This bill clarifies the definitions of “damage award” and “property sale” under Section 20 of Article X of the Colorado Constitution (TABOR) to determine whether certain state revenues are subject to TABOR spending limits.
Key Provisions of the Bill1. Clarification of “Damage Award”
Expands the definition of "damage award" under TABOR implementing statutes to include certain civil penalties imposed by the state.
This clarification ensures that civil penalty revenues are excluded from TABOR spending limits, meaning they do not count toward the state’s fiscal year spending cap.
2. Clarification of “Property Sale”
Expands the definition of "property sale" under TABOR implementing statutes to include specified types of sales by the state.
This ensures that revenue from certain state property sales is not subject to TABOR’s spending limit.
3. Effective Date
These clarifications apply to state fiscal years starting on or after July 1, 2024.
Key Takeaways
Clarifies TABOR exemptions for civil penalty revenues and certain state property sales.
Prevents these revenues from being counted toward TABOR spending limits.
Applies to state fiscal years beginning July 1, 2024, and beyond.
Summary
Section 20 of article X of the state constitution (TABOR) defines
fiscal year spending as not including either damage awards or property sales. Although TABOR does not define either damage award or property sale, the TABOR implementing statutes do. The bill clarifies both of these definitions for state fiscal years commencing on or after July 1, 2024.
The bill 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 penalties imposed by the state.
The bill also clarifies that property sale, 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 specified sales by the state.
