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First Regular Session

Sixty-first General Assembly

LLS NO. 97­0203.01 MKD HOUSE BILL 97­1033

STATE OF COLORADO

BY REPRESENTATIVES S. Johnson and Pfiffner;

also SENATOR Tebedo.

REREVISED

FINANCE

A BILL FOR AN ACT

CONCERNING THE APPLICABILITY OF SALES AND USE TAX TO FRATERNAL BENEFIT SOCIETIES.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Includes fraternal benefit societies under the definition of "charitable organization" to clarify that sales to fraternal benefit societies are not subject to the imposition of sales and use tax.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  39­26­102 (2.5), Colorado Revised Statutes, 1994 Repl. Vol., is amended to read:

39­26­102.  Definitions ­ repeal. As used in this article, unless the context otherwise requires:

(2.5)  "Charitable organization" means any entity:

(a)  Organized and operated:

(I)  Exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes; or

(II)  To foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment); or

(III)  For the prevention of cruelty to children or animals; OR

(IV)  AS A FRATERNAL BENEFIT SOCIETY PURSUANT TO THE PROVISIONS OF SECTION 10­14­102, C.R.S., OR A CORPORATION THAT SATISFIES THE REQUIREMENTS UNDER 10­14­102, C.R.S., BUT IS ORGANIZED UNDER THE LAWS OF ANOTHER STATE; AND

(b)  No part of the net earnings of which inures to the benefit of any private shareholder or individual; AND

(c)  No substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation; and

(d)  Which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office.

SECTION 2. No appropriation. The general assembly has determined that this act can be implemented within existing appropriations, and therefore no separate appropriation of state moneys is necessary to carry out the purposes of this act.

SECTION 3.  Effective date. This act shall take effect July 1, 1997.

SECTION 4.  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.