Sixty-first General Assembly
LLS NO. 980443.01 BJA
SENATE BILL 98074
STATE OF COLORADO
BY SENATOR Weddig;
also REPRESENTATIVE Hagedorn.
REREVISED
FINANCE
A BILL FOR AN ACT
CONCERNING THE REINSTATEMENT OF THE SALES AND USE
TAX EXEMPTION FOR BULK SALES OF COINS AND PRECIOUS METAL BULLION.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
adopted.)
Reinstates the sales and use tax exemption for bulk
sales of coins and precious metal bullion sold on or after January
1, 1999.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 3926102 (2.6) and (6.5), Colorado Revised Statutes, are RECREATED AND REENACTED, WITH AMENDMENTS, to read:
3926102. Definitions. As used in this article, unless the context otherwise requires:
(2.6) "COINS" MEANS MONETIZED BULLION OR OTHER FORMS OF MONEY MANUFACTURED FROM GOLD, SILVER, PLATINUM, PALLADIUM, OR OTHER SUCH METALS NOW, IN THE FUTURE, OR HERETOFORE DESIGNATED AS A MEDIUM OF EXCHANGE UNDER THE LAWS OF THIS STATE, THE UNITED STATES, OR ANY FOREIGN NATION.
(6.5) "PRECIOUS METAL BULLION" MEANS ANY PRECIOUS METAL, INCLUDING, BUT NOT LIMITED TO, GOLD, SILVER, PLATINUM, AND PALLADIUM, THAT HAS BEEN PUT THROUGH A PROCESS OF REFINING AND IS IN SUCH A STATE OR CONDITION THAT ITS VALUE DEPENDS UPON ITS PRECIOUS METAL CONTENT AND NOT ITS FORM.
SECTION 2. 3926102, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
3926102. Definitions. As used in this article, unless the context otherwise requires:
(1.5) "BULK SALE" OR "SOLD IN BULK" MEANS A SINGLE SALE OF PRECIOUS METAL, BULLION, OR COINS TOTALING ONE HUNDRED DOLLARS OR MORE.
SECTION 3. 3926114 (17), Colorado Revised Statutes, is RECREATED AND REENACTED, WITH AMENDMENTS, to read:
3926114. Exemptions disputes credits or refunds. (17) (a) ALL BULK SALES OF COINS AND PRECIOUS METAL BULLION, AS DEFINED IN SECTIONS 3926102 (2.6) AND (6.5), THAT ARE SUBSTANTIALLY EQUIVALENT TO TRANSACTIONS IN SECURITIES OR COMMODITIES THROUGH A NATIONAL SECURITIES OR COMMODITIES EXCHANGE SHALL BE EXEMPT FROM TAXATION UNDER THIS PART 1.
(b) FOR PURPOSES OF THIS SUBSECTION (17), A BULK SALE OF COINS AND PRECIOUS METAL BULLION SHALL BE DEEMED TO BE SUBSTANTIALLY EQUIVALENT TO A TRANSACTION IN SECURITIES OR COMMODITIES THROUGH A NATIONAL SECURITIES OR COMMODITIES EXCHANGE IF THE SALE IS BY OR THROUGH ANY PERSON WHO IS REGISTERED PURSUANT TO THE FEDERAL "COMMODITY EXCHANGE ACT", 7 U.S.C. SEC. 1 ET SEQ., AS AMENDED, OR WHO IS NOT REQUIRED TO BE REGISTERED PURSUANT TO SAID FEDERAL ACT.
SECTION 4. 3926203 (1) (bb), Colorado Revised Statutes, is RECREATED AND REENACTED, WITH AMENDMENTS, 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:
(bb) (I) TO THE STORAGE, USE, OR CONSUMPTION OF COINS AND PRECIOUS METAL BULLION, AS DEFINED IN SECTION 3926102 (2.6) AND (6.5), THAT ARE SOLD IN BULK IN TRANSACTIONS SUBSTANTIALLY EQUIVALENT TO TRANSACTIONS IN SECURITIES OR COMMODITIES THROUGH A NATIONAL SECURITIES OR COMMODITIES EXCHANGE.
(II) FOR PURPOSES OF THIS PARAGRAPH (bb), A BULK SALE OF COINS AND PRECIOUS METAL BULLION SHALL BE DEEMED TO BE SUBSTANTIALLY EQUIVALENT TO A TRANSACTION IN SECURITIES OR COMMODITIES THROUGH A NATIONAL SECURITIES OR COMMODITIES EXCHANGE IF THE SALE IS BY OR THROUGH ANY PERSON WHO IS REGISTERED PURSUANT TO THE FEDERAL "COMMODITY EXCHANGE ACT", 7 U.S.C. SEC. 1 ET SEQ., AS AMENDED, OR WHO IS NOT REQUIRED TO BE REGISTERED PURSUANT TO SAID FEDERAL ACT.
SECTION 5. Applicability. This act shall apply to sales of coins and precious metal bullion made on or after January 1, 1999.
SECTION 6. 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.