NOTE: The governor signed this measure on 6/5/2015.
      
      
      HOUSE BILL 15-1301
      
      
      BY REPRESENTATIVE(S) Williams, Kagan, Melton, Pabon, Lebsock;
      also SENATOR(S) Grantham and Hill, Baumgardner, Cooke, Crowder,
      Marble, Neville T., Scott, Woods.
      
      
      Concerning the creation of a credit for tobacco products that a
           distributor ships or transports to an out-of-state
           consumer, and, in connection therewith, creating the
           "Cigar On-line Sales Equalization Act" and making an
           appropriation.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Short title. This act shall be known and may be cited
      as the "Cigar On-line Sales Equalization Act".
      
           SECTION 2.  Legislative declaration. (1)  The general assembly
      hereby finds and declares that:
      
           (a)   Colorado's excise tax on other tobacco products was not
      intended to apply to out-of-state sales;
      
           (b)  An out-of-state consumer that purchases tobacco products from
      a Colorado distributor may be responsible for his or her state's excise tax
      on the products;
      
           (c)  Other states provide a credit to distributors that make
      out-of-state sales to consumers; and
      
           (d)  Colorado distributors are at a competitive disadvantage
      compared to distributors in other states.
      
           (2)  Now, therefore, the intended purpose of the tax credit created
      in this act is to avoid double state excise taxation and to remove a barrier
      to Colorado businesses selling tobacco products other than cigarettes
      on-line to out-of-state consumers.
      
           SECTION 3.  In Colorado Revised Statutes, 39-28.5-107, amend
      (1) as follows:
      
           39-28.5-107.  When credit may be obtained for tax paid.
      (1)  Where tobacco products, upon which the tax imposed by this article
      has been reported and paid, are shipped or transported by the distributor to
      retailers without the state to be sold by those retailers, are shipped or
      transported by the distributor to a consumer without the state
      on or after September 1, 2015, but prior to September 1, 2018, or are
      returned to the manufacturer by the distributor or destroyed by the
      distributor, credit of such tax may be made to the distributor in accordance
      with regulations prescribed by the department.
      
           SECTION 4.  Appropriation. (1)  For the 2014-15 state fiscal year,
      $15,826 is appropriated to the department of revenue. This appropriation
      is from the general fund. To implement this act, the department may use
      this appropriation as follows:
      
           (a)  $14,626 for CITA annual maintenance and support; and
      
           (b)  $1,200 for document management;
      
           (2)  For the 2014-15 state fiscal year, $1,200 is appropriated to the
      department of personnel. This appropriation is from reappropriated funds
      received from the department of revenue under paragraph (b) of subsection
      (1) of this section. To implement this act, the department may use this
      appropriation to provide document management services for the department
      of revenue.
      
           SECTION 5.  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.
      
      
      
      
      ________________________________________________________
      Dickey Lee Hullinghorst                Bill L. Cadman
      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