SB 26-42

Senate Bill 26-42, also known as a Revenue Classification Taxpayers Bill of Rights amendment, clarifies how certain types of money collected by the state should be categorized under Colorado's Taxpayer's Bill of Rights (TABOR). Specifically, it defines revenue from taxes and fees that are passed on to other government entities or federal agencies as not being subject to TABOR spending limits. It also specifies that civil fines and penalties imposed by the state should be considered "damage awards" and thus excluded from these limits. The bill has been signed into law and will take effect for fiscal years starting July 1, 2025, impacting how the state manages its finances and adheres to TABOR restrictions.

Official Summary

Section 20 of article X of the state constitution (TABOR) defines 'fiscal year spending' as excluding 'collections for another government' and 'damage awards'. Although TABOR does not define either 'collections for another government' or 'damage awards', the TABOR implementing statutes define both terms. The bill clarifies both of these definitions for state fiscal years commencing on or after July 1, 2025.     The bill clarifies that 'collections for another government', as used for the purpose of determining whether specific money received by the state is subject to the TABOR limitation on state fiscal year spending, includes:           Revenue from the excise tax and sales and use tax on gasoline used as fuel for the propulsion of specified aircraft collected by the state and distributed to governmental or airport entities operating an FAA a federal aviation administration -designated public use airport ; andRevenue from fees that are collected by the department of public safety for the purpose of criminal history record checks and that is transmitted to the federal bureau of investigation for a required federal component of such criminal history record checks.     The bill also clarifies that 'damage award', as used for the purpose of determining whether specific money received by the state is subject to the TABOR limitation on state fiscal year spending, includes certain civil fines and penalties imposed by the state.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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