Colorado § 29-25-112 - Power to levy tax.

§ 29-25-112. Power to levy tax.

(1) (a) In addition to any other means of providing revenue for a district, the board has the power within the district to levy a marketing and promotion tax on the purchase price paid or charged to persons for rooms or accommodations as included in the definition of "sale" in section 39-26-102 (11). Such tax shall be specified in the petition organizing the district under section 29-25-105. No such tax shall take effect unless approved by a majority of the eligible electors voting thereon at a general election or a special election called for such purpose. If a district seeks to use the tax revenue for a purpose specified in subsection (1)(e)(I)(D) or (1)(e)(I)(E) of this section, then the ballot issue authorizing the use must specify how the district will spend the tax revenue under either subsection. If the allowable uses of revenue from a tax approved by voters prior to January 1, 2022, do not include an additional authorized use added to section 29-25-111 (1)(e) after January 1, 2022, the district shall not use the tax revenue for the additional use unless subsequently approved by voters at a general election or a special election. If, after January 1, 2022, there is a new tax created or the allowable uses of an existing tax are expanded, at least ten percent of the tax revenue must be used for purposes that were authorized under section 29-25-111 (1)(e) prior to January 1, 2022. Elections held pursuant to this section shall be conducted in substantially the same manner as municipal or county elections and in accordance with the provisions of section 20 of article X of the state constitution. The municipal or county clerk and recorder of each local government in which the election is conducted shall assist the district in conducting the election. The district shall pay the costs incurred by each local government in conducting such an election. No money of the district may be used to urge or oppose passage of an election required under this section.

(b) (I) The marketing and promotion tax shall be collected, administered, and enforced as specified in part 2 of article 2 of title 29.

(II) The department of revenue shall perform, on an annual basis, an analysis to determine the net incremental cost of such collection, administration, and enforcement. The department of revenue shall retain only the amount determined to be necessary by the cost analysis, and in no event shall that amount exceed three and one-third percent of the amount collected. Such amount retained shall be transmitted to the state treasurer who shall credit the same to the general fund and such amount shall be subject to appropriation by the general assembly for the net incremental cost of such collection, administration, and enforcement.

(c) A marketing and promotion tax levied in accordance with this section is in addition to any other sales or use tax imposed pursuant to law.

(2) Repealed.

(3) Any person or entity providing rooms or accommodations as included in the definition of "sale" referred to in subsection (1)(a) of this section shall be liable and responsible for the payment of an amount equivalent to a percentage rate set by the board of all such sales made and shall make a return to the executive director of the department of revenue as specified in part 2 of article 2 of this title 29.

Source: L. 98: Entire article added, p. 1088, § 1, effective September 1. L. 2007: (1)(c) added, p. 584, § 2, effective April 19. L. 2008: (1)(c) amended, p. 992, § 10, effective August 5. L. 2014: (2) amended and (3) added, (HB 14-1006), ch. 225, p. 840, § 1, effective May 17. L. 2022: (1)(a) amended, (HB 22-1117), ch. 62, p. 314, § 3, effective August 10. L. 2024: (1)(b)(I) and (3) amended, (SB 24-025), ch. 144, p. 567, § 18, effective July 1, 2025; (2)(b) added by revision, (SB 24-025), ch. 144, pp. 567, 585, §§ 18, 55.

Editor's note: Subsection (2)(b) provided for the repeal of subsection (2), effective July 1, 2025. (See L. 2024, pp. 567, 585.)

Cross references: For the legislative declaration in HB 22-1117, see section 1 of chapter 62, Session Laws of Colorado 2022.