NOTE: The governor signed this measure on 3/9/2012.
      
      
      SENATE BILL 12-094
      
      
      BY SENATOR(S) Hodge, Carroll, Aguilar, Boyd, Giron, Guzman, Harvey,
      Hudak, Jahn, Mitchell, Neville, Newell, Nicholson, Schwartz, Steadman,
      Tochtrop, White, Cadman, Grantham, Heath, Johnston, King K., Lambert,
      Lundberg, Morse, Renfroe, Scheffel, Williams S., Shaffer B.;
      also REPRESENTATIVE(S) Szabo, Acree, Balmer, Baumgardner, Becker,
      Beezley, Bradford, Brown, Casso, Conti, DelGrosso, Ferrandino,
      Gardner B., Holbert, Hullinghorst, Jones, Joshi, Kerr J., Liston, Looper,
      Murray, Nikkel, Pabon, Priola, Ramirez, Scott, Swalm, Swerdfeger, Todd,
      Tyler, Waller, Williams A., Barker, Fields, Labuda, Sonnenberg, Stephens,
      Summers, Vigil.
      
      
      Concerning clarification of the definition of food used in state
           sales tax laws to ensure that the treatment for sales tax
           purposes of a food product sold for domestic home
           consumption by a grocery store, supermarket, or
           convenience store does not change solely because the store
           sells the food product or markets the food product for sale
           as a convenience food.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 39-26-102, amend
      (4.5) as follows:
      
           39-26-102.  Definitions - repeal. As used in this article, unless the
      context otherwise requires:
      
           (4.5) (a)  "Food" means food for domestic home consumption as
      defined in 7 U.S.C. sec. 2012 (k), as amended, for purposes of the federal
      food stamp program, or any successor program, as defined in 7 U.S.C. sec.
      2012 (l), as amended; except that "food" does not include carbonated water
      marketed in containers; chewing gum; seeds and plants to grow foods;
      prepared salads and salad bars; packaged and unpackaged cold sandwiches;
      deli trays; and hot or cold beverages served in unsealed containers or cups
      that are vended by or through machines or non-coin-operated
      coin-collecting food and snack devices on behalf of a vendor.
      
           (b)  In determining whether a food product is for domestic
      home consumption, unless the vendor is described in section
      39-26-104 (1) (e), no inference shall be drawn from the type of
      vendor selling the product, the location of the product within a
      store, or the manner in which the product is marketed.
      
           SECTION 2.  In Colorado Revised Statutes, 39-26-104, amend (1)
      (e) as follows:
      
           39-26-104.  Property and services taxed. (1)  There is levied and
      there shall be collected and paid a tax in the amount stated in section
      39-26-106 as follows:
      
           (e)  Upon the amount paid for food or drink served or furnished in
      or by restaurants, cafes, lunch counters, cafeterias, hotels, drugstores, social
      clubs, nightclubs, cabarets, resorts, snack bars, caterers, carryout shops, and
      other like places of business at which prepared food or drink is regularly
      sold, including sales from pushcarts, motor vehicles, and other mobile
      facilities. Cover charges shall be included as part of the amount paid for
      such food or drink. However, meals provided to employees of the places
      mentioned in this paragraph (e) at no charge or at a reduced charge shall be
      exempt from taxation under the provisions of this part 1.
      
           SECTION 3.  Effective date - applicability. This act takes effect
      July 1, 2012, and applies to sales of food occurring on or after said date. 
      
           SECTION 4.  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.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                      Frank McNulty
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Cindi L. Markwell                      Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO