First Regular Session
Sixty-first General Assembly
LLS NO. 970175.01 MKD
SENATE BILL 97065
STATE OF COLORADO
BY SENATOR Mutzebaugh
FINANCE
A BILL FOR AN ACT
CONCERNING A PROHIBITION AGAINST THE IMPOSITION OF
SALES AND USE TAX ON SALES OF FOOD FOR DOMESTIC HOME CONSUMPTION.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
adopted.)
Prohibits counties, municipalities, and any other
local government from levying sales or use tax on food for domestic
home consumption.
Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 292105 (1) (d), (6), (7), and (8), Colorado Revised Statutes, 1986 Repl. Vol., as amended, are amended, and the said 292105 is further amended BY THE ADDITION OF A NEW SUBSECTION, 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., 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., 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 purchases of machinery or machine
tools as provided in section 3926114 (11), C.R.S.,
or exemption of sales and purchases of those items in section
3926114 (1) (a) (XXI), C.R.S., or 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.,
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 purchases of machinery or machine tools, as provided in section
3926114 (11), C.R.S.
(6) No sales
or use tax of any statutory or home rule city, town, city and
county, or county shall apply to the sale of food purchased with
food stamps. For the purposes of this subsection (6), "food"
shall have the same meaning as provided in 7 U.S.C. section 2012
(g), as such section exists on October 1, 1987, or is thereafter
amended.
(7) No sales
or use tax of any statutory or home rule city, town, city and
county, or county shall apply to the sale of food purchased with
funds provided by the special supplemental food program for women,
infants, and children, 42 U.S.C. section 1786. For the purposes
of this subsection (7), "food" shall have the same meaning
as provided in 42 U.S.C. section 1786, as such section exists
on October 1, 1987, or is thereafter amended.
(8) Any statutory
or home rule city, town, city and county, or county which provides
an exemption for the sale of food shall define "food"
as defined in section 3926102 (4.5), C.R.S.
(9) (a) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE AFFORDABILITY OF FOOD FOR DOMESTIC HOME CONSUMPTION BE RECOGNIZED AS VITAL TO THE HEALTH AND WELFARE OF ALL PERSONS IN THE STATE AND, THEREFORE, REGARDED AS A MATTER OF STATEWIDE CONCERN. FURTHER, IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT NO PERSON IN THE STATE INCUR SALES OR USE TAX LIABILITY FOR THE PURCHASE OF FOOD FOR DOMESTIC HOME CONSUMPTION. FOR THESE REASONS, THIS SUBSECTION (9) IS INTENDED TO PREEMPT ANY LOCAL GOVERNMENT CHARTER PROVISIONS, ORDINANCES, OR RESOLUTIONS TO THE CONTRARY.
(b) NO SALES OR USE TAX OF ANY STATUTORY OR HOME RULE CITY, TOWN, CITY AND COUNTY, COUNTY, OR ANY OTHER LOCAL GOVERNMENT SHALL APPLY TO THE SALE OF FOOD PURCHASED FOR DOMESTIC HOME CONSUMPTION.
SECTION 2. 292106 (4) (a), Colorado Revised Statutes, 1986 Repl. Vol., is amended to read:
292106. Collection
administration enforcement. (4) (a) The
executive director of the department of revenue shall, at no charge,
administer, collect, and distribute the sales tax of any home
rule municipality, upon request of the governing body of such
municipality, if the provisions of the sales tax ordinance of
said municipality, other than those provisions relating to local
procedures followed in adopting the ordinance and whether or not
the ordinance applies the sales tax to the
sale of food, as defined in section 3926102 (4.5),
C.R.S., or purchases of machinery
or machine tools as provided in section 3926114 (11),
C.R.S., or sales or purchases of electricity, coal, wood, gas,
fuel oil, or coke as provided in section 3926114 (1)
(a) (XXI), C.R.S., correspond to the requirements of this article
for sales taxes imposed by counties, towns, and cities and if
no use tax is to be collected by the department except as provided
in section 3926208, C.R.S. At the time of making
such request, said governing body shall certify to the executive
director of the department of revenue a true copy of said sales
tax ordinance.
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.