NOTE: The governor signed this measure on 6/10/2016.
      
      
      HOUSE BILL 16-1457
      
      
      BY REPRESENTATIVE(S) Garnett and Wilson, Becker J., Carver,
      Coram, Esgar, Lawrence, Lundeen, Melton, Mitsch Bush, Moreno,
      Navarro, Neville P., Nordberg, Pabon, Pettersen, Primavera, Priola, Roupe,
      Williams, Arndt, Becker K., Conti, Fields, Hamner, Kagan, Kraft-Tharp,
      Lebsock, Leonard, Lontine, Ryden, Van Winkle, Vigil, Windholz, Young,
      Hullinghorst, Court, Salazar, Winter;
      also SENATOR(S) Neville T. and Garcia, Cooke, Donovan, Grantham,
      Hodge, Holbert, Kefalas, Kerr, Merrifield, Scott, Sonnenberg, Steadman,
      Tate, Aguilar, Baumgardner, Carroll, Crowder, Guzman, Heath, Johnston,
      Jones, Marble, Newell, Woods.
      
      
      Concerning a clarification of the existing sales and use tax
           exemption for residential energy sources.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Legislative declaration. The general assembly
      hereby finds and declares that the purpose of House Bill 16-1457, enacted
      in 2016, is to codify the current department of revenue rule regarding the
      existing sales and use tax exemption for the sale, storage, use, or
      consumption, for residential use, of electricity, coal, wood, gas, fuel oil, or
      coke.
      
           SECTION 2.  In Colorado Revised Statutes, 39-26-715, amend (1)
      (a) (II) and (2) (c) as follows:
      
           39-26-715.  Fuel and oil - definitions. (1) (a)  The following are
      exempt from taxation under the provisions of part 1 of this article:
      
           (II)  Effective July 1, 1980 On and after the effective date of
      this subparagraph (II), as amended, all sales and purchases of
      electricity, coal, wood, gas, fuel oil, or coke sold but not for resale, to
      occupants of residences, whether owned, leased, or rented by said
      occupants, for the purpose of operating residential fixtures and appliances
      that provide light, heat, and power for such residences for residential
      use. Residential use is presumed when a utility company charges
      a residential utility rate and such utility company may
      conclusively rely on such presumption. For purposes of this
      subparagraph (II): 
      
           (A)  "Gas" includes natural, manufactured, and liquefied petroleum
      gas.
      
           (B)  "Residence" means a separate dwelling in a multi-unit
      apartment, condominium, townhouse, or mobile trailer home park,
      or a separate single-unit dwelling, that is either billed under a
      single utility meter or a master utility meter and either charged
      at a residential, commercial, or other nonresidential utility
      rate. "Residence" includes minor buildings associated with the
      residence that are billed under the residential utility meter,
      such as a shed, garage, or barn.
      
           (C)  "Residential use" means the use of electricity, coal,
      wood, gas, fuel oil, or coke for domestic purposes, including
      powering lights, refrigerators, stoves, water heaters, space
      heaters, air conditioners, or other domestic items that require
      power or fuel in a residence.
      
           (2)  The following are exempt from taxation under the provisions of
      part 2 of this article:
      
           (c)  Effective July 1, 1980 On and after the effective date of
      this paragraph (c), as amended, the storage, use, or consumption of
      electricity, coal, wood, gas, fuel oil, or coke sold but not for resale, to any
      occupant of a residence, whether owned, leased, or rented by the occupant,
      for the purpose of operating fixtures or appliances that provide light, heat,
      or power for the residence for residential use. Residential use is
      presumed when a utility company charges a residential utility
      rate and such utility company may conclusively rely on such
      presumption. For the purposes of this paragraph (c):
      
           (I)  "Gas" includes natural, manufactured, and liquefied petroleum
      gas.
      
           (II)  "Residence" means a separate dwelling in a multi-unit
      apartment, condominium, townhouse, or mobile trailer home park,
      or a separate single-unit dwelling, that is either billed under a
      single utility meter or a master utility meter and either charged
      at a residential, commercial, or other nonresidential utility
      rate. "Residence" includes minor buildings associated with the
      residence that are billed under the residential utility meter,
      such as a shed, garage, or barn.
      
           (III)  "Residential use" means the use of electricity, coal,
      wood, gas, fuel oil, or coke for domestic purposes, including
      powering lights, refrigerators, stoves, water heaters, space
      heaters, air conditioners, or other domestic items that require
      power or fuel in a residence.
      
           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.
      
      
      
      
      ________________________________________________________
      Dickey Lee Hullinghorst                Bill L. Cadman
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                            Effie Ameen
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO