Colorado 2022 Regular Session

Colorado House Bill HB1109 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Second Regular Session
2	2	Seventy-third General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 22-0537.01 Ed DeCecco x4216
8	8	HOUSE BILL 22-1109
9	9	House Committees Senate Committees
10	10	Business Affairs & Labor
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING THE CREATION OF A SA LES AND USE TAX EXEMPTION FOR101
14	14	AN ON-DEMAND AIR CARRIER'S AIRCRAFT.102
15	15	Bill Summary
16	16	(Note: This summary applies to this bill as introduced and does
17	17	not reflect any amendments that may be subsequently adopted. If this bill
18	18	passes third reading in the house of introduction, a bill summary that
19	19	applies to the reengrossed version of this bill will be available at
20	20	http://leg.colorado.gov
21	21	.)
22	22	For 7 years beginning on January 1, 2023, the bill creates a sales
23	23	and use tax exemption for the sale, storage, use, or consumption of an
24	24	aircraft used or purchased for use in interstate or intrastate commerce by
25	25	an on-demand air carrier. An on-demand air carrier is an entity authorized
26	26	by the federal aviation administration to operate an aircraft to transport
27	27	people or property in compliance with the administration's certification
28	28	HOUSE SPONSORSHIP
29	29	Woog and Bird,
30	30	SENATE SPONSORSHIP
31	31	Lundeen and Kolker,
32	32	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
33	33	Capital letters or bold & italic numbers indicate new material to be added to existing statute.
34	34	Dashes through the words indicate deletions from existing statute. and operations requirements.
35	35	The aeronautics division in the department of transportation is
36	36	required to provide the state auditor with any available information that
37	37	would assist the state auditor's measurement of the effectiveness of the
38	38	exemption.
39	39	The bill specifies that a statutory town, city, or county may exempt
40	40	the same items only by express inclusion of the exemption in its initial
41	41	sales tax ordinance or resolution or by amendment thereto and also that
42	42	the exemptions do not apply to the tax imposed by a special district or
43	43	other limited purpose governmental entity.
44	44	Be it enacted by the General Assembly of the State of Colorado:1
45	45	SECTION 1. In Colorado Revised Statutes, amend 39-26-711 as2
46	46	follows:3
47	47	39-26-711. Aircraft - tangible personal property - tax4
48	48	preference performance statement - legislative declaration -5
49	49	definition. (1) The following shall be
50	50	ARE exempt from taxation under6
51	51	the provisions of part 1 of this article ARTICLE 26:7
52	52	(a) Effective July 1, 1984, the sale of aircraft used or purchased8
53	53	for use in interstate commerce by a commercial airline; and9
54	54	(b) The sale of tangible personal property that is to be permanently10
55	55	affixed or attached as a component part of an aircraft;
56	56	AND11
57	57	(c) O
58	58	N AND AFTER JANUARY 1, 2023, BUT BEFORE JANUARY 1,12
59	59	2030,
60	60	THE SALE OF AIRCRAFT USED OR PURCHASED FOR USE IN INTERSTATE13
61	61	OR INTRASTATE COMMERCE BY AN ON -DEMAND AIR CARRIER.14
62	62	(2) The following shall be
63	63	ARE exempt from taxation under the15
64	64	provisions of part 2 of this article ARTICLE 26:16
65	65	(a) Effective July 1, 1984, the storage, use, or consumption of17
66	66	aircraft used or purchased for use in interstate commerce by a commercial18
67	67	airline; and19
68	68	(b) The storage, use, or consumption of any tangible personal20
69	69	HB22-1109-2- property that is to be permanently affixed or attached as a component part1
70	70	of an aircraft;
71	71	AND2
72	72	(c) T
73	73	HE STORAGE, USE, OR CONSUMPTION OF AIRCRAFT USED OR3
74	74	PURCHASED FOR USE IN INTERSTATE OR INTRASTATE COMMERCE BY AN4
75	75	ON-DEMAND AIR CARRIER, IF THE AIRCRAFT WAS USED OR PURCHASED FOR5
76	76	USE IN THIS STATE ON AND AFTER JANUARY 1, 2023, BUT BEFORE JANUARY6
77	77	1,
78	78	2030.7
79	79	(3) (a) T
80	80	HE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES8
81	81	THAT:9
82	82	(I) A
83	83	RECENT SURVEY OF SEVERAL COLORADO-BASED ON-DEMAND10
84	84	AIR CARRIERS REFLECTED THAT, ON AVERAGE, EACH AIRCRAFT CREATES11
85	85	SLIGHTLY MORE THAN FIVE JOBS TO SUPPORT ITS OPERATION ;12
86	86	(II) C
87	87	OLORADO HAS A NUMBER OF ON-DEMAND AIR CARRIERS THAT13
88	88	WILL HAVE INCREASED ACCESS TO ADDITIONAL AIRCRAFT AS A RESULT OF14
89	89	THE EXEMPTIONS CREATED IN SUBSECTIONS (1)(c) AND (2)(c) OF THIS15
90	90	SECTION;16
91	91	(III) T
92	92	HE EXEMPTION WILL HELP CURRENT ON -DEMAND AIR17
93	93	CARRIERS TO UPDATE THEIR FLEETS WITH NEWER AIRCRAFT THAT HAVE18
94	94	ENHANCED SAFETY FEATURES ; AND19
95	95	(IV) C
96	96	OLORADO'S RURAL COMMUNITIES WILL BENEFIT THROUGH20
97	97	ADDITIONAL SERVICE BECAUSE SERVICE PROVIDERS CRITICAL TO RURAL21
98	98	COMMUNITIES, SUCH AS MEDICAL SUPPORT , RELY ON ON-DEMAND AIR22
99	99	CARRIERS TO ACCESS COMMUNITIES WITH NO COMMERCIAL AIRLINE23
100	100	SERVICE.24
101	101	(b) I
102	102	N ACCORDANCE WITH SECTION 39-21-304 (1), THE PURPOSES25
103	103	OF THE TAX EXPENDITURES CREATED IN SUBSECTIONS (1)(c) AND (2)(c) OF26
104	104	THIS SECTION ARE TO:27
105	105	HB22-1109
106	106	-3- (I) INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ,1
107	107	WHICH IN THIS INSTANCE IS TO PLACE ADDITIONAL AIRCRAFT IN2
108	108	COMMERCIAL SERVICE IN COLORADO; AND3
109	109	(II) T
110	110	O CREATE OR RETAIN JOBS.4
111	111	(c) T
112	112	HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL5
113	113	MEASURE THE EFFECTIVENESS OF THE EXEMPTION IN ACHIEVING THE6
114	114	PURPOSES SPECIFIED IN SUBSECTION (3)(b) OF THIS SECTION BASED ON THE7
115	115	NUMBER OF ADDITIONAL AIRCRAFT IN COMMERCIAL SERVICE AND JOBS8
116	116	CREATED OR RETAINED AFTER THE EXEMPTION IS CREATED . THE9
117	117	AERONAUTICS DIVISION IN THE DEPARTMENT OF TRANSPORTATION ,10
118	118	CREATED IN SECTION 43-10-103 (1), SHALL PROVIDE THE STATE AUDITOR11
119	119	WITH ANY AVAILABLE INFORMATION THAT WOULD ASSIST THE STATE12
120	120	AUDITOR'S MEASUREMENT.13
121	121	(4) T
122	122	HE EXEMPTIONS SET FORTH IN SUBSECTIONS (1)(c) AND (2)(c)14
123	123	OF THIS SECTION SHALL NOT APPLY TO THE TAX IMPOSED BY A SPECIAL15
124	124	DISTRICT OR OTHER LIMITED PURPOSE GOVERNMENTAL ENTITY THAT IS16
125	125	AUTHORIZED BY LAW TO LEVY SALES OR USE TAX UPON ALL17
126	126	TRANSACTIONS OR INCIDENTS WITH RESPECT TO WHICH THE STATE LEVIES18
127	127	SALES OR USE TAX, REGARDLESS OF WHETHER THE AUTHORIZATION19
128	128	SPECIFICALLY REFERENCES THIS ARTICLE 26.20
129	129	(5) A
130	130	S USED IN THIS SECTION, "ON-DEMAND AIR CARRIER" MEANS21
131	131	AN ENTITY AUTHORIZED BY THE FEDERAL AVIATION ADMINISTRATION TO22
132	132	OPERATE AN AIRCRAFT TO TRANSPORT PEOPLE OR PROPERTY IN23
133	133	COMPLIANCE WITH THE CERTIFICATION AND OPERATIONS REQUIREMENTS24
134	134	SET FORTH IN 14 CFR 133 OR 135.25
135	135	SECTION 2. In Colorado Revised Statutes, 29-2-105, add26
136	136	(1)(d)(I)(Q) as follows:27
137	137	HB22-1109
138	138	-4- 29-2-105. Contents of sales tax ordinances and proposals.1
139	139	(1) The sales tax ordinance or proposal of any incorporated town, city,2
140	140	or county adopted pursuant to this article 2 shall be imposed on the sale3
141	141	of tangible personal property at retail or the furnishing of services, as4
142	142	provided in subsection (1)(d) of this section. Any countywide or5
143	143	incorporated town or city sales tax ordinance or proposal shall include the6
144	144	following provisions:7
145	145	(d) (I) A provision that the sale of tangible personal property and8
146	146	services taxable pursuant to this article 2 shall be the same as the sale of9
147	147	tangible personal property and services taxable pursuant to section10
148	148	39-26-104, except as otherwise provided in this subsection (1)(d). The11
149	149	sale of tangible personal property and services taxable pursuant to this12
150	150	article 2 shall be subject to the same sales tax exemptions as those13
151	151	specified in part 7 of article 26 of title 39; except that the sale of the14
152	152	following may be exempted from a town, city, or county sales tax only by15
153	153	the express inclusion of the exemption either at the time of adoption of16
154	154	the initial sales tax ordinance or resolution or by amendment thereto:17
155	155	(Q) T
156	156	HE ON-DEMAND AIR CARRIER EXEMPTIONS SET FORTH IN18
157	157	SECTION 39-26-711 (1)(c) AND (2)(c).19
158	158	SECTION 3. Act subject to petition - effective date. This act20
159	159	takes effect at 12:01 a.m. on the day following the expiration of the21
160	160	ninety-day period after final adjournment of the general assembly; except22
161	161	that, if a referendum petition is filed pursuant to section 1 (3) of article V23
162	162	of the state constitution against this act or an item, section, or part of this24
163	163	act within such period, then the act, item, section, or part will not take25
164	164	effect unless approved by the people at the general election to be held in26
165	165	HB22-1109
166	166	-5- November 2022 and, in such case, will take effect on the date of the1
167	167	official declaration of the vote thereon by the governor.2
168	168	HB22-1109
169	169	-6-