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RBC | In November, the Colorado Supreme Court affirmed without opinion the trial court ruling against the county’s application of its use tax on industrial construction and building materials.
The decision has “profound long-term financial implication for the county as well as the immediate impact on the 2010 budget.”
The county’s estimated liability of $9.5 million (as a result of the outcome of the use tax case) is budgeted within contingency and is covered by existing fund balance.
The immediate effect is an 82 percent decline in 2009 to 2010 budgeted revenues, from $3.6 million to $700,000, which forced the county to shift some of this fund’s accounts to the general fund in 2010.
The 2010 use tax budgeted revenues are limited to motor vehicle and residential/commercial tax revenues, which are unaffected by the court ruling.