Capital letters indicate new material to be added to existing statute.

Dashes through the words indicate deletions from existing statute.

First Regular Session

Sixty-first General Assembly

LLS NO. 97­0366.01 SLE HOUSE BILL 97­1057

STATE OF COLORADO

BY REPRESENTATIVE Grampsas;

also SENATOR Rizzuto.

REREVISED

FINANCE

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING THE EXEMPTION OF TANGIBLE PERSONAL PROPERTY TO BE USED FOR BIOTECHNOLOGICAL PURPOSES FROM SALES AND USE TAX.

Bill Summary

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

On and after July 1, 1997, exempts from sales and use tax all sales of tangible personal property purchased by companies to be used in Colorado directly and predominately in research and development of biotechnology.

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

SECTION 1.  39­26­114, Colorado Revised Statutes, 1994 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

39­26­114.  Exemptions ­ disputes ­ credits or refunds ­ repeal. (19) (a)  ON AND AFTER JULY 1, 1997, ALL SALES OF TANGIBLE PERSONAL PROPERTY PURCHASED BY ANY COMPANY TO BE USED IN COLORADO DIRECTLY AND PREDOMINATELY IN RESEARCH AND DEVELOPMENT OF BIOTECHNOLOGY ARE EXEMPT FROM TAXATION UNDER THIS PART 1.

(b)  AS USED IN THIS SUBSECTION (19):

(I)  "BIOTECHNOLOGY" MEANS:

(A)  THE APPLICATION OF TECHNOLOGIES TO PRODUCE OR MODIFY PRODUCTS, TO DEVELOP MICROORGANISMS FOR SPECIFIC USES, TO IDENTIFY TARGETS FOR SMALL MOLECULE PHARMACEUTICAL DEVELOPMENT, OR TO TRANSFORM BIOLOGICAL SYSTEMS INTO USEFUL PROCESSES OR PRODUCTS; AND

(B)  THE POTENTIAL ENDPOINTS OF THE RESULTING PRODUCTS, PROCESSES, MICROORGANISMS, OR TARGETS ARE FOR IMPROVING HUMAN HEALTH CARE OUTCOMES.

(II)  "RESEARCH AND DEVELOPMENT" MEANS QUALIFIED RESEARCH AS DEFINED BY 26 U.S.C. SECTION 41 (d) (1).

(III)  "TANGIBLE PERSONAL PROPERTY" INCLUDES CAPITAL EQUIPMENT, INSTRUMENTS, APPARATUS, AND SUPPLIES USED IN LABORATORIES, INCLUDING, BUT NOT LIMITED TO, MICROSCOPES, MACHINES, GLASSWARE, CHEMICAL REAGENTS, COMPUTERS, COMPUTER SOFTWARE, AND TECHNICAL BOOKS AND MANUALS.

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. 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.