HB16-1433 Summary

• Creates a Severance Tax Reserve Fund effective July 1, 2017, with a $180 million annual cap (adjusted for inflation) for severance tax gross receipts deposited to state and local government funds.

• Requires the State Treasurer to transfer any severance tax revenues exceeding the annual cap to the reserve fund, with a maximum reserve cap equal to 2 times the annual cap.

• Directs excess money in the reserve beyond the reserve cap to be transferred to the Colorado Water Conservation Board Construction Fund at fiscal year end.

• Seeks voter approval at the November 8, 2016 election to retain and spend severance tax revenues deposited in the reserve as a voter-approved revenue change to state spending limits, conditioned on not repealing or reducing existing severance tax exemptions or credits.

• Allows the General Assembly to appropriate reserve funds when the Severance Tax Operational Fund or Local Government Severance Tax Fund has insufficient money for programs they support.