Proposition 137 would shift about $175 million a year from the General Fund

Proposition 137 would shift about $175 million a year from the general fund.

Proposition 137, which would send state sales tax on sporting goods to conservation, wildfire, and outdoor recreation funds starting July 1, 2027, has no provision letting lawmakers reduce the transfer to balance the budget.

A power Proposition 123, the 2022 housing measure, gives them.

In years when state revenue exceeds the limit set by the Taxpayer's Bill of Rights, TABOR, the transfer would reduce taxpayer refunds.

Proposition 137 would move an estimated $175.0 million out of Colorado's General Fund to Conservation, Wildfire, and Outdoor Recreation funds in the 2027-28 budget year, according to the Fiscal Impact Statement prepared by Legislative Council staff, LCS.

LCS estimates the transfer at $180.2 million in 2028-29, with similar amounts in later years.

The State Treasurer would make the transfer every July 1st beginning in 2027. and the measure sets no dollar cap, no phase-in, and no end date.

The measure's text contains no provision allowing the legislature to reduce the transfer to balance the state budget.

Its only reduction, available from the 2028 to 29 budget year on, applies if exempting the full amount from the state revenue limit would shrink the family affordability tax credit or the earned income tax credit.

The transfer is LCS's estimate of the state sales tax collected on sporting goods, which the measure defines through nine federal product codes.

The measure sends 47.5% to the Great Outdoors Colorado Trust Fund, 47.5% to a new Colorado Wildfire Prevention and Water Fund, and 2.5% each to the Outdoor Equity Fund and the Outdoor Recreation Economic Development Cash Fund.