Colorado Legislative Council Staff
NO FISCAL IMPACT
January 12, 1998
Senate Bus. Affairs
Scott Nachtrieb (866-4752)
TITLE: CONCERNING A PROHIBITION ON THE IMPOSITION BY GOVERNMENTAL ENTITIES OF CHARGES UPON ACCESS TO THE INTERNET.
Summary of Assessment
The bill would prohibit state and local governments from imposing sales and use taxes on the access to or use of the Internet or on-line services. The bill would become effective upon the Governor’s signature.
Under current law, state and local governments do not impose sales taxes on Internet service. This bill would prohibit the imposition of sales and use taxes on charges for Internet service. The bill would not change existing revenues, expenditures, or workloads for state or local governments. Therefore, this bill is assessed as having no fiscal impact.
Omissions and Technical or Mechanical Defects
References in the bill refer to ”intangible” property. Current law does not define intangible property. The references should be to “tangible” personal property. The bill also makes reference to “transactions”. The term should be defined or clarified to identify the transactions that would not be taxed.