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Add Use Tax Exemption To Some Sales Tax Exemption

Concerning the inclusion of use tax exemptions for certain existing sales tax exemptions in order to make the exemptions compatible with fundamental principles of sales and use tax.
2021 Regular Session
Fiscal Policy & Taxes
Bill Summary

All of the current law sections presented in the act provide sales tax exemptions for specific items. None of the sales tax exemptions in the act authorize corresponding use tax exemptions. As a result, an item could conceivably become subject to use tax the instant the tax-exempt sale occurs. Most statutory sales tax exemptions have corresponding use tax exemptions to prevent this. Consequently, the act addresses defects in statute by clarifying that an item that is subject to a sales tax exemption is actually exempt from both sales and use tax and makes those statutory sections compatible with the fundamental principles of use tax and Colorado supreme court decisions on the subject.

(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

  • All Versions (7 )
    Date Bill Type Documents
    04/22/2021 Signed Act PDF
    04/13/2021 Final Act PDF
    04/09/2021 Rerevised PDF
    04/08/2021 Revised PDF
    03/25/2021 Reengrossed PDF
    03/24/2021 Engrossed PDF
    03/04/2021 Introduced PDF

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details