HB 22-1024

House Bill 22-1024, which has been signed into law, exempts home rule cities from collecting sales and use taxes on construction materials used for building or repairing public schools. This means that when materials are bought to build or fix a school in these cities, the city won’t charge tax on those purchases. The bill also allocates $3,375 from the state’s general fund to help cover the costs related to managing this new exemption for the Department of Revenue. This law benefits public schools by reducing their construction and repair costs through tax savings.

Official Summary

Under current law, all sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration, or repair of structures, highways, roads, streets, and other public works are exempt from the sales and use tax levied by the state and certain local governments. Home rule cities continue to levy the tax on sales of construction and building materials within their jurisdiction. The act extends the exemption to the sales and use tax levied by home rule cities on such materials for use in connection with the building, erection, alteration, or repair of a public school. For the 2022-23 state fiscal year, the act appropriates $3,375 from the general fund to the department of revenue for use by the taxation business group. The department may use this appropriation for operating expenses related to taxation services. (Note: This summary applies to this bill as enacted.)

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