This information is prepared as an informational service only and should not be relied upon as an official record of action taken by the Colorado General Assembly.
Sixty-first General Assembly
LLS NO. 980272.01 JAG
HOUSE BILL 981065
STATE OF COLORADO
BY REPRESENTATIVE McElhany;
also SENATOR Lamborn.
REREVISED
FINANCE
A BILL FOR AN ACT
CONCERNING THE ELIMINATION OF THE STATE SALES TAX
ON TELEPHONE AND TELEGRAPH SERVICES.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
adopted.)
Repeals the state sales tax on telephone and telegraph
services. Preserves the existing authority of local governmental
entities to impose a sales tax on such services.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Repeal. 3926104 (1) (c), Colorado Revised Statutes, is repealed as follows:
3926104. Property and services taxed. (1) There is levied and there shall be collected and paid a tax in the amount stated in section 3926106 as follows:
(c) Upon telephone
and telegraph services, whether furnished by public or private
corporations or enterprises for all intrastate telephone and telegraph
service;
SECTION 2. 292105 (1) (d), Colorado Revised Statutes, 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
EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH (d). THE TANGIBLE
PERSONAL PROPERTY AND SERVICES TAXABLE PURSUANT TO THIS ARTICLE
ARE 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, EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH
(d), 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. ANY
INCORPORATED TOWN, CITY, OR COUNTY THAT ADOPTS OR HAS ADOPTED
A SALES TAX ORDINANCE OR RESOLUTION PURSUANT TO THIS ARTICLE SHALL
LEVY A SALES TAX ON TELEPHONE AND TELEGRAPH SERVICES, WHETHER
FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR
ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES, NOTWITHSTANDING
THE REMOVAL OF SUCH SERVICES FROM THE STATE SALES TAX BASE PURSUANT
TO HOUSE BILL 98-1065, ENACTED AT THE SECOND REGULAR SESSION OF
THE SIXTY-FIRST GENERAL ASSEMBLY, UNLESS EXEMPTED BY LOCAL ORDINANCE
OR RESOLUTION. 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.
SECTION 3. 329119 (2) (a), Colorado Revised Statutes, is amended to read:
329119. Additional powers of district repeal. (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. THE DISTRICT MAY ALSO, IN ITS DISCRETION, CONTINUE TO LEVY SAID SALES TAX ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICE.
SECTION 4. 3213105 (1) and (4) (a), Colorado Revised Statutes, are amended to read:
3213105. Authorizing elections repeal. (1) The district created in section 3213104 may submit to the registered electors within the geographical boundaries of the district, at one or more general elections, the question of whether the district shall be authorized to levy and collect the following sales and use taxes:
(a) A uniform sales and use tax throughout said geographical area at a rate of sixtyfive onethousandths of one percent 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 purchases of machinery or machine tools which are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent such purchases are subject to a sales and use tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, CONTINUE TO BE LEVIED ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES, to be distributed to the Denver museum of natural history, the Denver zoological gardens, the Denver art museum, and the Denver botanical gardens, pursuant to the provisions of section 3213107 (3) (a);
(b) A uniform sales and use tax throughout said geographical area at a rate of twentyfive onethousandths of one percent 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 purchases of machinery or machine tools which are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent such purchases are subject to a sales and use tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, CONTINUE TO BE LEVIED ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES, to be distributed to scientific and cultural facilities pursuant to the provisions of section 3213107 (3) (b);
(c) A uniform sales and use tax throughout said geographical area at a rate of ten onethousandths of one percent 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 purchases of machinery or machine tools which are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent such purchases are subject to a sales and use tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, CONTINUE TO BE LEVIED ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICE, to be distributed to scientific and cultural facilities pursuant to the provisions of section 3213107 (3) (c).
(4) (a) For purposes of complying with the provisions of section 20 (4) of article X of the state constitution and upon proper submittal of a valid initiative petition to or upon the adoption of a resolution by the board of the district created in section 3213104, the district may submit to the registered electors within the geographical boundaries of the district, at a general election or an election held on the first Tuesday in November of an oddnumbered year, the question of whether the district shall be authorized to levy and collect the following sales and use taxes in lieu of the sales and use taxes specified in subsection (1) of this section for a period of time not to exceed ten years from the date upon which the authority of the district to levy and collect the sales and use taxes specified in subsection (1) of this section is scheduled to expire:
(I) A uniform sales and use tax throughout said geographical area at a rate of fiftynine onethousandths of one percent 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 purchases of machinery or machine tools which are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent such purchases are subject to a sales and use tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, CONTINUE TO BE LEVIED ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICE, to be distributed to the Denver museum of natural history, the Denver zoological gardens, the Denver art museum, and the Denver botanical gardens pursuant to the provisions of section 3213107 (3) (a);
(II) A uniform sales and use tax throughout said geographical area at a rate of twentyeight onethousandths of one percent 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 purchases of machinery or machine tools which are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent such purchases are subject to a sales and use tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, CONTINUE TO BE LEVIED ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES, to be distributed to scientific and cultural facilities pursuant to the provisions of section 3213107 (3) (b);
(III) A uniform sales and use tax throughout said geographical area at a rate of thirteen onethousandths of one percent 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 purchases of machinery or machine tools which are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent such purchases are subject to a sales and use tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, CONTINUE TO BE LEVIED ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES, to be distributed to scientific and cultural facilities pursuant to the provisions of section 3213107 (3) (c).
SECTION 5. 3213107 (1) (a), Colorado Revised Statutes, 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 purchases of machinery or machine tools which are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent such purchases are subject to a sales and use tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, CONTINUE TO BE LEVIED ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES, after the January 1 following the election in which such sales and use taxes were approved.
SECTION 6. 3214105 (1), Colorado Revised Statutes, is amended to read:
3214105. Authorizing election. (1) The board created in section 3214106 may submit to the registered electors within the geographical boundaries of the district, at a general election, at a special election not paid for with public funds, or at a primary election for which the additional cost of the ballot question is prepaid and is not paid with public funds, the question of whether, upon the granting of a major league baseball franchise by major league baseball to be located in the district, the district shall be authorized to levy and collect for a period not to exceed twenty years a uniform sales tax throughout the district at a rate not to exceed onetenth of one percent 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 purchases of machinery or machine tools which are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent that such purchases are subject to the sales tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, CONTINUE TO BE LEVIED ON AND AFTER JULY 1, 1998, UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES, to be held and distributed pursuant to the provisions of section 3214115.
SECTION 7. 3215107 (1) (a) (I), Colorado Revised Statutes, is amended to read:
3215107. Authorizing election. (1) (a) For purposes of complying with the provisions of section 20 (4) of article X of the state constitution and upon receipt of a notice from the secretary of state stating that a valid petition has been filed and verified and the adoption of a resolution by the board as set forth in section 3215106 (1) (f), the board may submit to the registered electors within the geographical boundaries of the district, at a general election or an election held on the first Tuesday in November of an oddnumbered year the question of whether the district shall be authorized:
(I) To levy and collect, for a period commencing after the termination of the sales tax levied and collected by the Denver metropolitan major league baseball stadium district pursuant to section 3214105 and continuing for a period not to extend beyond January 1, 2012, a uniform sales tax throughout the district at a rate not to exceed onetenth of one percent 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 purchases of machinery or machine tools that are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent that such purchases are subject to the sales tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, BE LEVIED UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES, to be held and distributed pursuant to the provisions of section 3215111; and
SECTION 8. 3215110 (1), Colorado Revised Statutes, is amended to read:
3215110. Sales tax imposed collection administration of tax discontinuance. (1) Upon the approval of the registered electors pursuant to the provisions of section 3215107, the board shall have the power to levy such uniform sales tax upon the adoption of a resolution for a period commencing after the termination of the sales tax levied and collected by the Denver metropolitan major league baseball stadium district pursuant to section 3214105 and continuing for a period not to extend beyond January 1, 2012, throughout the district created in section 3215104 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 purchases of machinery or machine tools that are otherwise exempt pursuant to section 3926114 (11), C.R.S., to the extent that such purchases are subject to the sales tax levied by the regional transportation district pursuant to section 292105 (1) (d), C.R.S., AND MAY, IN THE DISCRETION OF THE DISTRICT, BE LEVIED UPON TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR ENTERPRISES FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES.
SECTION 9. Effective date. This act shall take effect July 1, 1998.
SECTION 10. 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.