HB10-1289 Summary

• Creates a phased-in sales and use tax exemption for machinery and machine tools purchased for providing telecommunications service in Colorado, applicable to purchases exceeding $500.

• Exemption begins July 1, 2012 at 25% of purchase price, increasing by 25% annually until reaching 100% exemption by July 1, 2015.

• Defines machinery for telecommunications purposes to include computers, routers, transmitters, receivers, satellite equipment, cable, fiber, poles, and related transmission and ancillary equipment.

• Exemption applies only if town, city, or county expressly includes it in a sales tax ordinance or resolution; local governments retain discretion to exclude the exemption.

• Effective date is 90 days after final adjournment of the general assembly, subject to voter approval if a referendum petition is filed.