NOTE: This bill has been prepared for the signature of the appropriate legislative officers and the Governor. To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws. HOUSE BILL 10-1285 BY REPRESENTATIVE(S) Priola, Casso, Kefalas, Looper, McFadyen, Rice, Acree, Apuan, Bradford, Frangas, Kerr A., Kerr J., Lambert, Liston, Massey, Middleton, Nikkel, Schafer S., Stephens, Summers, Vaad, Waller, Gerou, Roberts, Vigil; also SENATOR(S) Tapia, Hudak, Hodge, Gibbs. Concerning an increase in fines to fund tax incentives for commercial vehicles, and making an appropriation in connection therewith. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Part 2 of article 1 of title 42, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 42-1-225. Commercial vehicle enterprise tax fund - creation. (1) The commercial vehicle enterprise tax fund is hereby created in the state treasury. The fund consists of moneys collected and transmitted to the fund pursuant to section 42-4-1701 (4) (a) (II). The general assembly shall annually appropriate the moneys in the fund to cover the cost of the sales tax refund created by section 39-26-113.5, C.R.S., and the actual cost of administering sections 39-26-113.5 and 39-30-104 (1) (b), C.R.S. After receiving the statement pursuant to section 39-30-104 (1) (b) (V), C.R.S., the state treasurer shall credit the total cost of the amount of the tax credits stated therein to the general fund. Any moneys remaining in the commercial vehicle enterprise tax fund at the end of the fiscal year shall not revert to the general fund. (2) (a) On July 1, 2011, and each July 1 thereafter, the department shall allocate one-third of the fund balance, not including the amount appropriated to cover the actual cost of administering sections 39-26-113.5 and 39-30-104 (1) (b), C.R.S., to make the sales tax refunds granted in section 39-26-113.5, C.R.S. (b) On July 1, 2011, and each July 1 thereafter, the department shall allocate two-thirds of the fund balance, not including the amount appropriated to cover the actual cost of administering sections 39-26-113.5 and 39-30-104 (1) (b), C.R.S., to offset the income tax credit granted in section 39-30-104 (1) (b), C.R.S. By January 1, 2012, the department shall notify the Colorado economic development commission created in section 24-46-102, C.R.S., of the amount allocated for such purposes. SECTION 2. 42-3-104, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 42-3-104. Exemptions - specific ownership tax - registration - domicile and residency - rules - definitions. (11) A Class A commercial vehicle that was registered in Colorado under the international registration plan, subsequently registered in another state, and then reregistered in Colorado is not subject to the specific ownership tax or registration fees during the period of time that the motor vehicle was registered in another state; except that the owner of a motor vehicle with an apportioned registration may be liable for the portion of the miles traveled in Colorado. SECTION 3. 42-4-1701 (4) (a) (II), Colorado Revised Statutes, is amended to read: 42-4-1701. Traffic offenses and infractions classified - penalties - penalty and surcharge schedule - repeal. (4) (a) (II) (A) Any A person convicted of violating section 42-4-507 or 42-4-508 shall be fined pursuant to this subparagraph (II) sub-subparagraph (A), whether the defendant acknowledges the defendant's guilt pursuant to the procedure set forth in paragraph (a) of subsection (5) of this section or is found guilty by a court of competent jurisdiction. Any violation of A person who violates section 42-4-507 or 42-4-508 shall be punished by a fine and surcharge as follows: Excess Weight - Pounds Penalty Surcharge 1 - 3,000 $ 15.00 $ 14.00 3,001 - 4,250 25.00 24.00 4,251 - 4,500 50.00 46.00 4,501 - 4,750 55.00 52.00 4,751 - 5,000 60.00 58.00 5,001 - 5,250 65.00 62.00 5,251 - 5,500 75.00 70.00 5,501 - 5,750 85.00 80.00 5,751 - 6,000 95.00 92.00 6,001 - 6,250 105.00 98.00 6,251 - 6,500 125.00 120.00 6,501 - 6,750 145.00 138.00 6,751 - 7,000 165.00 158.00 7,001 - 7,250 185.00 176.00 7,251 - 7,500 215.00 208.00 7,501 - 7,750 245.00 234.00 7,751 - 8,000 275.00 262.00 8,001 - 8,250 305.00 292.00 8,251 - 8,500 345.00 330.00 8,501 - 8,750 385.00 370.00 8,751 - 9,000 425.00 408.00 9,001 - 9,250 465.00 448.00 9,251 - 9,500 515.00 494.00 9,501 - 9,750 565.00 544.00 9,751 - 10,000 615.00 590.00 10,001 - 10,250 665.00 640.00 Over 10,250 $ 30.00 $ 28.00 for each 250 poundsfor each 250 pounds additional overweight,additional overweight, plus $ 665.00plus $ 492.00 Excess Weight - Pounds Penalty Surcharge 1 - 1,000 $ 20.00 $ 14.00 1,001 - 3,000 25.00 14.00 3,001 - 5,000 0.03 per pound overweight48.00 rounded to the nearest dollar 5,001 - 7,000 0.05 per pound overweight108.00 rounded to the nearest dollar 7,001 - 10,000 0.07 per pound overweight384.00 rounded to the nearest dollar 10,001 - 15,000 0.10 per pound overweight1,892.00 rounded to the nearest dollar 15,001 - 19,750 0.15 per pound overweight2,438.00 rounded to the nearest dollar Over 19,750 0.25 per pound overweight $ 28.00 rounded to the nearest dollar for each 250 pounds additional overweight, plus $ 492.00 (B) The state, county, city, or city and county issuing a citation that results in the assessment of the penalties in sub-subparagraph (A) of this subparagraph (II) may retain and distribute the following amount of the penalty according to the law of the jurisdiction that assesses the penalty, but the remainder of the penalty shall be transmitted to the state treasurer, who shall credit the moneys to the commercial vehicle enterprise tax fund created in section 42-1-225: Excess Weight - Pounds Penalty Retained 1 - 3,000 $ 15.00 3,001 - 4,250 25.00 4,251 - 4,500 50.00 4,501 - 4,750 55.00 4,751 - 5,000 60.00 5,001 - 5,250 65.00 5,251 - 5,500 75.00 5,501 - 5,750 85.00 5,751 - 6,000 95.00 6,001 - 6,250 105.00 6,251 - 6,500 125.00 6,501 - 6,750 145.00 6,751 - 7,000 165.00 7,001 - 7,250 185.00 7,251 - 7,500 215.00 7,501 - 7,750 245.00 7,751 - 8,000 275.00 8,001 - 8,250 305.00 8,251 - 8,500 345.00 8,501 - 8,750 385.00 8,751 - 9,000 425.00 9,001 - 9,250 465.00 9,251 - 9,500 515.00 9,501 - 9,750 565.00 9,751 - 10,000 615.00 10,001 - 10,250 665.00 Over 10,250 $ 30.00 for each 250 pounds additional overweight, plus $ 665.00 SECTION 4. 39-26-113.5 (1) (a) and (1) (c), Colorado Revised Statutes, are amended, and the said 39-26-113.5 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read: 39-26-113.5. Refund of state sales taxes for vehicles used in interstate commerce - fund. (1) (a) Except as provided in subsection (3) of this section, for the calendar year commencing on January 1, 2011, and for each calendar year thereafter, a taxpayer may claim a refund of a percentage of all state sales and use taxes paid by the taxpayer pursuant to this part 1 and part 2 of this article on the sale, storage, or use of a model year 2010 or newer truck tractor or semitrailer with a gross vehicle weight rating of twenty-six fifty-four thousand pounds or greater designated as Class A personal property as specified in section 42-3-106 (2) (a), C.R.S. that is purchased on or after July 1, 2011. (c) The total refund shall be claimed as follows: (I) For the calendar year in which the truck tractor or semitrailer was purchased, stored, or used, ten thirty-three percent of the total amount of the refund if the model year of the truck tractor or semitrailer was sold as new during such calendar year; (II) For the first calendar year after the calendar year in which the truck tractor or semitrailer was purchased, stored, or used, fifteen thirty-three percent of the total amount of the refund if the model year of the truck tractor or semitrailer was sold as new during such calendar year; and (III) For the second calendar year after the calendar year in which the truck tractor or semitrailer was purchased, stored, or used, twenty-five thirty-three percent of the total amount of the refund if the model year of the truck tractor or semitrailer was sold as new during such calendar year. (IV) For the third calendar year after the calendar year in which the truck tractor was purchased, stored, or used, twenty-five percent of the total amount of the refund; and (V) For the fourth calendar year after the calendar year in which the truck tractor was purchased, stored, or used, twenty-five percent of the total amount of the refund. (3) (a) The department of revenue shall deny a claimant the sales tax refund or a portion of such refund granted in this section if the claim results in more than the amount allocated for the credit pursuant to section 42-1-225, C.R.S. (b) To implement this section, the department of revenue shall track the amount of the refunds granted under this section. SECTION 5. 39-26-712 (2), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read: 39-26-712. Trailers and trucks. (2) The following shall be exempt from taxation under the provisions of part 2 of this article: (c) The storage or use of a new or used trailer, semitrailer, truck, truck tractor, or truck body if the vehicle has been relocated within this state, was used in interstate commerce, and the owner can provide evidence of the vehicle being previously registered in another state for at least six months. SECTION 6. 39-30-104 (1) (b) (I), (1) (b) (II), and (1) (b) (IV), Colorado Revised Statutes, are amended, and the said 39-30-104 (1) (b) is further amended BY THE ADDITION OF THE FOLLOWING NEW SUBPARAGRAPHS, to read: 39-30-104. Credit against tax - investment in certain property - repeal. (1) (b) (I) Except as provided in subparagraph (IV) of this paragraph (b), for income tax years commencing on or after January 1, 2011, but before January 1, 2016 and for each income tax year thereafter, a commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle weight rating of sixteen fifty-four thousand pounds or greater that is model year 2010 or newer and is designated as Class A personal property as specified in section 42-3-106 (2) (a), C.R.S., as well as any parts associated with the vehicle at the time of purchase, shall be deemed to be used solely and exclusively in an enterprise zone if it is licensed and registered within the state and predominantly housed and based at the taxpayer's business trucking facility within an enterprise zone for the twelve-month period following its purchase. (II) The income tax credit for a qualified investment in a commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle weight rating of sixteen fifty-four thousand pounds or greater that is model year 2010 or newer and is designated as Class A personal property as specified in section 42-3-106 (2) (a), C.R.S., as well as any parts associated with the vehicle at the time of purchase, shall be allowed as follows: (A) For the income tax year commencing on January 1, 2011, an amount equal to one and one-half of one percent of the total qualified investment if the model year of the commercial truck, truck tractor, tractor, or semitrailer was sold as new during such income tax year; (B) For the income tax year commencing on January 1, 2012, an amount equal to one percent of the total qualified investment; (C) For the income tax year commencing on January 1, 2013, an amount equal to one and one-half percent of the total qualified investment; (D) For the income tax year commencing on January 1, 2014, an amount equal to two percent of the total qualified investment; and (E) For the income tax year commencing on January 1, 2015, an amount equal to three percent of the total qualified investment. (IV) This paragraph (b) is repealed, effective January 1, 2017. To qualify for the tax credit granted under this paragraph (b), a claimant shall be certified by the Colorado economic development commission created in section 24-46-102, C.R.S. (V) The Colorado economic development commission shall certify people eligible for the income tax credit granted in this paragraph (b) but shall not certify the income tax credit granted in this paragraph (b) if the certification results in more credits being claimed than are allocated pursuant to section 42-1-225, C.R.S. (VI) To implement this section, the Colorado economic development commission shall track the amount of the credits authorized and, by January 30 of each year, transmit to the state treasurer a statement of the amount of tax credits certified pursuant to this paragraph (b) for the previous year. (VII) No later than September 1, 2012, and no later than September 1 of each year thereafter through September 1, 2014, the Colorado economic development commission shall provide the department of revenue with an electronic report of the taxpayers receiving a credit allowed in this paragraph (b) for the preceding calendar year or any fiscal year ending in the preceding calendar year and any credits disallowed pursuant to subparagraph (V) of this paragraph (b). The report shall contain the following information: (A) The taxpayer's name; (B) The taxpayer's Colorado account number and federal employer identification number; (C) The amount of the credit allowed in this section; and (D) Any associated taxpayer's names, Colorado account numbers, and federal employer identification numbers or social security numbers, if the credit allowed in this section is allocated from a pass-through entity. SECTION 7. Appropriation. In addition to any other appropriation, there is hereby appropriated, out of any moneys in the commercial vehicle enterprise tax fund created in section 42-1-225, Colorado Revised Statutes, not otherwise appropriated, to the department of revenue, for allocation to the information technology division, for the fiscal year beginning July 1, 2010, the sum of eighty-six thousand six hundred fifty-eight dollars ($86,658) cash funds and 0.8 FTE, or so much thereof as may be necessary, for the implementation of this act. SECTION 8. Section 7 of chapter 417, Session Laws of Colorado 2009, is amended to read: Section 7. Effective date. This act shall take effect upon passage. except that sections 1 and 2 of this act shall not take effect unless a sustainable source of revenue has been identified for the implementation of sections 1 and 2 of this act and the revisor of statutes has received written notice from the executive director of the department of revenue to that effect. SECTION 9. Specified effective date - applicability. This act shall take effect July 1, 2010, and shall apply to offenses committed on or after July 1, 2010, and vehicles purchased on or after July 1, 2011. SECTION 10. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety. ________________________________________________________ Terrance D. Carroll Brandon C. Shaffer SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Marilyn Eddins Karen Goldman CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ _________________________________________ Bill Ritter, Jr. GOVERNOR OF THE STATE OF COLORADO