July 16, 2018

HB 16-1118: Allowing Deductions from Tax Collections for Local Government Repayments

On January 20, 2016, Rep. Lois Court introduced HB 16-1118 – Concerning a Local Taxing Jurisdiction’s Repayment to the State for a Prior Sales and Use Tax Distribution. The bill was introduced in the House and assigned to the Local Government Committee, where it passed unamended and is waiting for Second Reading in the House Committee of the Whole.

If for any reason a local taxing jurisdiction is required to repay the state of Colorado for a prior distribution of sales and use tax collections, this bill permits the Executive Director of the Department of Revenue to deduct the amount owed from future distributions of the tax collections. The Executive Director and the local taxing jurisdiction may enter into an intergovernmental agreement, which shall not exceed 3 years, to establish the terms of the repayment. The Executive Director is required to notify the state controller of the agreement.

The bill also establishes that a local taxing jurisdiction’s repayment for a prior distribution of sales and use tax collections is exempted from the state controller’s usual debt collection procedures.

Max Montag is a 2016 J.D. Candidate at the University of Denver Sturm College of Law.