James T. Brown 

FAA Airport Compliance and Management Analysis 

800 Independence A venue, SW 

Washington, DC 20591 

Dear Mr. Bro\Vll: 

Re: Commitment of San Miguel Cotmty, CO; Compliance with FAA Policy and Procedures 

Concerning the Use of Airport Revenue; Proceeds From Taxes on Aviation Fuel; Federal 

Register Vo. 79, No. 216, 11/7/2014, Page 66282 

In accordance with the Federal Aviation Administration ("FAA") Policy and Procedures 

referenced hereinabove and your agency's guidance concerning "Aviation Fuel Tax 

Grandfathering Action Plans," this letter, together with the enclosures hereto, are intended to 

serve as San Miguel County's Aviation Fuel Tax Grandfathering Action Plm1. This letter and the 

enclosures are intended to be responsive to subsection (4) of the FAA guidance, including 

subsections a, b, c, and d. The relevant provisions of the County's Sales and Use Tax 

Resolutions applicable to sales of aviation fuel at the Telluride Regional Airport, located in San 

Miguel County, CO, became effective on April 7, 1987, were in effect on December 30, 1987, 

and have remained in effect thereafter. 

The enclosures to this letter consist of copies of the following doctmlents: the Certified Record 

for San Miguel County, Colorado, Board of Colillty Commissioners Resolution# 1987-8 

Imposing a Countywide Sales and Use Ta'( and Creating a Capital Improvement Fund, and the 

Certified Record for San Miguel County, Colorado, Board of County Commissioners Resolution 

#1994-48 Amending Board of County Commissioners Resolution #1987-8. Both of these Board 

resolutions authorized the submittal of ballot issues to San Miguel County's registered electors. 

Both of the enclosed ballot issues received the approval of the majority of the registered electors 

who voted on each such question, follo\ving which both resolutions were deemed to become 

legally effective in accordance with their terms. San Miguel County Resolution #1994-48 was 

recorded on August 19, 1995 in the San Miguel County Clerk and Recorder's public records. 

This resolution, which later received voter approval at the November 1994 general election, did 

not amend the provisions applicable to the county sales tax on aviation fuel. The 1994 

amendment to the County's sales and use resolution was limited to reallocating the sales tax 

revenue received between the County's Sales Tax Capital Improvement Fund and the Colllty's 

General Fund. 

In accordm1ce with the Action Plm1 requirements also enclosed are relevant provisions from the 

Colorado County and Municipal Sales or Use Tax enabling statute currently in effect, as codified 

P.O. BOX 1170 • Telluride, Colmado 81435 • (970) 728-3844 • FAX (970) 728-3718 

www.sanmiguelcount:yco.gov 

g

p

on December 30, 1987, that such county sales tax revenues are subject to the exception 

provisions set forth in those statutes regarding the county's expenditure of such sales tax 

revenues. Furthennore, in accordance with your agency's "Aviation Fuel Tax Grandfathering 

Action Plans" guidance, this letter is to serve as San Miguel County's formal and binding 

commitment to advise the FAA in a timely fashion of any proposed subsequent amendments to 

County Resolutions #1987-8 and/or #1994A8 prior to the Board of County Commissioners 

submission of any such amendments to the County's registered electors for their approval. 

Please advise Ramona Rummel, San Miguel County's Finance Manager, regarding your 

agency's decision on this matter. Should your agency require further information and/or 

documentation from the County please advise Ms. Rummel. Your attention to this matter is 

appreciated. 

Sincerely, 

SAN MIGUEL COUNTY, COLORADO 

BOARD OF COUNTY COMM!SS!ONERS 

Joan~2h?1 

Enclosures: Certified Record- BOCC Resolution #1987-8 

Certified Record- BOCC Resolution #1994-48 

C.R.S. Title 29, Article 2, Part 1 Statutory Excerpts 

Pc. Irv Halter, Executive Director, Colorado DOLA (w/o Ends.) 

Ramona Rummel, SMCo Finance Manager (w/o Ends.) 

Lynn Black, SMCo Administrator (\v/o Encls.) 

FINANCE&PERSONNEL I 120 115BOCCdrafiltrtoJamesTBrownF AA TRAAsalestaxe~ceptioJl 

2 

9.i'~!.!L!..§.Q 

0 F 

RECORD 

PROCEEDINGS OF THE BOARD OF COUNTY COf.1MISSIONERS 

OF SAN MIGUEL COUNTY, COLORADO 

RELATING TO THE ADOPTION OF A RESOLUTION INPOSING 

A COUNTYWIDE SALES AND USE TAX 

AND CREATING A CAPITAL IMPHOVEMENT FUND 
Colorado, met in regular session in full conformity with law and 

the rules of the County, at the County Courthouse, in Telluride, 

Colorado, on 1\\Cl'tti-tt..'j , the ;).."«. day of MCln.~ , 1987, at .. :£.._:_£Q 

!:_ .M • 

Upon roll call the following were present, constituting 

a quorum: 

Chairman: 

Commissioners: 

Also present: 

'!J;J'-'*"' ,..!COUnty Clerk 

and Recorder: 

Raymond Snyder 

Randall Higgason 

Linda Luther 

GO<\:H'Tt::y-A~r-ney-; 

Da-n--W-i-l..so-AAbsent: \Jr e..("lfnr'Y\ 0! s~d-( c-~H' r...s 

Thereupon Commissioner L ... LU\e. 't" 

a Resolution a~ follow_s_:.... __ _ 

.. ,, .. ,.,, 

- 1 -

introduced 
COUNTYWIDE USE TAX ON THE PRIVILEGE OF USING 

OR CONSUMING CONSTRUCTION AND BUILDING 

MATERIALS; THE CREA'riON OF A CAPITAL IMPROVEMENT FUND TO BE USED SOLELY TO PROVI 08 ANJJ 

FINANCE THE COST OF CAPITAL IMPROVEMENTS FOR 

THE COUNTY; THE PLEDGE TO SUCH fUND OF A 

PORTION OF' THE PROCEEDS ONLY OF THE: SALES TAX; 

AND THE SUBMISSION OF THIS RESOLUTION FOR 

APPROVAL BY THE REGISTERED ELECTORS OF THE 

COUNTY AT A SPECIAL ELECTION TO BE HELD ON 

APRIL 7, 1987. 

WHEREAS, San Miguel County, Color-ado (the 11County'1 ) 1 is 

authorized by law to impose a sales tax on the sale of tangible 

personal p~operty at retail and the furnishing of services, 

subject to approval of the registered electors of the County; and 

WHEREAS, the County is authorized by law to impose a use 

tax on the privilege of using or consuming in the County any 

construction and building materials, purchased at retail, subject 

to approval of the registered electors of the County; and 

WHEREAS, the one per-cent (1') sales and use tax of the 

county hereinafter provided, if approved and imposed, would result 

in the imposition of a total sales and use tax by the State of 

Colorado, the County, and the Town of Telluride in excess of ·the 

seven percent (7%) limitation provided by Section 29-2-108, 

Colorado Revised Statutes; and 

WHEREAS, Section 29-2-lDB, Colorado Revised Statutes, 

[)ermits the County to impose a sales and use tax at a rate not to 

exceed one percent (1%) notwithstanding that such County sales and 

use tax would result in the total sales and use tax imposed by the 

State of Colorado, the County, and any incorporated municipality 

within the County to exceed seven percent (7%); and 

WHEREAS, the registered electors of the County have not 

failed to approve a countywide sales tax, use tax, or both, at any 

- 2 -
Section 1. Definitions. For the purpose of Sections 1 

through 5, inclusive/ of this Resolution, the words therein 

contained shall have the meanings as provided in Section 39-26-

102, Colorado Revised Statutes, as it currently exists or may 

hereafter be amended, and such definitions are incorporated herein 

by specific reference. 

section 2. Sales Tax Imposed. There is hereby imposed 

and there shall be paid and collected on all sales of tangible 

personal property provided 

tax {the 

receipts. 

under this 

at retail and the furnishing of services as 

property 

in Section 39-26-104, Colorado Revised Statutes, a sales 

11 Sales equal to one percent {l%) of the gross 

taxable The tangible personal 

Resolution shall be the 

property 

same as 

and services taxable pursuant 

and services 

the tangible personal 

to Section 39-26-104, 

Colorado Revised Statutes, and subject to the same exemptions as 

those specified in Section 39-26-114, Colorado Revised Statutes, 

expressly including the exemption allowed by Section 39-26-

114(11), Colorado Revised Statutes, for purchases of machinery or 

machine tools, the exemption of sales and purchases of those items 

in Section 39-26-ll4(l)(a){XXI), Colorado Revised Statutues, and 

the exemption for sales of food specified in Section 39-26-

114{l)(a){XX), Colorado Revised Statutues. The imposition of the 

Sales Tax on individual sales shall be in accordance with the 

schedules set forth in the rules and regulations promulgated by 

the Department of Revenue of the State of Colorado {the 

"Oepartment of Revenue"). If any vendor, during any reporting 

period, shall collect as the Sales Tax an amount in excess of the 

amount of the Sales Tax imposed by this Resolution, such vendor 

shall remit to the Executive Director of the Department of Revenue 

- 3 -
p

y 

39, 

Article 26, Colorado Revised Statutes, or any municipal sales and 

use tax imposed by Title 29, Article 2, Part 1, Colorado Revised 

Statutes. 

3,2. For the purpose of this Resolution, all retail 

sales shall be considered consummated at the place of busines~ of 

the retailer unless the tangible personal property sold is 

delivered by the retailer or his agent to a destination outside 

the limits of the County or to a common carrier for delivery to a 

destination outside the limits of the County. 

3.3. The gross taxable sales shall include delivery 

charges, when such charges are subject to the state sales and use 

tax imposed by Article 26 of Title 39, Colorado Revised Statutes, 

regardless of the place to which delivery is made. 

3.4, If the retailer has no permanent place of business 

in the County 1 or has more than one place of business, the place 

or places at which the retail sales are consummated for the 

purpose of this Sales Tax shall be determined by the provisions of 

Article 26 of Title 39, Colorado Revised Statutes, and by the 

t'ules and regulations promulgated by the Department of Revenue. 

3,5, All sales of personal property on wt1ich a specific 

ownership tax has been paid or is payable shall be exempt from the 

Sales Tax when such sales meet both of the following conditions: 

(a} The purchaser is a nonresident of or has his 

principal place of business outside the County, and 

(b) Such pe~sonal p~operty is registered or required to 

be registered outside the limits of the County under laws of the 

Stat"e of Colorado. 

3.6. The Sales Tax imposed by this Resolution shall not 

apply to the sales of construction and building materials if such 

- 4 -
3.7. The Sales Tax imposed by this Resolution shall not 

apply to the sales of tangible personal property at retail or the 

furnishing of services if the transaction was previously subjected 

to a sales or use tax lawfully imposed on the purchaser or user by 

another county within the State of Colorado equal to or in excess 

of that imposed by this Resolution. A credit shall be granted 

against the Sales Tax imposed by 

such transaction equal in amount 

this Resolution with respect to 

to the lawfully imposed local 

sales or use tax previously paid by 

other county. The amount of such 

Sales Tax imposed by this Resolution. 

the purchaser 

credit shall 

or user to 

not exceed 

such 

the 

Section 4. Sales Tax Collection. The collection, 

administration, shall be 

performed by the 

and enforcement of 

E:xecutive Director 

the Sales 

in the same 

Tax 

manner as the 

collection, administration, and enforcement of the Colorado state 

sales tax. Unless othewise provided by Article 2 of Title 29, 

Colorado Revised Statutes, the of Article 26 of Title 

39 1 Colorado Revised Statutes, and all rules and regulations 

promulgated thereunder by the Executive Director shall govern the 

collection, administration, and enforcement of the Sales Tax. 

Section 5. Sales Tax Vendor 1 s Fees. The vendor, as 

collection agent for the County, shall be ent i tied to withhold an 

amount equal to three percent {3%) of the total amount to be 

remitted by the vendor to the Executive Director each month to 

cover the vendor 1 s expense in the collection and remittance of the 

Sales Tax. If any vendor is delinquent in remitting the tax, 

other than in unusual circumstances sho.,.m to the satisfaction of 

the Executive Director, the Vendor shall not be allowed to retain 

any amounts to cover his expense in collecting and remitting said 

Salea Tax, and an amount equivalent to the full amount of the 

- 5 -
therein contained shall have the meanings provided in Section 39-

26-201, Colorado Revised Statutes, as it currently exists or may 

hereafter be amended, and said definitions are incorporated herein 

by specific reference. 

Section 7. Use Tax Imposed. There is hereby imposed 

and there shall be paid and .collected a use tax (the 11 Use Tax 11 ) 

upon the privilege of using or consuming within the County any 

construction and building purchased at retail, equal to 

one percent {1%) of the retail cost thereof, Such tax shall be 

collected in accordance with the schedules set forth in the rules 

and regulations promulgated by the Department of Revenue. 

Section 8. Use Tax E:xemptions. In no event shall the 

Use Tax imposed by this Resolution extend or apply: 

(a) To the storage, use, or consumption of any tangible 

personal property the sale of which is subject to a retail sales 

tax imposed by the County; 

(b) To the storage, use, or consumption of any tangible 

personal property purchased for resale in the County, either in 

its original form or as an ingredient of a manufactured or 

compounded product, in the course of a business; 

(c) To the storage, use, or consumption of tangible 

personal property brought into the County by a nonresident thereof 

for his own storage, use, or consumption while temporarily within 

the County; provided however, that this exemption does not apply 

to the storage, use, or consumption of tangible personal property 

brought into the State of Colorado by a nonresident to be used in 

the conduct of a business in this state; 

(d) To the storage, 

personal property by the United 

Colorado, or its institutions, 

use, or consumption of tangible 

Btates government, or the State of 

or its political subdivisions in 

- 6 -
personal p

p

y 

manufacturing or compounding for sale, profit, or use any article, 

subs_tance, or commodity, which tangible personal property enters 

into the processing of or becomes an ingredient or component part 

of the product or service which is manufactured, compounded; or 

furnished and the container, label, or the furnished shipping case 

thereof: ' 

{f) To the storage, use, or consumption of any article 

of tangible personal property the sale or use of which has already 

been subjected to a legally imposed sales or use tax of another 

county within the State of Colorado equal to or in excess of that 

imposed by this Resolution. A credit shall be granted against the 

Use Tax. imposed by this Resolution with respect to a person 1 s 

storage, use 1 or consumption within the County of tangible 

personal property purchased by him in such other county. The 

amount of the credit shall be equal to the tax paid by him by 

reason of the imposition of a sales or use tax of another county 

on his purchase or use of the property. The amount of the credit 

shall not exceed the Use Tax imposed by this Resolution) 

( g l To the 

and 

storage, use, or consumption of tangible 

household effects acquired outside the personal property 

Cou_n ty and brought 

. residencyi 

into the county by a nonresident acquiring 

(h) To the use or consumption of any construction and 

building materials if a written contract for the purchase thereof 

was entered into prior to the effective date of this Use Tax~ 

(i) To the use or consumption of any construction and 

building rnaterials required or made necessary in the performance 

of any construction contract bid, let, or entered into at any time 

prior to the effective date of this Use Tax.r 

- 7 -
the Use Tax provided tor herein shall be performed by the County 

Treasurer. The Boat'd of County Commissioners shall adopt such 

rules and t:egu!ations as may be necessary or appropriate for the 

proper collection, administt'ation, and enforcement of said Use 

Tax. 

Section 10. Effect of County sales Tax and Use Ta> on 

Total Sales and Use Taxes Imposed Within the County. The 

imposition of the Sales Tax and the Use Tax at the rate of one 

percent I 1% l will result in the total sales and use tax imposed 

within the Town of Telludde by the State of Colorado, the County, 

and such municipality to exceed by one percent (1%) the seven 

percent (7%) limitation provided by Section 29-2-108, Colorado 

Revised Statutes, but will not result in such limitation being 

exceeded in any other municipality within the County. 

Section 11. Use of Revenues. 

11.1. There is hereby established a special fund of the 

COunty to be known as the 11 San Miguel County Sales Tax Capital 

Improvement Fund 11 (the 11Capital Improvement Fund"). The revenues 

specified in Section l1.2(a} hereof shall be credited to the 

Capital Improvement Fund and used solely to provide capital 

improvements or to pay debt service on bonds or other obligations 

of the County issued to provide capital improvements pursuant to 

Section 29-2-111, Colorado Revised Statutues. Moneys credited to 

the Capital Improvement l."und shall not be available to be pledged 

or expended, by interfund transfer or otherwise, for any general 

purposes of the County. 

11.2. The revenues derived from the County's Sales Tax 

and Use Tax shall be distributed and used as follows: 

(a) Upon receipt fr.om the Executive Director each 

month of the revenues derived from the County's Sales Tax, an 
Improvement Fund 

deficit shall be 

in any month shall be less than the 

added to the amount required to be deposited to 

such Fund in the following month or months until the deficiency is 

cured. 

remaining 

(b) The revenues derived from the Sales 

after ' the foregoing deposits have been made shall 

Tax 

be 

credited to the General Fund and used for such purposes as the 

Board of County Commissioners shall determine. 

{c) The revenues derived from the County 1 s Use Tax 

shall be credited to the General Fund and used for such purposes 

as the Board of County Commissioners shall determine. 

11.3, There shall be no distribution of the revenues 

derived from the County's Sales Tax and Use Tax to incorporated 

municipalities located within its boundaries. 

Section 12. Amendments. The Board of County 

Commissioners may amend, alter, delete, or change the provisions 

of this Resolution by the adoption ot an amending resolution in 

accordance with law; provided ho1vever, that the rate of the Sales 

Tax and the Use Tax provided for herein, the items taxed and 

exempted from the Sales Tax and Use Tax hereunder, and the 

distribution and use of the tax revenues provided for in Section 

11 hereof shall not be amended, altered 1 deleted, or changed 

unless first submitted to the electors of the County for their 

approval. The requirement of an approving election shall not be applicable if such amendment, alteration, deletion, or change is 

required to be made as the result of a change in fedeLal or state 

law. 

Section 13. !Uection. Before 

submit ted 

this Resolution shall become effective, it shall 

approval of a majority of the 

voting at a special election to 

be 

registered 

be held on 

- 9 -

to and receive the 

electors of the County 

Tuesday, April 7, 1987. 
1987. 

Section 15. Severability, If any provision of this 

Resolution or the application thereof to any person or 

circumstances is held invalid, such invalidity shall not affect 

other provisions or applications of the Resolution which can be 

given effect without the invalid provisions or application, an'd to 

this end the provisions of this Resolution are declared ·to be 

severable, 

Section 16. Publication. Pursuant to Sect ion 29-2.,. 

104(5) 1 Colorado Revised St9-tutues, the County Clerk and Recorder 

is directed to publish this Resolution in full four separate 

times 1 one week apart 1 in the official newspaper of the County and 

of ea·ch incorpot:'ated municipality within the County. 

ADOPTED AND APPROVED THIS ;)lld day of Ma_td\ 1 1987. 

(SEAL) 

ATTESTED; 

,~)t~ (( .,ltL-- f;:l!_,1u·.~ 

By;L/?~~11 (/ Chairman · ·• 

- 10 -

Board of County Commissioners 

San 1-liguel County, Colorado 
Resolution, the roll was called with the following result: 

Those voting YE:S: 

Randall Higgason 

Linda Luther 

Raymond Snyder 

Those vat i ng NO: __ _;fJ"'''-"''"-'"'------------------

Tho s e Absent : ____ N"""'-'":O"-'"-------------------

The Chairman thereupon declared that a majority of all 

the Commissionet:"s elected having voted in favot:" thereof, the 

motion was carried and the Resolution duly passed and adopted. 

Thet:"eupon, after consideration of other business to come 

before the Board of County Commissioners, the meeting was 

adjourned. 

(SEAL) 

'b<.j~~v{.J County Clerk and Recorder 

- 11 -
I 1 Gay Cappis, County Clerk and Recorder of San Miguel 

County, Colorado, do hereby certify that the foregoing pages 

numbered 1 to 11, inclusive, constitute a true and correct copy of 

the record of proceedings of the Board of County Commissioners 

taken at a regular meeting thereof held at the County Courthouse, 

in Telluride, Colorado, on MMtL, 7- , 1987, in~ofar 

as said proceedings relate to the passage and adoption of a 

Resolution imposing a Countywide sales and use tax; that the 

original Resolution has been duly authenticated by the signatures 

of the Chairman and myself, as County Clerk and Recorder, sealed 

with the seal of the County, and recorded in the book kept for 

that purpose in my office, which record has been duly signed by 

the said officers and sealed with the seal of the County; and that 

attached hereto are Affidavits of Publication of such Resolution 

imposing the sales and use tax as passed and adopted. 

IN WITNESS WHE:REOF', I have hereunto subscribed my name 

and affixy'd the_ seal of 

day of 6:z.g_kL.,_, 1987, 

{SCALI 

San f>liguel County, Colorado, this -3/f'?LJ 

Cou y Clerk and Recorder 

- 12 -

DE 

PROCEEDINGS Of THE BOARD Of COUNTY COMMISSIONERS 

OF SAN MIGUEL COUNTY. COLORADO 

RELATING TO TI!E ADOPTION OF A RESOLUTION 

AMENDING RESOLUTION# 1987-8 

IMPOSING A COUNTYWiDE SALES AND USE TAX 

AND CREATING A CAPITAL IMPBOVEMEN1 FUND 
regular session in full conformity with law and the rules of the County, at the County 

Courthouse, in Telluride, Colorado, on Tuesday, the 16th day of August, 1994, at 9:30a.m. 

Upon roll call the following were present, constituting a quorum: 

Chair: Leslie Sherlock 

Commissioners: Bill Wenger 

Anna Zivian 

Also present: 

Deputy Clerk: Darlene Frieman 

Cmmty Attorney: Steven J. Zwick 

Thereupon Commissioner Sherlock introduced a resolution as follows: 
THE RESOLUTlON IMPOSING A 

COUNTYWIDE SALES AND USE TAX AND 

CREATING A CAPITALIMPROVEMENTFU!\JTl 

AS APPROVED BY A VOTE OF THE 

COUNTY'S REGISTERED ELECTORS AT A 

SPECIAL ELECTION HELD ON APRIL 7, !987 

WHEREAS, pursuant to section 29-2-108, C.R.S., as amended, the Board of 

County Commissioners of San Miguel County by Resolution Number 1987- 8, duly adopted on 

March 2, 1987, approved the submjssion to the registered electors of San Miguel County for 

their approval at a special election held on April 7, 1987 of a ballot proposal concerning the 

imposition of a countywide sales and use tax on the retail sale or use of certain tangible property 

and furnishing of services, as well as tl1e creation of a capital improvement fund to be funded 

from the revenues generated by such sales and use tax, and authorizing the pledge of the 

revenues in such capital improvement fund to finance the cost of county capital improvements; 

and 

WHEREAS; Resolution 1987- 8 specified at Section 11. Use of Revenues how 

the revenues generated by the proposed sales and use tax would be allocated between the San 

Miguel County Sales Tax Capital Improvement Fund and the County General Fund. Section 

11.2 of the Resolution specified that from the monthly County Sales Tax revenues an amount 

eqtJal to the greater of $15,000 or two-thirds (2/3) of the revenues received shali be deposited 

to the County's Capital Improvement Fund to be used solely for authorized fund purposes; the 

remainder of the county sales and use tax revenues received to be deposited and credited to tile 

County General Fond and used for such purposes as the Board of County Commissioners shall 

determine; Section 12. Amendments mandates that "the distribution and use of the tax revenues 

provided for in Section 11 hereof shall be not amended, altered, deleted, or changed unless first 

submitted to the electors of the County for their approval"; and 

WHEREAS, a majority of the registered electors of San Miguel County, 

Colorado, voting at the special election on April 7, 1987 concerning the adoption of a 

Countywide Sales and Use Tax and the creation of a Sales Tax Capital Improvement Fund votf' .. d 

to approve the ballot question, and the provisions of Resolution 1987 - 8 have been in effect 

since July I, 1987; and 

WHEREAS, the costs associated with the of San Miguel Colmty 

prisoners have steadily increased over the past several years at a rate than that al '"hicb 

the County may increase its property tax revenue:'l under the Colomdo Constitution to fund sur·h 

expenditures and it appears that this spending trend will cr:ntinue for the foreseeable future; and 
WHEREAS, pursuant to Section 1-1-11 0(3), C. R.S., as amended, the Board of 

County Commissioners must certirv the ballot contents regarding county issnes to be submilted 

for voter approval to the San Miguel Cow1ty Clerk and Recorder prior to the fifty-fifth day 

before the November 8, 1994 election; and 

WHEREAS, Tilere are currently no County Sales Tax Capital Improvement Ft1ncl 

special revenue debt outstanding for which the County's debt service obligations would be 

adversely affected by voter approval of an amendment to the Countywide Sales and Use Tax 

Resolution, Number J 987 - 8 changing the allocation of County Sales and Use Tax revenues 

received by decreasing the amount of such revenues deposited in the County's Sales Tax Capital 

improvement Fund from two-thirds (2/3) to one-!lalf (1/2) of the revenues received; and 

WHEREAS, in the opinion of the San Migue1 County Attorney the provisions of 

Section 20 of Article X of the Colorado Constitution (TABOR), do not apply to this proposed 

amendment to the County's adopted Sales and Use Tax Resolution, Number 1987- 8, since the 

proposed amendment is not a ne.w tax, tax rate increase, mill levy above that for the prior year, 

valuation for asse:;srnent ratio increase for a property class, or extension of an expiring tax, or 

a tax policy change directly causing a net tax revenue gain to any district, nor does it create any 

multiple-year direct or indirect district debt or other financial obligation whatsoever without 

adequate cash reserves pledged irrevocable and held for payments in all future years, for which 

voter approval is required; and 

WHEREAS, the Board of County Commissioners has reviewed the proposed 

ballot question, as set forth hereinbelow, to be considered at the November 8, 1994 general 

election and has determined that the health, safety, and welfare of the residents of San Miguel 

County and the public will be served if said ballot question is submitted to the county's 

registered electors in order that sufficient sales tax revenues may be allocated to the County's 

General Fund in the year 1995 and thereafter to be budgeted and appropriated for those costs 

associated with the incarceration of county prisoners in the year 1995 and thereafter until and 

unless repealed at an election by a majority of the registered electors of San Miguel County 

voting thereon. 

NOW, THEREFORE, BE IT RESOLVED, by tlie Board of County 

Commissioners of San Miguel County, Colo1ado, as follows: 

J. Stlbject to the approval of the majority of registered ekctors of San Miguel 

County, Colorado, voting on the question at the general election scheduled to be held on 
revenues derived from the County

s Sales Tax, an amount equal 

to the greater of $10,000 or one~half (1/2) of such revenues shall 

be deposited to the Capital Improvement Fund and used solely for 

the purposes for which such Fund may be used; provided however, 

that if the amount deposited to the Capital Improvement Fund in 

ar.y month shall be less than $10,000, the deficit shall be added to 

the amount required to be deposited to such Fund in the following 

month or months until the deficiency is cured. 

(b) The revenues derive-d from the Sales Tax remaining after the 

foregoing deposits have been made shall be credited to the General 

Fund and used for such purpose.s as the Board of County 

Commissioners shall de.termine, subject however to the limitation 

that the first $15,000 of such revenues shaH be budgeted, 

appropriatec! and spent solely for the purpose of funding those 

costs associated with the incarceration of San Miguel Cmmty 

prisoners. 

(c) The revenues derived from the County's Use Tax shall be 

credited to the General Fund and used for such purposes as the 

Board of County Commissioners shall determine. 

2. The Board of County Commissioners of San Miguel County, State of Colorado 

do hereby certify to the San Miguel County Clerk and Reeorder the following question be placed 

on the November 8, 1994 general election ballot: 

SHALL SAN MIGUEL COUNTY BOARD OF 

COMMISSIONERS RESOLUTION 1987 - 8, A RESOLUTION 

CONCERNING THE IMPOSITION OF A COUNTYWIDE 

SALES AND USE TAX AND THE CREATION OF A CAPITAL 

IMPROVEMENT FUND BE AMENDED AT SECTION 11. Use 

of Revenue$_ to require that fifty percent of such sales and use tax 

revenues received shall be deposited in the Sales Tax Capital 

Improvement Fund and the remaining fifty percent of such sales 

anc! use tax.revenues received shall be deposited in the County's 

Geneml Fund, subject to the limitation that the first $15,000 of 

such monthly revenues, $1.80,000 annually, shall be budgeted and 

appropriated solely for l.he puqmse of funding thc·~e costs 

associated with the incarceration of San Miguel Connty Pri~;oner.s? 

YES NO 

-4-
voting on said question, cast their votes in favor of the baliot question set forth hereinabove said 

Amendment to the County's Sales and Use Tax Resolution, Number 1987 8, shall become 

legally effective as to those County Sales and Use Tax revenues collected and received on 

January I, 1995 and thereafte.r, until and unless repealed as provided for in Board of County 

Commissioner's Resolution 1987 - 8. 

(SEAL) 

ADOPTED AND APPROVED this of _{],_,(JV5t__, 1994. 

By: 

Chair 

Board of County Commissioners 

San Miguel County 

-5·· 
called with the follmving result: 

Those voting YES: Leslie Sherlock 

Bill Wenger 

Anna Zivian 

Those voting NO: None 

The Chairman thereupon declared that a majority of ali the Commissioners elected 

having voted in favor thereof, the motion was carried, and the Resolution duly passed and 

adopted. 

Thereupon, after consideration of other business to come before the Board of 

County Commissioners, the meeting was adjourned. 

(SEAL) 

-6-
, 

y 

pp

, 

y 

g

y, 

, 

hereby certify thar the foregoing pages numbered 1 to 6, inclusive, consitute a true and correct 

copy of the re.cord of proceedings of the Board of County Commissioners taken at a regular 

meeting thereof held at the County Courthouse, in Telluridr., Colorado, on August 16, 1994, 

insofar as said proceedings relate to the passage and adoption of a Resolution imposir1g a 

Countywide sales and use tax; that the original Resolution has been duly authenlicated by the 

signatures of the Chair and myseif, as COlmty Clerk and Recorder, se..1.led with the seal of the 

County, and recorded in the book kept for that purpose in my office, which record has been duly 

signed by the said officers and sealed with the seal of the Com1ty; and that attached hereto are 

t.ftidavits of rublication of such Resolution imposing the sales and use lax as passed and 

adopted. 

IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the 

seal of San Miguel County, Colorado, this __ day of ______ , 1994. 

(SEAL) 

County Clerk and Recorder 
1. 29-2-101. Legislative declaration 

Client/Matter: -None2. 29-2-102. Municipal sales or use tax- referendum Client/Matter: -None3. 29-2-103. Countvwide sales or use tax - multip/e-countv municipality excepted 

Client/Matter: -None4. 29-2-104. Adoption procedures Client/Matter: -None5. 29-2-105. Contents of sales tax ordinances and proposals - repeal Client/Matter: -None6. 29-2-106. Col!ection- administration- enforcement Client/Matter: -None7. 29-2-111. Pledging of sales and use tax for capital improvements Client/Matter: -None-

.. l.exiSNeriS"' I About LexisNexis I Privacy Policy I Terms & Conditions I Copyright© 2015 1 LexisNexis. 

Steven Zwick 
29·2·1 01. Legislative declaration 

The general assembly hereby declares that the imposition of sales or use taxes, or both, by counties, cities, and 

incorporated towns in this state affects the flow of commerce within this state and the welfare of the people of this 

state. The purpose of the general assembly in the enactment of this article is to provide a higher degree of 

uniformity in any sales taxes imposed by such entities. 

History 

Source: 

L. 67: p. 660, § 1. C.R.S. 1963: § 138-10-1.L. 73: p. 1477, § 1.L. 75: Entire section amended, p. 961, § 1, effective 

July 14. 

Annotations 

Notes 

Law reviews: For article, "Local Government Sales and Use Taxes", see 40 Colo. Law. 61 (July 2011 ). 

Case Notes 

ANNOTATION 

State's interest in uniformity does not outweigh the home rule city's interest in preventing tax avoidance. Where a 

home rule city's excise tax is intended to collect only the difference between what it would have collected in sales 

tax had the purchase been made locally and any sales or use tax previously paid to another municipality, the 

state's interest in uniformity does not outweigh the home rule city's interest in preventing tax avoidance by 

purchasing outside of the city llmits. Winslow Gonstr. Go. v. City County of Denver. 960 P2d 685 (Colo. 1998). 

Applied in 

Deluxe Theatres. Inc. v. Citv of Englewood. 198 Colo. 85. 596 P.2d 771 (1979). 

COLORADO REVISED STATUTES 

Steven Zwick 
29

2

102. Municipal sales or use tax

referendum 

{1) Any incorporated town or city in this state may adopt a municipal sales or use tax, or both, by ordinance in 

accordance with the provisions of this article, but only if the ordinance provides for the submission of the tax 

proposal to an election by the registered electors of the town or city for their approval or rejection at a 

regular municipal election or at a special election called for the purpose if no regular municipal election will 

be held within ninety days after the adoption of the ordinance. The election shall be conducted in the 

manner provided in the "Colorado Municipal Election Code of 1965", article 10 of title 31, C.R.S. 

(2) (a) No incorporated town or city shall adopt a sales or use tax ordinance pursuant to subsection (1) of this 

section on or after the date of the adoption of a resolution for a countywide sales tax, use tax, or both by the 

board of county commissioners of the county in which all or any portion of the town or city is located until 

after the date of the election on the county proposal. 

(b) Paragraph (a) of this subsection (2) shall not apply to any incorporated town or city that has been 

incorporated for less than five years as of the date of adoption of the sales or use tax ordinance. 

(c) Nothing in this article shall preclude the initiation of a sales or use tax proposal by the registered 

electors of any incorporated town or city pursuant to section 31-11-104 C.R.S. 

History 

Source: 

L. 67: p. 660, § 2. C.R.S. 1963: § 138-1 0-2.L. 73: p. 1477, § 2.L. 75: Entire section amended, p. 961, § 2, effective 

July 14.L. 79: Entire section amended, p. 1126, § 1, effective April 25.L. 87: Entire section amended, p. 322, § 67, 

effective July 1.L. 93: Entire section amended, p. 697, § 4, effective May 4.L. 95: Entire section amended, p. 440, 

§ 25, effective May 8.L. 2003: Entire section amended, p. 2581, § 1, effective June 5. 

COLORADO REVISED STATUTES 

Steven Zwick 
29-2-103. Countywide sales or use tax - multiple-county municipality 

excepted 

(1) Each county in this state is authorized to levy a county sales tax, use tax, or both in accordance with the 

provisions of this article. No proposal for a county sales tax, use tax, or both shall become effective until 

approved by a majority of the registered electors of the county voting on such proposal pursuant to section 

Such a proposal for a sales tax, use tax, or both, upon approval by a majority of the registered 

electors voting thereon, shall be effective throughout the incorporated and unincorporated portions of the 

county except when less than countywide application is authorized pursuant to subsection (2) of this 

section. 

(2) A county may levy a sales tax, use tax, or both, in whole or in part, in less than the entire county when the 

following conditions are met: 

(a) (Deleted by amendment, L. 2008, p. 990, § 4, effective August 5, 2008.) 

(b) The area to be excluded from the tax levy is comprised solely of a portion of a municipality whose 

boundaries are located in more than one county; and 

(c) All other counties in which a portion of the municipality described in paragraph (b) of this subsection (2) 

is located have agreed to provide fair compensation to the county for any services extended to such 

municipality as a result of revenues derived from the county tax levy from which the municipality is 

excluded. 

(3) The approval provisions of subsection (1) of this section, the restrictions on contents of sales or use tax 

proposals set forth in section 29-2-105, and the collection procedures of section 29-2-106 shall apply to 

county sales or use taxes or both levied pursuant to subsection (2) of this section. 

History 

Source: 

L. 67: p. 660, § 3. C.R.S. 1963: § 138-10-3.l. 75: Entire section amended, p. 962, § 3, effective July 14.L. 79: Entire 

section amended, p. 1126, § 2, effective April 25.L. 85: Entire section amended, p. 1028, § 1, effective May 2.L. 

2008: (2)(a) and (2)(b) amended, p. 990, § 4, effective August 5. 

Annotations 

Case Notes 

ANNOTATION 

Law reviews. For article, "Colorado Sales and Use Tax Consequences in Sates of Businesses", see 11 Colo. Law. 

679 (1982). 

COLORADO REVISED STATUTES 

Steven Zwick 
29-2-104. Adoption procedures 

(1) A proposal for a countywide sales tax, use tax, or both shall be referred to the registered electors of the 

county either by resolution of the board of county commissioners or by petition initiated and signed by five 

percent of the registered electors of the county. The right of petition allowed pursuant to this subsection (1) 

shall extend only to the initial proposal of a tax and shall not extend to the extension of an expiring tax, use 

of tax revenues, or changes in distribution of tax revenues among local governments. 

(2) Such proposal shall contain a description of the tax in accordance with the provisions of this article and 

shall make provision for any distribution of revenue collections between the county and the incorporated 

cities and towns within the county. Such proposal shall also state the amount of tax to be imposed. Unless 

otherwise agreed to by the governing bodies of the county and municipalities within the county, any use tax 

proceeds shall be distributed among such county and municipalities in the same proportion as the sales tax 

proceeds distributed to each jurisdiction. 

(3) A proposal for a countywide sales tax, use tax, or both, by resolution of the board of county commissioners, 

shall be submitted at the next regular general election if there Is one within the next succeeding one 

hundred twenty days after the adoption of such resolution. If no general election is scheduled within such 

time, the board of county commissioners, in its resolution, shall submit the same to the registered electors 

of the county at a special election called for the purpose, to be held not less than thirty days nor more than 

ninety days after the adoption of such resolution. 

(4) Upon being presented with a petition requesting a proposal for a countywide sales tax, use tax, or both 

signed by five percent of the registered electors of the county, the board of county commissioners shall, 

upon certification of the signatures on the petition, submit such proposal to the registered electors of the 

county. The proposal shall be submitted at the next general election if there is one within one hundred 

twenty days of the filing of the petition. If no general election is scheduled within one hundred twenty days 

following the date of filing of the petition, the board of county commissioners shall submit such proposal at 

a special election called not less than thirty days nor more than ninety days from the date of filing of the 

petition. 

{5) Upon the adoption of a resolution by the board of county commissioners as provided in subsection (3) of 

this section or upon the filing of a proper petition as provided in subsection (4) of this section, the county 

clerk and recorder shall publish the text of such proposal for a sales tax, use tax, or both four separate 

times, a week apart, in the official newspaper of the county and each city and incorporated town within the 

county. The cost of the election shall be paid from the general fund of the county. The conduct of the election 

shall conform, so far as practicable, to the general election laws of the state. 

(6) If approved by a majority of the registered electors voting thereon, the countywide sales tax, use tax, or 

both shall become effective as provided by section (2). 

{7) If a majority of the registered electors voting thereon fail to approve the countywide sales tax, use tax, or 

both at any election, the question shall not be submitted again to the registered electors for a period of one 

year three hundred fifty days. 

Steven Zwick 
Annotations 

Case Notes 

ANNOTATION 

Prior to the submission of a proposal initiated pursuant to subsection (1) to the electorate, a county has a 

discretionary duty to review the proposal for compliance with the procedural requirements of the county sales tax 

act and a court has jurisdiction to detennine whether such an initiative complies with those procedural requirements. 

In contrast to a municipal or statewide initiative explicitly allowed by the Colorado Constitution, a statutorily 

authorized county initiative is limited and defined by the procedural and substantive provisions of the authorizing 

statute and the exercise of the statutory power of the initiative must comply with that statute. Bd. of Countv 

Comm'rs v. Countv Road Users Ass'n, 11 P.3d 432 (Colo. 2000). 

Writ of mandamus ordering a county to submit a proposal initiated pursuant to subsection (1) to the electorate was 

inappropriate where the proposal failed to comply with the procedural requirements of the county sales tax act. Bd. 

of County Comm'rs v. County Road Users Ass'n. 11 P.3d 432 (Colo. 2000!. 

Distribution to all municipalities within a county is not required by subsection (2). Orchard City v. Delta County 

Comm'rs, 751 P.2d 1003 (Colo. 1988). 

Any distribution of sales tax revenue by a county may not arbitrarily exclude an incorporated municipality within the 

county. Orchard Citv v. Delta County Comm'rs. 751 P.2d 1003 (Colo. 19881. 

COLORADO REVISED STATUTES 

Steven Zwick 
(1) The sales tax ordinance or proposal of any incorporated town, city, or county adopted pursuant to this 

article shall be imposed on the sale of tangible personal property at retail or the furnishing of services, as 

provided in paragraph (d) of this subsection (1). Any countywide or incorporated town or city sales tax 

ordinance or proposal shall include the following provisions: 

(a) A provision imposing a tax on the sale of tangible personal property at retail or the furnishing of 

services, as provided in paragraph (d) of this subsection (1); 

(b) A provision that, for the purpose of the sales tax ordinance or proposal enacted in accordance with this 

article, all retail sales are consummated at the place of business of the retailer unless the tangible 

personal property sold is delivered by the retailer or his agent to a destination outside the limits of the 

local taxing entity or to a common carrier for delivery to a destination outside the limits of the 

incorporated town, city, or county. The gross receipts from such sales shall include delivery charges 

when such charges are subject to the state sales and use tax imposed by article 26 of title 39, C.R.S., 

regardless of the place to which delivery is made. If a retailer has no permanent place of business in 

such incorporated town, city, or county, or has more than one place of business, the place at which the 

retail sales are consummated for the purpose of a sales tax imposed by ordinance pursuant to this 

article shall be determined by the provisions of article 26 of title 39, C.R.S., and by rules and 

regulations promulgated by the department of revenue. 

(c) A provision that the amount subject to tax shall not include the amount of any sales or use tax imposed 

by article 26 of title 39, C.R.S.; 

(d) (!)A provision that the sale of tangible personal property and services taxable pursuant to this article 

shall be the same as the sale of tangible personal property and services taxable pursuant to section 

39-26-104 C.R.S., except as otherwise provided in this paragraph (d). The sale of tangible personal 

property and services taxable pursuant to this article shall be subject to the same sales tax exemptions 

as those specified in part 7 of article 26 of title 39, C.R.S.; except that the sale of the following may be 

exempted from a town, city, or county sales tax only by the express inclusion of the exemption either 

at the time of adoption of the initial sales tax ordinance or resolution or by amendment thereto: 

(A) The exemption for sales of machinery or machine tools specified in section 39-26-709 (1), C.R.S.; 

(B) The exemption for sales of electricity, coal, wood, gas, fuel oil, or coke specified in section 

39·26-715 (1) (a) {II), C.R.S.; 

(C) The exemption for sales offood specified in section 39-26-707 (1l (e), C.R.S.; 

(D) The exemption for vending machine sales offood specified in section 39-26-714 (2), C.R.S.; 

(E) The exemption for sales by a charitable specified in section 39-26-718 (11 (b), 

C.R.S.; 

(F) The exemption for sales of farm equipment and farm equipment under lease or contract specified 

in section 39-26-716 (2) (b) and (2) (c), C.R.S.; 

(G) The exemption for sales of low-emitting motor vehicles, power sources, or parts used for 

converting such power sources as specified in section 39-26-719 (1), G.R.$.; 

(H) Repealed. 

Steven Zwick 
(K) The exemption for sales that benefit a Colorado school specified in section 39-26-725 C.R.S.; (L) The exemption for sales by an association or organization of parents and teachers of public 

school students that is a charitable organization as specified in section 39-26-718 (1) (c), C.R.S.; 

(M) The exemption for sales of property for use in space flight specified in section 39-26-728. C.R.S.; 

and 

(N) The exemption for sales of components used in biogas production systems specified in section 

39-26-724 (1) (c), C.R.S. This sub-subparagraph (N} is repealed, effective July 1, 2019. 

(II) Repealed. (Ill) Jn the absence of an express provision for any exemption specified in subparagraph (I) of this 

paragraph (d), all sales tax ordinances and resolutions shall be construed as imposing or 

continuing to impose the town, city, or county sales tax on such items. 

(e) A provision that all sales of personal property on which a specific ownership tax has been paid or is 

payable shall be exempt from said county, town, or city sales tax when such sales meet both of the 

following conditions: 

(I) The purchaser is a nonresident of or has his principal place of business outside of the local taxing 

entity; and 

(II) Such personal property is registered or required to be registered outside the limits of the local 

taxing entity under the laws of this state. 

(f) Repealed. 

{1.5) {a} All sales tax ordinances or resolutions adopted by a county, town, or city prior to, on, or after August 

1, 2002, that impose a sales tax pursuant to section 39-26-104 (1) (c), C.R.S., on a mobile 

telecommunications service shall impose such tax in accordance with the provisions of the act, and, 

pursuant to section 117 (b) of the act, mobile telecommunications service taxable by the county, town, or 

city on or after August 1, 2002, may be subject to any sales tax or other charge imposed by said entity on 

the service only if the customer's place of primary use is within the geographical boundaries of the entity. 

(b) As used in this subsection (1.5), unless the context otherwise requires: 

(I) "Act" means the federal "Mobile Telecommunications Sourcing Act", 4 U.S.C. sees. 116 to 126, as 

amended. 

(II) "Customer" means customer as defined in section 124 (2} of the act. 

(Ill) "Mobile telecommunications service" means mobile telecommunications service as defined in 

section 124 (7) of the act. 

(IV) "Place of primary use" means the place of primary use as defined in section 124 (8} of the act. 

(2) No sales tax of any statutory or home rule city, town, city and county, or county shall apply to the sale of 

construction and building materials, as the term is used in section 29-2-109, if such materials are picked up 

by the purchaser and if the purchaser of such materials presents to the retailer a building permit or other 

documentation acceptable to such local government evidencing that a local use tax has been paid or is 

required to be paid. 

Steven Zwick 
(4) No sales tax of any statutory or home rule city and county, city, or town shall apply to the sale of tangible 

personal property at retail or the furnishing of services if the transaction was previously subjected to a sales 

or use tax lawfully imposed on the purchaser or user by another statutory or home rule city and county, city, or town equal to or in excess of that sought to be imposed by the subsequent statutory or home rule city and 

county, city, or town. A credit shall be granted against the sales tax imposed by the subsequent statutory or 

home rule city and county, city, or town with respect to such transaction equal in amount to the lawfully 

imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home 

rule city and county, city, or town. The amount of the credit shall not exceed the sales tax imposed by the 

subsequent statutory or home rule city and county, city, or town. 

(5) The following provision shall apply in defining the applicability of its higher rate to the sales tax ordinance 

or resolution of any statutory or home rule city, town, city and county, or county which provides a higher rate of taxation on prepared food or food for immediate consumption than its general rate of taxation: Prepared 

food or food for immediate consumption shall exclude any food for domestic home consumption. 

(6) No sales or use tax of any statutory or home rule city, town, city and county, or county shall apply to the sale 

of food purchased with food stamps. For the purposes of this subsection (6), "food" shall have the same 

meaning as provided in 7 U.S.C. sec. 2012 (g), as such section exists on October 1, 1987, or is thereafter 

amended. 

(7) No sales or use tax of any statutory or home rule city, town, city and county, or county shall apply to the sale 

of food purchased with funds provided by the special supplemental food program for women, infants, and 

children, 42 U.S.C. sec. 1786. For the purposes of this subsection (7), "food" shall have the same meaning 

as provided in 42 U.S.C. sec. 1786, as such section exists on October 1, 1987, oris thereafter amended. 

(B) Any statutory or home rule city, town, city and county, or county which provides an exemption for the sale 

offood shall define "food" as defined in section 39-26-102 (4.5). C.R.S. 

(9) Notwithstanding any provision of this section to the contrary, sales of cigarettes shall be exempt from a 

town, city, county, or city and county sales tax that is created pursuant to the authority set forth in this article. 

(10) (a) Notwithstanding any provision of this section to the contrary, and except as provided in paragraph (b) 

of this subsection (10), a town, city, or county may exempt from its sales tax sales to a telecommunications 

provider of equipment used directly in the provision of telephone service, cable television service, 

broadband communications service, or mobile telecommunications service. 

{b} A town, city, or county may not adopt a sales tax exemption pursuant to the authority set forth in 

paragraph (a) of this subsection (10) unless the exemption applies in a uniform and nondiscriminatory 

manner to the telecommunications providers of telephone service, cable television service, broadband 

communications service, and mobile telecommunications service. 

History 

Source: 

L. 67: p. 661, § 5. C.R.S. 1963: § 138-10-S.L. 69: pp. 1145, 1146, § § 1, 1.L. 73: p. 242, § 26.L. 77: (1 )(b) amended, 

p. 1398, § 1, effective July 1.L. 79: (1 )(d) amended, p. 1429, § 13, effective July 3.L. 80: (1 )(d) amended, p. 684, 

Steven Zwick 
p

53, § 3, e

ect

e 

p

; (

)(

) a

e

ded, p

036, § 8

, e

ect

e Ju

e 

00

(

){d) a

e

ded, p

036, § 

3, effective July 1.L. 2008: (1 )(d) R&RE, p. 1321, § 5, effective May 27; (1 )(d) R&RE, p. 1545, § 3, effective May 

28; (1 )(d) R&RE, p. 967, § 1, effective August 5; (1)(f) repealed, p. 991, § 9, effective AugustS; (1)(d) R&RE, p. 971, 

§ 1, effective September 1.L. 2009: (1)(d)(I)(J) amended, (HB 09-1126), ch. 254. p. 1149, § 4, effective May 15; (9) 

added, (HB 09-1342), ch. 354, p. 1847, § 3, effective July 1.L. 2011: (1)(d)(ll)repealed, (SB 11-1781. ch. 216, p. 

945, § 1, effective August 1 0; (10) added, (HB 11-1109), ch. 221. p. 954, § 1, effective August 10.L. 2012: (1)(d)(l)(l) 

amended, (HB 12-1045), ch. 191, p, 765. § 2, effective May 21; (1)(d)(I)(H) amended, (HB 12-1037!. ch. 251, p. 

1247, § 1, effective June 4.L. 2014: (1)(d)(I)(N) added, (HB 14-1159), ch. 229, p. 852. § 2, effective May 17; 

(1 )(d)(I)(K) and (1)(d)(I)(L) amended and (1 )(d)(I)(M) added, (HB 14-1178), ch. 234. p. 867, § 3, effective May 20. 

Annotations 

Notes 

Editor's note: (1 )Amendments to subsection (1 )(d) by House Bill 99-1002, House Bill99-1015, House Bill99-1271, 

and House were harmonized. 

(2) Amendments to subsection (1 )(d) by House Bill 08-1269, House Bill 08-1013, House Bill 08-1358, and House 

Bill 08-1368 were harmonized. 

(3) Subsection (1 )(d)(I)(H) provided for the repeal of subsection (1 )(d)(I)(H), effective June 30, 2013. 

Cross references: (1) For the legislative declaration contained in the 1999 act amending subsection {1 )(d), see 

section 1 of chapter 318, Session Laws of Colorado 1999. 

(2) For the legislative declaration contained in the 2002 act enacting subsection (1.5), see section 1 of chapter 92, 

Session Laws of Colorado 2002. 

(3) For the legislative declaration contained in the 2008 act amending subsection (1 )(d), see section 1 of chapter 

332, Session Laws of Colorado 2008. 

(4) For the legislative intent contained in the 2008 act amending subsection (1)(d), see section 9 of chapter 302, 

Session Laws of Colorado 2008. 

(5) For the legislative declaration contained in the 2009 act amending subsection (1 )(d)(I)(J), see section 1 of 

chapter 254, Session Laws of Colorado 2009. 

(6) For the legislative declaration in HB 14-1178, see section 1 of chapter 234, Session Laws of Colorado 2014. 

Case Notes 

ANNOTATION 

Prior to the submission of a proposal initiated pursuant to subsection (1) to the electorate, a county has a 

discretionary duty to review the proposal for compliance with the procedural requirements of the county sales tax 

Steven Zwick 
of County Comm'rs v. Countv Road Users Ass'n. 11 P3d 432 {Colo. 20001. 

Applicability of use tax to ratable aircraft parts held constitutional and not violative of the commerce clause of the 

federal constitution. United Air Lines. Inc. v. City and County of Denver. 973 P2d 647 (Colo. App. 1998/. 

This section cannot be extended by statutory construction to allow the regional transportation district to impose 

sales or use tax on transactions exempt from state taxation other than transactions exempted from state taxation 

pursuant to§ 39-26-114 f11)(d). Ball Com. v. Fisher, 51 P3d 1053 (Colo. App. 2001). 

Applied in 

Associated Drv Goods Com. v. City of Arvada. 197 Colo. 491. 593 P.2d 1375 (1979). 

COLORADO REVISED STATUTES 

Steven Zwick 
29-2-106. Collection -administration -enforcement 

(1) The collection, administration, and enforcement of any countywide or any city or town sales tax adopted 

pursuant to this article shall be performed by the executive director of the department of revenue in the 

same manner as the collection, administration, and enforcement of the Colorado state sales tax. Unless 

otherwise provided in this article, the provisions of article 26 of title 39, C.R.S., shall govern the coltection, 

administration, and enforcement of sales taxes authorized under this article. In collecting, administering, 

and enforcing a sales tax authorized under this article, the state sales tax authorized under part 1 of article 

26 of title 39, C.R.S., or any other sales tax imposed within the boundaries of a county, the executive 

director of the department of revenue may enter into an intergovernmental agreement with a county 

pursuantto the provisions of section 39-26·122.5. C.R. S., to enhance systemic efficiencies in the collection 

of such taxes. 

(2) The effective date of any countywide sales tax or city or town sales tax adopted under the provisions of this 

article shall be either January 1 or July 1 following the date of the election in which such county sales tax 

proposal is approved; and notice of the adoption of any county sales tax proposal shall be submitted by the 

county clerk and recorder or by the clerk of the city council or board of trustees of a city or town to the 

executive director of the department of revenue at least forty"five days prior to the effective date of such tax. 

If such a sales tax proposal is approved at an election held less than forty-five days prior to the Janual)' 1 

or July 1 following the date of election, such tax shall not be effective until the next succeeding January 1 or July 1. 

Editor's note: This version of subsection (2) is effective until (see editor's note following this section). 

(2) The effective date of any countywide sales tax or city or town sales tax adopted under the provisions of this 

article shall be as set forth in section 39"26-104 (2) (c), C.R.S. 

Editor's note: This version of subsection (2) is effective (see editor's note following this section). 

(3) (a) The executive director of the department of revenue shall, at no charge, except as provided in 

paragraph (b) of this subsection (3), administer, collect, and distribute any sales tax imposed in conformity 

with this article. The executive director shall make monthly distributions of sales lax collections to the 

appropriate official in each county and in each incorporated city or town in the amount determined under the 

distribution formula established in accordance with this article. Except as provided in section 39"26"208 

C.R.S., any use tax imposed pursuant to section 29-2-109 shall be collected, administered, and enforced 

by the city, town, or county as provided by ordinance or resolution. 

(b) The executive director is hereby authorized to contract and enter into agreements with the county clerk 

and recorder and municipalities for the collection of state, county, and city or town use taxes upon 

motor vehicles, and the county clerk and recorder may charge and retain a fee as the director may 

approve to fully cover the cost of such collection by the county clerk and recorder. 

(c) 

(I) A qualified purchaser may provide a direct payment permit number issued pursuant to section 

39-26-103.5 CR.S., to any vendor or retailer that is liable and responsible for collecting and 

remitting any countywide sales tax or city or town sales tax imposed on any sale made to the 

qualified purchaser pursuant to the provisions of this article. A vendor or retailer that has received 

Steven Zwick 
{4) (a) (I) The executive director of the department of revenue shall, at no charge, administer, collect, and 

distribute the sales tax of any home rule municipality upon request of the governing body of such 

municipality: 

(A) If the provisions of the sales tax ordinance of said municipality, other than those provisions relating to 

local procedures followed in adopting the ordinance, correspond to the requirements of this article for 

sales taxes imposed by counties, towns, and cities; 

(B) If no use tax is to be collected by the department of revenue except as provided in section 39-26-208, 

C.R.S.; and 

{C) Whether or not the ordinance applies the sales tax to the exemptions listed in section 29-2-105 (1) (d) 

ill 

(II) When the governing body of any home rule municipality requests the department of revenue to 

administer, collect, and distribute the sales tax of said municipality as specified in subparagraph 

(I) of this paragraph (a), said governing body shall certify to the executive director of the 

department a true copy of the home rule municipality's sales tax ordinance. 

(b) The executive director of the department of revenue shall furnish the governing body of each 

municipality and county a monthly listing of all returns filed by the retailers in such municipality 

or county. The governing body of such municipality or county shall notify the executive 

director of the department of revenue of any retailers omitted from this listing as soon as 

practicable, but in no event more than one hundred eighty days after receiving said monthly 

listing. Failure of the governing body of such municipality or county to notify the executive 

director of the department of revenue of any omitted retailers, within such period, shall 

preclude the municipality or county from making any further claims based upon such 

omissions. Neither the executive director of the department of revenue nor any municipality 

or county shall be held liable for any omissions which have not been called to the executive 

director's attention within this period. 

(c) 

(I) Notwithstanding the provisions of section 39-21-113 C.R.S., the executive director of 

the department of revenue shall report monthly to each municipality and county for which 

the department of revenue collects a sales tax information identifying licensed vendors 

within the municipality or county and, where the chief administrative officer or his 

designee has executed a memorandum of understanding with the department of 

revenue providing for control of confidential data, the status of each vendor's account 

including the amount of such municipality's or county's sales tax collected and paid by 

each such vendor. The executive director of the department may, in his discretion, 

provide additional information to a municipality or county concerning collection and 

administration of such municipality's or county's sales tax if such a memorandum has 

been executed. 

{II) Except in accordance with judicial order or as otherwise provided by law, no official or 

employee of a municipality or county receiving sales tax information from the department 

of revenue pursuant to this paragraph (c) shall divulge or make known to any person not 

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or proceeding. Any municipal or county official or employee who willfully violates any of 

the provisions of this paragraph (c) is guilty of a misdemeanor and, upon conviction 

thereof, shall be punished by a fine of not more than one thousand dollars and shall be 

dismissed from office. 

(5) The executive director of the department of revenue may promulgate rules and regulations to carry out the 

provisions of this article. 

(6) The executive director of the department of revenue may, in his discretion, exchange information with the 

proper official of any home rule city which imposes a sales and use tax relative to gross sales reported, 

changes in gross sales resulting from audits, and other information concerning licensed vendors within the 

jurisdiction of the home rule city. 

(7) For the purpose of the administration by the state of the provisions of this article, as well as any other state 

or federal program, each county, home rule county, statutory town or city, home rule town or city, city and 

county, or territorial charter town or city shall file, pursuant to section 29-2-110, with the executive director 

of the department of revenue a copy of each sales or use tax ordinance or resolution, or any amendment 

thereto, no later than ten days after the effective date thereof. A copy of any sales or use tax ordinance or 

resolution in effect on March 11, 1982, shall be filed no tater than July 1, 1982. The failure to file a copy of 

any such ordinance or resolution shall not give rise to any claim for refund by any taxpayer, other than for 

overpayment which is determined to be allowable under such ordinance or resolution. 

(8) Uniform collection procedures. Each home rule city, town, and city and county shall follow, and conform its 

ordinances where necessary to, the statute of limitations applicable to the enforcement of state sales and 

use tax collections, the statute of limitations applicable to refunds of state sales and use taxes, the amount 

of penalties and interest payable on delinquent remittances of state sales and use taxes, and the posting 

of bonds pursuant to section 39-21-105 (4), C.R.S. 

(9) Standard sales and use tax reporting form. (a) The executive director of the department of revenue shall 

adopt, by regulation, a standard municipal sales and use tax reporting form. Such form shall be separate 

from the state form and shall be the only sales and use tax reporting fonn required to be used by any person 

collecting the sales or use tax of any home rule city, town, or city and county which collects its own sales 

or use tax. 

(b) Such form shall be designed so as to permit reporting of variations in base, rate, and vendor's fee, and 

shall contain adequate location coding and use tax remittance items. Prior to the adoption of and any 

revision to the form, each home rule city, town, and city and county which collects its own sales tax 

shall be given the opportunity to comment on the proposed form or revision to the form. 

(c) Such standard form and any subsequent revisions shall be used by each home rule city, town, and city 

and county which collects its own sales tax by the first full month commencing one hundred twenty 

days after the effective date of the regulation adopting or revising the standard form. 

(d) 

(1) In addition to the standard municipal sales and use tax form set forth in paragraph (a) of this 

subsection (9), on or before December 1, 1994, the executive director of the department of 

revenue shall cooperate with and assist local governments in the development of a common local 

sales and use tax form. For purposes of this paragraph (d), "local government" means a city, 

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(B) Be accepted by all local governments; and 

(C) Be made available at all state and local sales and use tax reporting locations. 

(Ill) The executive director of the department of revenue shall cooperate with and assist local 

governments in the development of a uniform local government sales and use tax license 

application form. Any uniform local government sales and use tax license application form 

developed shall be made available at all state and local sales and use tax reporting locations. 

(IV) The provisions of paragraph (a) of this subsection (9) notwithstanding, in addition to the standard 

sales and use tax form set forth in paragraph (a) of this subsection (9), the common local sales 

and use tax form developed pursuant to this paragraph {d) may be used by a person collecting the 

sales or use tax of any city, home rule city, town, city and county, or other political subdivision of 

the state which collects its own sales or use tax. 

(10) Delayed distributions. (a) If any sales tax to be distributed pursuant to this section is not distributed within 

sixty days after the processing date, interest shall be added to the undistributed amount from the sixtieth 

day after the processing date until the date such sales tax is distributed. The rate of said interest shall be 

equal to the average rate, rounded to one-thousandth of a percent, being earned by the investment of 

moneys in the state treasury for the same period. 

(b) The provisions of this subsection (10) shall apply only to sales tax collected by the department of 

revenue with a processing date occurring on or after January 1, 2001. The provisions of this 

subsection (10) shall not apply in the event that the distribution of sales tax was delayed as a result of 

unforseen circumstances or caused primarily by an entity other than the department of revenue. Such 

determination shalf be made in good faith by the department. 

History 

Source: 

L. 67: p. 662, § 6. C.R.S. 1963: § 138-10-6.L. 71: p. 1267, § 1.L. 73: p.1478, § 3.L. 75: (3)(a) amended, p. 963, § 

5, effective July 14.L. 77: (4) amended, p. 1400, § 1, effective May 26.L. 79: (4){a) amended, p. 1430, § 14, 

effective July 3.L. 80: (2) amended, p. 728, § 26, effective May 1; (4)(a) amended, p. 735, § 5, effective May 2.L. 

81: (3)(b) amended, p. 1404, § 1, effective July 1.L. 82: {7) added, p. 460, § 1, effective March 11.L. 85: (8) and (9) 

added, p. 1031, § 2, effective January 1, 1986.L. 90: (3)(a) amended, p. 1746, § 2, effective May B.L 94: (9)(d) 

added, p. 1314, § 1, effective May 25.L 97: (9)(d)(l) and {9)(d){lll) amended, p. 527, § 10, effective July 1.L 99: 

(4)(a) amended, p. 981, § 4, effective May 28; (4)(a) amended, p. 1276, § 4, effective July 1; {4)(a) amended, p. 

1326, § 6, effective July 1; (3)(c) added, p. 13, § 5, effective January 1, 2000; (4)(a) amended, p. 1357, § 5, 

effective January 1, 2000.L. 2000: (4){a) amended, p. 552, § 6, effective July 1; {4)(b) amended and {10) added, 

p. 421, § 1, effective August 2.L. 2001: (4)(a) amended, p. 163, § 3, effective July 1; (4)(a) amended, p. 384, § 4, 

effective July 1.L. 2002: (3)(a) amended, p. 1036, § 82, effective June 1.L. 2004: (4)(a) amended, p. 1038, § 4, 

effective July 1.L. 2008: (4){a) R&RE, p. 1322, § 6, effective May 27; (4)(a) R&RE, p. 1546, § 4, effective May 28; 

(4)(a) R&RE, p. 968, § 2, effective August S.L. 2009: (1) amended, (HB 09-1130), ch. 229. p. 1042, § 1, effective 

August 5.L. 2013: (2) amended, fHB 13-1295), ch. 314, p. 1655. § 10, effective see editor's note. 

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(2) Amendments to subsection (4)(a) by Senate Bill 01

055 and House Bill 01

1256 were harmonized. 

(3) Section 16 (3) of chapter 314, Session Laws of Colorado 2013, provides that the act amending subsection (2) 

takes effect only if congress enacts an act that authorizes states to require certain retailers to pay, collect, or remit 

state or local sales taxes and takes effect either upon the effective date of this actor the effective date of such act 

of congress, whichever is later. The department of revenue shall send the revisor of statutes written notice that this 

requirement has been met within thirty days of enactment of such an act by congress. As of the publication date, 

the revisor'of statutes had not received such notice. 

Cross references: {1) For the legislative declaration contained in the 1999 act amending subsection (4){a), see 

section 1 of chapter 318, Session Laws of Colorado 1999. 

(2) For the legislative declaration contained in the 2008 act amending subsection (4)(a), see section 1 of chapter 

332, Session Laws of Colorado 2008. 

(3) For the legislative intent contained in the 2008 act amending subsection (4)(a), see section 9 of chapter 302, 

Session Laws of Colorado 2008. 

Case Notes 

ANNOTATION 

Applied in 

Rancho Colo., Inc. v. City of Broomfield. 196 Colo. 444. 586 P.2d 659 (1978). COLORADO REVISED STATUTES 

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29·2·111. Pledging of sales and use tax for capital improvements 

(1) A sales or use tax proposal made pursuant to this article by, or on behalf of, any county, city, or incorporated 

town may contain a provision for the creation of a special fund, to be known as a "sales and use tax capital 

improvement fund", for the deposit of all or any part of the revenue from the sales or use tax, or both, and 

to be used solely to provide capital improvements. A sales or use tax proposal of any county, city, or 

incorporated town which has been approved by the registered electors and which does not contain a 

provision for the creation of such a special fund may be subsequently amended by ordinance or resolution 

of the governing body to provide for such a special fund. Any such amendment shall take effect only after 

approval by a majority of the registered electors of the county, city, or town voting at a regular or special 

election, but no election shall be required in order to create a capital improvement fund for the deposit of 

any portion of sales or use tax revenue allocated for capital improvement purposes in a sales or use tax 

proposal previously approved by the voters. 

(2) A city or town by ordinance adopted by the governing body may pledge all or any part of the sales or use 

tax revenue, or both, it receives from the countywide sales or use tax for capita! improvement purposes. 

Any such pledge shall take effect only after approval by a majority of the registered electors of the city or 

town voting at a regular or special election. 

(3) When sales or use tax revenue, or both, is pledged solely for capita! improvement purposes, it shall be 

deposited immediately upon being received or collected into the sales and use tax capital improvement 

fund. Upon deposit in this fund, such revenue is thereafter not available to be pledged or expended for any 

general municipal or county purpose. 

(4) For purposes of this section and section 29-2-112, "capital improvement purposes" include: 

(a) Paying the costs of acquiring or constructing any capital improvement; 

(b) Acquiring land or equipment; 

(c) The costs of issuing bonds; 

(d) The costs of capitalized interest and reserves; and 

(e) The costs of operating and maintaining the capital improvements to be financed. 

(5) Notwithstanding any other provision to the contrary, no sales or use tax revenues in the sales and use tax 

capital improvement fund may be expended in any year for the purposes specified in subsection (4) of this 

section unless said fund contains sufficient revenues to pay the anticipated annual debt service on any 

sales and use tax revenue bonds for which moneys in the fund have been pledged. 

History 

Source: 

L. 81: Entire section added, p. 1405, § 1, effective July 1.L. 2001: (4) and (5) added, p. 244, § 1, effective August 

8. 

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sales and use taxes is not clearly misleading even though it did not state that bonds could be issued and secured 

by a fund containing the increased taxes. Leek v. Citv of Golden. 870 P2d 580 (Colo. App. 1993). 

COLORADO REVISED STATUTES 

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