HOUSE
                       3rd Reading Unamended
       April 21, 2015          HOUSE
       Amended 2nd Reading
                      April 17, 2015First Regular Session
               Seventieth General Assembly
                    STATE OF COLORADO
                                                REENGROSSED
                       This Version Includes All Amendments
                       Adopted in the House of Introduction
 LLS NO. 15-0841.01 Gregg Fraser x4325   HOUSE BILL 15-1257
                    HOUSE SPONSORSHIP
 Becker K. and Priola, 
 
                   SENATE SPONSORSHIP
 Hodge, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Local Government
 
 
 
 Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the removal of penalties on local governments
            regarding the regulation and sale of cigarettes.
       
       
                           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.)
       
            From state income tax moneys, the state currently apportions an
       amount equal to 27% of state cigarette tax revenues to cities, towns, and
       counties (local governments) in proportion to the amount of state sales tax
       revenues collected within the boundaries of the local governments. Local
       governments are prohibited from receiving their allocation of these
       moneys if they impose their own fees, licenses, or taxes on cigarette sales.
       The bill would repeal this prohibition, allowing local governments the
       option to impose fees, licenses, or taxes on cigarettes without losing their
       apportioned state cigarette tax revenues.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, 39-22-623, amend
       (1) (a) (II) (A) as follows:
            39-22-623.  Disposition of collections. (1)  The proceeds of all
       moneys collected under this article, less the reserve retained for refunds,
       shall be credited as follows:
            (a) (II) (A)  Effective July 1, 1987, an amount equal to
       twenty-seven percent of the gross state cigarette tax shall be apportioned
       to incorporated cities and incorporated towns which that levy taxes and
       adopt formal budgets and to counties. For the purposes of this section, a
       city and county shall be considered as a city. The city or town share shall
       be apportioned according to the percentage of state sales tax revenues
       collected by the department of revenue in an incorporated city or town as
       compared to the total state sales tax collections that may be allocated to
       all political subdivisions in the state; the county share shall be the same
       as that which the percentage of state sales tax revenues collected in the
       unincorporated area of the county bears to total state sales tax revenues
       which that may be allocated to all political subdivisions in the state. The
       department of revenue shall certify to the state treasurer, at least annually,
       the percentage for allocation to each city, town, and county, and such
       percentage for allocation so certified shall be applied by said department
       in all distributions to cities, towns, and counties until changed by
       certification to the state treasurer. A local government may impose
       fees or licensing requirements upon an individual as a condition
       of engaging in the business of selling cigarettes, except that in
       order to qualify for distributions of state income tax moneys, units of
       local government are prohibited from imposing fees, licenses, or taxes on
       any person as a condition for of engaging in the business of selling
       cigarettes or from attempting in any manner to impose a tax on cigarettes.
       For purposes of this paragraph (a),       the "gross state cigarette tax"
       means the total tax before the discount provided for in section 39-28-104
       (1).
            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.