HB 18-1218

House Bill 18-1218, which has been signed into law, changes how veterans' organizations are treated for state sales and use tax purposes. Under this bill, only certain activities like special events or meetings qualify for the charitable organization exemption from these taxes, not regular ongoing operations within the state. This means that while federal law allows veterans’ groups to be exempt from federal taxes generally, they can now only claim a similar exemption in Colorado for specific, non-routine activities. The bill ensures that veterans' organizations registered under different sections of federal tax code are treated equally under Colorado’s laws regarding sales and use tax exemptions.

Official Summary

For purposes of state sales and use tax, a 'charitable organization' includes veterans' organizations as defined in federal law, but such organizations are limited to those that sponsor special events, meetings, or other functions in the state that are not part of the organization's regular activities in the state. In other words, a veterans' organization may not claim the charitable organization sales and use tax exemption for its regular activities in the state. This limitation is not found in the federal tax law granting veterans' organizations federal tax exempt status. The bill makes state law consistent with federal law and will treat veterans' organizations registered under section 501 (c)(19) of the federal internal revenue code the same way as veterans' organizations registered under section 501 (c)(3) of the federal internal revenue code. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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