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Dashes through the words indicate deletions from statute.

First Regular Session

Sixty-first General Assembly

LLS NO. 97­0632.01 JY HOUSE BILL 97­1294

STATE OF COLORADO

BY REPRESENTATIVE Grossman

FINANCE

A BILL FOR AN ACT

CONCERNING THE EXEMPTION OF RECYCLED PAPER 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, 1998, exempts all sales and purchases of recycled paper from the state sales and use tax. Prior to said date, requires the department of revenue to adopt rules governing the administration of such exemption, including, but not limited to, establishing the meaning of "raw paper".


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

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

39­26­114.  Exemptions ­ disputes ­ credits or refunds ­ repeal. (1) (a)  There shall be exempt from taxation under the provisions of this part 1 the following:

(XXVI)  ON AND AFTER JULY 1, 1998, ALL SALES AND PURCHASES OF RECYCLED PAPER. FOR PURPOSES OF THIS SUBPARAGRAPH (XXVI), "RECYCLED PAPER" MEANS RAW PAPER WITH NOT LESS THAN FIFTY PERCENT OF ITS TOTAL WEIGHT CONSISTING OF SECONDARY AND POSTCONSUMER WASTE, WITH NOT LESS THAN TEN PERCENT OF SUCH TOTAL WEIGHT CONSISTING OF POSTCONSUMER WASTE, AND PACKAGED WITH A LABEL THAT CONSPICUOUSLY IDENTIFIES SUCH RECYCLED CONTENTS. THE TERM DOES NOT INCLUDE ANY PRODUCT MADE FROM OR OUT OF RECYCLED PAPER. PRIOR TO JULY 1, 1998, THE DEPARTMENT OF REVENUE SHALL PROMULGATE RULES GOVERNING THE ADMINISTRATION OF THIS SECTION, INCLUDING, BUT NOT LIMITED TO, ESTABLISHING THE MEANING OF "RAW PAPER" AS USED IN THE DEFINITION OF RECYCLED PAPER IN THIS SUBPARAGRAPH (XXVI).

SECTION 2.  Effective date.  This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.