First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0278.01 Ed DeCecco x4216 HOUSE BILL 13-1151 HOUSE SPONSORSHIP Moreno, Fischer SENATE SPONSORSHIP Kefalas, House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT Concerning a sales and use tax holiday for textbooks for use at an institution of higher education. 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.) Section 1 of the bill creates a one-day state sales and use tax exemption (holiday) for any textbook that is required or recommended for use at an institution of higher education and that is sold by a campus book store. This sales and use tax holiday occurs on the last Monday of August of the next 5 years. The exemption applies to new, used, and electronic textbooks. Section 2 of the bill permits a statutory town, city, or county to create an identical local sales tax holiday. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 39-26-727 as follows: 39-26-727. Textbook - institution of higher education - legislative declaration - definitions. (1) The general assembly hereby finds, determines, and declares that: (a) Tuition and fees at institutions of higher education have increased at a staggering pace; (b) One of the high costs that students face is the cost of textbooks that are required for course work; (c) The state can show its support for students by offering a sales tax holiday for these textbooks; and (d) The primary purpose of the tax exemption in this section is to reduce the costs for students to attend institutions of higher education in Colorado through a temporary sales and use tax holiday on textbooks. (2) As used in this section, unless the context otherwise requires: (a) "Campus book store" means a book store that: (I) Is located on the campus of an institution of higher education; (II) Is owned and operated by the institution of higher education; or (III) Has a contract with an institution of higher education to operate on behalf of the institution. (b) "Institution of higher education" has the same meaning as set forth in section 22-35-103 (12), C.R.S. (c) "Textbook" means a book or related workbook required or recommended for a course at an institution of higher education. "Textbook" includes new, used, and electronic books. (3) On August 26, 2013, and the last Monday in August of the following four years, the sale of a textbook by a campus book store is exempt from the tax levied pursuant to part 1 of this article. (4) The storage, use, or consumption of a textbook that is exempt at the time of purchase from the sales tax pursuant to subsection (3) of this section is exempt from the use tax levied pursuant to part 2 of this article. SECTION 2. In Colorado Revised Statutes, 29-2-105, amend (1) (d) (I) (K) and (1) (d) (I) (L); and add (1) (d) (I) (M) as follows: 29-2-105. Contents of sales tax ordinances and proposals - repeal. (1) The sales tax ordinance or proposal of any incorporated town, city, or county adopted pursuant to this article shall be imposed on the sale of tangible personal property at retail or the furnishing of services, as provided in paragraph (d) of this subsection (1). Any countywide or incorporated town or city sales tax ordinance or proposal shall include the following provisions: (d) (I) A provision that the sale of tangible personal property and services taxable pursuant to this article shall be the same as the sale of tangible personal property and services taxable pursuant to section 39-26-104, C.R.S., except as otherwise provided in this paragraph (d). The sale of tangible personal property and services taxable pursuant to this article shall be subject to the same sales tax exemptions as those specified in part 7 of article 26 of title 39, C.R.S.; except that the sale of the following may be exempted from a town, city, or county sales tax only by the express inclusion of the exemption either at the time of adoption of the initial sales tax ordinance or resolution or by amendment thereto: (K) The exemption for sales that benefit a Colorado school specified in section 39-26-725, C.R.S.; and (L) The exemption for sales by an association or organization of parents and teachers of public school students that is a charitable organization as specified in section 39-26-718 (1) (c), C.R.S.; and (M) The exemption for sales of textbooks specified in section 39-26-727, C.R.S., for the days that the state exemption is available. This sub-subparagraph (M) is repealed, effective January 1, 2018. 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.