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# Proposition 137 - Direct Sporting Goods Sales Tax Revenue for Conservation
- URL: https://www.thecoloradoconservative.com/co-prop137-2026/
- Published: 2026-09-21T00:16:39.000Z
- Updated: 2026-09-21T01:24:18.000Z
- Description: Proposition 137 Shall there be a change to the Colorado Revised Statutes allowing the state to keep and spend a portion of revenue from the state sales tax on sporting goods and equipment
- Author: Eric Phelan
- Tags: Ballot2026

# OFFICIAL BALLOT QUESTION

*“Shall there be a change to the Colorado Revised Statutes creating new law to increase water and land conservation funding without raising taxes, and, in connection therewith, through a voter-approved revenue change, allowing the state to keep and spend a portion of revenue from the state sales tax on sporting goods and equipment to conserve and protect Colorado’s water, land, and forests, prevent wildfires, support outdoor recreation training and activities, and reduce revenue spent on these conservation purposes if necessary to preserve funding for certain tax credits?”*

**Source Colorado Secretary of State certified ballot title for Initiative 308**

# NEUTRAL OVERVIEW

Proposition 137 would let Colorado retain and spend an estimated portion of existing state sales-tax revenue associated with sporting goods and equipment outside the TABOR revenue limit. The state sales-tax rate would not change, and shoppers would not pay a new tax at the register. When state revenue exceeds the TABOR limit, however, retaining this money can reduce money otherwise available for taxpayer refunds. When revenue is below the limit, the required transfer can reduce General Fund money available for other state priorities.

The Department of Revenue does not currently identify all covered products as a separate stream at collection. The measure therefore directs Legislative Council Staff to estimate the amount using Census product data, Colorado retail sales, and the state sales-tax rate, then update the estimate when better data or a reliable alternative becomes available. Starting in fiscal year 2028–29, the amount must be reduced if necessary to preserve the Family Affordability Tax Credit or the state Earned Income Tax Credit.

# INITIATIVE AT A GLANCE

| **What changes** | **A portion of existing sales-tax revenue tied by formula to sporting goods becomes TABOR-exempt and is transferred each year.**                    |
| ---------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- |
| Tax rate         | No rate increase and no new checkout tax.                                                                                                           |
| Estimated amount | $175.0 million in FY 2027–28 and $180.2 million in FY 2028–29, according to the May 2026 Legislative Council fiscal analysis.                       |
| Where it goes    | 47.5% GOCO; 47.5% a new wildfire-and-water fund; 2.5% Outdoor Equity; 2.5% Outdoor Recreation Economic Development.                                 |
| Taxpayer effect  | Above the TABOR limit, retained revenue may reduce refunds. Below the limit, the transfer reduces money available for other General Fund purposes.  |
| Duration         | Continuing annual transfer; the measure contains no sunset date.                                                                                    |
| Editorial view   | Good purposes do not justify a permanent appropriation without project-level commitments, measurable conditions, and a required performance review. |

# WHERE THE MONEY WOULD GO

| **Recipient**                           | **Share** | **FY 2027–28** | **What the measure identifies**                                                                           |
| --------------------------------------- | --------- | -------------- | --------------------------------------------------------------------------------------------------------- |
| Great Outdoors Colorado                 | 47.5%     | $83.1M         | Existing constitutional conservation and recreation purposes                                              |
| Wildfire Prevention and Water Fund      | 47.5%     | $83.1M         | Wildfire, forest, watershed, and water subfunds; includes a one-time $10M prescribed-fire claims transfer |
| Outdoor Equity Fund                     | 2.5%      | $4.4M          | Outdoor access and opportunity grants                                                                     |
| Outdoor Recreation Economic Development | 2.5%      | $4.4M          | Outdoor-recreation economic development grants                                                            |

**Source Legislative Council Staff fiscal impact statement for Initiative 308, May 13, 2026; figures rounded**

# THE PROPONENT CASE

Supporters argue that Colorado’s forests, watersheds, wildlife habitat, parks, and outdoor economy face needs that ordinary budgets have not met. Wildfire prevention often requires years of fuel reduction, prescribed fire, workforce development, watershed work, and community grants. A continuing source of money can support longer projects and partnerships that are difficult to manage with one-time appropriations.

They also see a fair connection between outdoor commerce and the public lands and water that make that commerce possible. The measure does not increase the sales-tax rate or the price of sporting goods. It directs money through established funds and programs, protects two tax credits from being reduced by the transfer, and provides specified percentages so the General Assembly cannot redirect the entire amount to unrelated spending.

# THE OPPONENT CASE

Opponents argue that the phrase “without raising taxes” describes the rate but not the full taxpayer effect. Retained revenue may otherwise contribute to TABOR refunds, and the transfer continues even in a below-cap year, when it competes with education, health care, human services, public safety, and other General Fund needs. The measure therefore changes who controls existing revenue and what taxpayers may receive back.

They also object to the gap between fund-level labels and an enforceable spending plan. The measure states the four top-level percentages, but it does not give voters a project list, per-project budgets, completion schedules, statewide priorities, minimum matching funds, outcome thresholds, an administrative-cost cap, a sunset, or a rule that stops or redirects money when results fall short. Important suballocations within the wildfire-and-water share are left to executive officials. Opponents say those decisions belong in transparent appropriations and competitive project review, not an indefinite automatic transfer.

# OFFICIAL MEASURE INFORMATION

| **Item**                       | **Official listing**                                  |
| ------------------------------ | ----------------------------------------------------- |
| **Measure type**               | Statutory citizen initiative                          |
| **Approval required**          | Majority vote                                         |
| **Revenue change begins**      | State fiscal year beginning July 1, 2027              |
| **Designated representatives** | Brendan Witt and Aaron Citron                         |
| **Registered in support**      | Protect Colorado’s Land and Water, Prevent Wildfires  |
| **Registered in opposition**   | Protect Colorado's Land, Communities, and Tax Dollars |

*Current committee listings and contact information: coloradosos.gov/pubs/elections/Initiatives/ballot/contacts/2026.html.*

**THE COLORADO CONSERVATIVE RECOMMENDS NO**

# WHY WE RECOMMEND NO

We recommend NO. The conservation goals are serious, popular, and worthy of public investment. Wildfire mitigation, healthy forests, reliable water, protected habitat, and usable outdoor spaces matter to every part of Colorado. But worthy purposes do not excuse a weak funding design. Proposition 137 asks voters to approve a continuing stream first and learn the detailed spending plan later.

The measure is not silent about every destination. It fixes the first division at 47.5 percent to Great Outdoors Colorado, 47.5 percent to the Colorado Wildfire Prevention and Water Fund, 2.5 percent to the Outdoor Equity Fund, and 2.5 percent to the Outdoor Recreation Economic Development Cash Fund. That is useful information. It is still a 30,000-foot explanation. A fund name tells voters the subject area; it does not tell them which projects will be funded, what each project will cost, when it will be completed, what measurable result will justify the expense, or what happens when a recipient fails.

The size of the commitment makes that omission unacceptable. The official fiscal analysis estimated $175.0 million in the first full fiscal year and $180.2 million in the next. Nearly half would flow to GOCO, roughly doubling the scale of its recent annual lottery revenue. The wildfire-and-water share would produce a similarly large expansion in programs. A government asking for that much continuing authority should show more than broad categories. It should present priorities, capacity, schedules, safeguards, and measurable deliverables before the vote.

The ballot title says the measure increases funding “without raising taxes.” That is true in the narrow sense that the 2.9 percent state sales-tax rate does not rise. It is incomplete as a description of the fiscal choice. When Colorado is above the TABOR limit, exempting this revenue can reduce taxpayer refunds. The May 2026 fiscal analysis estimated a $175 million reduction in refunds in tax year 2029 under then-current forecasts. When the state is below the limit, the required transfer still occurs and reduces money available for other General Fund priorities. Voters are not getting free money. They are choosing conservation spending over refunds or other public uses.

The revenue number is also modeled rather than cleanly collected from a dedicated product code at the register. The initiative builds an estimate from Census product categories, retail-sales data, and the tax rate, with later adjustments when new data or a reliable alternative becomes available. That may be the best available method, but it adds uncertainty to a permanent promise. A modeled revenue stream deserves especially clear public reporting, reconciliation, and error correction.

# EDITORIAL REVIEW CONTINUED

The “supplement, not supplant” language creates another concern. It prevents the new money from replacing existing support for the recipient funds. That sounds protective, but it also limits the ability of future budget writers to compare needs and adjust base spending. The state would be directed to add this stream on top, even when revenues weaken, program capacity changes, or another emergency becomes more urgent. Good budgeting requires priorities to compete, not permanent claims to become untouchable.

We give credit where it is due. The measure protects the Family Affordability Tax Credit and state Earned Income Tax Credit by requiring a reduction in the transfer when necessary. Existing recipient agencies and funds already operate under laws, grant procedures, audits, and public-record requirements. Those safeguards are better than none. They do not answer the central question: what new results must the public receive in exchange for this large new annual commitment?

A better conservation measure would be specific and reviewable. It would identify eligible project classes and statewide priorities; use competitive scoring and matching requirements; publish every award, location, owner, schedule, and expected result; cap administrative overhead; require independent performance audits; claw back misspent funds; and expire unless voters or lawmakers renew it after demonstrated results. It could authorize time-limited funding for the highest wildfire and watershed risks while preserving budget flexibility.

Colorado should fund conservation. It should also insist that government explain exactly what it will buy, how success will be measured, and when the commitment will end or be reconsidered. Proposition 137 supplies the revenue before it supplies those answers. That is backwards. The Colorado Conservative recommends a NO vote and invites supporters to return with a targeted, transparent, performance-based plan.

# HOW WE REACHED THE SCORES

Each category uses five tests worth 0 to 10 points. The fixed anchors are: 0 for clear harm or failure; 2 for a material weakness; 5 for mixed or neutral evidence; 8 for a clear benefit with workable safeguards; and 10 for an exceptional benefit with strong controls. Intermediate whole numbers are used only when the evidence falls between anchors.

Star conversion is fixed: 0–4 points earns no star; 5–14 earns one; 15–24 earns two; 25–34 earns three; 35–44 earns four; and 45–50 earns five.

| **Category**                  | **Points** | **Stars** |
| ----------------------------- | ---------- | --------- |
| **Fiscal Responsibility**     | 20/50      | ★★☆☆☆     |
| **Limited Government**        | 18/50      | ★★☆☆☆     |
| **Individual Liberty**        | 26/50      | ★★★☆☆     |
| **Institutional Integrity**   | 23/50      | ★★☆☆☆     |
| **Long-Term Colorado Impact** | 30/50      | ★★★☆☆     |

**FISCAL RESPONSIBILITY 20 OF 50 ★★☆☆☆**

*The measure creates predictable conservation revenue but weakens flexible budgeting and does not condition future transfers on demonstrated results.*

| **Test**                 | **Pts** | **Evidence and reason**                                                                                                                  |
| ------------------------ | ------- | ---------------------------------------------------------------------------------------------------------------------------------------- |
| Revenue predictability   | 6       | A recurring formula supports planning, but it relies initially on modeled product data rather than separately collected receipts.        |
| Budget flexibility       | 2       | The annual transfer continues in above- and below-TABOR-cap years and is directed to supplement existing funding.                        |
| Project specificity      | 2       | The measure names funds and purposes but provides no project list, budgets, schedules, or geographic priorities.                         |
| Performance conditions   | 2       | No outcome threshold, sunset, renewal vote, or automatic reallocation is tied to program performance.                                    |
| Taxpayer-cost disclosure | 8       | The measure discloses retention and names the purposes, though “without raising taxes” can obscure reduced refunds and opportunity cost. |
| Metric total             | 20      | ★★☆☆☆                                                                                                                                    |

**LIMITED GOVERNMENT 18 OF 50 ★★☆☆☆**

*The measure limits spending to named purposes, but it establishes a large automatic stream and transfers substantial allocation discretion to government bodies.*

| **Test**                 | **Pts** | **Evidence and reason**                                                                                                   |
| ------------------------ | ------- | ------------------------------------------------------------------------------------------------------------------------- |
| Scope of earmark         | 2       | An estimated $175 million begins outside the ordinary annual comparison of competing priorities.                          |
| Automatic growth         | 3       | The amount is recalculated over time and continues without a fixed dollar cap or expiration date.                         |
| Administrative restraint | 4       | It uses existing entities, but the measure does not cap administration or prove recipient capacity for the expansion.     |
| Legislative control      | 3       | Fixed percentages constrain redirection, while important suballocations are left to executive officials.                  |
| Reversibility            | 6       | As a statute it can be amended through lawful processes, but it contains no built-in sunset or scheduled reauthorization. |
| Metric total             | 18      | ★★☆☆☆                                                                                                                     |

**INDIVIDUAL LIBERTY 26 OF 50 ★★★☆☆**

*The tax rate does not rise and outdoor access may expand, but taxpayers may receive smaller refunds and have less control over the retained revenue.*

| **Test**            | **Pts** | **Evidence and reason**                                                                                                               |
| ------------------- | ------- | ------------------------------------------------------------------------------------------------------------------------------------- |
| No rate increase    | 8       | The 2.9 percent state sales-tax rate and checkout price are not increased by the measure.                                             |
| TABOR-refund effect | 2       | Exempt revenue can reduce refunds otherwise returned when collections exceed the limit.                                               |
| Outdoor access      | 7       | Funding may improve parks, trails, recreation, and access for youth and underserved communities.                                      |
| Burden-benefit fit  | 4       | The formula links sporting-goods activity to outdoor programs only approximately, and benefits will vary by place and user.           |
| Voter consent       | 5       | Voters decide the revenue change directly, but the ballot does not present the project-level commitments their consent would finance. |
| Metric total        | 26      | ★★★☆☆                                                                                                                                 |

**INSTITUTIONAL INTEGRITY 23 OF 50 ★★☆☆☆**

*Top-level percentages and formulas are detailed, but the measure lacks project-level promises and mandatory performance remedies.*

| **Test**                    | **Pts** | **Evidence and reason**                                                                                                                 |
| --------------------------- | ------- | --------------------------------------------------------------------------------------------------------------------------------------- |
| Ballot disclosure           | 6       | The title identifies retention, broad uses, and protection of certain tax credits, but not the estimated dollar scale or refund effect. |
| Fund-level allocation       | 8       | The 47.5/47.5/2.5/2.5 division is explicit and replicable.                                                                              |
| Project transparency        | 2       | No award list, location priorities, schedules, or per-project cost standards appear in the measure.                                     |
| Outcome enforcement         | 2       | The text adds no performance gate, clawback standard, sunset, or required reauthorization.                                              |
| Revenue-method transparency | 5       | The initial formula is detailed but indirect and permits later use of updated data or an alternative reliable estimate.                 |
| Metric total                | 23      | ★★☆☆☆                                                                                                                                   |

**LONG-TERM COLORADO IMPACT 30 OF 50 ★★★☆☆**

*The conservation benefits could be substantial, but an indefinite earmark without performance gates creates opportunity costs and adaptation risks.*

| **Test**                | **Pts** | **Evidence and reason**                                                                                                      |
| ----------------------- | ------- | ---------------------------------------------------------------------------------------------------------------------------- |
| Wildfire-risk potential | 8       | Sustained mitigation and forest work can protect communities, watersheds, and infrastructure.                                |
| Land-and-water benefit  | 8       | GOCO and water programs can produce durable habitat, access, and watershed improvements.                                     |
| Program durability      | 5       | Recurring revenue supports long projects, but continued funding is not tied to proven effectiveness.                         |
| Opportunity cost        | 3       | The same revenue may otherwise support refunds or other core state priorities.                                               |
| Adaptability            | 6       | Tax-credit protection and statutory amendability help, but there is no scheduled reset when conditions or priorities change. |
| Metric total            | 30      | ★★★☆☆                                                                                                                        |

# OVERALL RESULT

| **Five-category total** | **Normalized score** | **Overall stars** | **Recommendation** |
| ----------------------- | -------------------- | ----------------- | ------------------ |
| 117/250                 | 23/50                | ★★☆☆☆             | NO                 |

The score reflects a real public benefit but an inadequate funding mechanism. Proposition 137 earns credit for no tax-rate increase, explicit top-level percentages, tax-credit protection, and potentially valuable conservation work. It loses points because the annual commitment is large, indefinite, partly modeled, budget-constraining, and not conditioned on named projects or measurable results.

# WHAT WE WILL HOLD GOVERNMENT ACCOUNTABLE FOR

Whatever the election result, the publication will follow the money from the revenue estimate to each funded project and compare the public cost with documented results. Broad claims such as “conservation” or “wildfire prevention” will not count as outcomes by themselves.

## HOW WE WILL DO IT

**1\. Establish the baseline.** Record existing appropriations, lottery distributions, staff capacity, grant backlogs, acres treated, watershed work, outdoor-access grants, administrative costs, unspent balances, and TABOR refund forecasts before July 1, 2027.

**2\. Recalculate the revenue estimate.** Publish Census product figures, Colorado retail sales, the tax rate, substitutions for suppressed data, later adjustments, and any alternative method. Reconcile estimates with actual receipts if product-level data becomes available.

**3\. Report the taxpayer tradeoff.** For every year, state how much was retained, how much TABOR refunds changed, and—when revenue was below the cap—which General Fund uses absorbed the transfer.

**4\. Verify every transfer.** Confirm the 47.5/47.5/2.5/2.5 division, interest retained, the one-time $10 million claims payment, and the State Forester and DNR director’s documented suballocation decisions.

**5\. Build a public project register.** List every award with recipient, location, purpose, amount, matching funds, procurement method, start date, completion date, expected result, current status, and final result.

**6\. Measure wildfire results.** Track acres treated, treatment type, cost per acre, community and water-source risk reduction, maintenance duties, completion, and changes in independently assessed hazard—not merely dollars awarded.

**7\. Measure land and water results.** Track acres protected or restored, water-quality or supply outcomes, habitat and public-access improvements, trail or park work, cost per result, and stewardship obligations.

**8\. Audit access and economic grants.** Report applicants, winners, selection scores, geography, participation, jobs or businesses assisted, conflicts of interest, and whether benefits continued after grants ended.

**9\. Expose overhead and idle money.** Publish administration, consulting, communications, staffing, grant-management costs, fund balances, interest, canceled or late projects, and money returned or clawed back.

**10\. Enforce one-, three-, and five-year reviews.** Compare results with the baseline and original promises. Recommend amendment, reallocation, a sunset, or repeal if agencies cannot show measurable benefits proportionate to retained revenue.

*Primary records: Legislative Council and OSPB forecasts; State Treasurer transfers; Department of Revenue data; GOCO board materials; State Forest Service and Department of Natural Resources grant files; Water Conservation Board records; State Controller reports; State Auditor audits; contracts; procurement records; and recipient progress reports.*

# SOURCES

• Colorado Secretary of State, Initiative 2025–2026 #308, final text: coloradosos.gov/pubs/elections/Initiatives/titleBoard/filings/2025-2026/308Final.pdf

• Colorado Secretary of State, 2026 ballot-measure committee listings: coloradosos.gov/pubs/elections/Initiatives/ballot/contacts/2026.html

• Colorado Legislative Council Staff, Initiative 308 Fiscal Impact Statement, May 13, 2026.

• Common Sense Institute, Proposition 137: Sporting Goods Sales Tax Revenue for Conservation, September 3, 2026 (summarizing the final text and Legislative Council fiscal analysis): commonsenseinstituteus.org/research/proposition-137-sporting-goods-sales-tax-revenue-for-conservation/

# APPENDIX INITIATIVE 308 TEXT

**Source Colorado Secretary of State final text of Initiative 308**

*Be it Enacted by the People of the State of Colorado:*

**SECTION 1\. In Colorado Revised Statutes, add 24-77-110 as follows:**

**24-77-110\. Declaration of the people of Colorado - retention of exempt sales tax revenue - conserve and protect Colorado’s water, land, and forests fund - determination and distribution of wildfire and conservation revenue. (1) THE VOTERS OF THE STATE OF COLORADO FIND AND DECLARE THAT:**

(a) WITHOUT RAISING TAXES, MORE CONSERVATION FUNDING IS NEEDED TO REDUCE THE RISK OF WILDFIRE AND CONSERVE AND PROTECT COLORADO’S WATER, LAND, PARKS, AND WILDLIFE;

(b) RECENT WILDFIRES HAVE BEEN THE DEADLIEST AND MOST DESTRUCTIVE ON RECORD, WITH FOUR OF THE STATE’S LARGEST WILDFIRES IN HISTORY OCCURRING IN THE LAST FIVE YEARS, WHICH RESULTED IN THE DESTRUCTION OF 1.5 MILLION ACRES AND MORE THAN 1,900 HOMES AND HUNDREDS OF MILLIONS OF DOLLARS IN DAMAGES AND LOSSES;

(c) COLORADO’S RIVERS, STREAMS, AND LAKES ARE THE LIFEBLOOD OF THE STATE, AND IT IS ESSENTIAL TO PRESERVE WATER QUALITY AND QUANTITY IN RIVERS, STREAMS, AND UNDERGROUND WATER SUPPLIES;

(d) REDUCING THE RISK OF WILDFIRE CAN PROTECT COLORADO’S WATER, COMMUNITIES, LAND, WILDLIFE, AND OUTDOORS WAY OF LIFE;

(e) THE COLORADO STATE FOREST SERVICE AND THE COLORADO DEPARTMENT OF NATURAL RESOURCES WORK IN PARTNERSHIP TO PROTECT COLORADO COMMUNITIES AND WATER BY REDUCING THE RISK OF WILDFIRE;

(f) THE COLORADO STATE FOREST SERVICE DELIVERS SIGNIFICANT BENEFITS TO COLORADO BY ENSURING THE LONG-TERM HEALTH AND VITALITY OF COLORADO’S FORESTS AND WATERSHEDS, INCLUDING THROUGH FUNDING THAT EMPOWERS COMMUNITIES TO REDUCE THE RISK OF WILDFIRE TO PEOPLE, PROPERTY, AND INFRASTRUCTURE; PROMOTES FOREST HEALTH AND FOREST RESTORATION PROJECTS; AND ENCOURAGES THE USE OF WOOD FOR TRADITIONAL FOREST PRODUCTS AND BIOMASS ENERGY;

(g) THE COLORADO DEPARTMENT OF NATURAL RESOURCES AND THE COLORADO WATER CONSERVATION BOARD PROVIDE CRITICAL FUNDING FOR WILDFIRE RISK REDUCTION, INCLUDING BY FUNDING LARGE-SCALE PROJECTS TO REDUCE THE AMOUNT OF POTENTIAL WILDFIRE FUEL; INVESTING IN WORKFORCE DEVELOPMENT WITH HANDS-ON EXPERIENCE AND TRAINING OPPORTUNITIES IN WILDFIRE MITIGATION AND FORESTRY; AND ASSISTING COMMUNITIES IN PLANNING FOR AND LESSENING THE LONG-TERM EFFECTS THAT WILDFIRES HAVE ON COLORADO’S WATER, WETLANDS, COMMUNITIES, AND INFRASTRUCTURE;

(h) DESPITE THESE EXISTING INVESTMENTS, COLORADO’S FORESTS NEED ADDITIONAL FUNDING AND URGENT ATTENTION TO ADDRESS WILDFIRE RISK AND PROTECT WATERSHEDS AND FOREST HEALTH;

(i) COLORADO’S GREAT OUTDOORS, WATER, AND WILDLIFE ARE AMONG THE STATE’S MOST TREASURED RESOURCES, ENHANCING COLORADANS’ QUALITY OF LIFE, CONTRIBUTING TO THE STATE’S ECONOMY, PROVIDING DIVERSE OPPORTUNITIES TO EXPERIENCE NATURE, AND SUPPORTING JOBS IN THE STATE;

(j) DESPITE THE STATE’S RENOWNED BEAUTY AND VAST OPPORTUNITIES FOR YEAR-ROUND OUTDOOR ACTIVITIES, MANY COMMUNITIES IN COLORADO FACE OBSTACLES TO ACCESSING THE OUTDOORS AND THE SIGNIFICANT BENEFITS SPENDING TIME IN NATURE DELIVERS;

(k) COLORADO HAS A LEGACY OF LAND CONSERVATION, INCLUDING THROUGH PARTNERSHIPS WITH PRIVATE LANDOWNERS TO PROTECT WORKING FARMS AND RANCHES AND TO MAINTAIN THE NATURAL AND AGRICULTURAL HERITAGE OF THE STATE, AND ALSO HAS WORLD-CLASS STATE PARKS AND OTHER PUBLIC LANDS, ALL OF WHICH PROVIDE SIGNIFICANT BENEFITS TO COLORADO’S WATERS, WILDLIFE, AND PEOPLE;

(l) COLORADO PARKS AND WILDLIFE WORKS TO ENSURE COLORADO’S OUTDOORS AND WILDLIFE ARE SUSTAINED FOR FUTURE GENERATIONS, INCLUDING TO CONSERVE VULNERABLE WILDLIFE SPECIES AND HABITATS AND TO MAINTAIN A HIGH-QUALITY STATE PARKS SYSTEM;

(m) THE GREAT OUTDOORS COLORADO PROGRAM (GOCO), ESTABLISHED BY A VOTE OF THE PEOPLE OF COLORADO AND ENSHRINED IN ARTICLE XXVII OF THE STATE CONSTITUTION, IS DEDICATED TO THE PRESERVATION, PROTECTION, ENHANCEMENT, AND MANAGEMENT OF THE STATE’S WILDLIFE, PARK, RIVER, TRAIL, AND OPEN SPACE HERITAGE;

(n) GOCO DELIVERS EXCEPTIONAL BENEFITS TO THE STATE BY INVESTING COLORADO LOTTERY REVENUE IN THE STATE’S WILDLIFE RESOURCES AND OUTDOORS THROUGH COLORADO PARKS AND WILDLIFE AND COMPETITIVE GRANTS TO PROTECT UNIQUE NATURAL LANDSCAPES AND TO MATCH LOCAL INVESTMENTS FOR OPEN SPACE, PARKS, AND ENVIRONMENTAL EDUCATION FACILITIES;

(o) CREATED BY EXECUTIVE ORDER B-2020-08 IN 2020, THE COLORADO OUTDOOR REGIONAL PARTNERSHIPS INITIATIVE, WHICH RECEIVES FUNDING FROM GOCO AND COLORADO PARKS AND WILDLIFE, ADVANCES REGIONAL AND STATEWIDE COLLABORATION TO ENSURE THAT COLORADO’S WATER, LAND, AND WILDLIFE THRIVE WHILE ALSO ENHANCING EQUITABLE ACCESS TO QUALITY OUTDOOR EXPERIENCES;

(p) FOLLOWING THE CREATION OF THE REGIONAL PARTNERSHIPS INITIATIVE, THE COLORADO OUTDOORS STRATEGY EMERGED FROM A MULTI-YEAR, COLLABORATIVE EFFORT WITH LOCAL, REGIONAL, AND STATE PARTICIPATION AND SERVES AS A VISION FOR FUTURE INVESTMENTS IN COLORADO’S OUTDOORS WITH THREE NORTH-STAR GOALS: CLIMATE RESILIENT CONSERVATION AND RESTORATION; EXCEPTIONAL AND SUSTAINABLE OUTDOOR RECREATION; AND COORDINATED PLANNING AND FUNDING;

(q) THE OUTDOOR EQUITY GRANT PROGRAM, WITHIN COLORADO PARKS AND WILDLIFE, INCREASES ACCESS AND OPPORTUNITIES FOR YOUTH AND THEIR FAMILIES TO EXPERIENCE COLORADO’S OUTDOORS AND INVESTS, THROUGH GRANTS TO ORGANIZATIONS THAT PROVIDE TRANSFORMATIONAL CONSERVATION, OUTDOOR EDUCATION, AND EXPERIENTIAL LEARNING PROGRAMS, IN THE NEXT GENERATION OF COLORADANS LEARNING ABOUT THE IMPORTANCE OF OUR LAND AND WATER;

(r) THE OUTDOOR RECREATION INDUSTRY OFFICE IN THE OFFICE OF ECONOMIC DEVELOPMENT WORKS TO SUPPORT THE ECONOMIC VALUE OF COLORADO’S OUTDOORS AND TO PROTECT AND CONSERVE OUR WATER, LAND, AIR, AND CLIMATE BY, AMONG OTHER EFFORTS, PROMOTING CONSERVATION, ECONOMIC DEVELOPMENT, EDUCATION, WORKFORCE TRAINING, AND PUBLIC HEALTH AND WELLNESS AND ADDRESSING THE CHRONIC AND SYSTEMIC INEQUITIES THAT PREVENT YOUTH AND COMMUNITIES FROM ENGAGING IN MEANINGFUL EXPERIENCES IN THE OUTDOORS; AND

(s) WITHOUT RAISING TAXES OR CHANGING THE COST OF SPORTING GOODS AND EQUIPMENT, COLORADO VOTERS DIRECT THE INVESTMENT OF MORE CONSERVATION FUNDING BY ALLOWING THE STATE TO RETAIN THE REVENUE GENERATED FROM THE EXISTING STATE SALES TAX ON SPORTING GOODS AND EQUIPMENT AND DIRECTING THAT AMOUNT OF MONEY TO THE COLORADO WILDFIRE PROTECTION AND WATER FUND TO HELP THE COLORADO STATE FOREST SERVICE AND THE COLORADO DEPARTMENT OF NATURAL RESOURCES PROTECT COMMUNITIES AND WATER BY REDUCING THE RISK OF WILDFIRE; TO GOCO TO PRESERVE, PROTECT, ENHANCE, AND MANAGE THE STATE’S WILDLIFE, PARK, RIVER, TRAIL, AND OPEN SPACE HERITAGE; TO THE OUTDOOR EQUITY GRANT PROGRAM TO IMPROVE ACCESS TO THE OUTDOORS FOR YOUTH AND FAMILIES; AND TO THE OUTDOOR RECREATION INDUSTRY OFFICE TO INVEST IN WORKFORCE DEVELOPMENT AND OTHER OPPORTUNITIES TO PARTICIPATE IN AND CONTRIBUTE TO COLORADO’S OUTDOORS ECONOMY.

(2)(a) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, COMMENCING ON JULY 1, 2027, ALL STATE SALES TAX REVENUES COLLECTED FROM CERTAIN SPORTING GOODS AND EQUIPMENT SHALL CONSTITUTE A VOTER-APPROVED REVENUE CHANGE UNDER SECTION 20(7)(d) OF ARTICLE X OF THE STATE CONSTITUTION, AS AN EXCEPTION TO THE LIMITS THAT WOULD OTHERWISE APPLY WITHOUT LIMITING OR AFFECTING THE COLLECTION OR SPENDING OF OTHER REVENUES.

(b) THE REVENUE RESULTING FROM THE VOTER-APPROVED REVENUE CHANGE CREATED BY THIS SECTION SHALL BE EXEMPT REVENUE KNOWN AS “WILDFIRE AND CONSERVATION REVENUE”. FOR THE PURPOSES OF THIS SECTION, “EXEMPT REVENUE” MEANS, FOR THE APPLICABLE STATE FISCAL YEAR, REVENUE EXEMPT FROM THE LIMITATION ON STATE FISCAL YEAR SPENDING.

(3) THE CONSERVE AND PROTECT COLORADO’S WATER, LAND, AND FORESTS FUND IS HEREBY CREATED IN THE STATE TREASURY.

(a) THE FUND CONSISTS OF MONEY TRANSFERRED TO THE FUND PURSUANT TO SUBSECTION (3)(c) OF THIS SECTION AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND.

(b) ALL INTEREST AND INCOME EARNED ON THE DEPOSIT AND INVESTMENT OF MONEY IN THE CONSERVE AND PROTECT COLORADO’S WATER, LAND, AND FORESTS FUND IS CREDITED TO THE FUND AND IS NOT TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR.

(c) ON JULY 1, 2027 FOR THE 2027-28 STATE FISCAL YEAR, AND ON JULY 1 FOR EACH STATE FISCAL YEAR THEREAFTER, THE STATE TREASURER SHALL TRANSFER FROM THE GENERAL FUND TO THE CONSERVE AND PROTECT COLORADO’S WATER, LAND, AND FORESTS FUND AN AMOUNT EQUAL TO THE WILDFIRE AND CONSERVATION REVENUE DETERMINED PURSUANT TO THE CALCULATIONS IN SUBSECTION (4) OF THIS SECTION.

(d) MONEY IN THE CONSERVE AND PROTECT COLORADO’S WATER, LAND, AND FORESTS FUND SHALL SUPPLEMENT, NOT SUPPLANT, EXISTING FUNDING FOR THE FUNDS IN SUBSECTIONS (3)(d)(I), (3)(d)(II), (3)(d)(III), AND (3)(d)(IV) OF THIS SECTION AND BE CREDITED AS FOLLOWS:

(I) FORTY-SEVEN AND FIVE-TENTHS PERCENT TO THE GREAT OUTDOORS COLORADO TRUST FUND CREATED AND ESTABLISHED BY SECTION 2 OF ARTICLE XXVII OF THE STATE CONSTITUTION FOR THE PURPOSES OF SUCH ARTICLE AND TO BE MAINTAINED AND EXPENDED PURSUANT TO SUCH ARTICLE;

(II) FORTY-SEVEN AND FIVE-TENTHS PERCENT TO THE COLORADO WILDFIRE PREVENTION AND WATER FUND CREATED IN SECTION 24-33-119 TO PROTECT COMMUNITIES AND WATER SOURCES FROM WILDFIRE;

(III) TWO AND FIVE-TENTHS PERCENT TO THE OUTDOOR EQUITY FUND CREATED IN SECTION 33-9-206(1)(a); AND

(IV) TWO AND FIVE-TENTHS PERCENT TO THE OUTDOOR RECREATION ECONOMIC DEVELOPMENT CASH FUND CREATED IN SECTION 24-48.5-129(4)(a) FOR THE PURPOSE OF PROVIDING GRANTS IN FURTHERANCE OF THE PURPOSES LISTED IN SECTION 24-48.5-129 (3)(c) AND (3)(d).

(4) THE AMOUNT OF WILDFIRE AND CONSERVATION REVENUE GENERATED AND AVAILABLE FOR DISTRIBUTION PURSUANT TO THIS SECTION SHALL BE DETERMINED AS FOLLOWS:

(a) NO LATER THAN MARCH 15, 2027, FOR THE 2027-28 STATE FISCAL YEAR, LEGISLATIVE COUNCIL STAFF SHALL DETERMINE THE AMOUNT OF WILDFIRE AND CONSERVATION REVENUE BASED ON THE UNITED STATES CENSUS BUREAU 2022 ECONOMIC CENSUS DATA CONTAINED IN TABLE NUMBER EC2200NAPCSINDPRD AND PURSUANT TO THE FOLLOWING METHODOLOGY:

(I) COLLECT THE COLORADO AND NATIONAL TOTAL SALES, VALUE OF SHIPMENTS, OR REVENUES FROM THE NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) CODE 44-45 FOR RETAIL TRADE;

(II) COLLECT THE TOTAL SALES, VALUE OF SHIPMENTS, OR REVENUES IN NAICS CODE 44- 45 FOR RETAIL TRADE FOR EACH NORTH AMERICAN PRODUCT CLASSIFICATION SYSTEM (NAPCS) PRODUCT IN COLORADO AND THE NATION FOR THE NAPCS SPORTING GOODS AND EQUIPMENT PRODUCTS WITH THE FOLLOWING CODES USED IN THE 2022 ECONOMIC CENSUS TABLE:

5001025000, 5001050000, 5001075000, 5001105000, 5001150000, 5001175000, 5001300000, 5001700000, AND 7001800000;

(III) DIVIDE:

(A) THE TOTAL DOLLAR AMOUNT FOR EACH NAPCS PRODUCT CODE IN COLORADO IN SUBSECTION (4)(a)(II) OF THIS SECTION BY THE TOTAL DOLLAR AMOUNT FOR THE ENTIRE NAICS CODE 44-45 FOR RETAIL TRADE IN COLORADO IN SUBSECTION (4)(a)(I) OF THIS SECTION IN ORDER TO DETERMINE THE PERCENT OF TOTAL RETAIL TRADE SALES THAT ARE SPORTING GOODS AND EQUIPMENT SALES FOR COLORADO; AND

(B) THE TOTAL DOLLAR AMOUNT FOR EACH NAPCS PRODUCT CODE IN THE NATION IN SUBSECTION (4)(a)(II) OF THIS SECTION BY THE TOTAL DOLLAR AMOUNT FOR THE ENTIRE NAICS CODE 44-45 FOR RETAIL TRADE IN THE NATION IN SUBSECTION (4)(a)(I) OF THIS SECTION IN ORDER TO DETERMINE THE PERCENT OF TOTAL RETAIL TRADE SALES THAT ARE SPORTING GOODS AND EQUIPMENT SALES FOR THE NATION;

(IV) MULTIPLY:

(A) EACH COLORADO NAPCS PRODUCT CODE PERCENTAGE IN SUBSECTION (4)(a)(III)(A) OF THIS SECTION BY THE COLORADO DEPARTMENT OF REVENUE GROSS ANNUAL SALES FROM THE MOST RECENTLY AVAILABLE TAX YEAR FOR THE NAICS CODE 44-45 FOR RETAIL TRADE TO DETERMINE THE ESTIMATE OF TAXABLE SPORTING GOODS AND EQUIPMENT SALES IN COLORADO; AND

(B) AS A SUBSTITUTE FOR ANY COLORADO NAPCS PRODUCT CODE IN NAICS CODE 44-45 FOR RETAIL TRADE WITH A DATA NONDISCLOSURE FLAG FOR THE TOTAL SALES, VALUE OF SHIPMENTS, OR REVENUES IN TABLE NUMBER EC2200NAPCSINDPRD, THE NATIONAL NAPCS PRODUCT CODE PERCENTAGE IN PERCENTAGE IN SUBSECTION (4)(a)(III)(B) OF THIS SECTION BY THE COLORADO DEPARTMENT OF REVENUE GROSS ANNUAL SALES FROM THE MOST RECENTLY AVAILABLE TAX YEAR FOR THE NAICS CODE 44-45 FOR RETAIL TRADE; AND

(V) MULTIPLY THE TOTAL TAXABLE SALES FROM SPORTING GOODS AND EQUIPMENT DETERMINED IN SUBSECTION (4)(a)(IV) OF THIS SECTION BY THE STATE SALES TAX RATE TO DETERMINE THE AMOUNT OF WILDLIFE AND CONSERVATION REVENUE.

(b) FOR THE 2027-28 STATE FISCAL YEAR, THE AMOUNT OF WILDFIRE AND CONSERVATION REVENUE DETERMINED PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION SHALL BE CONSIDERED EXEMPT REVENUE AVAILABLE FOR DISTRIBUTION PURSUANT TO SUBSECTION (3) OF THIS SECTION.

(c) FOR FISCAL YEARS COMMENCING ON AND AFTER JULY 1, 2028, THE QUARTERLY DECEMBER REVENUE FORECAST PREPARED BY LEGISLATIVE COUNCIL STAFF SHALL DETERMINE THE ADJUSTMENT TO THE AMOUNT OF WILDFIRE AND CONSERVATION REVENUE GENERATED PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION FOR THE UPCOMING FISCAL YEAR. IN DETERMINING THE ADJUSTED ANNUAL AMOUNT, LEGISLATIVE COUNCIL STAFF SHALL CONSIDER, AT A MINIMUM, WHETHER:

(I) DATA USED IN SUBSECTION (4)(a) OF THIS SECTION HAS BEEN UPDATED;

(II) ACTUAL RECEIPTS OF SALES TAX REVENUE FOR THE NAPCS CODES IN SUBSECTION (4)(a) OF THIS SECTION OR SUCCESSOR CODES ARE AVAILABLE; OR

(III) LEGISLATIVE COUNCIL STAFF HAS PREPARED AN ALTERNATIVE RELIABLE ESTIMATE OF STATEWIDE SALES TAX REVENUE RECEIVED FROM THE SPORTING GOODS AND EQUIPMENT REFLECTED IN THE NAPCS CODES IN SUBSECTION (4)(a) OF THIS SECTION OR SUCCESSOR CODES.

(d) FOR FISCAL YEARS COMMENCING ON AND AFTER JULY 1, 2028, THE WILDFIRE AND CONSERVATION REVENUE IS SUBJECT TO REDUCTION IF IT IS DETERMINED THAT EXEMPTION OF THE FULL AMOUNT OF WILDFIRE AND CONSERVATION REVENUE, AS DETERMINED IN SUBSECTION (4)(c) OF THIS SECTION, WOULD CAUSE A REDUCTION IN THE CREDIT AMOUNT AVAILABLE FOR EITHER THE FAMILY AFFORDABILITY TAX CREDIT, PURSUANT TO SECTION 39-22-130(6), OR THE EARNED INCOME TAX CREDIT, PURSUANT TO 39-22-123.5(3.5)(c). SUCH DETERMINATION SHALL BE MADE IN EITHER THE QUARTERLY DECEMBER REVENUE FORECAST PREPARED BY LEGISLATIVE COUNCIL STAFF OR THE QUARTERLY DECEMBER REVENUE FORECAST PREPARED BY THE OFFICE OF STATE PLANNING AND BUDGETING IN THE DECEMBER IMMEDIATELY PRECEDING THE APPLICABLE STATE FISCAL YEAR, AS DETERMINED BY WHICH IMMEDIATELY PRECEDING MARCH FORECAST THE JOINT BUDGET COMMITTEE USED IN THE PREPARATION OF THE STATE BUDGET. IF SUCH A REDUCTION IS NECESSARY, LEGISLATIVE COUNCIL STAFF OR THE OFFICE OF STATE PLANNING AND BUDGETING SHALL CALCULATE THE MAXIMUM AMOUNT OF WILDFIRE AND CONSERVATION REVENUE THAT CAN BE CONSIDERED EXEMPT REVENUE WITHOUT RESULTING IN A REDUCTION OF THE CREDIT AMOUNT AVAILABLE FOR THE FAMILY AFFORDABILITY TAX CREDIT, PURSUANT TO SECTION 39-22-130(6), OR THE EARNED INCOME TAX CREDIT, PURSUANT TO 39-22-123.5(3.5)(c).

(e) LEGISLATIVE COUNCIL STAFF OR THE OFFICE OF STATE PLANNING AND BUDGETING SHALL SUBMIT TO THE STATE TREASURER THE AMOUNT OF WILDFIRE AND CONSERVATION REVENUE THAT SHALL BE TRANSFERRED AND AVAILABLE FOR DISTRIBUTION PURSUANT TO SUBSECTION (3) OF THIS SECTION AS FOLLOWS:

(I) FOR THE 2027-28 STATE FISCAL YEAR, THE AMOUNT OF WILDFIRE AND CONSERVATION REVENUE THAT RESULTS FROM THE DETERMINATION MADE IN SUBSECTION (4)(a) OF THIS SECTION; AND

(II) FOR THE 2028-29 STATE FISCAL YEAR AND FOR ALL SUBSEQUENT STATE FISCAL YEARS, THE AMOUNT OF WILDFIRE AND CONSERVATION REVENUE THAT RESULTS FROM THE DETERMINATIONS MADE IN SUBSECTIONS (4)(c) AND (4)(d) OF THIS SECTION.

**SECTION 2\. In Colorado Revised Statutes, add 24-33-119 as follows:**

**24-33-119\. Colorado wildfire prevention and water fund - disposition of money. (1) THE COLORADO WILDFIRE PREVENTION AND WATER FUND IS HEREBY CREATED IN THE STATE TREASURY. THE FUND CONSISTS OF MONEY CREDITED TO THE FUND PURSUANT TO SECTION 24-77- 110 AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND. ALL MONEY IN THE FUND AT THE END OF EACH FISCAL YEAR REMAINS IN THE FUND AND DOES NOT REVERT TO THE GENERAL FUND OR ANY OTHER FUND. THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO THE FUND.**

(2) AFTER THE STATE TREASURER TRANSFERS AND CREDITS THE WILDFIRE AND CONSERVATION REVENUE PURSUANT TO SECTION 24-77-110 (3)(c) AND (3)(d), ON JULY 1, 2027, FOR THE 2027-28 STATE FISCAL YEAR, THE STATE TREASURER SHALL TRANSFER MONEY IN THE FUND AS FOLLOWS:

(a) TEN MILLION DOLLARS TO THE PRESCRIBED FIRE CLAIMS CASH FUND CREATED IN SECTION 24-33.5-1240(2)(a);

(b) FIFTY PERCENT OF THE MONEY REMAINING AFTER THE TRANSFER PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION TO THE FOREST RESTORATION AND WILDFIRE RISK MITIGATION GRANT PROGRAM CASH FUND CREATED IN SECTION 23-31-310(8.5) AND THE HEALTHY FORESTS AND VIBRANT COMMUNITIES FUND CREATED IN SECTION 23-31-313(10), WITH THE STATE FORESTER TO DETERMINE THE AMOUNT TO BE TRANSFERRED TO EACH FUND; AND

(c) THE OTHER FIFTY PERCENT OF THE MONEY REMAINING AFTER THE TRANSFER PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION TO THE WILDFIRE MITIGATION CAPACITY DEVELOPMENT FUND CREATED IN SECTION 24-33-117(1) AND THE COLORADO WATER CONSERVATION BOARD CONSTRUCTION FUND CREATED IN SECTION 37-60-121 FOR THE PURPOSES SPECIFIED IN SECTION 37-60-121(11)(b)(II), WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF NATURAL RESOURCES TO DETERMINE THE AMOUNT TO BE TRANSFERRED TO EACH FUND.

(3) AFTER THE STATE TREASURER TRANSFERS AND CREDITS THE WILDFIRE AND CONSERVATION REVENUE PURSUANT TO SECTION 24-77-110 (3)(c) AND (3)(d), ON JULY 1, 2028, FOR THE 2028-29 STATE FISCAL YEAR, AND ON JULY 1 FOR EACH STATE FISCAL YEAR THEREAFTER, THE STATE TREASURER SHALL CREDIT MONEY IN THE FUND AS FOLLOWS:

(a) FIFTY PERCENT OF THE MONEY TO THE FOREST RESTORATION AND WILDFIRE RISK MITIGATION GRANT PROGRAM CASH FUND CREATED IN SECTION 23-31-310(8.5) AND THE HEALTHY FORESTS AND VIBRANT COMMUNITIES FUND CREATED IN SECTION 23-31-313(10), WITH THE STATE FORESTER TO DETERMINE THE AMOUNT TO BE CREDITED TO EACH FUND; AND

(b) FIFTY PERCENT OF THE MONEY TO THE WILDFIRE MITIGATION CAPACITY DEVELOPMENT FUND CREATED IN SECTION 24-33-117(1) AND THE COLORADO WATER CONSERVATION BOARD CONSTRUCTION FUND CREATED IN SECTION 37-60-121 FOR THE PURPOSES SPECIFIED IN SECTION 37-60-121(11)(b)(II), WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF NATURAL RESOURCES TO DETERMINE THE AMOUNT TO BE CREDITED TO EACH FUND.