NOTE: The governor signed this measure on 5/30/2014.
      
      
      HOUSE BILL 14-1080
      
      
      BY REPRESENTATIVE(S) McLachlan and Coram, Court, Exum, Ginal,
      Labuda, Melton, Pabon, Rosenthal, Salazar, Schafer, Singer, Williams,
      Becker, Kraft-Tharp;
      also SENATOR(S) Roberts, Aguilar, Crowder, Guzman, Harvey, Heath,
      Herpin, Kefalas, Kerr, King, Newell, Nicholson, Schwartz, Steadman,
      Todd.
      
      
      Concerning a sales and use tax exemption for the Colorado Ute
           Indians.
      
      
      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.  Tribal exemption - motor vehicles - partial interest
      - definition - legislative declaration. (1)  The general assembly
      hereby declares that on-reservation sales to the Ute Indian
      Tribes and tribal members are exempt from state and local sales
      and use tax under federal law and that the purpose of the tax
      exemption created in this section is to:
      
           (a)  Codify this exemption so that it generally reflects the
      department of revenue's interpretation of current law;
      
           (b)  Ensure consistent application of the state tax and
      applicable Indian taxation rules;
      
           (c)  Provide guidance for tribes, tribal members, vendors,
      and the department of revenue; and
      
           (d)  Continue the department of revenue's practice of not
      requiring the delivery of a motor vehicle for the exemption to
      apply.
      
           (2)  As used in this section, with respect to a particular sale
      to a tribe or tribal member, "reservation" means either the
      Southern Ute Indian Reservation or the Reservation of the Ute
      Mountain Ute Tribe.
      
           (3) (a)  All sales of tangible personal property or services
      to the Southern Ute Indian Tribe, Ute Mountain Ute Tribe, or an
      enrolled member of either tribe, are exempt from taxation under
      part 1 of this article if the vendor is located:
      
           (I)  On a reservation; or
      
           (II)  Outside of a reservation but the property or service is
      delivered by the vendor and received by the tribe or the tribal
      member on a reservation.
      
           (b)  All sales of motor vehicles to the Southern Ute Indian
      Tribe or Ute Mountain Ute Tribe, or to an enrolled member of
      either tribe who resides on a reservation, are exempt from
      taxation under part 1 of this article if the motor vehicle is to be
      registered to an address on a reservation. A vendor may
      reasonably rely on a tribal member's certification of his or her
      enrolled membership status and residence.
      
           (4)  The storage, use, or consumption of tangible personal
      property or a service on a reservation that is exempt from sales
      tax pursuant to subsection (3) of this section is exempt from the
      use tax levied pursuant to part 2 of this article; except that this
      use tax exemption only applies to a motor vehicle that is
      registered to an address on a reservation.
      
           (5)  If the Southern Ute Indian Tribe, Ute Mountain Ute
      Tribe, or an enrolled member of either tribe has a partial or
      undivided interest in any type of legal entity, the exemptions
      created in this section apply to a sale of goods or services to such
      entity in proportion to the interest. To be eligible for the
      exemption, the tribe or tribal member must file a declaration with
      the department of revenue that identifies the entity, each tribe
      and tribal member that has an interest in the entity, and the
      amount of each interest.
      
           SECTION 2.  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.
      
      
      
      
      ________________________________________________________
      Mark Ferrandino                        Morgan Carroll
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO