Colorado Legislative Council Staff



TABOR Refund Impact

No General Fund Impact

HUTF Revenue Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-904

Rep. McElhany


Bill Status:

Fiscal Analyst:

March 8, 1998

House Transportation

Scott Nachtrieb (866-4752)



Summary of Legislation


FY 1998/99

FY 1999/2000

State Revenues

General Fund

Highway Users Tax Fund (HUTF)



State Expenditures

General Fund

Other Fund



FTE Position Change



Local Government Impact — Additional HUTF distributions

            The bill would allow the United States Olympic Committee (USOC) to apply to the Department of Revenue (DOR) for special license plates. The USOC would have to obtain commitments to purchase 500 sets of plates from persons before the department would produce a license plate. The USOC would bear all the costs of designing the plate and would have to conform with standards established by the department.

            The USOC would set qualifications for persons seeking to obtain the plates that include contribution levels to the USOC and payment of USOC dues. The moneys collected could only be used for support of the USOC programs. The taxes and fees for the special license plates would be the same as the taxes and fees for regular license plates, plus a one-time fee of $10. The renewal procedures for the special license plates would be the same as for other license plates. This bill’s fiscal impact depends upon the USOC getting 500 people to commit to purchasing the license plates. Therefore, this bill is assessed as having a conditional fiscal impact.


State Revenues

            Under the DOR rules concerning special plates, the department would allow people to apply in March of each year for special plates. The plates would then be issued in January of the following year. Groups would not be able to submit applications by March of 1998 but would submit applications for these special plates in March, 1999. The plates would be issued in January, 2000. The revenue would be received in FY 1999-00.

            It is estimated that at least 500 persons would qualify for special license plates under the provisions of this bill. This would generate 500 special license plates. Each person purchasing the plate would pay a one-time fee of $10.00. This would generate an estimated $5,000 in additional HUTF Revenue ($10 X 500). The State Highway Fund would receive 65 percent of the new revenues.

TABOR Refund Impact

            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 or decrease 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 Department of Revenue would have to modify the computer programs for registering motor vehicles. This programming is estimated at 480 hours and would be completed during the annual review and rewrite of computer programs. The Registration Administrative Manual would have to be revised and information would have to be added to the Special License Plate Application Form. These costs are estimated to be minimal and would be absorbed within the existing resources and not require an additional appropriations.

Local Government Impact

            Local governments would receive additional HUTF distributions from the increase HUTF revenues. Counties would receive twenty-six percent and cities would receive nine percent.

Spending Authority

            This fiscal note implies that no additional spending authority would be required for FY 1998-99 to implement this bill.

Departments Contacted       Revenue