2023 Colorado Revised Statutes › Title 29 - GOVERNMENT - LOCAL (§§ 29-1-101 — 29-37-210) › GENERAL PROVISIONS (§§ 29-1-101 — 29-3.5-102) › Article 2 - County and Municipal Sales or Use Tax (§§ 29-2-101 — 29-2-302) › Part 1 - COUNTY AND MUNICIPAL SALES OR USE TAX (§§ 29-2-101 — 29-2-116) › Section 29-2-112 - Sales and use tax revenue bonds

(1)
Subject to the approval of the registered electors of a county, city, or incorporated town pursuant to section 20 of article X of the state constitution, any county, city, or incorporated town may, in anticipation of collection of sales or use tax revenues, issue revenue bonds payable from the revenues for the purpose of financing capital improvements.
(2)
The revenue bonds may be authorized and issued by ordinance or resolution of the governing body of the county, city, or incorporated town.
(3)
The revenue bonds shall bear interest at a rate such that the net effective interest rate of the issue of bonds does not exceed the maximum net effective interest rate authorized, payable semiannually or annually, and such interest shall be evidenced by one or two sets of coupons, if any, executed with the facsimile or manually executed signature of any official of the county, city, or incorporated town; except that the first coupon appertaining to any bond may evidence interest not in excess of one year. The resolution or ordinance authorizing the issuance of such bonds shall specify the maximum net effective interest rate. Such bonds may be issued in one or more series, may bear such date, may mature at such time as determined by the governing body but in no event beyond thirty years from their respective dates, may be in such denomination, may be payable in such medium of payment, at such place within or without the state, including but not limited to the office of the county treasurer, may carry such registration privileges, may be subject to such terms of prior redemption in advance of maturity in such order or by lot or otherwise at such time with or without a premium, may be executed in such manner, may bear such privileges for reissuance in the same or other denomination, may be so reissued, without modification of maturities and interest rates, and may be in such form, either coupon or registered, as may be provided by the governing body.
(4)
(a)
The governing body may provide for preferential security for any bonds, both principal and interest, to the extent deemed feasible and desirable by such governing body over any bonds that may be issued thereafter.
(b)
The revenue bonds may be sold at, above, or below the principal amounts thereof, but they may not be sold at a price such that the net effective interest rate of the issue of bonds exceeds the maximum net effective interest rate authorized.
(c)
The revenue bonds may be sold at either public or private sale.
(5)
Notwithstanding any other provision of law, the governing body in any proceedings authorizing bonds under this section may:
(a)
Provide for the initial issuance of one or more bonds, referred to in this subsection (5) as a "bond", aggregating the amount of the entire issue;
(b)
Make such provision for installment payments of the principal amount of any such bond as it may consider desirable;
(c)
Provide for the making of any such bond, payable to bearer or otherwise, registrable as to principal or interest or both and, where interest accruing thereon is not represented by interest coupons, for the endorsing of payments of interest on such bond; and
(d)
Make further provision in any such proceedings for the manner and circumstances in and under which any such bond may in the future, at the request of the holder thereof, be converted into bonds of smaller denominations, which bonds of smaller denominations may in turn be either coupon bonds or bonds registrable as to principal or principal and interest, or both.
(6)
(a)
The revenue bonds and any coupons bearing the facsimile or manual signatures of officers in office on the date of the signing thereof shall be valid and binding obligations of the county, city, or incorporated town, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon have ceased to be officers of the entity issuing the same.
(b)
Any officer authorized or permitted to sign any bond or interest coupon, at the time of its execution and of the execution of a signature certificate, may adopt, as and for his or her own facsimile signature, the facsimile signature of his or her predecessor in office in the event that such facsimile signature appears upon the bond or coupons appertaining thereto, or upon both the bond and such coupons.
(7)
The clerk of the county, city, or incorporated town may cause the seal of such entity to be printed, engraved, stamped, or otherwise placed in facsimile on any bond. The facsimile seal has the same legal effect as the impression of the seal.
(8)
The revenue bonds and the income therefrom are exempt from taxation, except inheritance, estate, and transfer taxes.
(9)
The revenue bonds shall not constitute an indebtedness of the county, city, or incorporated town within the meaning of any constitutional or statutory debt limitation or provision. Each bond issue under this section shall recite in substance that said bonds, including the interest thereon, are payable solely from the sales and use tax revenues and that said bonds do not constitute a debt within the meaning of any constitutional or statutory limitation.
(10)
Any ordinance or resolution authorizing any bonds under this section may provide that each bond therein authorized shall recite that it is issued under authority of this section. Such recital shall conclusively impart full compliance with all of the provisions of this section, and all bonds issued containing such recital shall be incontestable for any cause whatsoever after their delivery for value.
(11)
A home rule municipality may elect to issue sales or use tax revenue bonds pursuant to this section unless a provision of the municipal charter prohibits the issuance of such bonds.
Amended by 2018 Ch. 122, § 3, eff. 8/8/2018.
L. 81: Entire section added, p. 1406, § 1, effective July 1. L. 2018: (1), (2), and (9) amended, (SB 18-106), ch. 122, p. 828, § 3, effective August 8.
(1) For the definition of "capital improvement purposes" as it applies to this section, see § 29-2-111(4) . (2) For the legislative declaration in SB 18-106, see section 1 of chapter 122, Session Laws of Colorado 2018.