Second Regular Session
             Sixty-seventh General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 10-1123.02 Jason Gelender       SENATE BILL 10-214
                   SENATE SPONSORSHIP
 Tochtrop, 
 
                    HOUSE SPONSORSHIP
 Gagliardi, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning more precise specification of the circumstances
            in which sales of medical products are exempt from
            sales tax.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted.  If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            In order to more precisely specify the circumstances in which sales
       of drugs, insulin, medical materials, and therapeutic medical devices,
       appliances, and accessories are exempt from sales tax, the bill:
                 Defines the term "licensed provider" to include any person
                 authorized by state law to prescribe drugs; and
                 Specifies that an exemption from sales tax applies to all
                 sales of:
                      Drugs dispensed in accordance with a prescription
                      written by a licensed provider;
                      Insulin dispensed pursuant to the direction of a
                      licensed provider;
                      Drugs or materials furnished by a licensed provider
                      as part of professional services provided to a
                      patient; and
                      Therapeutic devices, appliances, or related
                      accessories with a retail value of over $100 sold to
                      correct or treat a human physical disability or
                      surgically created abnormality in accordance with a
                      written recommendation from a licensed provider.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  39-26-717 (1) (a) and (1) (b), Colorado Revised
       Statutes, are amended, and the said 39-26-717 is further amended BY
       THE ADDITION OF A NEW SUBSECTION, to read:
            39-26-717.  Drugs and medical and therapeutic devices -
       definition.  (1)  The following shall be exempt from taxation under the
       provisions of part 1 of this article:
            (a)  All sales of drugs dispensed in accordance with a prescription
       written by a licensed provider, all sales of insulin in all its forms
       dispensed pursuant to the direction of a licensed physician provider, all
       sales of glucose useable for treatment of insulin reactions, all sales of
       urine- and blood-testing kits and materials, all sales of insulin measuring
       and injecting devices, including hypodermic syringes and needles, all
       sales of prosthetic devices, all sales of wheelchairs and hospital beds, all
       sales of drugs or materials when furnished by a doctor licensed
       provider as part of professional services provided to a patient, and all
       sales of corrective eyeglasses, contact lenses, or hearing aids;
       
            (b)  When sold in accordance with a written recommendation from
       a licensed doctor provider, all sales of therapeutic devices, appliances,
       or related accessories, with a retail value of more than one hundred
       dollars, that are sold to correct or treat a human physical disability or
       surgically created abnormality; and
            (2)  For purposes of this section, "licensed provider" means
       any person authorized to prescribe drugs under the laws of this
       state including, but not limited to, an advanced practice nurse,
       a dentist, an optometrist, a physician, a physician assistant, a
       podiatrist, or a veterinarian.
            SECTION 2.  Applicability.  This act shall apply to sales
       occurring on or after the effective date of this act.
            SECTION 3.  Safety clause.  The general assembly hereby finds,
       determines, and declares that this act is necessary for the immediate
       preservation of the public peace, health, and safety.