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April 9, 2024 SB 24-194
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0084
Sen. Roberts; Will
Rep. McLachlan; Armagost
Date:
Bill Status:
Fiscal Analyst:
April 9, 2024
Senate Local Gov. & Housing
Amanda Liddle | 303-866-5834
amanda.liddle@coleg.gov
Bill Topic: SPECIAL DISTRICT EMERGENCY SERVICES FUNDING
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill repeals local government authority to collect impact fees for fire district
expenditures and allows fire districts to collect their own impact fees and levy a district
sales tax. The bill impacts local revenue and increases state expenditures.
Appropriation
Summary:
No appropriation is required
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Summary of Legislation
The bill changes financing mechanisms available to fund local emergency services districts, as
discussed below.
Mechanisms repealed. The bill repeals statutory authorizations for local governments to
impose and collect impact fees to be remitted to fire districts for the purpose of funding fire and
emergency services. The bill additionally clarifies that fire districts are prohibited from charging
fees for firefighting activity on taxable properties.
Mechanisms allowed. The bill authorizes fire districts to collect an impact fee on the
construction of new buildings, structures, facilities, or improvements including oil or gas wells
and related equipment; and on previously improved or unimproved real property within the
district’s boundaries if the impact fee is related to the overall cost of the district’s services. The
bill also permits fire districts to levy a uniform sales tax at a rate determined by the board of the
fire district, subject to the approval of district voters. The sales tax rate may only be levied on
purchases of goods or services that fall within the state’s sales tax base.
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April 9, 2024 SB 24-194
Any sales tax approved by voters in a fire district must be collected, administered, and enforced
by the Colorado Department of Revenue (DOR). If this bill passes, the administration and
collection process of any sales tax levied by a fire district per the bill is required to follow the
provisions of Senate Bill 24-025, which modifies and harmonizes various state statutes related to
the state’s administration of local sales and use tax into one uniform statute.
Background
Under current law, local governments impose and collect an impact fee or other similar
development charge on real estate developments. In addition to special assessment taxes, local
governments may assess impact fees for infrastructure and capital improvements in order to
support new property development in the jurisdiction. A portion of impact fees and other
comparable development charges are remitted to fire districts in the local government’s
jurisdiction to fund expenditures by a fire and emergency services provider.
Assumptions
The fiscal note assumes that impact fees imposed and collected by fire districts will not be
significantly higher than those currently imposed by local governments.
State Expenditures
Department of Revenue (DOR). The bill may increase future DOR expenditures to program fire
district sales taxes in departmental software systems. Any impact is conditional upon voter
approval of these taxes. Any expenditures required would be addressed through the annual
budget process.
Local Government
Fire districts that elect to impose impact fees and/or levy a sales and use tax rate may incur
election costs for the ballot measures approving or denying additional tax authority delegated
by the bill. Overall, it is expected that fire districts would collect increased fee and tax revenues
compared to current law.
Since the bill disallows local governments from collecting an impact fee to be remitted to fire
districts, local government workload may be minimally reduced as tax and fee administration
responsibilities are lessened.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed. Page 3
April 9, 2024 SB 24-194
State and Local Government Contacts
Counties Information Technology Law
Local Affairs Personnel Revenue
Special District Association RTD Fire Districts
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.