First Regular Session
Sixty-second General Assembly
LLS NO. 99-0387.01 Bob Lackner HOUSE BILL 99-1124
STATE OF COLORADO
BY REPRESENTATIVE Swenson
FINANCE
A BILL FOR AN ACT
101 CONCERNING AN EXPANSION OF THE STATE USE TAX EXEMPTION TO
102 INCLUDE DONATIONS OF INVENTORIED GOODS BY THE OWNER OF
103 SUCH GOODS, AND, IN CONNECTION THEREWITH, EXPANDING THE
104 EXEMPTION FROM THE STATE SALES TAX TO INCLUDE SALES AND
105 PURCHASES OF INVENTORIED GOODS THAT ARE SUBSEQUENTLY
106 DONATED.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Expands current exemptions from the state use tax to include
donations of inventoried goods by the owner of such goods. Expands
current exemptions from the state sales tax to include sales and purchases
of inventoried goods that are subsequently donated.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. 39-26-203 (1) (ff), Colorado Revised Statutes, is
3 amended to read:
4 39-26-203. Exemptions. (1) This part 2 is declared to be
5 supplementary to the "Emergency Retail Sales Tax Law of 1935", part 1
6 of this article, and shall not apply:
[ ] 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 (ff) ON OR AFTER JULY 1, 1999, to the storage, use, or
2 consumption of manufactured OR INVENTORIED goods, including, but not
3 limited to, high technology goods, donated by the manufacturer OR
4 OWNER of such goods to the United States government; the state of
5 Colorado or any department, institution, or political subdivision thereof;
6 or any organization exempt from federal income taxes pursuant to section
7 501 (c) (3) of the "Internal Revenue Code of 1986", as amended, to the
8 extent that the aggregate value of all such goods included in a single
9 donation exceeds one thousand dollars. FOR PURPOSES OF THIS
10 PARAGRAPH (ff), "INVENTORIED GOODS" SHALL MEAN GOODS GENERALLY
11 PURCHASED BY ANY PERSON FOR RESALE.
12 SECTION 2. 39-26-114 (19), Colorado Revised Statutes, is
13 amended to read:
14 39-26-114. Exemptions - disputes - credits or refunds.
15 (19) EFFECTIVE JULY1, 1999, all sales and purchases of tangible personal
16 property by a manufacturer that uses such property as a component part
17 of MANUFACTURED OR INVENTORIED goods, that it manufactures,
18 including, but not limited to, high technology goods, and BY A PERSON
19 that donates such goods to the United States government; the state of
20 Colorado or any department, institution, or political subdivision thereof;
21 or any organization exempt from federal income taxes pursuant to section
22 501 (c) (3) of the "Internal Revenue Code of 1986", as amended, to the
23 extent that the aggregate value of the goods included in a single donation
24 exceeds one thousand dollars shall be exempt from taxation under this
25 part 1. FOR PURPOSES OF THIS SUBSECTION (19), "INVENTORIED GOODS"
26 SHALL MEAN GOODS GENERALLY PURCHASED BY ANY PERSON FOR RESALE.
Page 3
1 SECTION 3. Safety clause. The general assembly hereby finds,
2 determines, and declares that this act is necessary for the immediate
3 preservation of the public peace, health, and safety.