Date: 08/21/2012
Final
Presentation on the Highway Users Tax Fund
TRANSPORTATION LEGISLATION REVIEW COMMITTEE
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09:30 AM -- Presentation on the Highway Users Tax Fund
Representative Vaad, chair, called the meeting to order.
Mr. David Meng, Joint Budget Committee staff, introduced himself and presented information on the Highway Users Tax Fund (HUTF) "off-the-top" appropriations (Attachment A). He reviewed the constitutional requirements and the structure of the HUTF account and its subaccounts and said these moneys are appropriated for the purposes of highway supervision and are called "off-the-top" because they come before statutorily-required distributions. According to Mr. Meng, "off-the-top" moneys go to the Colorado State Patrol (CSP), including the ports of entry, which was recently transferred to the CSP. He reviewed past legislation that allowed HUTF off-the-top moneys to be used for other purposes, citing Senate Bill 09-274, where the General Assembly authorized their use for drivers licenses during a budget shortfall, and House Bill 12-1216, which diverts fees paid by applicants for drivers licenses from the HUTF to the Department of Revenue's Licensing Services Cash Fund through FY 2014-15.
Senator Williams asked about offices that had been closed by the Department of Revenue. Mr. Meng said that these offices were closed in 2003 or 2004, but that in 2007, Senate Bill 07-241 provided funds to open three new offices and increased staffing in other offices.
Representative Vaad commented that diverting funds from registration fees is diverting moneys from the HUTF and reduces transportation funding. Representative Fischer asked about permanent purposes of the HUTF. Mr. Meng responded that permanent purposes are outlined in the constitution and in statute, rather than temporary purposes authorized for specific purposes through legislation. Representative Vaad asked about the chart page 3 of Attachment A. Mr. Meng responded that the off-the-top appropriation growth is capped at 6 percent, but that does not mean funds are growing by 6 percent. Representative Vaad continued that he believed that fuel taxes have declined and was curious why the materials don't show a decrease in HUTF funds. Mr. Meng said FASTER fees increased enough to make up for the reduction in fuel taxes.
Representative Brown asked for detail on exemptions from paying motor fuel taxes and Representative Vaad asked Legislative Council Staff to provide a list to the committee. Representative Scott asked whether FASTER fees can be diverted to other purposes. Mr. Meng responded he didn't have the information available presently. Representatives Scott and Vaad asked Mr. Meng to prepare a report for the committee outlining how FASTER funds can be used and moneys have been distributed.