HB 17-1009

House Bill 17-1009 in Colorado restores tax exemptions for certain items that restaurants and food vendors can provide to customers without charging sales tax. Before March 2010, these businesses could sell nonessential items like straws or napkins tax-free when included with the main purchase. However, a law passed in 2010 limited this exemption to only essential items as determined by the Department of Revenue. This new bill reverses that change and allows restaurants to once again provide nonessential items without collecting sales tax on them, effective January 1, 2018. Since it has been signed into law, these changes are now in effect.

Official Summary

Before March 1, 2010, state law exempted from state sales and use taxes all articles sold to sellers of food, meal, or beverage items that sellers furnish to their customers along with the items without adding a separate charge. Effective March 1, 2010, House Bill 10-1194 narrowed the exemptions by subjecting to state sales and use taxes any such articles that the department of revenue determined to be nonessential to the customer. Effective January 1, 2018, the bill reinstates the exemptions from state sales and use taxes for nonessential articles. (Note: This summary applies to this bill as introduced.)

Related Legislation

Votes