Receipts - disposition - transfers of general fund surplus - sales tax holding fund - creation - definitions.

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(1) As used in this section, unless the context otherwise requires:

(a) "Increase in sales and use tax revenue attributable to the vendor fee changes" means an amount equal to the net revenue for a fiscal year minus what the net revenue would have been for the fiscal year if the amount retained by a vendor to cover the vendor's expenses in collecting and remitting sales tax had not been modified by House Bill 19-1245, enacted in 2019.

(a.5) (Deleted by amendment, L. 2011, (HB 11-1043), ch. 266, p. 1213, § 24, effective July 1, 2011.)

(a.7) "Net revenue" means the gross amount of sales and use tax receipts collected under this article 26, less a fee retained by vendors for the collection and remittance of the tax pursuant to section 39-26-105 (1) and less refunds and adjustments made by the department of revenue in conjunction with its collection and enforcement duties under this article 26.

(b) (I) "Sales and use taxes attributable to sales or use of vehicles and related items" means the net revenue raised from the state sales and use taxes imposed pursuant to this article on the sales or use of new or used motor vehicles, including motor homes, motor vehicle batteries, tires, parts, or accessories, utility trailers, camper coaches, or camper trailers.

(II) With respect to sales tax, "related items" includes only items sold by persons whose primary business activity is the sale or service of motor vehicles or related items.

  1. The sales and use tax holding fund is hereby created in the state treasury and shall beadministered by the state treasurer. The fund shall consist of moneys transferred to the fund pursuant to subsection (3.5) of this section. Interest and income earned on the deposit and investment of moneys in the fund shall be credited to the fund and shall not revert to the general fund of the state or to any other fund. Moneys in the fund shall be transferred from the fund only to the highway users tax fund created in section 43-4-201, C.R.S., and the general fund and only in the manner specified in subsection (4) of this section.

  2. For any state fiscal year commencing on or after July 1, 2013, the state treasurer shallcredit eighty-five percent of all net revenue collected under this article 26 to the old age pension fund created in section 1 of article XXIV of the state constitution. The state treasurer shall credit to the general fund the remaining fifteen percent of the net revenue, less:

(a) (I) Ten million dollars, which the state treasurer shall credit to the older Coloradans cash fund created in section 26-11-205.5 (5) for each state fiscal year other than the state fiscal year 2020-21;

(II) Eight million dollars, which the state treasurer shall credit to the older Coloradans cash fund created in section 26-11-205.5 (5) for the state fiscal year 2020-21; and

(b) (I) Except as set forth in subsection (3)(b)(II) of this section, an amount equal to the increase in sales and use tax revenue attributable to the vendor fee changes, which amount the state treasurer shall credit to the housing development grant fund created in section 24-32-721 (1).

(II) The amount credited to the housing development grant fund created in section 2432-721 (1) under subsection (3)(b)(I) of this section is reduced by the following amounts:

  1. Fifteen million three hundred thirty-five thousand seven hundred eighty-one dollarsfor the state fiscal year 2019-20;

  2. Forty million three hundred twenty-three thousand one hundred fifty-eight dollarsfor the state fiscal year 2020-21; and

  3. Nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal year 2021-22 and each state fiscal year thereafter.

(3.5) For each state fiscal year commencing on or after the first state fiscal year in which an appropriation or transfer is permitted pursuant to section 24-75-219 (2)(d), C.R.S., the general assembly may appropriate or transfer, in its sole discretion, moneys from the general fund to the sales and use tax holding fund.

(4) (a) Except as otherwise provided in sub-subparagraph (B) of subparagraph (VI) of this paragraph (a), all moneys in the sales and use tax holding fund shall be transferred to the highway users tax fund, as follows:

(I) to (III) (Deleted by amendment, L. 2009, (SB 09-228), ch. 410, p. 2266, § 21, effective July 1, 2009.)

(IV) If the revenue estimate prepared by the staff of the legislative council in December of state fiscal year 2017-18 or in December of any succeeding state fiscal year indicates that the amount of total general fund revenues for the state fiscal year will be sufficient to maintain the four percent or higher reserve required by section 24-75-201.1 (1), C.R.S., on February 1 of the fiscal year the state treasurer shall transfer from the sales and use tax holding fund to the highway users tax fund an amount equal to the lesser of:

  1. Fifty percent of the amount estimated in the December revenue estimate to be accrued and transferred to the highway users tax fund pursuant to this section for the entire fiscal year; or

  2. The balance of the sales and use tax holding fund.

(V) If the revenue estimate prepared by the staff of the legislative council in March of state fiscal year 2017-18 or in March of any succeeding state fiscal year indicates that the amount of total general fund revenues for the state fiscal year will be sufficient to maintain the four percent or higher reserve required by section 24-75-201.1 (1), C.R.S., on April 15 of the fiscal year the state treasurer shall transfer from the sales and use tax holding fund to the highway users tax fund the lesser of:

(A) The amount needed to ensure that the cumulative amount transferred from the sales and use tax holding fund to the highway users tax fund through April 15 equals seventy-five percent of the amount estimated in the March revenue estimate to be accrued and transferred to

the highway users tax fund pursuant to this section for the entire fiscal year; or (B) The balance of the sales and use tax holding fund.

(VI) (A) Effective June 30 of state fiscal year 2006-07, and effective June 30 of each state fiscal year thereafter, the state controller shall accrue all moneys in the sales and use tax holding fund as of that date to the highway users tax fund.

  1. Notwithstanding the provisions of sub-subparagraph (A) of this subparagraph (VI),the state controller shall reduce the amount accrued to the highway users tax fund pursuant to said sub-subparagraph and accrue moneys in the sales and use tax holding fund to the general fund to the extent necessary to ensure that the amount of general fund revenues for the state fiscal year is sufficient to maintain the four percent reserve required by section 24-75-201.1 (1), C.R.S.

  2. The state treasurer shall transfer, out of the amounts accrued by the state controllerpursuant to sub-subparagraphs (A) and (B) of this subparagraph (VI), on September 20, 2007, and on September 20 of each succeeding fiscal year, the amounts needed to ensure that the cumulative amounts required to be accrued and transferred from the sales and use tax holding fund to the highway users tax fund and, if applicable to the general fund, equal ninety percent of the aggregate amounts required to be accrued and transferred to the funds pursuant to this section for the entire preceding fiscal year. The state treasurer shall transfer the remainder of the amounts accrued pursuant to said sub-subparagraphs on the date on which the state controller distributes the comprehensive annual financial report of the state.

(b) If a change in tax policy resulting in a significant reduction of general fund revenues is implemented, the general assembly shall:

  1. Examine the exception set forth in sub-subparagraph (B) of subparagraph (VI) ofparagraph (a) of this subsection (4) to the general requirement set forth in paragraph (a) of this subsection (4) that all moneys in the sales and use tax holding fund be accrued and transferred to the highway users tax fund and determine whether the exception should be modified in light of the change.

  2. (Deleted by amendment, L. 2009, (SB 09-228), ch. 410, p. 2266, § 21, effective July1, 2009.)

(4.5) Repealed.

  1. (Deleted by amendment, L. 2009, (SB 09-228), ch. 410, p. 2266, § 21, effective July1, 2009.)

  2. Repealed.

Source: L. 37: p. 1098, § 1. CSA: C. 144, § 33. CRS 53: § 138-6-32. C.R.S. 1963: § 138-5-32. L. 64: p. 658, § 18. L. 79: Entire section R&RE, p. 1469 § 1, effective July 1. L. 81:

(2)(c) amended, p. 1890, § 1, effective June 12. L. 83: (2)(c)(I)(D) amended, p. 1522, § 8, effective March 22; (2)(c)(I)(E) amended and (2)(c)(I)(E.5) added, p. 2098, § 10, effective October 13. L. 84: (2)(c)(I)(E.5) amended, p. 1142, § 4, effective June 7. L. 85: (2)(c)(I)(G) amended and (2)(c)(V) repealed, pp. 1268, 1271, §§ 6, 12, effective May 30. L. 86: (2)(c)(I)(G) amended, p. 1120, § 20, effective July 1. L. 87: Entire section R&RE, p. 1553, § 1, effective July 1. L. 97: Entire section amended, p. 1531, § 1, effective July 1. L. 98: (1), (2)(a)(I)(A), (2)(d), and (2)(e) amended, p. 905, § 3, effective May 26. L. 99: (1), (2)(a)(I)(A), (2)(a)(III), (2)(d), and (2)(e) amended, p. 561, § 1, effective May 7. L. 2000: (2)(a)(I)(A) amended and (2)(a)(I)(A.6) added, p. 901, § 2, effective May 24; (2)(a)(I)(A) amended and (2)(a)(I)(A.8) added, p. 1436, § 5, effective May 31; (2)(a)(I)(A.7) added, p. 552, § 7, effective July 1; (2)(a)(I)(A) amended, p. 1360, § 46, effective July 1, 2001; (2)(a)(I)(A.5) added, p. 1425, § 2, effective July 1, 2001. L. 2001: (2)(a)(I)(A.6) amended, p. 1463, § 2, effective June 6. L. 2001, 2nd Ex. Sess.: (2)(a)(I)(A) and (2)(a)(II) amended and (2)(a)(I)(A.9) added, p. 35, § 1, effective November 9. L. 2002:

(2)(a)(I)(A) and (2)(a)(I)(A.9) amended and (2)(a)(I.5) added, p. 145, § 2, effective March 27; (2)(a)(I)(A.6) amended, p. 149, § 2, effective March 27; (2)(a)(I)(A) amended and (2)(a.5) added, p. 389, § 3, effective April 30; (2)(a.5)(III) amended, p. 682, § 4, effective May 28;

(2)(a)(I)(A), (2)(a)(I)(B), and IP(2)(b) amended and (4) added, p. 914, § 2, effective May 31; (2)(a)(I)(B) and IP(2)(b) amended and (4) added, p. 902, § 3, effective May 31. L. 2003: (4) amended, p. 1538, § 1, effective May 1; (2)(a)(I)(B) amended, p. 2636, § 3, effective June 5; (3) amended, p. 1552, § 1, effective July 1. L. 2006: (2)(a)(I)(A) and (4)(a) amended and (5) added, p. 938, § 2, effective July 1; (3) amended, p. 2022, § 118, effective July 1; entire section R&RE,

p. 1598, § 1, effective July 2. L. 2007: IP(3)(a) amended, p. 2049, § 97, effective June 1; IP(3)(a), (3)(a)(II), and (3)(a)(III) amended, p. 1386, § 1, effective July 1. L. 2008: (3)(a)(II) and

(3)(a)(III) amended, p. 869, § 1, effective July 1; (3)(a)(II)(D) and (3)(a)(IV) amended and (3)(a)(II)(E) added, p. 872, § 2, effective August 5. L. 2009: IP(4)(a) amended and (4.5) added, (SB 09-278), ch. 212, p. 965, § 2, effective May 1; (2), IP(3)(a), (3)(a)(I), (3)(a)(II)(C),

(3)(a)(II)(D), (3)(a)(II)(E), (3)(a)(III)(C), (3)(a)(IV)(A), (3)(b), IP(4)(a), (4)(a)(I), (4)(a)(II), (4)(a)(III), IP(4)(a)(IV), IP(4)(a)(V), (4)(a)(VI)(B), (4)(b)(I), (4)(b)(II), and (5) amended and (3.5) added, (SB 09- 228), ch. 410, p. 2266, § 21, effective July 1. L. 2010: (1)(a.5) added, (HB 10-1284), ch. 355, p. 1686, § 8, effective July 1; (6) added, (HB 10-1284), ch. 355, p. 1686, § 9, effective August 11. L. 2011: (1)(a.5), (6)(a), and (6)(b)(I) amended, (HB 11-1043), ch. 266, p. 1213, § 24, effective July 1; IP(3)(a), (3)(a)(II)(E), and (3)(a)(IV)(B) amended, (SB 11-210), ch. 187, p. 720, § 3, effective July 1, 2012. L. 2013: (3) R&RE, (SB 13-127), ch. 349, p. 2027, § 1, effective July 1. L. 2014: (6)(c) added by revision, (SB 14-215), ch. 352, pp. 1616, 1619, §§ 10,

14. L. 2015: IP(4)(a) amended and (4.5) repealed, (SB 15-264), ch. 259, p. 967, § 91, effective

August 5. L. 2019: (1)(a) and (3) amended and (1)(a.7) added, (HB 19-1245), ch. 199, p. 2159, § 7, effective August 2. L. 2020: (3)(a) amended, (HB 20-1367), ch. 163, p. 761, § 1, effective June 29; IP(3)(b)(II) amended, (HB 20-1402), ch. 216, p. 1058, § 69, effective June 30.

Editor's note: (1) Amendments to this section by House Bill 00-1259, House Bill 001072, and Senate Bill 00-011 were harmonized.

  1. Amendments to subsection (2)(a)(I)(A) by House Bill 02-1276, House Bill 02-1389,and House Bill 02-1445 were harmonized.

  2. Subsection (4) was originally numbered as (3) in House Bill 02-1209 but has beenrenumbered on revision for ease of location.

  3. Subsections (2)(a)(I)(A) and (4)(a) were amended and (5) was enacted in House Bill06-1018. Those amendments and enactment were superseded by the repeal and reenactment of the section in House Bill 06-1398.

  4. Subsection (3) was amended in Senate Bill 06-219. Those amendments were superseded by the repeal and reenactment of the section in House Bill 06-1398.

  5. Amendments to the introductory portion to subsection (4)(a) by Senate Bill 09-228 and Senate Bill 09-278 were harmonized.

  6. Subsection (6)(c) provided for the repeal of subsection (6), effective July 1, 2015. (See L. 2014, pp. 1616 and 1619.)

Cross references: (1) For the old age pension fund, see article XXIV of the state constitution and § 26-2-115.

  1. For the short title ("Affordable Housing Act of 2019") and the legislative declarationin HB 19-1245, see sections 1 and 2 of chapter 199, Session Laws of Colorado 2019.


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