First Regular Session
Sixty-second General Assembly
LLS NO. 99-0488.01 Bob Lackner HOUSE BILL 99-1266
STATE OF COLORADO
BY REPRESENTATIVES McElhany, George, Larson, and Spence;
also SENATOR Lacy.
FINANCE
A BILL FOR AN ACT
101 CONCERNING EXEMPTIONS FROM THE STATE SALES AND USE TAX.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Expands the current exemption from the state sales and use tax
covering food purchased for domestic home consumption to include
purchases of prepared food or food marketed for immediate consumption.
Defines terms.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Legislative declaration. The general assembly
3 hereby finds and declares that the purchase and consumption of meals
4 from food service establishments has become a necessity for residents of
5 Colorado and especially for working parents and the elderly. Therefore
6 it is the intention of the general assembly to reduce the costs to Colorado
7 residents in their purchase of meals by expanding the current sales tax
8 exemption covering food purchased for domestic home consumption to
9 include prepared food and food marketed for immediate consumption.
10 SECTION 2. 39-26-102 (4.5), Colorado Revised Statutes, is
11 amended, and the said 39-26-102 is further amended BY THE
[ ] 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.
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1 ADDITION OF THE FOLLOWING NEW SUBSECTIONS, to read:
2 39-26-102. Definitions - repeal. As used in this article, unless
3 the context otherwise requires:
4 (4.5) (a) (I) "Food" means food for domestic home consumption
5 as defined in 7 U.S.C. sec. 2012(g), as amended, for purposes of the
6 federal food stamp program as defined in 7 U.S.C. sec. 2012 (h), as
7 amended; except that "food" does not include carbonated water marketed
8 in containers; chewing gum; seeds and plants to grow foods; prepared
9 salads and salad bars; cold sandwiches; deli trays; and food or drink
10 vended by or through machines or non-coin-operated coin-collecting food
11 and snack devices on behalf of a vendor.
12 (II) THIS PARAGRAPH (a) IS REPEALED, EFFECTIVE JANUARY 1,
13 2000.
14 (b) (I) "FOOD" MEANS FOOD FOR DOMESTIC HOME CONSUMPTION,
15 PREPARED FOOD, OR FOOD MARKETED FOR IMMEDIATE CONSUMPTION;
16 EXCEPT THAT "FOOD" DOES NOT INCLUDE ALCOHOL BEVERAGES AS
17 DEFINED IN SECTION 12-47-103 (2), C.R.S., OR TOBACCO PRODUCTS AS
18 DEFINED IN SECTION 39-28.5-101 (5).
19 (II) THIS PARAGRAPH (b) SHALL TAKE EFFECT JANUARY 1, 2000.
20 (4.7) "FOOD FOR DOMESTIC HOME CONSUMPTION" MEANS FOOD OR
21 DRINK THAT IS ADVERTISED OR MARKETED FOR HUMAN CONSUMPTION AND
22 IS SOLD IN THE SAME FORM, CONDITION, QUANTITY, AND PACKAGING AS IS
23 COMMONLY SOLD BY GROCERY STORES, CONVENIENCE STORES, BAKERIES,
24 BUTCHER SHOPS, FRUIT AND VEGETABLE STORES, AND DEPARTMENT
25 STORES. THIS SUBSECTION (4.7) SHALL TAKE EFFECT JANUARY 1, 2000.
26 (6.6) (a) "PREPARED FOOD" OR "FOOD MARKETED FOR IMMEDIATE
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1 CONSUMPTION" MEANS:
2 (I) ALL FOOD OR DRINK FURNISHED OR SERVED FOR CONSUMPTION
3 AT TABLES, CHAIRS, OR COUNTERS OR FROM TRAYS, GLASSES, DISHES, OR
4 OTHER TABLEWARE PROVIDED BY A RETAILER; OR
5 (II) ALL FOOD OR DRINK SOLD BY RETAILERS WHO REGULARLY
6 SELL FOR CONSUMPTION ON OR NEAR THE PREMISES OF THE RETAILER EVEN
7 THOUGH SUCH FOOD OR DRINK IS SOLD ON A "TAKE OUT" OR "TO GO"
8 ORDER AND IS BAGGED, PACKAGED, OR WRAPPED AND TAKEN FROM THE
9 PREMISES OF THE RETAILER; OR
10 (III) ALL FOOD OR DRINK SERVED OR FURNISHED IN OR BY
11 RESTAURANTS, CAFES, LUNCH COUNTERS, HOTELS, DRUGSTORES, SOCIAL
12 CLUBS, NIGHTCLUBS, CABARETS, RESORTS, SNACK BARS, CATERERS,
13 CARRYOUT SHOPS, AND OTHER LIKE PLACES OF BUSINESS AT WHICH
14 PREPARED FOOD OR DRINK ARE REGULARLY SOLD, INCLUDING SALES FROM
15 PUSHCARTS, MOTOR VEHICLES, AND OTHER MOBILE FACILITIES.
16 (b) THIS SUBSECTION (6.6) SHALL TAKE EFFECT JANUARY 1, 2000.
17 SECTION 3. 39-26-104 (1) (e), Colorado Revised Statutes, is
18 amended to read:
19 39-26-104. Property and services taxed. (1) There is levied and
20 there shall be collected and paid a tax in the amount stated in section
21 39-26-106 as follows:
22 (e) (I) PRIOR TO JANUARY 1, 2000, upon the amount paid for food
23 or drink served or furnished in or by restaurants, cafes, lunch counters,
24 cafeterias, hotels, drugstores, social clubs, nightclubs, cabarets, resorts,
25 snack bars, caterers, carryout shops, and other like places of business at
26 which prepared food or drink is regularly sold, including sales from
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1 pushcarts, motor vehicles, and other mobile facilities. Cover charges
2 shall be included as part of the amount paid for such food or drink.
3 However, meals provided to employees of the places mentioned in this
4 paragraph (e) at no charge or at a reduced charge and which are
5 considered as part of their salary, wages, or income shall be exempt from
6 taxation under the provisions of this part 1.
7 (II) ON OR AFTER JANUARY 1, 2000, UPON THE AMOUNT PAID FOR
8 ANY ALCOHOL BEVERAGE SERVED OR FURNISHED IN OR BY RESTAURANTS,
9 CAFES, LUNCH COUNTERS, CAFETERIAS, HOTELS, SOCIAL CLUBS,
10 NIGHTCLUBS, CABARETS, RESORTS, SNACK BARS, CATERERS, CARRYOUT
11 SHOPS, AND OTHER LIKE PLACES OF BUSINESS AT WHICH ANY SUCH
12 ALCOHOL BEVERAGE IS REGULARLY SOLD. COVER CHARGES SHALL BE
13 INCLUDED AS PART OF THE AMOUNT PAID FOR ANY SUCH ALCOHOL
14 BEVERAGE.
15 SECTION 4. Effective date. This act shall take effect at 12:01
16 a.m. on the day following the expiration of the ninety-day period after
17 final adjournment of the general assembly that is allowed for submitting
18 a referendum petition pursuant to article V, section 1 (3) of the state
19 constitution; except that, if a referendum petition is filed against this act
20 or an item, section, or part of this act within such period, then the act,
21 item, section, or part, if approved by the people, shall take effect on the
22 date of the official declaration of the vote thereon by proclamation of the
23 governor.