TITLE: CONCERNING THE EXEMPTION OF VOTER-APPROVED MARKETING AND PROMOTION TAXES LEVIED BY A LOCAL MARKETING DISTRICT FROM THE STATUTORY SEVEN PERCENT SALES OR USE TAX LIMIT.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon signature of the Governor
Appropriation Summary for FY 1999-2000: None
Local Government Impact: Voter-approved marketing and promotion taxes levied by a local marketing district would be exempt from the combined state and local statutory 7.0 percent sales or use tax limit.

HB 98-1200, which became effective September 1, 1998, authorizes any local marketing district to levy a marketing and promotion tax on the purchase price paid or charged to persons for rooms or accommodations if the tax is approved by a majority of the voters within the district. Under current law, the total combined sales tax or use tax imposed by the state, any county, and any city or town may not exceed 7.0 percent. This bill would exempt voter-approved marketing and promotion taxes levied by a local marketing district that was authorized by HB 98-1200 from the combined state and local statutory 7.0 percent sales or use tax limit.

Since voter approval is required before the imposition of a marketing and promotion tax, the bill is assessed as having a local conditional fiscal impact. State revenues and expenditures would not be affected by the bill.

Under current law, the total combined sales tax or use tax imposed by the state, any county, and any city or town may not exceed 7.0 percent. This limitation does not preclude a county sales tax or use tax at a rate not to exceed 1.0 percent. Certain exceptions to the 7.0 percent limitation are authorized by current law, including: any lodging tax for the advertising and marketing of local tourism (30-11-107.5, C.R.S.); any county rental tax on the rental of personal property (30-11-107.7, C.R.S.); any district sales tax (30-20-604.5, C.R.S.); any sales tax for mass transit (29-2-103.5) and any increment of sales tax or use tax in a Category IV or Category V county for the specific purpose of funding the operations of any health service district. The bill would add voter-approved marketing and promotion taxes levied by a local marketing district to the list of exceptions to the combined state and local statutory 7.0 percent sales or use tax limit.