A Bill for an Act
Page 1, Line 101Concerning the determination of whether an entity is a
Page 1, Line 102charitable organization for purposes of state sales
Page 1, Line 103and use tax.
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.)
Charitable organizations are exempt from state sales and use tax. Under current law, the definition of charitable organization for purposes of state sales and use tax includes criteria that mirror the federal definition of a 501(c)(3) organization. The bill requires the department to presume that an organization that presents the department with a 501(c)(3) determination letter from the internal revenue service is a charitable organization for purposes of state sales and use tax.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 39-26-102, amend
Page 2, Line 3(2.5) as follows:
Page 2, Line 439-26-102. Performance statement - definitions - repeal.
Page 2, Line 5As used in this article 26, unless the context otherwise requires:
Page 2, Line 6(2.5) "Charitable organization" means any entity organized and
Page 2, Line 7operated exclusively for religious, charitable, scientific, testing for public
Page 2, Line 8safety, literary, or educational purposes, or to foster national or
Page 2, Line 9international amateur sports competition (but only if no part of its
Page 2, Line 10activities involve the provision of athletic facilities or equipment), or for
Page 2, Line 11the prevention of cruelty to children or animals, no part of the net
Page 2, Line 12earnings of which inures to the benefit of any private shareholder or
Page 2, Line 13individual, no substantial part of the activities of which is carrying on
Page 2, Line 14propaganda, or otherwise attempting, to influence legislation, and which
Page 2, Line 15does not participate in, or intervene in (including the publishing or
Page 2, Line 16distributing of statements), any political campaign on behalf of any
Page 2, Line 17candidate for public office, or any veterans' organization registered under
Page 2, Line 18section 501 (c)(19) of the federal "Internal Revenue Code of 1986", as
Page 2, Line 19amended. In determining whether an organization qualifies as a
Page 2, Line 20charitable organization, the department of revenue shall
Page 2, Line 21presume that an organization that presents the department with
Page 2, Line 22a 501(c)(3) determination letter from the internal revenue
Page 2, Line 23service qualifies as a charitable organization. The department
Page 2, Line 24shall not presume that an organization does not qualify as a
Page 2, Line 25charitable organization because of a change in the
Page 3, Line 1organization's 501(c)(3) status.
Page 3, Line 2SECTION 2. Safety clause. The general assembly finds,
Page 3, Line 3determines, and declares that this act is necessary for the immediate
Page 3, Line 4preservation of the public peace, health, or safety or for appropriations for
Page 3, Line 5the support and maintenance of the departments of the state and state
Page 3, Line 6institutions.