Second Regular Session DRAFT

Sixty-seventh General Assembly 10.15.09

STATE OF COLORADO
BILL 3

LLS NO. 10-0194.02 Esther van Mourik INTERIM COMMITTEE BILL

Transportation Legislation Review Committee

.@House1 Committees @House2 Committees

SHORT TITLE: "Local Sales Tax Due Before Veh Regis"

A BILL FOR AN ACT

101 C ONCERNING THE REGISTRATION AND TITLING OF A VEHICLE WHEN
102 LOCAL SALES OR USE TAX DUE ON THE SALE OF THE VEHICLE
103 HAS NOT BEEN PAID .

Bill Summary

(Note: This summary applies to this bill as introduced and does

not necessarily reflect any amendments that may be subsequently
adopted.)

Transportation Legislation Review Committee. Current law

specifies that a motor or other vehicle may not be registered or have a
certificate of title issued for the vehicle by the department of revenue
(department) or its authorized agent until all sales or use tax is paid. The
bill would permit a vehicle to be registered and titled if there is still local
sales or use tax due in an amount equal to or less than $25. The bill

Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.

Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.
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grants the department or its authorized agent discretion in collecting such
local sales or use tax. The bill also requires a licensed auto dealer to
notify the purchaser in its sale documents that the department or its
authorized agent shall collect any state sales or use tax due and any local
sales or use tax due in excess of $25, and may collect any local sales or
use tax due in an amount equal to or less than $25, at the time of
application for registration and certificate of title. Section 1 of the bill
makes these described changes to the sales tax collection laws, and
section 2 of the bill makes these described changes to the use tax
collection laws.

1 Be it enacted by the General Assembly of the State of Colorado:

2 SECTION 1. 39-26-113 (1) and (2), Colorado Revised Statutes,

3 are amended to read:

4 39-26-113. Collection of sales tax - motor vehicles - exemption.

5 (1) (a) No registration shall be made of a motor or other vehicle for

6 which registration is required and No certificate of title shall be issued for

7 such vehicle or for a mobile home by the department of revenue or its

8 authorized agent until any SALES tax due on the sale and purchase of such

9 vehicle MOBILE HOME pursuant to section 29-2-106, C.R.S., or section

10 39-26-106 or imposed by AN ordinance, RESOLUTION, OR PROPOSAL of

11 any home rule city MUNICIPALITY, CITY AND COUNTY, OR COUNTY has

12 been paid.

13 (b) (I) (A) N O REGISTRATION SHALL BE MADE OF A MOTOR OR

14 OTHER VEHICLE FOR WHICH REGISTRATION IS REQUIRED AND NO

15 CERTIFICATE OF TITLE SHALL BE ISSUED FOR SUCH VEHICLE BY THE

16 DEPARTMENT OF REVENUE OR ITS AUTHORIZED AGENT UNTIL ANY STATE

17 SALES TAX DUE ON THE SALE AND PURCHASE OF SUCH VEHICLE PURSUANT

18 TO SECTION 39-26-106 HAS BEEN PAID AND UNTIL THE AGGREGATE OF ANY

19 LOCAL SALES TAX DUE IN EXCESS OF TWENTY- FIVE DOLLARS ON THE SALE

20 AND PURCHASE OF SUCH VEHICLE IMPOSED PURSUANT TO SECTION

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1 29-2-106, C.R.S., OR BY AN ORDINANCE, RESOLUTION, OR PROPOSAL OF

2 ANY HOME RULE MUNICIPALITY, CITY AND COUNTY, OR COUNTY HAS BEEN

3 PAID. T HE DEPARTMENT OF REVENUE OR ITS AUTHORIZED AGENT SHALL

4 COLLECT ANY STATE SALES TAX DUE ON THE SALE AND PURCHASE OF SUCH

5 VEHICLE PURSUANT TO SECTION 39-26-106 AND THE AGGREGATE OF ANY

6 LOCAL SALES TAX DUE IN EXCESS OF TWENTY- FIVE DOLLARS ON THE SALE

7 AND PURCHASE OF SUCH VEHICLE PURSUANT TO SECTION 29-2-106, C.R.S.,

8 OR IMPOSED BY AN ORDINANCE, RESOLUTION, OR PROPOSAL OF ANY HOME

9 RULE MUNICIPALITY, CITY AND COUNTY, OR COUNTY AS SPECIFIED IN

10 PARAGRAPH (b) OF SUBSECTION (2) OF THIS SECTION.

11 (B) R EGISTRATION SHALL BE MADE OF A MOTOR OR OTHER

12 VEHICLE FOR WHICH REGISTRATION IS REQUIRED AND A CERTIFICATE OF

13 TITLE SHALL BE ISSUED FOR SUCH VEHICLE BY THE DEPARTMENT OF

14 REVENUE OR ITS AUTHORIZED AGENT WHEN ANY STATE SALES TAX DUE ON

15 THE SALE AND PURCHASE OF SUCH VEHICLE PURSUANT TO SECTION

16 39-26-106 HAS BEEN PAID OR COLLECTED AS SPECIFIED IN PARAGRAPH (b)

17 OF SUBSECTION (2) OF THIS SECTION AND WHEN THE AGGREGATE OF ANY

18 LOCAL SALES TAX DUE ON THE SALE AND PURCHASE OF SUCH VEHICLE

19 PURSUANT TO SECTION 29-2-106, C.R.S., OR IMPOSED BY AN ORDINANCE,

20 RESOLUTION, OR PROPOSAL OF ANY HOME RULE MUNICIPALITY, CITY AND

21 COUNTY , OR COUNTY IS AN AMOUNT EQUAL TO OR LESS THAN

22 TWENTY- FIVE DOLLARS. T HE DEPARTMENT OF REVENUE OR ITS

23 AUTHORIZED AGENT SHALL HAVE THE DISCRETION TO COLLECT THE

24 AGGREGATE OF ANY APPLICABLE LOCAL SALES TAX DUE ON THE SALE AND

25 PURCHASE OF A VEHICLE PURSUANT TO SECTION 29-2-106, C.R.S., OR

26 IMPOSED BY AN ORDINANCE, RESOLUTION, OR PROPOSAL OF ANY HOME

27 RULE MUNICIPALITY, CITY AND COUNTY, OR COUNTY IN AN AMOUNT

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1 EQUAL TO OR LESS THAN TWENTY- FIVE DOLLARS FROM THE APPLICANT

2 FOR REGISTRATION AND CERTIFICATE OF TITLE .

3 (II) A LICENSED MOTOR VEHICLE DEALER THAT COLLECTS AND

4 REMITS SALES TAX TO THE DEPARTMENT OF REVENUE FOR ANY SALE OF A

5 MOTOR OR OTHER VEHICLE SHALL NOTIFY THE PURCHASER IN ITS SALE

6 DOCUMENTS THAT THE DEPARTMENT OF REVENUE OR ITS AUTHORIZED

7 AGENT:

8 (A) S HALL COLLECT ANY STATE SALES TAX DUE ON THE SALE AND

9 PURCHASE OF SUCH VEHICLE PURSUANT TO SECTION 39-26-106 AT THE

10 TIME OF APPLICATION FOR REGISTRATION AND CERTIFICATE OF TITLE ;

11 (B) S HALL COLLECT THE AGGREGATE OF ANY LOCAL SALES TAX

12 DUE IN EXCESS OF TWENTY-FIVE DOLLARS ON THE SALE AND PURCHASE OF

13 SUCH VEHICLE PURSUANT TO SECTION 29-2-106, C.R.S., OR IMPOSED BY

14 AN ORDINANCE, RESOLUTION, OR PROPOSAL OF ANY HOME RULE

15 MUNICIPALITY, CITY AND COUNTY, OR COUNTY, AT THE TIME OF

16 APPLICATION FOR REGISTRATION AND CERTIFICATE OF TITLE ; AND

17 (C) M AY COLLECT THE AGGREGATE OF ANY LOCAL SALES TAX DUE

18 IN AN AMOUNT EQUAL TO OR LESS THAN TWENTY- FIVE DOLLARS ON THE

19 SALE AND PURCHASE OF SUCH VEHICLE PURSUANT TO SECTION 29-2-106,

20 C.R.S., OR IMPOSED BY AN ORDINANCE, RESOLUTION, OR PROPOSAL OF

21 ANY HOME RULE MUNICIPALITY, CITY AND COUNTY, OR COUNTY, AT THE

22 TIME OF APPLICATION FOR REGISTRATION AND CERTIFICATE OF TITLE .

23 (2) (a) If an applicant for registration and certificate of title for

24 any motor or other vehicle or for a certificate of title for a mobile home

25 fails to show payment of the sales taxes TAX applicable to the sale and

26 purchase thereof by means of proper receipts therefor, the department of

27 revenue or its authorized agent shall collect all such applicable taxes at

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1 the time such application is made.

2 (b) (I) IF AN APPLICANT FOR REGISTRATION AND CERTIFICATE OF

3 TITLE FOR ANY MOTOR OR OTHER VEHICLE FAILS TO SHOW PAYMENT OF

4 ANY STATE SALES TAX DUE PURSUANT TO SECTION 39-26-106 APPLICABLE

5 TO THE SALE AND PURCHASE THEREOF BY MEANS OF PROPER RECEIPTS

6 THEREFOR, THE DEPARTMENT OF REVENUE OR ITS AUTHORIZED AGENT

7 SHALL COLLECT ALL SUCH APPLICABLE TAXES AT THE TIME SUCH

8 APPLICATION IS MADE.

9 (II) IF AN APPLICANT FOR REGISTRATION AND CERTIFICATE OF

10 TITLE FOR ANY MOTOR OR OTHER VEHICLE FAILS TO SHOW PAYMENT OF

11 THE AGGREGATE OF ANY LOCAL SALES TAX DUE PURSUANT SECTION

12 29-2-106, C.R.S., OR IMPOSED BY AN ORDINANCE, RESOLUTION, OR

13 PROPOSAL OF ANY HOME RULE MUNICIPALITY, CITY AND COUNTY , OR

14 COUNTY IN EXCESS OF TWENTY- FIVE DOLLARS APPLICABLE TO THE SALE

15 AND PURCHASE THEREOF BY MEANS OF PROPER RECEIPTS THEREFOR, THE

16 DEPARTMENT OF REVENUE OR ITS AUTHORIZED AGENT SHALL COLLECT ALL

17 SUCH APPLICABLE TAXES IN EXCESS OF TWENTY- FIVE DOLLARS AND MAY

18 COLLECT ANY SUCH APPLICABLE TAXES IN AN AMOUNT LESS THAN OR

19 EQUAL TO TWENTY- FIVE DOLLARS.

20 SECTION 2. 39-26-208 (1) and (2), Colorado Revised Statutes,

21 are amended to read:

22 39-26-208. Collection of use tax - motor vehicles. (1) (a) No

23 registration shall be made of a motor or other vehicle for which

24 registration is required and No certificate of title shall be issued for such

25 vehicle or for a mobile home by the department of revenue or its

26 authorized agent until any USE tax due upon ON the storage, use, or

27 consumption thereof pursuant to section 39-26-202 OR 29-2-109, C.R.S.,

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1 or imposed by AN ordinance, RESOLUTION, OR PROPOSAL of any HOME

2 RULE municipality, CITY AND COUNTY, or resolution of any county has

3 been paid.

4 (b) (I) (A) N O REGISTRATION SHALL BE MADE OF A MOTOR OR

5 OTHER VEHICLE FOR WHICH REGISTRATION IS REQUIRED AND NO

6 CERTIFICATE OF TITLE SHALL BE ISSUED FOR SUCH VEHICLE BY THE

7 DEPARTMENT OF REVENUE OR ITS AUTHORIZED AGENT UNTIL ANY STATE

8 USE TAX DUE ON THE STORAGE, USE, OR CONSUMPTION OF SUCH VEHICLE

9 PURSUANT TO SECTION 39-26-202 HAS BEEN PAID AND THE AGGREGATE OF

10 ANY LOCAL USE TAX DUE IN EXCESS OF TWENTY- FIVE DOLLARS ON THE

11 STORAGE, USE, OR CONSUMPTION OF SUCH VEHICLE IMPOSED PURSUANT TO

12 SECTION 29-2-109, C.R.S., OR BY AN ORDINANCE, RESOLUTION, OR

13 PROPOSAL OF ANY HOME RULE MUNICIPALITY, CITY AND COUNTY , OR

14 COUNTY HAS BEEN PAID. T HE DEPARTMENT OF REVENUE OR ITS

15 AUTHORIZED AGENT SHALL COLLECT ANY STATE USE TAX DUE ON THE

16 STORAGE, USE, OR CONSUMPTION OF A MOTOR OR OTHER VEHICLE

17 PURSUANT TO SECTION 39-26-202 AND THE AGGREGATE OF ANY LOCAL

18 USE TAX DUE IN EXCESS OF TWENTY- FIVE DOLLARS ON THE STORAGE, USE,

19 OR CONSUMPTION OF A MOTOR OR OTHER VEHICLE IMPOSED PURSUANT TO

20 SECTION 29-2-109, C.R.S., OR BY AN ORDINANCE, RESOLUTION, OR

21 PROPOSAL OF ANY HOME RULE MUNICIPALITY, CITY AND COUNTY, OR

22 COUNTY AS SPECIFIED IN PARAGRAPH (b) OF SUBSECTION (2) OF THIS

23 SECTION.

24 (B) R EGISTRATION SHALL BE MADE OF A MOTOR OR OTHER

25 VEHICLE FOR WHICH REGISTRATION IS REQUIRED AND A CERTIFICATE OF

26 TITLE SHALL BE ISSUED FOR SUCH VEHICLE BY THE DEPARTMENT OF

27 REVENUE OR ITS AUTHORIZED AGENT WHEN ANY STATE USE TAX DUE ON

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1 THE STORAGE, USE, OR CONSUMPTION OF SUCH VEHICLE PURSUANT TO

2 SECTION 39-26-202 HAS BEEN PAID OR COLLECTED AS SPECIFIED IN

3 PARAGRAPH (b) OF SUBSECTION (2) OF THIS SECTION AND WHEN THE

4 AGGREGATE OF ANY LOCAL USE TAX DUE ON THE STORAGE, USE, OR

5 CONSUMPTION OF SUCH VEHICLE PURSUANT TO SECTION 29-2-109, C.R.S.,

6 OR IMPOSED BY AN ORDINANCE, RESOLUTION, OR PROPOSAL OF ANY HOME

7 RULE MUNICIPALITY, CITY AND COUNTY, OR COUNTY IS AN AMOUNT EQUAL

8 TO OR LESS THAN TWENTY- FIVE DOLLARS. T HE DEPARTMENT OF REVENUE

9 OR ITS AUTHORIZED AGENT SHALL HAVE THE DISCRETION TO COLLECT THE

10 AGGREGATE OF ANY APPLICABLE LOCAL USE TAX DUE ON THE STORAGE,

11 USE, OR CONSUMPTION OF SUCH VEHICLE PURSUANT TO SECTION 29-2-109,

12 C.R.S., OR IMPOSED BY AN ORDINANCE, RESOLUTION, OR PROPOSAL OF

13 ANY HOME RULE MUNICIPALITY, CITY AND COUNTY, OR COUNTY IN AN

14 AMOUNT EQUAL TO OR LESS THAN TWENTY-FIVE DOLLARS FROM THE

15 APPLICANT FOR REGISTRATION AND CERTIFICATE OF TITLE .

16 (II) A LICENSED MOTOR VEHICLE DEALER THAT COLLECTS AND

17 REMITS USE TAX TO THE DEPARTMENT OF REVENUE FOR THE STORAGE,

18 USE, OR CONSUMPTION OF A MOTOR OR OTHER VEHICLE SHALL NOTIFY THE

19 PURCHASER IN ITS SALE DOCUMENTS THAT THE DEPARTMENT OF REVENUE

20 OR ITS AUTHORIZED AGENT:

21 (A) S HALL COLLECT ANY STATE USE TAX DUE ON THE STORAGE,

22 USE, OR CONSUMPTION OF SUCH VEHICLE PURSUANT TO SECTION

23 39-26-202 AT THE TIME OF APPLICATION FOR REGISTRATION AND

24 CERTIFICATE OF TITLE ;

25 (B) S HALL COLLECT THE AGGREGATE OF ANY LOCAL USE TAX DUE

26 IN EXCESS OF TWENTY- FIVE DOLLARS ON THE STORAGE, USE, OR

27 CONSUMPTION OF SUCH VEHICLE PURSUANT TO SECTION 29-2-109, C.R.S.,

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1 OR IMPOSED BY AN ORDINANCE, RESOLUTION, OR PROPOSAL OF ANY HOME

2 RULE MUNICIPALITY, CITY AND COUNTY, OR COUNTY, AT THE TIME OF

3 APPLICATION FOR REGISTRATION AND CERTIFICATE OF TITLE ; AND

4 (C) M AY COLLECT THE AGGREGATE OF ANY LOCAL USE TAX DUE

5 IN AN AMOUNT EQUAL TO OR LESS THAN TWENTY- FIVE DOLLARS ON THE

6 STORAGE, USE, OR CONSUMPTION OF SUCH VEHICLE PURSUANT TO SECTION

7 29-2-109, C.R.S., OR IMPOSED BY AN ORDINANCE, RESOLUTION, OR

8 PROPOSAL OF ANY HOME RULE MUNICIPALITY, CITY AND COUNTY, OR

9 COUNTY, AT THE TIME OF APPLICATION FOR REGISTRATION AND

10 CERTIFICATE OF TITLE .

11 (2) (a) If an applicant for registration and certificate of title for

12 any motor or other vehicle or for a certificate of title for a mobile home

13 fails to show payment of the taxes USE TAX applicable under this section

14 by means of proper receipts therefor, the department of revenue or its

15 authorized agent shall collect all such applicable taxes at the time such

16 application is made.

17 (b) (I) IF AN APPLICANT FOR REGISTRATION AND CERTIFICATE OF

18 TITLE FOR ANY MOTOR OR OTHER VEHICLE FAILS TO SHOW PAYMENT OF

19 ANY STATE USE TAX DUE ON THE STORAGE, USE, OR CONSUMPTION OF

20 SUCH VEHICLE PURSUANT TO SECTION 39-26-202 BY MEANS OF PROPER

21 RECEIPTS THEREFOR, THE DEPARTMENT OF REVENUE OR ITS AUTHORIZED

22 AGENT SHALL COLLECT ALL SUCH APPLICABLE TAXES AT THE TIME SUCH

23 APPLICATION IS MADE.

24 (II) IF AN APPLICANT FOR REGISTRATION AND CERTIFICATE OF

25 TITLE FOR ANY MOTOR OR OTHER VEHICLE FAILS TO SHOW PAYMENT OF

26 THE AGGREGATE OF ANY LOCAL USE TAX DUE IN EXCESS OF TWENTY- FIVE

27 DOLLARS ON THE STORAGE, USE , OR CONSUMPTION OF SUCH VEHICLE

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1 PURSUANT TO SECTION 29-2-109, C.R.S., OR IMPOSED BY AN ORDINANCE,

2 RESOLUTION, OR PROPOSAL OF ANY HOME RULE MUNICIPALITY, CITY AND

3 COUNTY , OR COUNTY BY MEANS OF PROPER RECEIPTS THEREFOR, THE

4 DEPARTMENT OF REVENUE OR ITS AUTHORIZED AGENT SHALL COLLECT ALL

5 SUCH APPLICABLE TAXES IN EXCESS OF TWENTY- FIVE DOLLARS AND MAY

6 COLLECT ANY SUCH APPLICABLE TAXES IN AN AMOUNT LESS THAN OR

7 EQUAL TO TWENTY- FIVE DOLLARS.

8 SECTION 3. Effective date - applicability. This act shall take

9 effect June 1, 2010, and shall apply to applications for registration and

10 certificate of title of a motor or other vehicle filed on or after said date.

11 SECTION 4. Safety clause. The general assembly hereby finds,

12 determines, and declares that this act is necessary for the immediate

13 preservation of the public peace, health, and safety.

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