Colorado Legislative Council Staff

STATE and LOCAL

FISCAL NOTE

No State General Fund Impact

State HUTF Revenue Impact

Local Government Revenue Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-283

Rep. Tool

 

Date:

Bill Status:

Fiscal Analyst:

January 5, 1998

House Local Government

Scott Nachtrieb (866-4752)

 

TITLE:            CONCERNING AN INCREASE IN THE AMOUNT OF FEE RETAINED WHEN COLLECTING MOTOR VEHICLE REGISTRATION FEES.


Summary of Legislation


            The bill would increase the fee retained by County Clerk and Recorders, the Manager of Revenue in the City and County of Denver and the Department of Revenue (DOR) when collecting motor vehicle registration fees from $1 to $2. The fee is for expenses incurred in acting as agents for the Department of Revenue (DOR). The bill would become effective upon the Governor’s signature.


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Highway User Tax Fund



$5,840



$5,931

State Expenditures

General Fund

Other Fund


 


 

FTE Position Change

 

 

Local Government ImpactIncrease in Local government revenues


State Revenues


            Current law allows the DOR to collect a $1 fee for each motor vehicle registered by the department. The number of vehicles the DOR would register is $3,040 in FY 1998-99 and $3,131 in FY 1999-00. This would increase revenues that are deposited into the HUTF. In addition, the department would receive additional increases in apportioned fees on interstate trucks registered in Colorado in each year. The amount of the increase is estimated to be $2,800. The total increase to the HUTF is estimated to be $5,840 in FY 1998-99 and $5,931 in FY 1999-00.


            Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.


State Expenditures


            The DOR would have some additional computer programming changes that would be completed during the annual review and rewrite of the department’s computer programs. The DOR would also have some other minimal expenditures that would be absorbed within existing resources.


Local Government Impact


            Under current law, county clerks retain a $1 fee for each motor vehicle registration transacted in their office. This bill would increase the amount of the fee retained by $1. The estimated number of vehicles that would register at the county clerks offices in FY 1998-99 is approximately 3,964,399. Approximately 4,083,331 vehicles would register in the counties in FY 1999-00. An additional $1 fee would add approximately $3,964,399 in FY 1998-99 and $4,083,331 in FY 1999-00 to county clerks offices.


Departments Contacted


            Revenue