SB 24-194

Senate Bill 24-194, known as the Special District Emergency Services Funding bill, allows fire protection districts and ambulance districts in Colorado to impose impact fees on new construction within their boundaries. These fees are intended to cover the costs of expanding emergency services infrastructure due to development. The bill also permits these districts to waive such fees for low- or moderate-income housing developments. Additionally, it grants both types of districts the authority to levy a local sales tax, which must be approved by voters in a special election. This bill was signed into law and parts will start taking effect on August 7, 2024, with other provisions becoming active on July 1, 2025. The bill impacts property developers, homeowners, and residents within the districts' boundaries who may see changes in fees and taxes related to new construction or sales transactions.

Official Summary

A fire protection district (fire district) has been authorized to receive and spend an impact fee, or other similar development charge, only in connection with a local government's imposition of such fee or charge to fund expenditures by a fire and emergency services provider. The act repeals this limitation and authorizes a fire district to impose its own impact fee on the construction of new buildings, structures, facilities, or improvements on real property within the fire district's jurisdictional boundaries so long as the fee is imposed pursuant to a legislatively adopted schedule that is: Generally applicable to a broad class of property; and Intended to defray the projected impacts on capital facilities caused by the proposed construction. The act imposes the following limitations on a fire district's authority to impose an impact fee: No individual landowner may be required to provide any site-specific dedication or improvement to meet the same need for capital facilities for which an impact fee is imposed; and An impact fee may not be imposed on construction for which an individual or entity has submitted a completed application for a development permit to an approving local government prior to the fire district's adoption of a schedule of impact fees. Additionally, a fire district may waive an impact fee on the development of low- or moderate-income housing or affordable employee housing, as defined by the fire district. The act gives ambulance districts identical authority to that of a fire district to impose an impact fee on the construction of new buildings, structures, facilities, or improvements on real property within the ambulance district's jurisdictional boundaries. The act also gives fire districts and ambulance districts the additional financial power to levy a sales tax within the district's jurisdiction, at a rate determined by the district's board, upon every transaction or other incident with respect to which a sales tax is levied by the state. The tax must be approved by a majority of the eligible electors within the district voting at a regular special district election or at a special election that complies with section 20 of article X of the state constitution and related statutory requirements. Such a sales tax must be collected, administered, and enforced by the executive director of the department of revenue in the same manner as the state sales tax. APPROVED by Governor May 22, 2024 PORTIONS EFFECTIVE August 7, 2024 PORTIONS EFFECTIVE July 1, 2025(Note: This summary applies to this bill as enacted.)

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