CO HB1059

Creates a state-level sales and use tax exemption for telecommunications provider equipment used directly in providing broadband communications service with speeds of at least 4 megabits per second download and 1 megabit per second upload.

Exempts both the sale of qualifying equipment from sales tax and the provider's storage or use of the equipment from use tax.

Declares the legislative purpose is to increase technology access in rural areas to promote economic development and facilitate telehealth and student assessment testing in kindergarten through 12th grade.

Allows statutory towns, cities, and counties to adopt local sales tax exemptions for telecommunications provider equipment used in telephone, cable television, broadband communications, or mobile telecommunications service, but requires exemptions apply uniformly and nondiscriminatorily to all telecommunications providers.

Takes effect September 1, 2013, subject to referendum petition; if petitioned, takes effect only upon voter approval at the November 2014 general election.