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

(a) Repealed.

(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.

(2) The sales and use tax holding fund is hereby created in the state treasury and shall be administered 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.

(3) For any state fiscal year commencing on or after July 1, 2013, the state treasurer shall credit 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) (A) Except as set forth in subsection (3)(b)(II) of this section, prior to January 1, 2026, an amount equal to the fiscal year increase in sales and use tax revenue attributable to the vendor fee changes made by House Bill 19-1245, enacted in 2019, which amount the state treasurer shall credit to the housing development grant fund created in section 24-32-721 (1).

(B) Except as set forth in subsection (3)(b)(II) of this section and subject to subsection (3)(b)(III) of this section, beginning January 1, 2026, an amount equal to one and six hundred fifty-five thousandths percent of net revenue excluding net revenue collected under part 2 of this article 26, 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 24-32-721 (1) under subsection (3)(b)(I) of this section is reduced by the following amounts:

(A) Fifteen million three hundred thirty-five thousand seven hundred eighty-one dollars for the state fiscal year 2019-20;

(B) Forty million three hundred twenty-three thousand one hundred fifty-eight dollars for the state fiscal year 2020-21;

(C) Nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal years 2021-22, 2022-23, and 2023-24;

(D) Thirty-five million nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal year 2024-25 through state fiscal year 2031-32; and

(E) Nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal year 2032-33 and each state fiscal year thereafter.

(III) (A) Beginning January 1, 2026, the treasurer shall credit the excess of the amount set forth in subsection (3)(b)(I)(B) of this section over one-twelfth of the amount set forth in subsection (3)(b)(II)(D) of this section on a monthly basis. The treasurer shall first take into account any reduction made pursuant to subsection

(3)(b)(II) of this section for the fiscal year to date.

(B) Beginning with state fiscal year 2026-27, the treasurer shall credit the excess of the amount set forth in subsection (3)(b)(I)(B) of this section over one-twelfth of the applicable amount set forth in subsection (3)(b)(II) of this section on a monthly basis.

(3.5) Repealed.

(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:

(A) 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

(B) 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.

(B) 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.

(C) The state treasurer shall transfer, out of the amounts accrued by the state controller pursuant 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:

(I) Examine the exception set forth in sub-subparagraph (B) of subparagraph

(VI) of paragraph (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.

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

(4.5) Repealed.

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

(6) Repealed.