§ 39-22-623 — Disposition of collections - definition

Colorado § 39-22-623

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Income Tax

Text

(1) The proceeds of all
money collected under this article 22, less the reserve retained for refunds, shall be
credited as follows:

(a) (I) Repealed.

(II) (A) Effective July 1, 1987, an amount equal to twenty-seven percent of the
gross state cigarette tax shall be apportioned to incorporated cities and
incorporated towns that levy taxes and adopt formal budgets and to counties. For
the purposes of this section, a city and county is considered a city. The city or town
share shall be apportioned according to the percentage of state sales tax revenues
collected by the department of revenue in an incorporated city or town as
compared to the total state sales tax collections that may be allocated to all
political subdivisions in the state; the county share shall be the same as that which
the percentage of state sales tax revenues collected in the unincorporated area of
the county bears to total state sales tax revenues that may be allocated to all
political subdivisions in the state. The department of revenue shall certify to the
state treasurer, at least annually, the percentage for allocation to each city, town,
and county, and the department shall apply the percentage for allocation certified
in all distributions to cities, towns, and counties until changed by certification to the
state treasurer. In order to qualify for distributions of state income tax money, units
of local government are prohibited from imposing taxes on any person as a
condition for engaging in the business of selling cigarettes. For purposes of this
subsection (1)(a)(II), the gross state cigarette tax means the total tax from ten
mills on each cigarette before the discount provided for in section 39-28-104 (1),
plus an amount equal to the amount transferred to the general fund for the state
fiscal year in accordance with section 24-22-118 (2). For any city, town, or county
that was previously disqualified from the apportionment set forth in this subsection
(1)(a)(II)(A) by reason of imposing a fee or license related to the sale of cigarettes,
the city, town, or county is eligible for any allocation of money that is based on an
apportionment made on or after July 1, 2019, but not for an allocation of money that
is based on an apportionment made before July 1, 2019.

(B) Money apportioned pursuant to this subsection (1)(a)(II)(B) shall be
included for informational purposes in the general appropriation bill or in
supplemental appropriation bills.

(C) For state fiscal years commencing on or after July 1, 2023, revenue
collected by the state and apportioned pursuant to this subsection (1)(a)(II) is a
collection for another government, as defined in section 24-77-102 (1), for the
purpose of determining state fiscal year spending, as defined in section 24-77-102
(17).

(b) Following apportionment of the city, town, and county shares pursuant to
paragraph (a) of this subsection (1) and pursuant to section 29-21-101, C.R.S., all
remaining funds, less the amount credited to the reserve created in section 39-29-107.8, in accordance with subsection (2) of said section, shall be credited to the
general fund, and the general assembly shall make appropriations therefrom for
the expenses of the administration of this article.

(c) Distribution to each city, town, and county shall be made monthly, no
later than the fifteenth day of the second successive month after the month for
which cigarette tax collections are made, commencing in October 1973.

(d) Each city, town, and county, upon request and at reasonable times, shall
be entitled to verify with the executive director or his designated representative the
proceeds to which the local government is entitled pursuant to the provisions of
this section.

(e) Where, prior to July 1, 1973, a city or town has pledged the proceeds of all
or a portion of its local cigarette tax or tax on the occupation of selling cigarettes
for the payment of bonds or other obligations, the city or town shall pledge or place
in trust an equivalent amount from its share of the proceeds of the state cigarette
tax for the payment of such bonds or other obligations.

(f) Repealed.

Legislative History

Source: L. 64: R&RE, p. 809, � 1. C.R.S. 1963: � 138-1-94. L. 73: p. 1450, � 1. L. 74: (1)(b) amended, p. 432, � 1, effective May 17. L. 77: (1)(a) amended, p. 1793, � 3, effective July 1; (1)(f) added, p. 1811, � 2, effective January 1, 1978. L. 83: (1)(a) amended, p. 2099, � 12, effective October 13; (1)(a) amended, p. 2053, � 27, effective October 14. L. 85: (1)(a) amended, p. 1267, � 5, effective May 30. L. 86: (1)(a) amended, p. 1111, � 10, effective July 1. L. 93: (1)(a)(II) amended, p. 1509, � 10, effective June 6. L. 94: (1)(a)(II) amended, p. 1804, � 2, effective May 31. L. 2002: (1)(f) repealed, p. 1362, � 19, effective July 1. L. 2016: (1)(b) amended, (SB 16-218), ch. 289, p. 1172, � 2, effective June 10. L. 2019: IP(1) and (1)(a)(II)(A) amended, (HB 19-1033), ch. 53, p. 185, � 5, effective July 1. L. 2020: (1)(a)(II)(A) amended, (HB 20-1427), ch. 248, p. 1212, � 26, effective January 1, 2021. L. 2024: (1)(a)(II)(B) amended and (1)(a)(III)(C) added, (HB 24-1469), ch. 359, p. 2441, � 3, effective June 3.