Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0042.01 Alison Killen x4350
HOUSE BILL 24-1027
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING TAX RELIEF FOR PR ODUCTS ESSENTIAL TO MINORS , AND,101
IN CONNECTION THEREWITH , CREATING A SALES AND USE TAX102
EXEMPTION FOR BABY AND TODDLER PRODUCTS AND CREATING103
A SALES AND USE TAX HOLIDAY FOR BACK -TO-SCHOOL ITEMS.104
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Section 1 of the bill creates, beginning on January 1, 2025, and
continuing indefinitely, a state sales and use tax exemption for baby and
toddler products. A "baby and toddler product" is defined to include a
HOUSE SPONSORSHIP
Winter T.,
SENATE SPONSORSHIP
Pelton B.,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. baby crib, playpen, or play yard; a baby stroller; a baby safety gate,
cabinet lock or latch, or electrical socket cover; a baby monitor; a bicycle
child carrier seat, or trailer, including an adaptor or accessory; a baby
exerciser, jumper, bouncer seat, or swing; a breast pump, bottle sterilizer,
bottle, or
nipple, pacifier, or teething ring; baby wipes; a changing table
or pad; and baby and toddler clothing.
Section 1 also creates a time-limited state sales and use tax
exemption, or sales and use tax holiday, for back-to-school items. The tax
holiday applies for 14 days beginning on January 1, 2025, and for an
additional 14 days beginning on July 24, 2025. A "back-to-school item"
is defined to mean an article of clothing, a bag, a school supply, a
learning aid, or a personal computer or personal computer-related
accessory that is purchased primarily for use by an individual who is a
minor. The exemption for each item is limited by cost as follows:
! $100 for an article of clothing or a bag;
! $50 for a school supply;
! $30 for a learning aid; and
! $1,500 for a personal computer or a personal
computer-related accessory.
Section 2 permits a town, city, or county to create sales and use tax
exemptions that are identical to the state exemptions.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 39-26-735 as2
follows:3
39-26-735. Baby and toddler products - back-to-school items4
- tax preference performance statement - legislative declaration -5
definitions - repeal. (1) I
N ACCORDANCE WITH SECTION 39-21-304 (1),6
WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO7
INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A8
STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY HEREBY9
FINDS AND DECLARES THAT:10
(a) T
HE GENERAL LEGISLATIVE PURPOSE OF THE EXEMPTIONS11
ALLOWED BY THIS SECTION IS TO PROVIDE TAX RELIEF FOR CERTAIN12
INDIVIDUALS;13
HB24-1027-2- (b) THE SPECIFIC LEGISLATIVE PURPOSE OF THE EXEMPTIONS1
ALLOWED BY THIS SECTION IS TO INCREASE THE AFFORDABILITY OF BABY2
AND TODDLER PRODUCTS AND BACK -TO-SCHOOL ITEMS AND TO REDRESS3
THE BURDEN THAT THE IMPOSITION OF SALES TAX PLACES ON MILLIONS OF4
PARENTS AND OTHER INDIVIDUALS CARING FOR INFANTS AND YOUNG5
CHILDREN IN COLORADO FOR WHOM SUCH PRODUCTS ARE ESSENTIAL ; AND6
(c) I
N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE7
AUDITOR TO MEASURE THE EFFECTIVENESS OF THE EXEMPTIONS ALLOWED8
BY SUBSECTIONS (3) AND (4) OF THIS SECTION, THE STATE AUDITOR SHALL9
IDENTIFY AVAILABLE DATA SOURCES AND ESTIMATE THE SAVINGS THAT10
THE EXEMPTIONS PROVIDE TO TAXPAYERS IN COLORADO FOR WHOM BABY11
AND TODDLER PRODUCTS AND BACK -TO-SCHOOL ITEMS ARE ESSENTIAL12
DURING THE STATE AUDITOR'S EVALUATION OF THE EXEMPTION PURSUANT13
TO SECTION 39-21-305.14
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE15
REQUIRES:16
(a) "B
ABY AND TODDLER PRODUCT " MEANS:17
(I) A
BABY CRIB, INCLUDING A BABY PLAYPEN OR A BABY PLAY18
YARD;19
(II) A
BABY STROLLER;20
(III) A
BABY SAFETY GATE;21
(IV) A
BABY MONITOR;22
(V) A
CHILD SAFETY CABINET LOCK OR LATCH OR AN ELECTRICAL23
SOCKET COVER;24
(VI) A
BICYCLE CHILD CARRIER SEAT OR TRAILER DESIGNED FOR25
CARRYING YOUNG CHILDREN , INCLUDING ANY ADAPTOR OR ACCESSORY26
FOR THE SEAT OR TRAILER;27
HB24-1027
-3- (VII) A BABY EXERCISER, JUMPER, BOUNCER SEAT, OR SWING;1
(VIII) A
BREAST PUMP, BOTTLE STERILIZER, BABY BOTTLE OR2
NIPPLE, PACIFIER, OR TEETHING RING;3
(IX) B
ABY WIPES;4
(X) A
CHANGING TABLE OR CHANGING PAD ; AND5
(XI) B
ABY AND TODDLER CLOTHING PRIMARILY INTENDED AND6
MARKETED FOR CHILDREN AGE FIVE OR YOUNGER . BABY AND TODDLER7
CLOTHING SIZE 5T AND SMALLER AND BABY AND TODDLER SHOES SIZE 13T8
AND SMALLER ARE PRESUMED TO BE PRIMARILY INTENDED FOR AND9
MARKETED FOR CHILDREN AGE FIVE OR YOUNGER .10
(b) "B
AG" MEANS A HANDBAG, BOOK BAG, BACKPACK, FANNY11
PACK, OR DIAPER BAG, BUT DOES NOT INCLUDE A BRIEFCASE, SUITCASE,12
LUGGAGE, OR OTHER GARMENT BAG.13
(c) "B
ACK-TO-SCHOOL ITEM" MEANS AN ARTICLE OF CLOTHING, A14
BAG, A SCHOOL SUPPLY, A LEARNING AID, OR A PERSONAL COMPUTER OR15
PERSONAL COMPUTER -RELATED ACCESSORY THAT IS PURCHASED16
PRIMARILY FOR USE BY AN INDIVIDUAL WHO IS A MINOR .17
(d) "C
LOTHING" MEANS:18
(I) A
NY ARTICLE OF WEARING APPAREL INTENDED TO BE WORN ON19
THE PERSON, EXCLUDING A CLOTHING ACCESSORY ; AND20
(II) A
NY FOOTWEAR, EXCLUDING SKIS, SNOWBOARDS, SWIM FINS,21
ROLLER BLADES, SKATES, AND OTHER RECREATIONAL EQUIPMENT .22
(e) "C
LOTHING ACCESSORY" MEANS AN INCIDENTAL ITEM WORN23
ON THE PERSON OR USED IN CONJUNCTION WITH CLOTHING . "CLOTHING24
ACCESSORY" INCLUDES JEWELRY, WALLETS, WATCHES, HATS, SCARVES,25
HOSIERY, TIES, BELTS, AND UMBRELLAS.26
(f) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .27
HB24-1027
-4- (g) "EXECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR OF1
THE DEPARTMENT OF REVENUE .2
(h) "L
EARNING AID" MEANS A SET OF STACKING OR NESTING3
BLOCKS, FLASH CARDS OR OTHER LEARNING CARDS , A MATCHING OR4
MEMORY GAME , A PUZZLE BOOK OR SEARCH -AND-FIND BOOK, AN5
INTERACTIVE OR ELECTRONIC BOOK , OR ANY OTHER BOOK OR TOY6
INTENDED TO TEACH SKILLS TO CHILDREN .7
(i) "L
OCAL GOVERNMENT" MEANS A COUNTY, CITY AND COUNTY,8
OR MUNICIPALITY.9
(j) (I) "P
ERSONAL COMPUTER " MEANS AN ELECTRONIC BOOK10
READER, LAPTOP, DESKTOP, HANDHELD, TABLET, OR TOWER COMPUTER11
PURCHASED FOR NONCOMMERCIAL HOME OR PERSONAL USE .12
(II) "P
ERSONAL COMPUTER " DOES NOT INCLUDE A CELLULAR13
TELEPHONE, VIDEO GAME CONSOLE, DIGITAL MEDIA RECEIVER, OR OTHER14
DEVICE THAT IS NOT PRIMARILY DESIGNED TO PROCESS DATA .15
(k) (I) "P
ERSONAL COMPUTER-RELATED ACCESSORY" INCLUDES A16
KEYBOARD, MOUSE, PERSONAL DIGITAL ASSISTANT, MONITOR, MODEM,17
ROUTER, NONRECREATIONAL SOFTWARE , AND OTHER PERIPHERAL DEVICES18
OR SOFTWARE PURCHASED FOR NONCOMMERCIAL HOME OR PERSONAL USE .19
(II) "P
ERSONAL COMPUTER -RELATED ACCESSORY" DOES NOT20
INCLUDE FURNITURE OR SYSTEMS , DEVICES, SOFTWARE, MONITORS, OR21
OTHER PERIPHERAL DEVICES THAT ARE DESIGNED OR INTENDED PRIMARILY22
FOR RECREATIONAL USE.23
(l) "S
CHOOL SUPPLY" MEANS AN ART SUPPLY, BINDER POCKET,24
BINDER, BLACKBOARD CHALK , CALCULATOR, CELLOPHANE TAPE, CLAY25
AND GLAZE, COMPASS, COMPOSITION BOOK, CRAYON SET, DICTIONARY OR26
THESAURUS, DRY ERASE MARKER AND ERASER, FOLDER, GLUE AND PASTE,27
HB24-1027
-5- HIGHLIGHTER, INDEX CARD SET AND BOX, LUNCH BOX, MAP OR GLOBE,1
MARKER, NOTEBOOK AND DIVIDER, PAPER OR PAD, PENCIL BOX OR OTHER2
BOXES FOR SCHOOL SUPPLIES, PENCIL SHARPENER, PENCIL AND ERASER,3
PEN, PROTRACTOR, REFERENCE BOOK, RULER, SCISSORS, TEXTBOOK, AND4
WORKBOOK.5
(3) (a) B
EGINNING ON JANUARY 1, 2025, ALL SALES OF BABY AND6
TODDLER PRODUCTS ARE EXEMPT FROM TAXATION UNDER PART 1 OF THIS7
ARTICLE 26.8
(b) N
OTWITHSTANDING SECTION 39-21-304 (4), THE EXEMPTION9
IN THIS SUBSECTION (3) CONTINUES INDEFINITELY.10
(4) (a) D
URING THE PERIOD BEGINNING AT 12:01 A.M. ON JANUARY11
1,
2025, AND ENDING AT MIDNIGHT ON JANUARY 14, 2025, AND DURING12
THE PERIOD BEGINNING AT 12:01 A.M. ON JULY 24, 2025, AND ENDING AT13
MIDNIGHT ON AUGUST 6, 2025, THE SALE OF A BACK-TO-SCHOOL ITEM,14
THE COST OF WHICH IS LESS THAN THE LIMIT ESTABLISHED IN SUBSECTION15
(4)(b)
OF THIS SECTION, IS EXEMPT FROM THE TAX LEVIED PURSUANT TO16
PART 1 OF THIS ARTICLE 26.17
(b) T
HE LIMIT FOR EACH BACK-TO-SCHOOL ITEM IS:18
(I) O
NE HUNDRED DOLLARS FOR AN ARTICLE OF CLOTHING OR BAG ;19
(II) F
IFTY DOLLARS FOR A SCHOOL SUPPLY;20
(III) T
HIRTY DOLLARS FOR A LEARNING AID; AND21
(IV) O
NE THOUSAND FIVE HUNDRED DOLLARS FOR A PERSONAL22
COMPUTER OR A PERSONAL COMPUTER -RELATED ACCESSORY.23
(c) T
HIS SUBSECTION (4) IS REPEALED, EFFECTIVE JANUARY 1,24
2026.25
(5) T
HE STORAGE, USE, OR CONSUMPTION OF A BABY OR TODDLER26
PRODUCT OR A BACK-TO-SCHOOL ITEM THAT IS EXEMPT AT THE TIME OF27
HB24-1027
-6- PURCHASE FROM THE SALES TAX PURSUANT TO SUBSECTION (3) OR (4) OF1
THIS SECTION IS EXEMPT FROM THE USE TAX LEVIED PURSUANT TO PART 22
OF THIS ARTICLE 26.3
(6) T
HE EXECUTIVE DIRECTOR MAY :4
(a) M
ODIFY EXISTING FORMS OR CREATE NEW FORMS AS5
NECESSARY TO FACILITATE THE EXEMPTIONS CREATED IN SUBSECTIONS (3)6
AND (4) OF THIS SECTION; AND7
(b) A
DOPT RULES FOR THE ADMINISTRATION AND ENFORCEMENT8
OF THIS SECTION.9
SECTION 2. In Colorado Revised Statutes, 29-2-105, amend10
(1)(d)(I)(T); and add (1)(d)(I)(V) and (1)(d)(I)(W) as follows:11
29-2-105. Contents of sales tax ordinances and proposals.12
(1) The sales tax ordinance or proposal of any incorporated town, city,13
or county adopted pursuant to this article 2 shall be imposed on the sale14
of tangible personal property at retail or the furnishing of services, as15
provided in subsection (1)(d) of this section. Any countywide or16
incorporated town or city sales tax ordinance or proposal shall include the17
following provisions:18
(d) (I) A provision that the sale of tangible personal property and19
services taxable pursuant to this article 2 is the same as the sale of20
tangible personal property and services taxable pursuant to section21
39-26-104, except as otherwise provided in this subsection (1)(d). The22
sale of tangible personal property and services taxable pursuant to this23
article 2 is subject to the same sales tax exemptions as those specified in24
part 7 of article 26 of title 39; except that the sale of the following may be25
exempted from a town, city, or county sales tax only by the express26
inclusion of the exemption either at the time of adoption of the initial27
HB24-1027
-7- sales tax ordinance or resolution or by amendment thereto:1
(T) The exemption for sales of heat pump systems and heat pump2
water heaters set forth in section 39-26-732; and3
(V) T
HE EXEMPTION FOR BABY AND TODDLER PR ODUCTS SET4
FORTH IN SECTION 39-26-735 (3); AND5
(W) T
HE EXEMPTION FOR BACK-TO-SCHOOL ITEMS SPECIFIED IN6
SECTION 39-26-735 (4), FOR THE SAME PERIODS THAT THE STATE7
EXEMPTION IS AVAILABLE.8
SECTION 3. Act subject to petition - effective date. This act9
takes effect at 12:01 a.m. on the day following the expiration of the10
ninety-day period after final adjournment of the general assembly; except11
that, if a referendum petition is filed pursuant to section 1 (3) of article V12
of the state constitution against this act or an item, section, or part of this13
act within such period, then the act, item, section, or part will not take14
effect unless approved by the people at the general election to be held in15
November 2024 and, in such case, will take effect on the date of the16
official declaration of the vote thereon by the governor.17
HB24-1027
-8-