SENATE
                       3rd Reading Unamended
                      April 25, 2016       SENATE
                   Amended 2nd Reading
                     April 20, 2016
                 Second Regular Session
               Seventieth General Assembly
                    STATE OF COLORADO
                                                REENGROSSED
                       This Version Includes All Amendments
                       Adopted in the House of Introduction
 LLS NO. 16-1025.01 Esther van Mourik x4215SENATE BILL 16-130
                   SENATE SPONSORSHIP
 Scott,  Baumgardner, Cadman, Cooke, Crowder, Hill, Holbert, Scheffel
 
                    HOUSE SPONSORSHIP
 Van Winkle, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 Finance
 
 
 
 Appropriations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the methods used by the department of revenue
            to collect consumer use tax, and, in connection
            therewith, making an appropriation.
       
       
                           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.)
       
            Consumer use tax is the complement to sales tax and is due on the
       purchases of goods where the retailer did not charge sales tax. For
       example, any time consumers make an internet purchase and the
       out-of-state retailer does not charge sales tax, the purchaser should pay
       the equivalent amount of sales tax as consumer use tax directly to the
       department of revenue.
            The Colorado department of revenue has added a use tax line to
       the 2015 individual income tax return form in an effort to make
       self-reporting of use tax more convenient for consumers.
            The bill specifies that after the 2015 income tax year the
       department of revenue is not allowed to add use tax reporting lines to the
       individual income tax return form for any reason.
            The bill also prohibits the department of revenue from auditing any
       taxpayer for any amount he or she reported on the use tax lines included
       in the 2015 individual income tax return form.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, 39-26-202, amend
       (1) (c) as follows:
            39-26-202.  Authorization of tax. (1) (c) (I)  Such tax shall be
       payable to and shall be collected by the executive director of the
       department of revenue and shall be computed in accordance with
       schedules or systems approved by said executive director; except that
       after the income tax year commencing January 1, 2015, the
       executive director shall not add use tax reporting lines to any
       individual income tax return form for any reason. The transfer of
       wireless telecommunication equipment as an inducement to enter into or
       continue a contract for telecommunication services that are taxable
       pursuant to part 1 of this article shall not be construed to be storage, use,
       or consumption of such equipment by the transferor.
            (II)  Notwithstanding any other section of law, the
       department of revenue shall not audit any taxpayer for any
       amount he or she reported on the use tax lines included in the
       2015 individual income tax return form.
            SECTION 2.  Appropriation. (1)  For the 2016-17 state fiscal
       year, $48,877 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)  $47,677 for CITA annual maintenance and support; and
            (b)  $1,200 for document management.
            (2)  For the 2016-17 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 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.