First Regular Session
Sixty-second General Assembly
LLS NO. 99-0005.02 Jason Gelender HOUSE BILL 99-1029
STATE OF COLORADO
BY REPRESENTATIVES McElhany, Dean, Johnson, May, McKay,
McPherson, Nunez, and Swenson;
also SENATOR Lamborn.
STATE, VETERANS, & MILITARY AFFAIRS
A BILL FOR AN ACT
101 CONCERNING THE ELIMINATION OF THE STATE SALES TAX ON TELEPHONE
102 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.
Requires any local governmental entity that presently imposes a sales tax
on such services to continue to impose such tax unless it adopts an
ordinance or resolution that explicitly exempts such services from the
sales tax.
1 Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Repeal. 39-26-104 (1) (c), Colorado Revised
2 Statutes, is repealed as follows:
3 39-26-104. Property and services taxed. (1) There is levied and
4 there shall be collected and paid a tax in the amount stated in section
5 39-26-106 as follows:
6 (c) Upon telephone and telegraph services, whether furnished by
7 public or private corporations or enterprises for all intrastate telephone
8 and telegraph service;
9 SECTION 2. 29-2-105 (1) (d), Colorado Revised Statutes, is
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
1 amended to read:
2 29-2-105. Contents of sales tax ordinances and proposals.
3 (1) The sales tax ordinance or proposal of any incorporated town, city,
4 or county adopted pursuant to this article shall be imposed on the sale of
5 tangible personal property at retail or the furnishing of services, as
6 provided in paragraph (d) of this subsection (1). Any countywide or
7 incorporated town or city sales tax ordinance or proposal shall include the
8 following provisions:
9 (d) A provision that the tangible personal property and services
10 taxable pursuant to this article shall be the same as the tangible personal
11 property and services taxable pursuant to section 39-26-104, C.R.S., and
12 EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH (d). THE TANGIBLE
13 PERSONAL PROPERTY AND SERVICES TAXABLE PURSUANT TO THIS ARTICLE
14 ARE subject to the same exemptions as those specified in section
15 39-26-114, C.R.S., except the exemption allowed by section 39-26-114
16 (11), C.R.S., for purchases of machinery or machine tools, the exemption
17 of sales and purchases of those items in section 39-26-114 (1) (a) (XXI),
18 C.R.S., the exemption for sales of food specified in section 39-26-114 (1)
19 (a) (XX), C.R.S., and the exemption for occasional sales by a charitable
20 organization set forth in section 39-26-114 (18), C.R.S. Sales of food, as
21 defined in section 39-26-102 (4.5), C.R.S., exempted from the state sales
22 tax pursuant to section 39-26-114 (1) (a) (XX), C.R.S., sales and
23 purchases of those items exempted from the state sales tax pursuant to
24 section 39-26-114 (1) (a) (XXI), C.R.S., purchases of machinery or
25 machine tools as provided in section 39-26-114 (11), C.R.S., or
26 occasional sales by a charitable organization as provided in section
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1 39-26-114 (18), C.R.S., may be exempted from said town, city, or county
2 sales tax only by the express inclusion of such exemption either at the
3 time of adoption of the initial sales tax ordinance or resolution or by
4 amendment thereto. Any such amendment shall be adopted in the same
5 manner as the initial ordinance or resolution. In the absence of express
6 provision for the exemption for sales of food, as defined in section
7 39-26-102 (4.5), C.R.S., or purchases of machinery or machine tools as
8 provided in section 39-26-114 (11), C.R.S., or exemption of sales and
9 purchases of those items in section 39-26-114 (1) (a) (XXI), C.R.S., or
10 exemption of occasional sales by a charitable organization as provided in
11 section 39-26-114 (18), C.R.S., all sales tax ordinances or resolutions,
12 whether adopted prior to, on, or subsequent to July 1, 1979, which
13 provide in substance that the tangible personal property and services
14 taxed shall be the same as the tangible personal property and services
15 taxable pursuant to section 39-26-104, C.R.S., or any predecessor statute,
16 EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH (d), and subject to
17 the same exemptions as those specified in section 39-26-114, C.R.S., or
18 any predecessor statute, shall be construed as imposing or continuing to
19 impose the town, city, or county sales tax on food, as defined in section
20 39-26-102 (4.5), C.R.S., purchases of machinery and machine tools as
21 described in section 39-26-114 (11), C.R.S., sales or purchases of those
22 items described in section 39-26-114 (1) (a) (XXI), C.R.S., and
23 occasional sales by a charitable organization as described in section
24 39-26-114 (18), C.R.S. ANY INCORPORATED TOWN, CITY, OR COUNTY
25 THAT ADOPTS OR HAS ADOPTED A SALES TAX ORDINANCE OR RESOLUTION
26 PURSUANT TO THIS ARTICLE SHALL LEVY A SALES TAX ON TELEPHONE AND
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1 TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE
2 CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND
3 TELEGRAPH SERVICES, NOTWITHSTANDING THE REMOVAL OF SUCH
4 SERVICES FROM THE STATE SALES TAX BASE PURSUANT TO HOUSE BILL
5 99-____, ENACTED AT THE FIRST REGULAR SESSION OF THE SIXTY-SECOND
6 GENERAL ASSEMBLY, UNLESS EXEMPTED BY LOCAL ORDINANCE OR
7 RESOLUTION. The regional transportation district may, in its discretion,
8 continue to levy a sales tax on purchases of machinery or machine tools,
9 as provided in section 39-26-114 (11), C.R.S.
10 SECTION 3. 32-9-119 (2) (a), Colorado Revised Statutes, is
11 amended to read:
12 32-9-119. Additional powers of district. (2) (a) To provide
13 revenue to finance the operations of the district, to defray the cost of
14 construction of capital improvements and acquisition of capital
15 equipment, and to pay the interest and principal on securities of the
16 district, the board, for and on behalf of the district after approval by
17 election held pursuant to articles 1 to 13 of title 1, C.R.S., shall have the
18 power to levy uniformly throughout the district a sales tax at the rate of
19 six-tenths of one percent upon every transaction or other incident with
20 respect to which a sales tax is now levied by the state, pursuant to the
21 provisions of article 26 of title 39, C.R.S. FOR AS LONG AS SUCH SALES
22 TAX IS LEVIED, IT SHALL ALSO BE LEVIED UPON TELEPHONE AND
23 TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE
24 CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND
25 TELEGRAPH SERVICES, NOTWITHSTANDING THE REMOVAL OF SUCH
26 SERVICES FROM THE STATE SALES TAX BASE PURSUANT TO HOUSE BILL
Page 5
1 99-____, ENACTED AT THE FIRST REGULAR SESSION OF THE SIXTY-SECOND
2 GENERAL ASSEMBLY, UNLESS THE DISTRICT ADOPTS A RESOLUTION THAT
3 EXEMPTS SUCH SERVICES FROM THE SALES TAX.
4 SECTION 4. 32-13-105 (4) (a), Colorado Revised Statutes, is
5 amended to read:
6 32-13-105. Authorizing elections - repeal. (4) (a) For purposes
7 of complying with the provisions of section 20 (4) of article X of the state
8 constitution and upon proper submittal of a valid initiative petition to or
9 upon the adoption of a resolution by the board of the district created in
10 section 32-13-104, the district may submit to the registered electors
11 within the geographical boundaries of the district, at a general election or
12 an election held on the first Tuesday in November of an odd-numbered
13 year, the question of whether the district shall be authorized to levy and
14 collect the following sales and use taxes in lieu of the sales and use taxes
15 specified in subsection (1) of this section for a period of time not to
16 exceed ten years from the date upon which the authority of the district to
17 levy and collect the sales and use taxes specified in subsection (1) of this
18 section is scheduled to expire:
19 (I) A uniform sales and use tax throughout said geographical area
20 at a rate of fifty-nine one-thousandths of one percent upon every
21 transaction or other incident with respect to which a sales and use tax is
22 levied by the state, pursuant to the provisions of article 26 of title 39,
23 C.R.S., except such sales and use tax shall be levied on purchases of
24 machinery or machine tools which are otherwise exempt pursuant to
25 section 39-26-114 (11), C.R.S., to the extent such purchases are subject
26 to a sales and use tax levied by the regional transportation district
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1 pursuant to section 29-2-105 (1) (d), C.R.S. FOR AS LONG AS SUCH SALES
2 AND USE TAX IS LEVIED, IT SHALL ALSO BE LEVIED UPON TELEPHONE AND
3 TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE
4 CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND
5 TELEGRAPH SERVICES, NOTWITHSTANDING THE REMOVAL OF SUCH
6 SERVICES FROM THE STATE SALES TAX BASE PURSUANT TO HOUSE BILL
7 99-____, ENACTED AT THE FIRST REGULAR SESSION OF THE SIXTY-SECOND
8 GENERAL ASSEMBLY, UNLESS THE DISTRICT ADOPTS A RESOLUTION THAT
9 EXEMPTS SUCH SERVICES FROM THE SALES AND USE TAX. THE REVENUES
10 GENERATED BY THE SALES AND USE TAX SHALL to be distributed to the
11 Denver museum of natural history, the Denver zoological gardens, the
12 Denver art museum, and the Denver botanical gardens pursuant to the
13 provisions of section 32-13-107 (3) (a).
14 (II) A uniform sales and use tax throughout said geographical area
15 at a rate of twenty-eight one-thousandths of one percent upon every
16 transaction or other incident with respect to which a sales and use tax is
17 levied by the state, pursuant to the provisions of article 26 of title 39,
18 C.R.S., except such sales and use tax shall be levied on purchases of
19 machinery or machine tools which are otherwise exempt pursuant to
20 section 39-26-114 (11), C.R.S., to the extent such purchases are subject
21 to a sales and use tax levied by the regional transportation district
22 pursuant to section 29-2-105 (1) (d), C.R.S. FOR AS LONG AS SUCH SALES
23 AND USE TAX IS LEVIED, IT SHALL ALSO BE LEVIED UPON TELEPHONE AND
24 TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE
25 CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND
26 TELEGRAPH SERVICES, NOTWITHSTANDING THE REMOVAL OF SUCH
Page 7
1 SERVICES FROM THE STATE SALES TAX BASE PURSUANT TO HOUSE BILL
2 99-____, ENACTED AT THE FIRST REGULAR SESSION OF THE SIXTY-SECOND
3 GENERAL ASSEMBLY, UNLESS THE DISTRICT ADOPTS A RESOLUTION THAT
4 EXEMPTS SUCH SERVICES FROM THE SALES AND USE TAX. THE REVENUES
5 GENERATED BY THE SALES AND USE TAX SHALL to be distributed to
6 scientific and cultural facilities pursuant to the provisions of section
7 32-13-107 (3) (b).
8 (III) A uniform sales and use tax throughout said geographical
9 area at a rate of thirteen one-thousandths of one percent upon every
10 transaction or other incident with respect to which a sales and use tax is
11 levied by the state, pursuant to the provisions of article 26 of title 39,
12 C.R.S., except such sales and use tax shall be levied on purchases of
13 machinery or machine tools which are otherwise exempt pursuant to
14 section 39-26-114 (11), C.R.S. FOR AS LONG AS SUCH SALES AND USE TAX
15 IS LEVIED, IT SHALL ALSO BE LEVIED UPON TELEPHONE AND TELEGRAPH
16 SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR
17 ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND TELEGRAPH SERVICES,
18 NOTWITHSTANDING THE REMOVAL OF SUCH SERVICES FROM THE STATE
19 SALES TAX BASE PURSUANT TO HOUSE BILL 99-____, ENACTED AT THE
20 FIRST REGULAR SESSION OF THE SIXTY-SECOND GENERAL ASSEMBLY,
21 UNLESS THE DISTRICT ADOPTS A RESOLUTION THAT EXEMPTS SUCH
22 SERVICES FROM THE SALES AND USE TAX. THE REVENUES GENERATED BY
23 THE SALES AND USE TAX SHALL to be distributed to scientific and cultural
24 facilities pursuant to the provisions of section 32-13-107 (3) (c).
25 SECTION 5. 32-13-107 (1) (a), Colorado Revised Statutes, is
26 amended to read:
Page 8
1 32-13-107. Sales and use tax imposed - collection -
2 administration of tax - use. (1) (a) Except as otherwise provided in
3 paragraph (b) of this subsection (1), upon the approval of the registered
4 electors pursuant to the provisions of section 32-13-105, the board shall
5 have the power to levy such uniform sales and use taxes throughout the
6 district created in section 32-13-104 upon every transaction or other
7 incident with respect to which a sales and use tax is levied by the state,
8 pursuant to the provisions of article 26 of title 39, C.R.S., except such
9 sales and use tax TAXES shall be levied on purchases of machinery or
10 machine tools which are otherwise exempt pursuant to section 39-26-114
11 (11), C.R.S., to the extent such purchases are subject to a sales and use
12 tax levied by the regional transportation district pursuant to section
13 29-2-105 (1) (d), C.R.S., on and after the January 1 following the election
14 in which such sales and use taxes were approved. FOR AS LONG AS ANY
15 SUCH SALES AND USE TAXES ARE LEVIED, IT SHALL ALSO BE LEVIED UPON
16 TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC
17 OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE
18 TELEPHONE AND TELEGRAPH SERVICES, NOTWITHSTANDING THE REMOVAL
19 OF SUCH SERVICES FROM THE STATE SALES TAX BASE PURSUANT TO HOUSE
20 BILL 99-____, ENACTED AT THE FIRST REGULAR SESSION OF THE
21 SIXTY-SECOND GENERAL ASSEMBLY, UNLESS THE DISTRICT ADOPTS A
22 RESOLUTION THAT EXEMPTS SUCH SERVICES FROM THE SALES AND USE
23 TAXES.
24 SECTION 6. 32-14-114 (1), Colorado Revised Statutes, is
25 amended to read:
26 32-14-114. Sales tax imposed - collection - administration of
Page 9
1 tax - discontinuance. (1) Upon the approval of the registered electors
2 pursuant to the provisions of section 32-14-105 and upon the granting of
3 a major league baseball franchise by major league baseball to be located
4 in the district, the board shall have the power to levy such uniform sales
5 tax for a period not to exceed twenty years throughout the district created
6 in section 32-14-104 upon every transaction or other incident with respect
7 to which a sales tax is levied by the state, pursuant to the provisions of
8 article 26 of title 39, C.R.S.; except that such sales tax shall be levied on
9 purchases of machinery or machine tools which are otherwise exempt
10 pursuant to section 39-26-114 (11), C.R.S., to the extent that such
11 purchases are subject to the sales tax levied by the regional transportation
12 district pursuant to section 29-2-105 (1) (d), C.R.S., on and after the
13 January 1 following the adoption of a resolution by the board. FOR AS
14 LONG AS ANY SUCH SALES TAX IS LEVIED, IT SHALL ALSO BE LEVIED UPON
15 TELEPHONE AND TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC
16 OR PRIVATE CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE
17 TELEPHONE AND TELEGRAPH SERVICES, NOTWITHSTANDING THE REMOVAL
18 OF SUCH SERVICES FROM THE STATE SALES TAX BASE PURSUANT TO HOUSE
19 BILL 99-____, ENACTED AT THE FIRST REGULAR SESSION OF THE
20 SIXTY-SECOND GENERAL ASSEMBLY, UNLESS THE DISTRICT ADOPTS A
21 RESOLUTION THAT EXEMPTS SUCH SERVICES FROM THE SALES TAX.
22 SECTION 7. 32-15-110 (1), Colorado Revised Statutes, is
23 amended to read:
24 32-15-110. Sales tax imposed - collection - administration of
25 tax - discontinuance. (1) Upon the approval of the registered electors
26 pursuant to the provisions of section 32-15-107, the board shall have the
Page 10
1 power to levy such uniform sales tax upon the adoption of a resolution for
2 a period commencing after the termination of the sales tax levied and
3 collected by the Denver metropolitan major league baseball stadium
4 district pursuant to section 32-14-105 and continuing for a period not to
5 extend beyond January 1, 2012, throughout the district created in section
6 32-15-104 upon every transaction or other incident with respect to which
7 a sales tax is levied by the state, pursuant to the provisions of article 26
8 of title 39, C.R.S.; except that such sales tax shall be levied on purchases
9 of machinery or machine tools that are otherwise exempt pursuant to
10 section 39-26-114 (11), C.R.S., to the extent that such purchases are
11 subject to the sales tax levied by the regional transportation district
12 pursuant to section 29-2-105 (1) (d), C.R.S. FOR AS LONG AS SUCH SALES
13 TAX IS LEVIED, IT SHALL ALSO BE LEVIED UPON TELEPHONE AND
14 TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE
15 CORPORATIONS OR ENTERPRISES, FOR ALL INTRASTATE TELEPHONE AND
16 TELEGRAPH SERVICES, NOTWITHSTANDING THE REMOVAL OF SUCH
17 SERVICES FROM THE STATE SALES TAX BASE PURSUANT TO HOUSE BILL
18 99-____, ENACTED AT THE FIRST REGULAR SESSION OF THE SIXTY-SECOND
19 GENERAL ASSEMBLY, UNLESS THE DISTRICT ADOPTS A RESOLUTION THAT
20 EXEMPTS SUCH SERVICES FROM THE SALES TAX.
21 SECTION 8. Effective date. This act shall take effect July 1,
22 1999.
23 SECTION 9. Safety clause. The general assembly hereby finds,
24 determines, and declares that this act is necessary for the immediate
25 preservation of the public peace, health, and safety.