First Regular Session

Sixty-first General Assembly

LLS NO. 97­0560.01 JAP HOUSE BILL 97­1230

STATE OF COLORADO

BY REPRESENTATIVES Taylor, Keller, Owen, and Reeser;

also SENATORS Wattenberg, J. Johnson, and Perlmutter.

REVISED

FINANCE

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING VENDING MACHINE REGISTRATION FEES IN LIEU OF SALES TAX, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.

Bill Summary

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

For years beginning on or after January 1, 1998, exempts sales and purchases of individual items of food or drink through vending machines from the state sales tax. In lieu of the state sales tax, imposes a registration fee on all vending machines used to make such sales and purchases.

Deletes "coin­operated" from certain statutory sections language referring to vending machines.

Eliminates the requirement that a vending machine operator maintain a record of the disposition of every vending machine used by the vending machine operator.

Establishes a fee schedule for various types of vending machines and requires that vending machine operators annually apply for identification numbers for their vending machines in accordance with rules promulgated by the department of revenue. Authorizes the department of revenue to review the fees imposed every 3 years commencing on October 1, 2000, and to increase or decrease the fees by no more than the rate of inflation for food and beverages for the previous 3 calendar years.

Increases the amount of the penalty for each unregistered vending machine from $25 to $200. Decreases the period of time after which a vending machine seized by the department of revenue may be sold from 60 to 30 days.

Provides that the expenses of the department of revenue in furnishing identification numbers shall be paid from the fees collected for vending machines and that the remainder shall be credited to the state general fund.

Defines "vending machines" and various classes of vending machines. Provides that the state sales tax exemption created by this act is not applicable to statutory cities' and counties' sales tax bases, unless expressly adopted by such cities and counties.

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

SECTION 1.  39­26­114 (7) (b) (V), Colorado Revised Statutes, 1994 Repl. Vol., is amended, and the said 39­26­114 (7), as amended, is further amended BY THE ADDITION OF A NEW PARAGRAPH, to read:

39­26­114.  Exemptions ­ disputes ­ credits or refunds ­ creation of fund ­ repeal. (7) (b)  To be eligible for the exemption provided for in this subsection (7), each vendor shall:

(V)  FOR YEARS BEGINNING PRIOR TO JANUARY 1, 1998, remit a fee of ten cents per machine with the application submitted under this paragraph (b), to defray the expenses of the department of revenue in furnishing such identification numbers.

(f)  THIS SUBSECTION (7) IS REPEALED, EFFECTIVE JANUARY 1, 1998.

SECTION 2.  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 ­ creation of fund ­ repeal. (7.5) (a)  FOR YEARS BEGINNING ON OR AFTER JANUARY 1, 1998, ALL SALES AND PURCHASES OF PACKAGED ITEMS OF FOOD OR DRINK, AS DEFINED IN SECTION 39­26­102 (4.7), BY OR THROUGH VENDING MACHINES, OTHER THAN THROUGH BULK VENDING MACHINES OR SUNDRY MERCHANDISE VENDING MACHINES, SHALL BE EXEMPT FROM TAXATION UNDER THIS PART 1. EVERY VENDOR SELLING PACKAGED ITEMS OF FOOD OR DRINK BY OR THROUGH VENDING MACHINES, OTHER THAN THROUGH BULK VENDING MACHINES OR SUNDRY MERCHANDISE VENDING MACHINES, SHALL PAY, IN LIEU OF THE SALES TAX IMPOSED PURSUANT TO THIS ARTICLE, THE FEE DESCRIBED IN THIS SUBSECTION (7.5). EVERY VENDOR SELLING MERCHANDISE THROUGH A BULK VENDING MACHINE OR A SUNDRY MERCHANDISE VENDING MACHINE SHALL PAY, IN ADDITION TO THE FEE DESCRIBED IN THIS SUBSECTION (7.5), A SALES TAX PURSUANT TO SECTION 39­26­106 (2) (b) ON THE MERCHANDISE SOLD IN EXCESS OF FIFTEEN CENTS THROUGH SUCH VENDING MACHINE UNLESS THE SALE IS OTHERWISE EXEMPT UNDER THE PROVISIONS OF THIS ARTICLE.

(b)  EVERY VENDOR SELLING FOOD OR DRINK OR ANY OTHER MERCHANDISE BY OR THROUGH ANY TYPE OF VENDING MACHINE SHALL:

(I)  BE LICENSED UNDER SECTION 39­26­103;

(II)  MAINTAIN AND SUBMIT TO THE DEPARTMENT OF REVENUE, IN ACCORDANCE WITH RULES PROMULGATED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, A RECORD OF THE IDENTIFICATION NUMBER, OWNERSHIP, AND TAXING JURISDICTION OF THE LOCATION OF EVERY VENDING MACHINE USED BY THE VENDOR IN SUCH PERSON'S OPERATION AS A VENDOR;

(III)  PRIOR TO PLACING OR CONTINUING ANY VENDING MACHINE IN SERVICE AFTER JANUARY 1, 1998, AFFIX TO SUCH VENDING MACHINE THE IDENTIFICATION NUMBER DESCRIBED IN SUBPARAGRAPH (IV) OF THIS PARAGRAPH (b);

(IV)  MAKE APPLICATION TO THE DEPARTMENT OF REVENUE FOR IDENTIFICATION NUMBERS TO BE AFFIXED TO EVERY SUCH VENDING MACHINE, IN ACCORDANCE WITH RULES PROMULGATED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE;

(V) (A)  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (f) OF THIS SUBSECTION (7.5), REMIT AN ANNUAL FEE FOR EACH VENDING MACHINE IN THE AMOUNT DESCRIBED IN THIS SUBPARAGRAPH (V) WITH THE APPLICATION SUBMITTED UNDER SUBPARAGRAPH (IV) OF THIS PARAGRAPH (b).

(B)  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (f) OF THIS SUBSECTION (7.5), THE AMOUNT OF THE FEE IMPOSED PURSUANT TO THIS SUBPARAGRAPH (V) SHALL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING SCHEDULE OF VENDING MACHINE CATEGORIES:

TYPE OF VENDING MACHINE FEE

STANDARD VENDING MACHINE $50.00

COUNTERTOP VENDING MACHINE 10.00

BULK VENDING MACHINE 0.10

SUNDRY MERCHANDISE VENDING MACHINE 0.10

(C)  COMMENCING OCTOBER 1, 2000, THE FEES SET FORTH IN THIS SUBPARAGRAPH (V) SHALL BE REVIEWED BY THE DEPARTMENT OF REVENUE EVERY THREE YEARS.

(D)  FOR THE FISCAL YEAR BEGINNING JULY 1, 1997, FROM THE MONEYS RECEIVED PURSUANT TO THIS SUBPARAGRAPH (V), AN AMOUNT SUFFICIENT TO PAY THE DIRECT COSTS INCURRED BY THE DEPARTMENT OF REVENUE IN ADMINISTERING THIS SUBSECTION (7.5) SHALL BE CREDITED TO THE VENDING MACHINE FEE ADMINISTRATION CASH FUND, WHICH FUND IS HEREBY CREATED; EXCEPT THAT THE AMOUNT SO CREDITED SHALL NOT EXCEED TWENTY­ONE THOUSAND FOUR HUNDRED THIRTY­ONE DOLLARS. FOR FISCAL YEARS BEGINNING ON OR AFTER JULY 1, 1998, UP TO ONE AND TWO­TENTHS PERCENT OF EACH FEE COLLECTED PURSUANT TO THIS SUBPARAGRAPH (V), EXCEPT FOR THE FEES IMPOSED ON BULK VENDING MACHINES AND SUNDRY MERCHANDISE VENDING MACHINES, SHALL BE CREDITED TO THE VENDING MACHINE FEE ADMINISTRATION CASH FUND FOR PAYMENT OF THE DIRECT COSTS INCURRED BY THE DEPARTMENT OF REVENUE IN ADMINISTERING THIS SUBSECTION (7.5); EXCEPT THAT THE AMOUNT SO CREDITED SHALL NOT EXCEED TWENTY­SIX THOUSAND FOUR HUNDRED THIRTY­FIVE DOLLARS IN ANY FISCAL YEAR. ALL MONEYS IN THE VENDING MACHINE FEE ADMINISTRATION CASH FUND SHALL BE SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY.

(E)  THE AMOUNT COLLECTED PURSUANT TO THIS SUBPARAGRAPH (V), MINUS THE AMOUNT SPECIFIED IN SUB­SUBPARAGRAPH (D) OF THIS SUBPARAGRAPH (V), SHALL BE TRANSMITTED BY THE DEPARTMENT OF REVENUE TO THE STATE TREASURER TO BE CREDITED TO THE STATE GENERAL FUND.

(c)  ANY VENDING MACHINE NOT HAVING A VALID, CURRENT IDENTIFICATION NUMBER AFFIXED THERETO SHALL BE CONSIDERED UNREGISTERED. ANY UNREGISTERED VENDING MACHINE FOUND BEING USED FOR RETAIL SALES AT ANY PLACE IN THIS STATE MAY BE SEIZED WITHOUT WARRANT BY THE DEPARTMENT OF REVENUE, ITS AGENTS, OR EMPLOYEES OR BY ANY PEACE OFFICER WHEN DIRECTED OR REQUESTED BY THE DEPARTMENT OF REVENUE. AT THE TIME OF SEIZURE, WRITTEN NOTICE OF SEIZURE SHALL BE GIVEN TO THE PROPRIETOR OR PERSON IN CHARGE OF THE BUSINESS, OR TO THE AGENTS OR EMPLOYEES OF THE PROPRIETOR OR PERSON IN CHARGE OF THE BUSINESS, WHERE THE VENDING MACHINE IS SEIZED. THE DEPARTMENT OF REVENUE SHALL ALSO GIVE NOTICE BY FIRST­CLASS MAIL AS SET FORTH IN SECTION 39­21­105.5 TO THE PERSON WHOSE NAME AND MAILING ADDRESS APPEAR ON THE MACHINE. THE DEPARTMENT OF REVENUE SHALL NOT BE REQUIRED TO SEIZE AND CONFISCATE ANY UNREGISTERED VENDING MACHINE OR ASSESS A PENALTY WHEN THERE IS REASON TO BELIEVE THAT THE OWNER THEREOF IS NOT INTENTIONALLY EVADING THE TAX IMPOSED BY THIS ARTICLE OR THE FEE IMPOSED BY THIS SUBSECTION (7.5).

(d)  IN ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW, THE DEPARTMENT OF REVENUE IS AUTHORIZED TO ASSESS AND COLLECT A PENALTY OF TWO HUNDRED DOLLARS FOR EACH UNREGISTERED VENDING MACHINE BEING OPERATED IN THIS STATE.

(e)  UPON PROOF OF OWNERSHIP, THE DEPARTMENT OF REVENUE SHALL DELIVER TO THE OWNER THEREOF ANY VENDING MACHINE SEIZED UNDER PARAGRAPH (c) OF THIS SUBSECTION (7.5) AFTER PAYMENT OF THE TWO HUNDRED­DOLLAR PENALTY AND SEIZURE COSTS, IF THE OWNER IS LIABLE THEREFOR, AND UPON REGISTRATION OF THE MACHINE. AT THE EXPIRATION OF THIRTY DAYS AFTER THE DATE OF NOTICE, ANY UNREGISTERED VENDING MACHINE AND THE CONTENTS THEREIN STILL IN THE POSSESSION OF THE DEPARTMENT OF REVENUE MAY BE SOLD AT PUBLIC SALE TO THE HIGHEST BIDDER, BUT, PRIOR TO ANY SUCH SALE, TEN DAYS' NOTICE OF THE SALE SHALL BE GIVEN BY FIRST­CLASS MAIL AS SET FORTH IN SECTION 39­21­105.5 TO THOSE ENTITLED TO NOTICE UNDER PARAGRAPH (c) OF THIS SUBSECTION (7.5).

(f) (I)  PRIOR TO JANUARY 1, 1998, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL PROMULGATE RULES TO EFFECTUATE THE TRANSITIONAL PROVISIONS OF THIS PARAGRAPH (f).

(II)  FROM JANUARY 1, 1998, THROUGH DECEMBER 31, 1998, THE IDENTIFICATION NUMBERS TO BE AFFIXED TO VENDING MACHINES PURSUANT TO SUBPARAGRAPHS (III) AND (IV) OF PARAGRAPH (b) OF THIS SUBSECTION (7.5) SHALL BE VALID FROM JANUARY THROUGH MARCH, FROM APRIL THROUGH JUNE, FROM JULY THROUGH SEPTEMBER, AND FROM OCTOBER THROUGH DECEMBER OF 1998. THE FEE FOR EACH IDENTIFICATION NUMBER SHALL BE ONE­QUARTER OF THE FEE LISTED IN SUB­SUBPARAGRAPH (B) OF SUBPARAGRAPH (V) OF PARAGRAPH (b) OF THIS SUBSECTION (7.5).

(III)  FROM JANUARY 1, 1999, THROUGH DECEMBER 31, 1999, THE IDENTIFICATION NUMBERS TO BE AFFIXED TO VENDING MACHINES PURSUANT TO SUBPARAGRAPHS (III) AND (IV) OF PARAGRAPH (b) OF THIS SUBSECTION (7.5) SHALL BE VALID FROM JANUARY THROUGH JUNE AND FROM JULY THROUGH DECEMBER OF 1999. THE FEE FOR EACH IDENTIFICATION NUMBER SHALL BE ONE­HALF OF THE FEE LISTED IN SUB­SUBPARAGRAPH (B) OF SUBPARAGRAPH (V) OF PARAGRAPH (b) OF THIS SUBSECTION (7.5).

(IV)  FOR CALENDAR YEARS 1998 AND 1999, IF A VENDING MACHINE OWNER OR VENDOR CHOOSES TO PURCHASE IDENTIFICATION NUMBERS FOR THE ENTIRE CALENDAR YEAR AT THE TIME OF APPLICATION, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE MAY ALLOW A DISCOUNT FROM THE FEES PRESCRIBED BY THIS SUBSECTION (7.5).

(V)  AFTER DECEMBER 31, 1999, AN IDENTIFICATION NUMBER SHALL BE VALID FOR THE CALENDAR YEAR PRINTED ON THE IDENTIFICATION NUMBER. THE FEE FOR SUCH IDENTIFICATION NUMBER SHALL BE THE FULL FEE DESCRIBED IN THIS SUBSECTION (7.5) WITHOUT ALLOWANCE FOR ANY DISCOUNT.

(g)  THE GENERAL ASSEMBLY SHALL MAKE ANNUAL APPROPRIATIONS FROM THE VENDING MACHINE FEE ADMINISTRATION CASH FUND CREATED IN SUB­SUBPARAGRAPH (D) OF SUBPARAGRAPH (V) OF PARAGRAPH (b) OF THIS SUBSECTION (7.5) TO THE DEPARTMENT OF REVENUE FOR COSTS INCURRED IN FURNISHING IDENTIFICATION NUMBERS AND IN EXPANDING THE SYSTEM FOR COLLECTING FEES PURSUANT TO THIS SUBSECTION (7.5).

SECTION 3.  39­26­102 (2.8) and (4.5), Colorado Revised Statutes, 1994 Repl. Vol., are amended, and the said 39­26­102 is further amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS, to read:

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

(1.5)  "BULK VENDING MACHINE" MEANS A VENDING MACHINE THAT CONTAINS UNSORTED ITEMS OF FOOD, DRINK, OR OTHER MERCHANDISE AND THAT DISPENSES SUCH FOOD, DRINK, OR OTHER MERCHANDISE IN APPROXIMATELY EQUAL PORTIONS AT RANDOM.

(2.8)  "Direct mail advertising materials" means discount coupons, advertising leaflets, and other printed advertising, including, but not limited to, accompanying envelopes and labels. "COUNTERTOP VENDING MACHINE" MEANS A VENDING MACHINE DESIGNED FOR PLACEMENT ON A COUNTER OR STAND AND THAT DISPENSES PACKAGED ITEMS OF FOOD OR DRINK.

(2.9)  "DIRECT MAIL ADVERTISING MATERIALS" MEANS DISCOUNT COUPONS, ADVERTISING LEAFLETS, AND OTHER PRINTED ADVERTISING, INCLUDING, BUT NOT LIMITED TO, ACCOMPANYING ENVELOPES AND LABELS.

(4.5)  EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (4.7) OF THIS SECTION, "food", means food for domestic home consumption as defined in 7 U.S.C. sec. 2012(g), as amended, for purposes of the federal food stamp program as defined in 7 U.S.C. sec. 2012 (h), as amended; except that "food" does not include carbonated water marketed in containers; chewing gum; seeds and plants to grow foods; prepared salads and salad bars; cold sandwiches; deli trays; and food or drink vended by or through machines or non­coin­operated coin­collecting food and snack devices on behalf of a vendor.

(4.7)  AS USED IN SUBSECTIONS (1.5), (2.8), (13.5), AND (14.5) OF THIS SECTION AND IN SECTION 39­26­114 (7.5), "FOOD OR DRINK" MEANS ANY PACKAGED ITEM OF FOOD OR DRINK, INCLUDING BUT NOT LIMITED TO FOOD PRODUCTS, BEVERAGES, GUM, AND CANDY, SOLD THROUGH VENDING MACHINES.

(13.5)  "STANDARD VENDING MACHINE" MEANS A VENDING MACHINE OF STANDARD SIZE THAT DISPENSES ONLY PACKAGED ITEMS OF FOOD OR DRINK.

(14.5)  "SUNDRY MERCHANDISE VENDING MACHINE" MEANS A VENDING MACHINE THAT DISPENSES, EITHER EXCLUSIVELY OR WITH OTHER ITEMS, MERCHANDISE OTHER THAN FOOD OR DRINK, INCLUDING BUT NOT LIMITED TO PENS, COMBS, LIGHTERS, PROPHYLACTICS, PERFUMES, PLAYING CARDS, DETERGENTS, AND CAR WASH ACCESSORIES. "SUNDRY MERCHANDISE VENDING MACHINE" ALSO INCLUDES ANY VENDING MACHINE THAT DOES NOT CONFORM TO THE REQUIREMENTS FOR ANOTHER TYPE OF VENDING MACHINE.

(17.5)  "VENDING MACHINE" MEANS A DEVICE FOR THE SALE OF MERCHANDISE THAT ACCEPTS CURRENCY AND DISPENSES SUCH MERCHANDISE MECHANICALLY. EACH UNIT THAT ACCEPTS CURRENCY AND DISPENSES MERCHANDISE IS A SEPARATE VENDING MACHINE. "VENDING MACHINE" INCLUDES STANDARD VENDING MACHINES, COUNTERTOP VENDING MACHINES, BULK VENDING MACHINES, AND SUNDRY MERCHANDISE VENDING MACHINES. FOR PURPOSES OF THIS ARTICLE, "VENDING MACHINE" DOES NOT INCLUDE ANY DEVICE USED EXCLUSIVELY FOR THE SALE OF NEWSPAPERS, PERIODICALS, POSTAGE STAMPS, OR SERVICES, INCLUDING BUT NOT LIMITED TO, PAY TELEPHONES, PARKING METERS, STORAGE LOCKERS, AIR DISPENSERS, BAGGAGE CARTS, AND ELECTRIC METERS.

SECTION 4.  39­26­106 (2) (b), Colorado Revised Statutes, 1994 Repl. Vol., is amended to read:

39­26­106.  Schedule of sales tax. (2) (b)  Any retailer selling malt, vinous, or spirituous liquors by the drink or any vendor selling individual items of personal property MERCHANDISE through coin­operated BULK VENDING MACHINES OR SUNDRY MERCHANDISE vending machines may include in his SUCH RETAILER'S sales price the tax levied under this part 1; except that no such retailer shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not included as a part of the sales price to the consumer. The schedule set forth in subsection (1) of this section shall be used by such retailer in determining amounts to be included in such sales price. No such retailer shall gain any benefit from the collection or payment of such tax, except as permitted in section 39­26­105 (1), nor shall the use of the schedule set forth in subsection (1) of this section relieve such retailer from liability for payment of the full amount of the tax levied by this part 1.

SECTION 5.  29­2­105 (1) (d), Colorado Revised Statutes, 1986 Repl. Vol., as amended, is amended to read:

29­2­105.  Contents of sales tax ordinances and proposals. (1)  The sales tax ordinance or proposal of any incorporated town, city, or county adopted pursuant to this article shall be imposed on the sale of tangible personal property at retail or the furnishing of services, as provided in paragraph (d) of this subsection (1). Any countywide or incorporated town or city sales tax ordinance or proposal shall include the following provisions:

(d)  A provision that the tangible personal property and services taxable pursuant to this article shall be the same as the tangible personal property and services taxable pursuant to section 39­26­104, C.R.S., and subject to the same exemptions as those specified in section 39­26­114, C.R.S., except the exemption allowed by section 39­26­114 (11), C.R.S., for purchases of machinery or machine tools, the exemption of sales and purchases of those items in section 39­26­114 (1) (a) (XXI), C.R.S., the exemption for sales of food specified in section 39­26­114 (1) (a) (XX), C.R.S., THE EXEMPTION FOR VENDING MACHINE SALES SET FORTH IN SECTION 39­26­114 (7.5), C.R.S., and the exemption for occasional sales by a charitable organization set forth in section 39­26­114 (18), C.R.S. Sales of food, as defined in section 39­26­102 (4.5), C.R.S., exempted from the state sales tax pursuant to section 39­26­114 (1) (a) (XX), C.R.S., VENDING MACHINE SALES AS DESCRIBED IN SECTION 39­26­114 (7.5), C.R.S., sales and purchases of those items exempted from the state sales tax pursuant to section 39­26­114 (1) (a) (XXI), C.R.S., purchases of machinery or machine tools as provided in section 39­26­114 (11), C.R.S., or occasional sales by a charitable organization as provided in section 39­26­114 (18), C.R.S., may be exempted from said town, city, or county sales tax only by the express inclusion of such exemption either at the time of adoption of the initial sales tax ordinance or resolution or by amendment thereto. Any such amendment shall be adopted in the same manner as the initial ordinance or resolution. In the absence of express provision for the exemption for sales of food, as defined in section 39­26­102 (4.5), C.R.S., OR FOR THE EXEMPTION OF VENDING MACHINE SALES AS PROVIDED IN SECTION 39­26­114 (7.5), C.R.S., or FOR THE EXEMPTION OF purchases of machinery or machine tools as provided in section 39­26­114 (11), C.R.S., or FOR THE exemption of sales and purchases of those items in section 39­26­114 (1) (a) (XXI), C.R.S., or FOR THE exemption of occasional sales by a charitable organization as provided in section 39­26­114 (18), C.R.S., all sales tax ordinances or resolutions, whether adopted prior to, on, or subsequent to July 1, 1979, which provide in substance that the tangible personal property and services taxed shall be the same as the tangible personal property and services taxable pursuant to section 39­26­104, C.R.S., or any predecessor statute, and subject to the same exemptions as those specified in section 39­26­114, C.R.S., or any predecessor statute, shall be construed as imposing or continuing to impose the town, city, or county sales tax on food, as defined in section 39­26­102 (4.5), C.R.S., VENDING MACHINE SALES AS DESCRIBED IN SECTION 39­26­114 (7.5), C.R.S., purchases of machinery and machine tools as described in section 39­26­114 (11), C.R.S., sales or purchases of those items described in section 39­26­114 (1) (a) (XXI), C.R.S., and occasional sales by a charitable organization as described in section 39­26­114 (18), C.R.S. The regional transportation district may, in its discretion, continue to levy a sales tax on VENDING MACHINE SALES AS DESCRIBED IN SECTION 39­26­114 (7.5), C.R.S., AND ON purchases of machinery or machine tools, as provided in section 39­26­114 (11), C.R.S.

SECTION 6.  32­9­119 (2) (a), Colorado Revised Statutes, as amended, is amended to read:

32­9­119.  Additional powers of district. (2) (a)  To provide revenue to finance the operations of the district, to defray the cost of construction of capital improvements and acquisition of capital equipment, and to pay the interest and principal on securities of the district, the board, for and on behalf of the district after approval by election held pursuant to articles 1 to 13 of title 1, C.R.S., shall have the power to levy uniformly throughout the district a sales tax at the rate of six­tenths of one percent upon every transaction or other incident with respect to which a sales tax is now levied by the state, pursuant to the provisions of article 26 of title 39, C.R.S., EXCEPT SUCH SALES TAX MAY BE LEVIED ON VENDING MACHINE SALES THAT ARE OTHERWISE EXEMPT PURSUANT TO SECTION 39­26­114 (7.5), C.R.S., AND ON PURCHASES OF MACHINERY OR MACHINE TOOLS, THAT ARE OTHERWISE EXEMPT PURSUANT TO SECTION 39­26­114 (11), C.R.S.

SECTION 7.  32­13­107 (1) (a), Colorado Revised Statutes, as amended, is amended to read:

32­13­107.  Sales and use tax imposed ­ collection ­ administration of tax ­ use. (1) (a)  Except as otherwise provided in paragraph (b) of this subsection (1), upon the approval of the registered electors pursuant to the provisions of section 32­13­105, the board shall have the power to levy such uniform sales and use taxes throughout the district created in section 32­13­104 upon every transaction or other incident with respect to which a sales and use tax is levied by the state, pursuant to the provisions of article 26 of title 39, C.R.S., except such sales and use tax shall be levied on VENDING MACHINE SALES THAT ARE OTHERWISE EXEMPT PURSUANT TO SECTION 39­26­114 (7.5), C.R.S., AND ON purchases of machinery or machine tools which are otherwise exempt pursuant to section 39­26­114 (11), C.R.S., to the extent such SALES AND purchases are subject to a sales and use tax levied by the regional transportation district pursuant to section 29­2­105 (1) (d), C.R.S., on and after the January 1 following the election in which such sales and use taxes were approved.

SECTION 8.  32­14­114 (1), Colorado Revised Statutes, as amended, is amended to read:

32­14­114.  Sales tax imposed ­ collection ­ administration of tax ­ discontinuance. (1)  Upon the approval of the registered electors pursuant to the provisions of section 32­14­105 and upon the granting of a major league baseball franchise by major league baseball to be located in the district, the board shall have the power to levy such uniform sales tax for a period not to exceed twenty years throughout the district created in section 32­14­104 upon every transaction or other incident with respect to which a sales tax is levied by the state, pursuant to the provisions of article 26 of title 39, C.R.S.; except that such sales tax shall be levied on VENDING MACHINE SALES THAT ARE OTHERWISE EXEMPT PURSUANT TO SECTION 39­26­114 (7.5), C.R.S., AND purchases of machinery or machine tools which are otherwise exempt pursuant to section 39­26­114 (11), C.R.S., to the extent that such SALES AND purchases are subject to the sales tax levied by the regional transportation district pursuant to section 29­2­105 (1) (d), C.R.S., on and after the January 1 following the adoption of a resolution by the board.

SECTION 9.  39­26­122, Colorado Revised Statutes, 1994 Repl. Vol., is amended to read:

39­26­122. Administration ­ study. (1)  The administration of this part 1 is vested in and shall be exercised by the executive director of the department of revenue who shall prescribe forms and reasonable rules and regulations in conformity with this part 1 for the making of returns, for the ascertainment, assessment, and collection of the taxes imposed under this part 1, and for the proper administration and enforcement of this part 1.

(2)  ON OR BEFORE JANUARY 1, 1999, THE DEPARTMENT OF REVENUE SHALL MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY CONCERNING HOW TO ALLOCATE TO THE REGIONAL TRANSPORTATION DISTRICT, THE SCIENTIFIC AND CULTURAL FACILITIES DISTRICT, AND THE BASEBALL STADIUM DISTRICT A PORTION OF THE FEES COLLECTED FROM THE ISSUANCE OF VENDING MACHINE IDENTIFICATION NUMBERS PURSUANT TO SECTION 39­26­114 (7.5), IN LIEU OF AUTHORIZING SAID DISTRICTS TO COLLECT SALES AND USE TAX ON VENDING MACHINE SALES. THE DEPARTMENT SHALL BASE ITS RECOMMENDATION ON A STUDY OF THE COSTS AND BENEFITS OF SUCH AN ALLOCATION, AND THE RECOMMENDATION SHALL INCLUDE THE AMOUNT OF INCREASES IN THE FEES FOR VENDING MACHINE IDENTIFICATION NUMBERS THAT WOULD BE NECESSARY TO REIMBURSE SAID DISTRICTS FOR THE LOSS OF SALES AND USE TAX REVENUE.

SECTION 10. Appropriation.  In addition to any other appropriation, there is hereby appropriated, out of any moneys in the vending machine fee administration cash fund not otherwise appropriated, to the department of revenue, for the fiscal year beginning July 1, 1997, the sum of twenty-one thousand four hundred thirty-one dollars ($21,431), and 0.3 FTE, or so much thereof as may be necessary, for the implementation of this act.

SECTION 11.  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.