NOTE: This bill has been prepared for the signature of the appropriate legislative officers and the Governor. To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws. HOUSE BILL 10-1195 BY REPRESENTATIVE(S) Ferrandino, Frangas, Judd, Labuda; also SENATOR(S) Heath. Concerning the suspension of the exemption from the state sales and use taxes for certain items used in agricultural production, and making an appropriation therefor. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 39-26-716 (2) (d), (2) (e), (3) (d), and (3) (e), Colorado Revised Statutes, are amended, and the said 39-26-716 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read: 39-26-716. Agriculture and livestock - special fuels - definitions. (2) The following shall be exempt from taxation under the provisions of part 1 of this article: (d) Except as otherwise provided in subsection (5) of this section, all sales and purchases of agricultural compounds to be consumed by, administered to, or otherwise used in caring for livestock and all sales and purchases of semen for agricultural or ranching purposes; and (e) Except as otherwise provided in subsection (5) of this section, all sales and purchases of pesticides that are registered by the commissioner of agriculture for use in the production of agricultural and livestock products pursuant to the provisions of the "Pesticide Act", article 9 of title 35, C.R.S., and offered for sale by dealers licensed to sell such pesticides pursuant to section 35-9-115, C.R.S. (3) The following shall be exempt from taxation under the provisions of part 2 of this article: (d) Except as otherwise provided in subsection (5) of this section, the storage, use, or consumption of agricultural compounds to be consumed by, administered to, or otherwise used in caring for livestock and semen used for agricultural or ranching purposes; and (e) Except as otherwise provided in subsection (5) of this section, the storage, use, or consumption of pesticides that are registered by the commissioner of agriculture for use in the production of agricultural and livestock products pursuant to the provisions of the "Pesticide Act", article 9 of title 35, C.R.S., and offered for sale by dealers licensed to sell such pesticides pursuant to section 35-9-115, C.R.S. (5) Notwithstanding any other provision of law, all sales and purchases of the items described in paragraph (d) or (e) of subsection (2) or paragraph (d) or (e) of subsection (3) of this section shall not be exempt from state sales and use taxation under the provisions of this article for the period commencing March 1, 2010, and ending June 30, 2013. SECTION 2. Part 1 of article 21 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 39-21-122. Revenue impact of 2010 tax legislation - tracking by department. The department of revenue shall account for all revenue attributable to the enactment of House Bill 10-1195, enacted in 2010, and shall, to the extent such information is available, make quarterly reports to the general assembly regarding the quarterly and cumulative net revenue gain to the state resulting from the enactment of said bill. SECTION 3. Part 1 of article 75 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 24-75-113. 2010 bills to increase state revenue - prohibition on hiring of new state employees. No moneys derived from the increase in state revenues resulting from the passage of House Bill 10-1195, enacted in 2010, shall be appropriated for the purpose of funding additional full-time equivalent state employees. SECTION 4. Part 1 of article 26 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 39-26-127. Legislation modifying the state sales tax base - no impact on local government sales tax bases - no expansion of local authority to levy sales tax. (1) Notwithstanding the provisions of section 29-2-105 (1) (d), C.R.S., any provision of title 32, C.R.S., or any other provision of law, the levying of sales tax on, exemption from sales tax for, or local option to levy sales tax on or provide an exemption from sales tax for any tangible personal property or services under the sales tax ordinance or resolution of any county, municipality, special district, authority, or other local government or political subdivision of the state shall not be affected in any way by the elimination, suspension, or modification of any sales tax exemption or any other legislative modification of the state sales tax base resulting from the enactment of any of the following bills: (a) House Bill 10-1195, enacted in 2010. (2) This section does not create or expand, and shall not be construed to create or expand, any authority of any county, municipality, special district, authority, or other local government or political subdivision of the state to levy sales tax. SECTION 5. Part 2 of article 26 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 39-26-212. Legislation modifying the state use tax base - no impact on local government use tax bases - no expansion of local authority to levy use tax. (1) Notwithstanding the provisions of section 29-2-105 (1) (d), C.R.S., any provision of title 32, C.R.S., or any other provision of law, the levying of use tax on, exemption from use tax for, or local option to levy use tax on or provide an exemption from use tax for any tangible personal property or services under the use tax ordinance or resolution of any county, municipality, special district, authority, or other local government or political subdivision of the state shall not be affected in any way by the elimination, suspension, or modification of any use tax exemption or any other legislative modification of the state use tax base resulting from the enactment of any of the following bills: (a) House Bill 10-1195, enacted in 2010. (2) This section does not create or expand, and shall not be construed to create or expand, any authority of any county, municipality, special district, authority, or other local government or political subdivision of the state to levy use tax. SECTION 6. Appropriation. In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of revenue, for allocation to the taxation business group, taxation and compliance division, for the fiscal year beginning July 1, 2009, the sum of ninety-four thousand three hundred twenty-two dollars ($94,322) and 0.9 FTE, or so much thereof as may be necessary, for the implementation of this act. SECTION 7. 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. ________________________________________________________ Terrance D. Carroll Brandon C. Shaffer SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Marilyn Eddins Karen Goldman CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ _________________________________________ Bill Ritter, Jr. GOVERNOR OF THE STATE OF COLORADO