First Regular Session
Sixty-second General Assembly
LLS NO. 99-0442.01 Bob Lackner SENATE BILL 99-127
STATE OF COLORADO
BY SENATOR Grampsas;
also REPRESENTATIVE Swenson.
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE EXEMPTION OF TANGIBLE PERSONAL PROPERTY TO BE
102 USED FOR BIOTECHNOLOGICAL PURPOSES FROM SALES AND USE
103 TAX.
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 July 1, 1999, exempts from sales and use tax all sales
of tangible personal property purchased by companies to be used in
Colorado directly and predominately in research and development of
biotechnology.
Defines terms.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. 39-26-114, Colorado Revised Statutes, is amended
3 BY THE ADDITION OF A NEW SUBSECTION to read:
4 39-26-114. Exemptions - disputes - credits or refunds.
5 (20) (a) ON AND AFTER JULY 1, 1999, ALL SALES OF TANGIBLE PERSONAL
6 PROPERTY PURCHASED BY ANY COMPANY TO BE USED IN COLORADO
7 DIRECTLY AND PREDOMINATELY IN RESEARCH AND DEVELOPMENT OF
8 BIOTECHNOLOGY ARE EXEMPT FROM TAXATION UNDER THIS PART 1.
[ ] 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 (b) AS USED IN THIS SUBSECTION (20):
2 (I) "BIOTECHNOLOGY" MEANS:
3 (A) THE APPLICATION OF TECHNOLOGIES TO PRODUCE OR MODIFY
4 PRODUCTS, TO DEVELOP MICROORGANISMS FOR SPECIFIC USES, TO IDENTIFY
5 TARGETS FOR SMALL MOLECULE PHARMACEUTICAL DEVELOPMENT, OR TO
6 TRANSFORM BIOLOGICAL SYSTEMS INTO USEFUL PROCESSES OR PRODUCTS;
7 AND
8 (B) THE POTENTIAL ENDPOINTS OF THE RESULTING PRODUCTS,
9 PROCESSES, MICROORGANISMS, OR TARGETS ARE FOR IMPROVING HUMAN
10 HEALTH CARE OUTCOMES.
11 (II) "RESEARCH AND DEVELOPMENT" MEANS QUALIFIED RESEARCH
12 AS DEFINED BY 26 U.S.C. SEC. 41 (d) (1).
13 (III) "TANGIBLE PERSONAL PROPERTY" INCLUDES CAPITAL
14 EQUIPMENT, INSTRUMENTS, APPARATUS, AND SUPPLIES USED IN
15 LABORATORIES, INCLUDING, BUT NOT LIMITED TO, MICROSCOPES,
16 MACHINES, GLASSWARE, CHEMICAL REAGENTS, COMPUTERS, COMPUTER
17 SOFTWARE, AND TECHNICAL BOOKS AND MANUALS.
18 SECTION 2. Safety clause. The general assembly hereby finds,
19 determines, and declares that this act is necessary for the immediate
20 preservation of the public peace, health, and safety.