First Regular Session
Sixty-second General Assembly
LLS NO. 99-0438.01 Jane Ard-Smith HOUSE BILL 99-1120
STATE OF COLORADO
BY REPRESENTATIVE Plant
AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES
A BILL FOR AN ACT
101 CONCERNING STATE TAX INCENTIVES THAT ENCOURAGE ENVIRONMENTAL
102 PROTECTION.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
On and after April 1, 2001, creates a sales and use tax exemption
for motor vehicles that achieve an average fuel economy of at least 40
miles per gallon of fuel, as certified by the federal environmental
protection agency. Exempts local governments from granting the
exemption.
On and after April 1, 2001, creates a sales and use tax exemption
for renewable energy generators. Exempts local governments from
granting the exemption.
For income tax years commencing on or after January 1, 2001,
allows individuals an income tax deduction in an amount equal to the
taxpayer's expenses for mass transit tickets, tokens, passes, or fares paid
to travel to and return from the taxpayer's place of employment to the
extent such expenses are included in federal adjusted gross income.
For income tax years commencing on and after January 1, 2001,
creates an income tax credit for domestic and foreign C corporations that
implement flex-time schedules for the corporation's employees or allow
employees to telecommute. Sets a cap on the credit of $500.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. 39-26-113, Colorado Revised Statutes, is amended
[ ] 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 BY THE ADDITION OF A NEW SUBSECTION to read:
2 39-26-113. Collection of sales tax - motor vehicles - exemption.
3 (7) ON AND AFTER APRIL 1, 2001, THIS SECTION SHALL NOT APPLY TO ANY
4 SALE AND PURCHASE OF A MOTOR VEHICLE THAT IS EXEMPT FROM
5 TAXATION PURSUANT TO SECTION 39-26-114 (20).
6 SECTION 2. 39-26-114, Colorado Revised Statutes, is amended
7 BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to
8 read:
9 39-26-114. Exemptions - disputes - credits or refunds.
10 (20) (a) EFFECTIVE APRIL 1, 2001, ALL SALES AND PURCHASES OF MOTOR
11 VEHICLES THAT ACHIEVE AN AVERAGE FUEL ECONOMY OF AT LEAST FORTY
12 MILES PER GALLON AS CERTIFIED BY THE FEDERAL ENVIRONMENTAL
13 PROTECTION AGENCY PURSUANT TO PART 5 OF TITLE 49 OF THE CODE OF
14 FEDERAL REGULATIONS SHALL BE EXEMPT FROM TAXATION UNDER THIS
15 PART 1.
16 (b) FOR PURPOSES OF THIS SUBSECTION (20), "MOTOR VEHICLE"
17 SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION 39-22-516 (2.5)
18 (a) (III).
19 (21) EFFECTIVE APRIL 1, 2001, ALL SALES AND PURCHASES OF
20 RENEWABLE ENERGY GENERATORS SHALL BE EXEMPT FROM TAXATION
21 UNDER THIS PART 1.
22 SECTION 3. 39-26-203 (1), Colorado Revised Statutes, is
23 amended BY THE ADDITION OF THE FOLLOWING NEW
24 PARAGRAPHS to read:
25 39-26-203. Exemptions. (1) This part 2 is declared to be
26 supplementary to the "Emergency Retail Sales Tax Law of 1935", part 1
Page 3
1 of this article, and shall not apply:
2 (hh) (I) EFFECTIVE APRIL 1, 2001, TO THE STORAGE, USE, OR
3 CONSUMPTION OF MOTOR VEHICLES THAT ACHIEVE AN AVERAGE FUEL
4 ECONOMY OF AT LEAST FORTY MILES PER GALLON AS CERTIFIED BY THE
5 FEDERAL ENVIRONMENTAL PROTECTION AGENCY PURSUANT TO PART 5 OF
6 TITLE 49 OF THE CODE OF FEDERAL REGULATIONS.
7 (II) FOR PURPOSES OF THIS PARAGRAPH (hh), "MOTOR VEHICLE"
8 SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION 39-22-516 (2.5)
9 (a) (III).
10 (ii) EFFECTIVE APRIL 1, 2001, TO THE STORAGE, USE, OR
11 CONSUMPTION OF RENEWABLE ENERGY GENERATORS.
12 SECTION 4. 29-2-105 (1) (d), Colorado Revised Statutes, is
13 amended to read:
14 29-2-105. Contents of sales tax ordinances and proposals.
15 (1) The sales tax ordinance or proposal of any incorporated town, city,
16 or county adopted pursuant to this article shall be imposed on the sale of
17 tangible personal property at retail or the furnishing of services, as
18 provided in paragraph (d) of this subsection (1). Any countywide or
19 incorporated town or city sales tax ordinance or proposal shall include the
20 following provisions:
21 (d) A provision that the tangible personal property and services
22 taxable pursuant to this article shall be the same as the tangible personal
23 property and services taxable pursuant to section 39-26-104, C.R.S., and
24 subject to the same exemptions as those specified in section 39-26-114,
25 C.R.S., except the exemption allowed by section 39-26-114 (11), C.R.S.,
26 for purchases of machinery or machine tools, the exemption of sales and
Page 4
1 purchases of those items in section 39-26-114 (1) (a) (XXI), C.R.S., the
2 exemption for sales of food specified in section 39-26-114 (1) (a) (XX),
3 C.R.S., and the exemption for occasional sales by a charitable
4 organization set forth in section 39-26-114 (18), C.R.S., THE EXEMPTION
5 FOR SALES AND PURCHASES OF CERTAIN MOTOR VEHICLES AS SPECIFIED IN
6 SECTION 39-26-114 (20), C.R.S., AND THE EXEMPTION FOR SALES AND
7 PURCHASES OF RENEWABLE ENERGY GENERATORS AS SPECIFIED IN SECTION
8 39-26-114 (21), C.R.S. Sales of food, as defined in section 39-26-102
9 (4.5), C.R.S., exempted from the state sales tax pursuant to section
10 39-26-114 (1) (a) (XX), C.R.S., sales and purchases of those items
11 exempted from the state sales tax pursuant to section 39-26-114 (1) (a)
12 (XXI), C.R.S., purchases of machinery or machine tools as provided in
13 section 39-26-114 (11), C.R.S., or occasional sales by a charitable
14 organization as provided in section 39-26-114 (18), C.R.S., SALES AND
15 PURCHASES OF CERTAIN MOTOR VEHICLES AS SPECIFIED IN SECTION
16 39-26-114 (20), C.R.S., OR SALES AND PURCHASES OF RENEWABLE
17 ENERGY GENERATORS AS SPECIFIED IN SECTION 39-26-114 (21), C.R.S.,
18 may be exempted from said town, city, or county sales tax only by the
19 express inclusion of such exemption either at the time of adoption of the
20 initial sales tax ordinance or resolution or by amendment thereto. Any
21 such amendment shall be adopted in the same manner as the initial
22 ordinance or resolution. In the absence of express provision for the
23 exemption for sales of food, as defined in section 39-26-102 (4.5), C.R.S.,
24 or purchases of machinery or machine tools as provided in section
25 39-26-114 (11), C.R.S., or exemption of sales and purchases of those
26 items in section 39-26-114 (1) (a) (XXI), C.R.S., or exemption of
Page 5
1 occasional sales by a charitable organization as provided in section
2 39-26-114 (18), C.R.S., OR EXEMPTION OF SALES AND PURCHASES OF
3 CERTAIN MOTOR VEHICLES AS SPECIFIED IN SECTION 39-26-114 (20),
4 C.R.S., OR EXEMPTION OF SALES AND PURCHASES OF RENEWABLE ENERGY
5 GENERATORS AS SPECIFIED IN SECTION 39-26-114 (21), C.R.S., all sales tax
6 ordinances or resolutions, whether adopted prior to, on, or subsequent to
7 July 1, 1979, which provide in substance that the tangible personal
8 property and services taxed shall be the same as the tangible personal
9 property and services taxable pursuant to section 39-26-104, C.R.S., or
10 any predecessor statute, and subject to the same exemptions as those
11 specified in section 39-26-114, C.R.S., or any predecessor statute, shall
12 be construed as imposing or continuing to impose the town, city, or
13 county sales tax on food, as defined in section 39-26-102 (4.5), C.R.S.,
14 purchases of machinery and machine tools as described in section
15 39-26-114 (11), C.R.S., sales or purchases of those items described in
16 section 39-26-114 (1) (a) (XXI), C.R.S., and occasional sales by a
17 charitable organization as described in section 39-26-114 (18), C.R.S.,
18 SALES AND PURCHASES OF CERTAIN MOTOR VEHICLES AS SPECIFIED IN
19 SECTION 39-26-114 (20), C.R.S., AND SALES AND PURCHASES OF
20 RENEWABLE ENERGY GENERATORS AS SPECIFIED IN SECTION 39-26-114
21 (21), C.R.S. The regional transportation district may, in its discretion,
22 continue to levy a sales tax on purchases of machinery or machine tools,
23 as provided in section 39-26-114 (11), C.R.S.
24 SECTION 5. 32-9-119 (2) (a), Colorado Revised Statutes, is
25 amended to read:
26 32-9-119. Additional powers of district. (2) (a) To provide
Page 6
1 revenue to finance the operations of the district, to defray the cost of
2 construction of capital improvements and acquisition of capital
3 equipment, and to pay the interest and principal on securities of the
4 district, the board, for and on behalf of the district after approval by
5 election held pursuant to articles 1 to 13 of title 1, C.R.S., shall have the
6 power to levy uniformly throughout the district a sales tax at the rate of
7 six-tenths of one percent upon every transaction or other incident with
8 respect to which a sales tax is now levied by the state, pursuant to the
9 provisions of article 26 of title 39, C.R.S.; EXCEPT THAT THE BOARD
10 SHALL CONTINUE TO LEVY A SALES TAX ON THE SALES AND PURCHASES OF
11 CERTAIN MOTOR VEHICLES AS SPECIFIED IN SECTION 39-26-114 (20),
12 C.R.S., AND THE SALES AND PURCHASES OF RENEWABLE ENERGY
13 GENERATORS AS SPECIFIED IN SECTION 39-26-114 (21), C.R.S.
14 SECTION 6. 32-13-105 (4) (a), Colorado Revised Statutes, is
15 amended to read:
16 32-13-105. Authorizing elections - repeal. (4) (a) For purposes
17 of complying with the provisions of section 20 (4) of article X of the state
18 constitution and upon proper submittal of a valid initiative petition to or
19 upon the adoption of a resolution by the board of the district created in
20 section 32-13-104, the district may submit to the registered electors
21 within the geographical boundaries of the district, at a general election or
22 an election held on the first Tuesday in November of an odd-numbered
23 year, the question of whether the district shall be authorized to levy and
24 collect the following sales and use taxes in lieu of the sales and use taxes
25 specified in subsection (1) of this section for a period of time not to
26 exceed ten years from the date upon which the authority of the district to
Page 7
1 levy and collect the sales and use taxes specified in subsection (1) of this
2 section is scheduled to expire:
3 (I) A uniform sales and use tax throughout said geographical area
4 at a rate of fifty-nine one-thousandths of one percent upon every
5 transaction or other incident with respect to which a sales and use tax is
6 levied by the state, pursuant to the provisions of article 26 of title 39,
7 C.R.S., except such sales and use tax shall be levied on purchases of
8 machinery or machine tools which THAT are otherwise exempt pursuant
9 to section 39-26-114 (11), C.R.S., to the extent such purchases are subject
10 to a sales and use tax levied by the regional transportation district
11 pursuant to section 29-2-105 (1) (d), C.R.S., THE SALES AND PURCHASES
12 OF CERTAIN MOTOR VEHICLES THAT ARE OTHERWISE EXEMPT PURSUANT TO
13 SECTION 39-26-114 (20), C.R.S., AND THE SALES AND PURCHASES OF
14 RENEWABLE ENERGY GENERATORS THAT ARE OTHERWISE EXEMPT
15 PURSUANT TO SECTION 39-26-114 (21), C.R.S., to be distributed to the
16 Denver museum of natural history, the Denver zoological gardens, the
17 Denver art museum, and the Denver botanical gardens pursuant to the
18 provisions of section 32-13-107 (3) (a);
19 (II) A uniform sales and use tax throughout said geographical area
20 at a rate of twenty-eight 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 THAT are otherwise exempt pursuant
25 to 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
Page 8
1 pursuant to section 29-2-105 (1) (d), C.R.S., THE SALES AND PURCHASES
2 OF CERTAIN MOTOR VEHICLES THAT ARE OTHERWISE EXEMPT PURSUANT TO
3 SECTION 39-26-114 (20), C.R.S., AND THE SALES AND PURCHASES OF
4 RENEWABLE ENERGY GENERATORS THAT ARE OTHERWISE EXEMPT
5 PURSUANT TO SECTION 39-26-114 (21), C.R.S., 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 THAT are otherwise exempt pursuant
14 to section 39-26-114 (11), C.R.S., to the extent such purchases are subject
15 to a sales and use tax levied by the regional transportation district
16 pursuant to section 29-2-105 (1) (d), C.R.S., THE SALES AND PURCHASES
17 OF CERTAIN MOTOR VEHICLES THAT ARE OTHERWISE EXEMPT PURSUANT TO
18 SECTION 39-26-114 (20), C.R.S., AND THE SALES AND PURCHASES OF
19 RENEWABLE ENERGY GENERATORS THAT ARE OTHERWISE EXEMPT
20 PURSUANT TO SECTION 39-26-114 (21), C.R.S., to be distributed to
21 scientific and cultural facilities pursuant to the provisions of section
22 32-13-107 (3) (c).
23 SECTION 7. 32-13-107 (1) (a), Colorado Revised Statutes, is
24 amended to read:
25 32-13-107. Sales and use tax imposed - collection -
26 administration of tax - use. (1) (a) Except as otherwise provided in
Page 9
1 paragraph (b) of this subsection (1), upon the approval of the registered
2 electors pursuant to the provisions of section 32-13-105, the board shall
3 have the power to levy such uniform sales and use taxes throughout the
4 district created in section 32-13-104 upon every transaction or other
5 incident with respect to which a sales and use tax is levied by the state,
6 pursuant to the provisions of article 26 of title 39, C.R.S.; except THAT
7 such sales and use tax shall be levied on:
8 (I) Purchases of machinery or machine tools which THAT are
9 otherwise exempt pursuant to section 39-26-114 (11), C.R.S., to the
10 extent such purchases are subject to a sales and use tax levied by the
11 regional transportation district pursuant to section 29-2-105 (1) (d),
12 C.R.S., on and after the January 1 following the election in which such
13 sales and use taxes were approved;
14 (II) SALES AND PURCHASES OF CERTAIN MOTOR VEHICLES AS
15 SPECIFIED IN SECTION 39-26-114 (20), C.R.S.; AND
16 (III) SALES AND PURCHASES OF RENEWABLE ENERGY GENERATORS
17 AS SPECIFIED IN SECTION 39-26-114 (21), C.R.S.
18 SECTION 8. 32-14-114 (1), Colorado Revised Statutes, is
19 amended to read:
20 32-14-114. Sales tax imposed - collection - administration of
21 tax - discontinuance. (1) Upon the approval of the registered electors
22 pursuant to the provisions of section 32-14-105 and upon the granting of
23 a major league baseball franchise by major league baseball to be located
24 in the district, the board shall have the power to levy such uniform sales
25 tax for a period not to exceed twenty years throughout the district created
26 in section 32-14-104 upon every transaction or other incident with respect
Page 10
1 to which a sales tax is levied by the state, pursuant to the provisions of
2 article 26 of title 39, C.R.S.; except that such sales tax shall be levied on:
3 (a) Purchases of machinery or machine tools which THAT are
4 otherwise exempt pursuant to section 39-26-114 (11), C.R.S., to the
5 extent that such purchases are subject to the sales tax levied by the
6 regional transportation district pursuant to section 29-2-105 (1) (d),
7 C.R.S., on and after the January 1 following the adoption of a resolution
8 by the board;
9 (b) SALES AND PURCHASES OF CERTAIN MOTOR VEHICLES AS
10 SPECIFIED IN SECTION 39-26-114 (20), C.R.S.; AND
11 (c) SALES AND PURCHASES OF RENEWABLE ENERGY GENERATORS
12 AS SPECIFIED IN SECTION 39-26-114 (21), C.R.S.
13 SECTION 9. 32-15-110 (1), Colorado Revised Statutes, is
14 amended to read:
15 32-15-110. Sales tax imposed - collection - administration of
16 tax - discontinuance. (1) Upon the approval of the registered electors
17 pursuant to the provisions of section 32-15-107, the board shall have the
18 power to levy such uniform sales tax upon the adoption of a resolution for
19 a period commencing after the termination of the sales tax levied and
20 collected by the Denver metropolitan major league baseball stadium
21 district pursuant to section 32-14-105 and continuing for a period not to
22 extend beyond January 1, 2012, throughout the district created in section
23 32-15-104 upon every transaction or other incident with respect to which
24 a sales tax is levied by the state, pursuant to the provisions of article 26
25 of title 39, C.R.S.; except that such sales tax shall be levied on:
26 (a) Purchases of machinery or machine tools that are otherwise
Page 11
1 exempt pursuant to section 39-26-114 (11), C.R.S., to the extent that such
2 purchases are subject to the sales tax levied by the regional transportation
3 district pursuant to section 29-2-105 (1) (d), C.R.S.;
4 (b) SALES AND PURCHASES OF CERTAIN MOTOR VEHICLES AS
5 SPECIFIED IN SECTION 39-26-114 (20), C.R.S.; AND
6 (c) SALES AND PURCHASES OF RENEWABLE ENERGY GENERATORS
7 AS SPECIFIED IN SECTION 39-26-114 (21), C.R.S.
8 SECTION 10. 30-20-604.5 (1), Colorado Revised Statutes, is
9 amended to read:
10 30-20-604.5. District sales tax. (1) The board of any county
11 having a population greater than one hundred thousand, for the purpose
12 of funding all or a portion of the cost of any improvements constructed
13 pursuant to section 30-20-603 (1) (a), may levy a sales tax throughout the
14 district upon every transaction or other incident with respect to which a
15 sales tax is authorized pursuant to section 29-2-105, C.R.S.; except that
16 such tax may be levied only upon those transactions specified in section
17 39-26-104 (1) (a), (1) (b), (1) (e), and (1) (f), C.R.S. THE BOARD MAY
18 LEVY OR CONTINUE TO LEVY A SALES TAX ON SALES AND PURCHASES OF
19 CERTAIN MOTOR VEHICLES AS SPECIFIED IN SECTION 39-26-114 (20),
20 C.R.S., AND SALES AND PURCHASES OF RENEWABLE ENERGY GENERATORS
21 AS SPECIFIED IN SECTION 39-26-114 (21), C.R.S.
22 SECTION 11. 39-22-104 (4), Colorado Revised Statutes, is
23 amended BY THE ADDITION OF A NEW PARAGRAPH to read:
24 39-22-104. Income tax imposed on individuals, estates, and
25 trusts - single rate. (4) There shall be subtracted from federal taxable
26 income:
Page 12
1 (j) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
2 1, 2001, AN AMOUNT EQUAL TO THE TAXPAYER'S EXPENSES FOR MASS
3 TRANSIT TICKETS, TOKENS, PASSES, OR FARES PAID TO TRAVEL TO AND
4 RETURN FROM THE TAXPAYER'S PLACE OF EMPLOYMENT TO THE EXTENT
5 SUCH EXPENSES ARE INCLUDED IN FEDERAL ADJUSTED GROSS INCOME.
6 SECTION 12. Part 5 of article 22 of title 39, Colorado Revised
7 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
8 read:
9 39-22-522. Tax credit for reducing highway congestion.
10 (1) FOR PURPOSES OF THIS SECTION, "TAXPAYER" MEANS A DOMESTIC OR
11 FOREIGN C CORPORATION SUBJECT TO THE PROVISIONS OF PART 3 OF THIS
12 ARTICLE.
13 (2) FOR INCOME TAX YEARS COMMENCING ON AND AFTER JANUARY
14 1, 2001, THERE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
15 PURSUANT TO PART 3 OF THIS ARTICLE FOR EACH TAXPAYER WHO
16 IMPLEMENTS FLEX-TIME SCHEDULES FOR THE TAXPAYER'S EMPLOYEES OR
17 WHO ALLOWS SUCH EMPLOYEES TO TELECOMMUTE.
18 (3) THE AMOUNT OF THE CREDIT PROVIDED FOR IN SUBSECTION (2)
19 OF THIS SECTION SHALL BE AN AMOUNT EQUAL TO THE COSTS TO THE
20 TAXPAYER OF IMPLEMENTING A FLEX-TIME SCHEDULE FOR THE TAXPAYER'S
21 EMPLOYEES AND THE COSTS OF ALLOWING SUCH EMPLOYEES TO
22 TELECOMMUTE BUT SHALL NOT EXCEED FIVE HUNDRED DOLLARS.
23 (4) IF THE TAX CREDIT PROVIDED FOR IN THIS SECTION EXCEEDS
24 THE AMOUNT OF INCOME TAX DUE ON THE INCOME OF THE TAXPAYER FOR
25 THE TAXABLE YEAR FOR WHICH THE CREDIT IS BEING CLAIMED, THE
26 AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES
Page 13
1 IN SAID INCOME TAX YEAR MAY BE CARRIED FORWARD AND APPLIED
2 AGAINST THE INCOME TAX DUE IN EACH OF THE FIVE SUCCEEDING INCOME
3 TAX YEARS BUT SHALL BE APPLIED FIRST AGAINST THE INCOME TAX DUE
4 FOR THE EARLIEST OF THE INCOME TAX YEARS POSSIBLE. ANY AMOUNT OF
5 THE CREDIT THAT IS NOT USED AFTER SAID PERIOD SHALL NOT BE
6 REFUNDABLE.
7 (5) A TAXPAYER MAY CLAIM ONLY ONE TAX CREDIT UNDER THIS
8 SECTION PER INCOME TAX YEAR. A TAXPAYER WHO HAS CARRIED
9 FORWARD PART OF THE TAX CREDIT IN ACCORDANCE WITH SUBSECTION (4)
10 OF THIS SECTION SHALL NOT CLAIM AN ADDITIONAL TAX CREDIT UNDER
11 THIS SECTION FOR ANY INCOME TAX YEAR IN WHICH THE TAXPAYER
12 APPLIES THE AMOUNT CARRIED FORWARD AGAINST INCOME TAX DUE.
13 SECTION 13. Effective date. This act shall take effect at 12:01
14 a.m. on the day following the expiration of the ninety-day period after
15 final adjournment of the general assembly that is allowed for submitting
16 a referendum petition pursuant to article V, section 1 (3) of the state
17 constitution; except that, if a referendum petition is filed against this act
18 or an item, section, or part of this act within such period, then the act,
19 item, section, or part, if approved by the people, shall take effect on the
20 date of the official declaration of the vote thereon by proclamation of the
21 governor.