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Colorado House Bill HB1027

Colorado 2024 Regular Session

Colorado House Bill HB1027 Compare Versions

Only one version of the bill is available at this time.
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11 Second Regular Session
22 Seventy-fourth General Assembly
33 STATE OF COLORADO
44 INTRODUCED
55
66
77 LLS NO. 24-0042.01 Alison Killen x4350
88 HOUSE BILL 24-1027
99 House Committees Senate Committees
1010 Finance
1111 A BILL FOR AN ACT
1212 C
1313 ONCERNING TAX RELIEF FOR PR ODUCTS ESSENTIAL TO MINORS , AND,101
1414 IN CONNECTION THEREWITH , CREATING A SALES AND USE TAX102
1515 EXEMPTION FOR BABY AND TODDLER PRODUCTS AND CREATING103
1616 A SALES AND USE TAX HOLIDAY FOR BACK -TO-SCHOOL ITEMS.104
1717 Bill Summary
1818 (Note: This summary applies to this bill as introduced and does
1919 not reflect any amendments that may be subsequently adopted. If this bill
2020 passes third reading in the house of introduction, a bill summary that
2121 applies to the reengrossed version of this bill will be available at
2222 http://leg.colorado.gov
2323 .)
2424 Section 1 of the bill creates, beginning on January 1, 2025, and
2525 continuing indefinitely, a state sales and use tax exemption for baby and
2626 toddler products. A "baby and toddler product" is defined to include a
2727 HOUSE SPONSORSHIP
2828 Winter T.,
2929 SENATE SPONSORSHIP
3030 Pelton B.,
3131 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
3232 Capital letters or bold & italic numbers indicate new material to be added to existing law.
3333 Dashes through the words or numbers indicate deletions from existing law. baby crib, playpen, or play yard; a baby stroller; a baby safety gate,
3434 cabinet lock or latch, or electrical socket cover; a baby monitor; a bicycle
3535 child carrier seat, or trailer, including an adaptor or accessory; a baby
3636 exerciser, jumper, bouncer seat, or swing; a breast pump, bottle sterilizer,
3737 bottle, or
3838 nipple, pacifier, or teething ring; baby wipes; a changing table
3939 or pad; and baby and toddler clothing.
4040 Section 1 also creates a time-limited state sales and use tax
4141 exemption, or sales and use tax holiday, for back-to-school items. The tax
4242 holiday applies for 14 days beginning on January 1, 2025, and for an
4343 additional 14 days beginning on July 24, 2025. A "back-to-school item"
4444 is defined to mean an article of clothing, a bag, a school supply, a
4545 learning aid, or a personal computer or personal computer-related
4646 accessory that is purchased primarily for use by an individual who is a
4747 minor. The exemption for each item is limited by cost as follows:
4848 ! $100 for an article of clothing or a bag;
4949 ! $50 for a school supply;
5050 ! $30 for a learning aid; and
5151 ! $1,500 for a personal computer or a personal
5252 computer-related accessory.
5353 Section 2 permits a town, city, or county to create sales and use tax
5454 exemptions that are identical to the state exemptions.
5555 Be it enacted by the General Assembly of the State of Colorado:1
5656 SECTION 1. In Colorado Revised Statutes, add 39-26-735 as2
5757 follows:3
5858 39-26-735. Baby and toddler products - back-to-school items4
5959 - tax preference performance statement - legislative declaration -5
6060 definitions - repeal. (1) I
6161 N ACCORDANCE WITH SECTION 39-21-304 (1),6
6262 WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO7
6363 INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A8
6464 STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY HEREBY9
6565 FINDS AND DECLARES THAT:10
6666 (a) T
6767 HE GENERAL LEGISLATIVE PURPOSE OF THE EXEMPTIONS11
6868 ALLOWED BY THIS SECTION IS TO PROVIDE TAX RELIEF FOR CERTAIN12
6969 INDIVIDUALS;13
7070 HB24-1027-2- (b) THE SPECIFIC LEGISLATIVE PURPOSE OF THE EXEMPTIONS1
7171 ALLOWED BY THIS SECTION IS TO INCREASE THE AFFORDABILITY OF BABY2
7272 AND TODDLER PRODUCTS AND BACK -TO-SCHOOL ITEMS AND TO REDRESS3
7373 THE BURDEN THAT THE IMPOSITION OF SALES TAX PLACES ON MILLIONS OF4
7474 PARENTS AND OTHER INDIVIDUALS CARING FOR INFANTS AND YOUNG5
7575 CHILDREN IN COLORADO FOR WHOM SUCH PRODUCTS ARE ESSENTIAL ; AND6
7676 (c) I
7777 N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE7
7878 AUDITOR TO MEASURE THE EFFECTIVENESS OF THE EXEMPTIONS ALLOWED8
7979 BY SUBSECTIONS (3) AND (4) OF THIS SECTION, THE STATE AUDITOR SHALL9
8080 IDENTIFY AVAILABLE DATA SOURCES AND ESTIMATE THE SAVINGS THAT10
8181 THE EXEMPTIONS PROVIDE TO TAXPAYERS IN COLORADO FOR WHOM BABY11
8282 AND TODDLER PRODUCTS AND BACK -TO-SCHOOL ITEMS ARE ESSENTIAL12
8383 DURING THE STATE AUDITOR'S EVALUATION OF THE EXEMPTION PURSUANT13
8484 TO SECTION 39-21-305.14
8585 (2) A
8686 S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE15
8787 REQUIRES:16
8888 (a) "B
8989 ABY AND TODDLER PRODUCT " MEANS:17
9090 (I) A
9191 BABY CRIB, INCLUDING A BABY PLAYPEN OR A BABY PLAY18
9292 YARD;19
9393 (II) A
9494 BABY STROLLER;20
9595 (III) A
9696 BABY SAFETY GATE;21
9797 (IV) A
9898 BABY MONITOR;22
9999 (V) A
100100 CHILD SAFETY CABINET LOCK OR LATCH OR AN ELECTRICAL23
101101 SOCKET COVER;24
102102 (VI) A
103103 BICYCLE CHILD CARRIER SEAT OR TRAILER DESIGNED FOR25
104104 CARRYING YOUNG CHILDREN , INCLUDING ANY ADAPTOR OR ACCESSORY26
105105 FOR THE SEAT OR TRAILER;27
106106 HB24-1027
107107 -3- (VII) A BABY EXERCISER, JUMPER, BOUNCER SEAT, OR SWING;1
108108 (VIII) A
109109 BREAST PUMP, BOTTLE STERILIZER, BABY BOTTLE OR2
110110 NIPPLE, PACIFIER, OR TEETHING RING;3
111111 (IX) B
112112 ABY WIPES;4
113113 (X) A
114114 CHANGING TABLE OR CHANGING PAD ; AND5
115115 (XI) B
116116 ABY AND TODDLER CLOTHING PRIMARILY INTENDED AND6
117117 MARKETED FOR CHILDREN AGE FIVE OR YOUNGER . BABY AND TODDLER7
118118 CLOTHING SIZE 5T AND SMALLER AND BABY AND TODDLER SHOES SIZE 13T8
119119 AND SMALLER ARE PRESUMED TO BE PRIMARILY INTENDED FOR AND9
120120 MARKETED FOR CHILDREN AGE FIVE OR YOUNGER .10
121121 (b) "B
122122 AG" MEANS A HANDBAG, BOOK BAG, BACKPACK, FANNY11
123123 PACK, OR DIAPER BAG, BUT DOES NOT INCLUDE A BRIEFCASE, SUITCASE,12
124124 LUGGAGE, OR OTHER GARMENT BAG.13
125125 (c) "B
126126 ACK-TO-SCHOOL ITEM" MEANS AN ARTICLE OF CLOTHING, A14
127127 BAG, A SCHOOL SUPPLY, A LEARNING AID, OR A PERSONAL COMPUTER OR15
128128 PERSONAL COMPUTER -RELATED ACCESSORY THAT IS PURCHASED16
129129 PRIMARILY FOR USE BY AN INDIVIDUAL WHO IS A MINOR .17
130130 (d) "C
131131 LOTHING" MEANS:18
132132 (I) A
133133 NY ARTICLE OF WEARING APPAREL INTENDED TO BE WORN ON19
134134 THE PERSON, EXCLUDING A CLOTHING ACCESSORY ; AND20
135135 (II) A
136136 NY FOOTWEAR, EXCLUDING SKIS, SNOWBOARDS, SWIM FINS,21
137137 ROLLER BLADES, SKATES, AND OTHER RECREATIONAL EQUIPMENT .22
138138 (e) "C
139139 LOTHING ACCESSORY" MEANS AN INCIDENTAL ITEM WORN23
140140 ON THE PERSON OR USED IN CONJUNCTION WITH CLOTHING . "CLOTHING24
141141 ACCESSORY" INCLUDES JEWELRY, WALLETS, WATCHES, HATS, SCARVES,25
142142 HOSIERY, TIES, BELTS, AND UMBRELLAS.26
143143 (f) "D
144144 EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .27
145145 HB24-1027
146146 -4- (g) "EXECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR OF1
147147 THE DEPARTMENT OF REVENUE .2
148148 (h) "L
149149 EARNING AID" MEANS A SET OF STACKING OR NESTING3
150150 BLOCKS, FLASH CARDS OR OTHER LEARNING CARDS , A MATCHING OR4
151151 MEMORY GAME , A PUZZLE BOOK OR SEARCH -AND-FIND BOOK, AN5
152152 INTERACTIVE OR ELECTRONIC BOOK , OR ANY OTHER BOOK OR TOY6
153153 INTENDED TO TEACH SKILLS TO CHILDREN .7
154154 (i) "L
155155 OCAL GOVERNMENT" MEANS A COUNTY, CITY AND COUNTY,8
156156 OR MUNICIPALITY.9
157157 (j) (I) "P
158158 ERSONAL COMPUTER " MEANS AN ELECTRONIC BOOK10
159159 READER, LAPTOP, DESKTOP, HANDHELD, TABLET, OR TOWER COMPUTER11
160160 PURCHASED FOR NONCOMMERCIAL HOME OR PERSONAL USE .12
161161 (II) "P
162162 ERSONAL COMPUTER " DOES NOT INCLUDE A CELLULAR13
163163 TELEPHONE, VIDEO GAME CONSOLE, DIGITAL MEDIA RECEIVER, OR OTHER14
164164 DEVICE THAT IS NOT PRIMARILY DESIGNED TO PROCESS DATA .15
165165 (k) (I) "P
166166 ERSONAL COMPUTER-RELATED ACCESSORY" INCLUDES A16
167167 KEYBOARD, MOUSE, PERSONAL DIGITAL ASSISTANT, MONITOR, MODEM,17
168168 ROUTER, NONRECREATIONAL SOFTWARE , AND OTHER PERIPHERAL DEVICES18
169169 OR SOFTWARE PURCHASED FOR NONCOMMERCIAL HOME OR PERSONAL USE .19
170170 (II) "P
171171 ERSONAL COMPUTER -RELATED ACCESSORY" DOES NOT20
172172 INCLUDE FURNITURE OR SYSTEMS , DEVICES, SOFTWARE, MONITORS, OR21
173173 OTHER PERIPHERAL DEVICES THAT ARE DESIGNED OR INTENDED PRIMARILY22
174174 FOR RECREATIONAL USE.23
175175 (l) "S
176176 CHOOL SUPPLY" MEANS AN ART SUPPLY, BINDER POCKET,24
177177 BINDER, BLACKBOARD CHALK , CALCULATOR, CELLOPHANE TAPE, CLAY25
178178 AND GLAZE, COMPASS, COMPOSITION BOOK, CRAYON SET, DICTIONARY OR26
179179 THESAURUS, DRY ERASE MARKER AND ERASER, FOLDER, GLUE AND PASTE,27
180180 HB24-1027
181181 -5- HIGHLIGHTER, INDEX CARD SET AND BOX, LUNCH BOX, MAP OR GLOBE,1
182182 MARKER, NOTEBOOK AND DIVIDER, PAPER OR PAD, PENCIL BOX OR OTHER2
183183 BOXES FOR SCHOOL SUPPLIES, PENCIL SHARPENER, PENCIL AND ERASER,3
184184 PEN, PROTRACTOR, REFERENCE BOOK, RULER, SCISSORS, TEXTBOOK, AND4
185185 WORKBOOK.5
186186 (3) (a) B
187187 EGINNING ON JANUARY 1, 2025, ALL SALES OF BABY AND6
188188 TODDLER PRODUCTS ARE EXEMPT FROM TAXATION UNDER PART 1 OF THIS7
189189 ARTICLE 26.8
190190 (b) N
191191 OTWITHSTANDING SECTION 39-21-304 (4), THE EXEMPTION9
192192 IN THIS SUBSECTION (3) CONTINUES INDEFINITELY.10
193193 (4) (a) D
194194 URING THE PERIOD BEGINNING AT 12:01 A.M. ON JANUARY11
195195 1,
196196 2025, AND ENDING AT MIDNIGHT ON JANUARY 14, 2025, AND DURING12
197197 THE PERIOD BEGINNING AT 12:01 A.M. ON JULY 24, 2025, AND ENDING AT13
198198 MIDNIGHT ON AUGUST 6, 2025, THE SALE OF A BACK-TO-SCHOOL ITEM,14
199199 THE COST OF WHICH IS LESS THAN THE LIMIT ESTABLISHED IN SUBSECTION15
200200 (4)(b)
201201 OF THIS SECTION, IS EXEMPT FROM THE TAX LEVIED PURSUANT TO16
202202 PART 1 OF THIS ARTICLE 26.17
203203 (b) T
204204 HE LIMIT FOR EACH BACK-TO-SCHOOL ITEM IS:18
205205 (I) O
206206 NE HUNDRED DOLLARS FOR AN ARTICLE OF CLOTHING OR BAG ;19
207207 (II) F
208208 IFTY DOLLARS FOR A SCHOOL SUPPLY;20
209209 (III) T
210210 HIRTY DOLLARS FOR A LEARNING AID; AND21
211211 (IV) O
212212 NE THOUSAND FIVE HUNDRED DOLLARS FOR A PERSONAL22
213213 COMPUTER OR A PERSONAL COMPUTER -RELATED ACCESSORY.23
214214 (c) T
215215 HIS SUBSECTION (4) IS REPEALED, EFFECTIVE JANUARY 1,24
216216 2026.25
217217 (5) T
218218 HE STORAGE, USE, OR CONSUMPTION OF A BABY OR TODDLER26
219219 PRODUCT OR A BACK-TO-SCHOOL ITEM THAT IS EXEMPT AT THE TIME OF27
220220 HB24-1027
221221 -6- PURCHASE FROM THE SALES TAX PURSUANT TO SUBSECTION (3) OR (4) OF1
222222 THIS SECTION IS EXEMPT FROM THE USE TAX LEVIED PURSUANT TO PART 22
223223 OF THIS ARTICLE 26.3
224224 (6) T
225225 HE EXECUTIVE DIRECTOR MAY :4
226226 (a) M
227227 ODIFY EXISTING FORMS OR CREATE NEW FORMS AS5
228228 NECESSARY TO FACILITATE THE EXEMPTIONS CREATED IN SUBSECTIONS (3)6
229229 AND (4) OF THIS SECTION; AND7
230230 (b) A
231231 DOPT RULES FOR THE ADMINISTRATION AND ENFORCEMENT8
232232 OF THIS SECTION.9
233233 SECTION 2. In Colorado Revised Statutes, 29-2-105, amend10
234234 (1)(d)(I)(T); and add (1)(d)(I)(V) and (1)(d)(I)(W) as follows:11
235235 29-2-105. Contents of sales tax ordinances and proposals.12
236236 (1) The sales tax ordinance or proposal of any incorporated town, city,13
237237 or county adopted pursuant to this article 2 shall be imposed on the sale14
238238 of tangible personal property at retail or the furnishing of services, as15
239239 provided in subsection (1)(d) of this section. Any countywide or16
240240 incorporated town or city sales tax ordinance or proposal shall include the17
241241 following provisions:18
242242 (d) (I) A provision that the sale of tangible personal property and19
243243 services taxable pursuant to this article 2 is the same as the sale of20
244244 tangible personal property and services taxable pursuant to section21
245245 39-26-104, except as otherwise provided in this subsection (1)(d). The22
246246 sale of tangible personal property and services taxable pursuant to this23
247247 article 2 is subject to the same sales tax exemptions as those specified in24
248248 part 7 of article 26 of title 39; except that the sale of the following may be25
249249 exempted from a town, city, or county sales tax only by the express26
250250 inclusion of the exemption either at the time of adoption of the initial27
251251 HB24-1027
252252 -7- sales tax ordinance or resolution or by amendment thereto:1
253253 (T) The exemption for sales of heat pump systems and heat pump2
254254 water heaters set forth in section 39-26-732; and3
255255 (V) T
256256 HE EXEMPTION FOR BABY AND TODDLER PR ODUCTS SET4
257257 FORTH IN SECTION 39-26-735 (3); AND5
258258 (W) T
259259 HE EXEMPTION FOR BACK-TO-SCHOOL ITEMS SPECIFIED IN6
260260 SECTION 39-26-735 (4), FOR THE SAME PERIODS THAT THE STATE7
261261 EXEMPTION IS AVAILABLE.8
262262 SECTION 3. Act subject to petition - effective date. This act9
263263 takes effect at 12:01 a.m. on the day following the expiration of the10
264264 ninety-day period after final adjournment of the general assembly; except11
265265 that, if a referendum petition is filed pursuant to section 1 (3) of article V12
266266 of the state constitution against this act or an item, section, or part of this13
267267 act within such period, then the act, item, section, or part will not take14
268268 effect unless approved by the people at the general election to be held in15
269269 November 2024 and, in such case, will take effect on the date of the16
270270 official declaration of the vote thereon by the governor.17
271271 HB24-1027
272272 -8-