household use.”
“Securing our state’s water future is one of the most pressing issues facing Colorado, especially for the rural and mountain communities I represent,” said Senator Dylan Roberts, sponsor of HB25-1115, HB25-1311, and SB25-040. “I’m proud to have sponsored these bipartisan laws, which will ensure we have accurate data and sustainable funding sources to conserve and manage Colorado’s water supply. We’re working today to make sure that our communities have the water we need for generations to come.”
HB25-1115, also sponsored by Representative Matt Soper, R-Delta, will help protect and preserve Colorado’s fresh water resources by empowering the Colorado Water Conservation Board to to oversee a statewide water supply measurement and forecasting program. This statewide approach includes collecting and disseminating data on snowpack levels and investigating the latest advances in snowpack measurement and water supply forecasting.
When voters approved Proposition DD in 2019, they legalized sports betting and set an effective tax rate of 10 percent on betting to be used for industry regulation, gambling addiction services, and water projects. However, casinos are only paying an effective 5.89 percent tax rate due to allowable deductions for payouts to customers, federal excise tax, and “free bets”.
HB25-1311, also sponsored by Representative Soper, will bring sports betting companies closer to the voter-approved effective tax rate of 10 percent by prohibiting sports betting operators from deducting “free bets” as a tax write-off, increasing funding for the Colorado Water Plan by a projected $3.2 million in the 2025-2026 fiscal year and $12.9 million in the 2026-2027 fiscal year.
“This new law sets Colorado on the right path for creating reliable and sustainable funding for our future water projects,” said Rep. Karen McCormick, D-Longmont, sponsor of SB25-040. “Every sector of our economy relies on water, and we’re taking the step now to preserve and conserve this precious resource.”
“From agriculture, recreation and household use – the Colorado way of life depends on our freshwater resources,” said Rep. Matt Martinez, D-Monte Vista, sponsor of SB25-040. “Our new bipartisan law will make sure Colorado has a sustainable and dependable funding stream dedicated to water projects for generations to come.”
SB25-040 will help Colorado create a sustainable and reliable funding stream for water projects. This new law permits the Department of Natural Resources to study the future of severance tax revenue and energy grants. Severance tax revenue is volatile and incredibly unpredictable; this law will help Colorado identify new, reliable ways to fund water projects. The task force must develop and deliver recommendations by July 2026.