BY REPRESENTATIVES Sinclair, C. Berry, Epps, Hefley, Leyba, McElhany, Morrison, Salaz, Sullivant, Tucker, Tupa, Veiga, S. Williams, and Zimmerman;
also SENATORS Powers, Chlouber, Schroeder, and Tebedo.
CONCERNING AN EXEMPTION FROM STATE USE TAX FOR CERTAIN
DONATIONS OF MANUFACTURED GOODS BY THE MANUFACTURER OF SUCH GOODS,
AND, IN CONNECTION THEREWITH, EXEMPTING FROM STATE SALES TAX PURCHASES
OF TANGIBLE PERSONAL PROPERTY BY A MANUFACTURER THAT USES SUCH
PROPERTY AS A COMPONENT PART OF CERTAIN GOODS THAT IT MANUFACTURES
AND DONATES.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 3926203
(1), Colorado Revised Statutes, is amended BY THE ADDITION OF
A NEW PARAGRAPH to read:
3926203. Exemptions.
(1) This part 2 is declared to be supplementary to
the "Emergency Retail Sales Tax Law of 1935", part 1
of this article, and shall not apply:
(ff) TO THE STORAGE, USE, OR CONSUMPTION
OF MANUFACTURED GOODS, INCLUDING, BUT NOT LIMITED TO, HIGH TECHNOLOGY
GOODS, DONATED BY THE MANUFACTURER OF SUCH GOODS TO THE UNITED
STATES GOVERNMENT; THE STATE OF COLORADO OR ANY DEPARTMENT, INSTITUTION,
OR POLITICAL SUBDIVISION THEREOF; OR ANY ORGANIZATION EXEMPT FROM
FEDERAL INCOME TAXES PURSUANT TO SECTION 501 (c) (3) OF THE "INTERNAL
REVENUE CODE OF 1986", AS AMENDED, TO THE EXTENT THAT THE
AGGREGATE VALUE OF ALL SUCH GOODS INCLUDED IN A SINGLE DONATION
EXCEEDS ONE THOUSAND DOLLARS.
SECTION 2. 3926114,
Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW
SUBSECTION to read:
3926114. Exemptions
disputes credits or refunds. (20) ALL
SALES AND PURCHASES OF TANGIBLE PERSONAL PROPERTY BY A MANUFACTURER
THAT USES SUCH PROPERTY AS A COMPONENT PART OF GOODS THAT IT MANUFACTURES,
INCLUDING, BUT NOT LIMITED TO, HIGH TECHNOLOGY GOODS, AND THAT
DONATES SUCH GOODS TO THE UNITED STATES GOVERNMENT; THE STATE
OF COLORADO OR ANY DEPARTMENT, INSTITUTION, OR POLITICAL SUBDIVISION
THEREOF; OR ANY ORGANIZATION EXEMPT FROM FEDERAL INCOME TAXES
PURSUANT TO SECTION 501 (c) (3) OF THE "INTERNAL REVENUE
CODE OF 1986", AS AMENDED, TO THE EXTENT THAT THE AGGREGATE
VALUE OF THE GOODS INCLUDED IN A SINGLE DONATION EXCEEDS ONE THOUSAND
DOLLARS SHALL BE EXEMPT FROM TAXATION UNDER THIS PART 1.
SECTION 3. 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.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Patricia K. Dicks
CHIEF CLERK OF THE HOUSE ASSISTANT SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO