BY SENATORS Schroeder, Alexander, Bishop, Chlouber, Congrove, Hernandez, Lamborn, Mutzebaugh, Norton, Powers, Tebedo, and Wham;
also REPRESENTATIVES May, Adkins, Agler, Arrington,
C. Berry, Epps, Hagedorn, Hefley, Kreutz, McElhany, McPherson,
Paschall, Pfiffner, Smith, Sullivant, Swenson, and Tupa.
CONCERNING A PROHIBITION ON THE IMPOSITION BY GOVERNMENTAL
ENTITIES OF CHARGES UPON ACCESS TO THE INTERNET.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. Title
24, Colorado Revised Statutes, is amended BY THE ADDITION OF A
NEW ARTICLE to read:
ARTICLE 79
Limitations on Sources of Revenue
2479101. Legislative declaration.
(1) THE GENERAL ASSEMBLY FINDS, DETERMINES, AND DECLARES
THAT:
(a) FREE AND UNFETTERED ACCESS BY COLORADO'S
CITIZENS TO NATIONAL AND GLOBAL COMMUNICATIONS MEDIA, INCLUDING,
WITHOUT LIMITATION, THE INTERNET, IS ESSENTIAL TO CITIZEN PARTICIPATION
IN STATE AND NATIONAL AFFAIRS THROUGH THE EXCHANGE OF INFORMATION
AND THE CONTINUED VITALITY OF COMMERCE AT THE STATE, NATIONAL,
AND INTERNATIONAL LEVELS;
(b) COLORADO'S LONGTERM ECONOMIC
HEALTH AND COMPETITIVENESS VISÀVIS THE ECONOMIES
OF OTHER STATES AND NATIONS, INCLUDING THE BENEFITS OF FULL EMPLOYMENT
AND THE ATTRACTION OF NEW BUSINESSES THAT MAY WISH TO LOCATE HERE,
DEPEND ON CREATING A BUSINESS ENVIRONMENT THAT IS CONDUCIVE TO
THE CONTINUED GROWTH OF COMMERCE VIA THE INTERNET AND ONLINE
SERVICES;
(c) A PATCHWORK OF LOCAL FEES AND TAXES,
OR THE ADDITION OF STATE FEES AND TAXES TO THOSE ALREADY IMPOSED
ON BUSINESS ACTIVITY, WILL TEND TO DISCOURAGE NEW INVESTMENT,
REDUCE THE NUMBER OF JOBS AVAILABLE IN THE STATE, AND DISSUADE
CONSUMERS AND EMPLOYERS FROM ENJOYING THE ECONOMIC, SOCIAL, AND
ENVIRONMENTAL BENEFITS OFFERED BY USE OF THE INTERNET, INCLUDING
BUT NOT LIMITED TO TELECOMMUTING, JUSTINTIME INVENTORY
CONTROL, AND ADVANCE RESERVATION OF GOODS AND SERVICES;
(d) THE COST OF FORGOING THESE BENEFITS,
EVEN PARTIALLY AND EVEN AT A LOCAL LEVEL, WILL BE BORNE BY ALL
CITIZENS OF THE STATE IN THE FORM OF INCREASED TRAFFIC CONGESTION,
AIR POLLUTION, A LOWER QUALITY OF LIFE, AND LOST TIME AND PRODUCTIVITY.
THEREFORE, THIS ACT ADDRESSES A MATTER OF STATEWIDE CONCERN;
(e) UNTIL PENDING FEDERAL LEGISLATION
RESOLVES ISSUES INVOLVING ELECTRONIC COMMERCE, INCLUDING WHETHER,
AND TO WHAT EXTENT, STATE AND LOCAL TAXATION OF INTERNET ACCESS
SERVICES WILL FURTHER THE INTERESTS OF ALL PARTICIPANTS IN THE
NATIONAL ECONOMY, INCLUDING THE CITIZENS OF COLORADO, A MORATORIUM
OF AT LEAST THREE YEARS IS APPROPRIATE ON THE IMPOSITION OF SUCH
CHARGES, CONSISTENT WITH THE PENDING NATIONAL PLAN.
2479102. Limitation on
sources of revenue. (1) FROM
MAY 1, 1998, TO AND INCLUDING APRIL 30, 2001, THERE SHALL BE A
TEMPORARY MORATORIUM DURING WHICH THE STATE SHALL NOT IMPOSE,
ASSESS, OR COLLECT ANY TAX, REGULATION, FEE, OR CHARGE UPON:
(a) THE DIRECT CHARGES FOR PROVISION OF
INTERNET ACCESS SERVICES; OR
(b) ANY PROVIDER OF INTERNET ACCESS SERVICES AS A MEANS OF COLLECTING SALES OR USE TAXES FROM PERSONS WHO PURCHASE TAXABLE PROPERTY OR SERVICES THROUGH USE OF THE INTERNET UNLESS SUCH PROVIDER ACTS AS A VENDOR OF TAXABLE PROPERTY OR SERVICES.
(2) AS USED IN THIS SECTION:
(a) "INTERNET" MEANS THE INTERNATIONAL
COMPUTER NETWORK CONSISTING OF FEDERAL AND NONFEDERAL, INTEROPERABLE,
PACKETCONTROLLED, SWITCHED DATA NETWORKS.
(b) "INTERNET ACCESS SERVICES"
MEANS SERVICES THAT PROVIDE OR ENABLE COMPUTER ACCESS BY MULTIPLE
USERS TO THE INTERNET.
SECTION 2. Article
1 of title 29, Colorado Revised Statutes, is amended BY THE ADDITION
OF A NEW PART to read:
PART 10
LIMITATIONS ON SOURCES OF REVENUE
2911001. Moratorium on
taxes, fees, and charges internet and online services.
(1) (a) FROM MAY 1, 1998, TO AND INCLUDING APRIL
30, 2001, THERE SHALL BE A TEMPORARY MORATORIUM DURING WHICH NO
STATUTORY OR HOME RULE CITY AND COUNTY, COUNTY, CITY, OR TOWN,
NOR ANY POLITICAL SUBDIVISION OF THE STATE, INCLUDING, WITHOUT
LIMITATION, A SPECIAL PURPOSE AUTHORITY, SPECIAL DISTRICT, OR
SCHOOL DISTRICT, SHALL IMPOSE, ASSESS, OR COLLECT ANY TAX, FEE,
OR CHARGE, HOWEVER DESIGNATED, UPON THE DIRECT CHARGES FOR PROVISION
OF INTERNET ACCESS SERVICES.
(b) PARAGRAPH (a) OF THIS SUBSECTION (1)
SHALL NOT APPLY TO TAXES ON INTERNET ACCESS SERVICES ACTUALLY
COLLECTED AND ENFORCED BY A HOME RULE CITY ON OR BEFORE APRIL
15, 1998.
(c) PARAGRAPH (a) OF THIS SUBSECTION (1)
SHALL NOT APPLY TO ANY FRANCHISE FEE ON INTERACTIVE COMPUTER SERVICES
DELIVERED VIA A CABLE TELEVISION SYSTEM UNLESS THE FEDERAL COMMUNICATIONS
COMMISSION OR A COURT OF COMPETENT JURISDICTION DETERMINES THAT
SUCH SERVICES ARE NOT CABLE SERVICES WITHIN THE MEANING OF 47
U.S.C. SEC. 522 (6).
(2) FROM MAY 1, 1998, TO AND INCLUDING
APRIL 30, 2001, THERE SHALL BE A TEMPORARY MORATORIUM DURING WHICH
NO PROVIDER OF INTERNET ACCESS SERVICES SHALL BE REQUIRED TO COLLECT
SALES OR USE TAXES FROM PERSONS WHO PURCHASE TAXABLE PROPERTY
OR SERVICES THROUGH USE OF THE INTERNET UNLESS SUCH PROVIDER ACTS
AS A VENDOR OF TAXABLE PROPERTY OR SERVICES.
(3) AS USED IN THIS SECTION:
(a) "INTERNET" MEANS THE INTERNATIONAL
COMPUTER NETWORK CONSISTING OF FEDERAL AND NONFEDERAL, INTEROPERABLE,
PACKETCONTROLLED, SWITCHED DATA NETWORKS.
(b) "INTERNET ACCESS SERVICES"
MEANS SERVICES THAT PROVIDE OR ENABLE COMPUTER ACCESS BY MULTIPLE
USERS TO THE INTERNET.
SECTION 3. 3926114
(1) (a), Colorado Revised Statutes, is amended BY THE ADDITION
OF A NEW SUBPARAGRAPH to read:
3926114. Exemptions
disputes credits or refunds. (1) (a) There
shall be exempt from taxation under the provisions of this part
1 the following:
(XXVI) FROM MAY 1, 1998, TO AND INCLUDING
APRIL 30, 2001, INTERNET ACCESS SERVICES, AS DEFINED IN SECTION
2479102 (2), C.R.S.
SECTION 4. 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:
(ii) FROM MAY 1, 1998, TO AND INCLUDING
APRIL 30, 2001, TO INTERNET ACCESS SERVICES, AS DEFINED IN SECTION
2479102 (2), C.R.S.
SECTION 5. 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.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Patricia K. Dicks Judith M. Rodrigue
ASSISTANT SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO