Collections for Another Government
Section 20 of article X of the state constitution (TABOR) defines "fiscal year spending" as not including "collections for another government". Although TABOR does not define "collections for another government", the TABOR implementing statutes do. The definition of "collections for another government" in the implementing statutes specifically limits such collections to revenue collected by the state for the benefit of another government that is collected pursuant to the authority of the other government.
The act clarifies the definition of "collections for another government" set forth in the TABOR implementing statutes for purposes of the TABOR limitation on state fiscal year spending. For state fiscal years commencing on or after July 1, 2023, "collections for another government" means any revenue that is collected by the state for the benefit and use of a government other than the state, passed through to that government for the benefit of and use by that government, and collected pursuant to:
- The authority of the government for whose benefit the state collects the revenue;
- The authority of the state and apportioned to another government in connection with that government forgoing the imposition of certain taxes and collecting the corresponding tax revenue; or
- A constitutional requirement that the state collect the revenue for the benefit of another government.
APPROVED by Governor June 3, 2024
EFFECTIVE June 3, 2024
(Note: This summary applies to this bill as enacted.)