Colorado – Special Districts’ Tax Bases Conform to State’s Tax Base

SALT Report 2569 – The Colorado General Assembly voted to conform the Regional Transportation District and the Scientific and Cultural Facilities District sales and use tax bases to the Colorado state sales and use tax base effective January 1, 2014.

Currently, the regional transportation district and the scientific and cultural facilities district have the same sales and use tax base as the state with regards to tangible personal property, however the two districts and the state offer different exemptions for these purchases. For example, candy, soft drinks, direct mail advertising materials, and food containers are taxable by the state, but exempt from RTD and SCFD taxation.

Additionally, low-emitting motor vehicles, power sources and their related parts, machinery or machine tools, and vending machine sales of food excluding candy and soft drinks are taxable by the RTD and the SCFD but exempt from the state sales and use tax.

The Assembly noted that the different tax bases create an added burden for vendors who are required to collect and remit the tax to the state. Therefore, the intended purpose of the Bill is to simplify the administration and collection of sales and use tax for the regional transportation district and the scientific and cultural facilities district.

For Further Information

Colorado General Assembly – House Bill 1272, Laws 2013