Taxing Authority of Unit of Government Hospital Care Providers

C.R.S. tit. 25, art. 42
in effect

C.R.S. § 25-42-101 Legislative declaration

25-42-101. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) State and local governmental hospital care providers form a critical part of the health-care delivery system in Colorado; and (b) Federal programs require the state to further define a unit of government for certain state and local governmental hospital care providers.

C.R.S. § 25-42-102 Definitions

25-42-102. Definitions. As used in this article, unless the context otherwise requires: (1) "Eligible elector" means an eligible elector as defined in section 32-1-103 (5)(a)(I), C.R.S., of the taxing area of a unit of government hospital provider. (2) "Qualified purchaser" means a person domiciled in Colorado who has been issued a direct payment permit number pursuant to section 39-26-103.5, C.R.S. (3) "Taxing area" means: (a) In the case of the Denver health and hospital authority, the city and county of Denver; (b) In the case of a county hospital, the county in which the hospital is located; (c) In the case of a hospital within a health service district, the health service district; (d) In the case of the university of Colorado hospital authority, the counties of Adams, Arapahoe, Boulder, Douglas, and Jefferson and the city and county of Broomfield; and (e) In the case of a municipal hospital, the county in which the hospital is located. (4) "Unit of government hospital care provider" means: (a) The Denver health and hospital authority created pursuant to section 25-29-103; (b) The board of any county hospital created pursuant to section 25-3-301; (c) A health service district within the meaning of section 32-1-103 (9), C.R.S.; (d) The university of Colorado hospital authority created pursuant to part 5 of article 21 of title 23, C.R.S.; or (e) A municipally owned hospital created pursuant to section 31-15-711 (1)(e), C.R.S.

C.R.S. § 25-42-103 Grant of taxing authority

25-42-103. Grant of taxing authority. (1) Each unit of government hospital care provider, upon the affirmative action of its governing body, shall have the authority to levy and collect a sales tax as follows: (a) Upon the approval of the eligible electors of the unit of government hospital care provider's taxing area at an election held in accordance with section 20 of article X of the state constitution and this article, the unit of government hospital care provider may levy a uniform sales tax throughout its entire taxing area upon every transaction or other incident with respect to which a sales tax is levied by the state pursuant to the provisions of article 26 of title 39, C.R.S. (b) A sales tax imposed pursuant to paragraph (a) of this subsection (1) shall not be levied on: (I) The sale of tangible personal property delivered by a retailer or a retailer's agent or to a common carrier for delivery to a destination outside the taxing area; or (II) The sale of tangible personal property on which a specific ownership tax has been paid or is payable when such sale meets the following conditions: (A) The purchaser does not reside in the taxing area or the purchaser's principal place of business is outside the taxing area; and (B) The personal property is registered or required to be registered outside the taxing area under the laws of this state. (c) The sales tax imposed pursuant to paragraph (a) of this subsection (1) shall be in addition to any other sales or use tax imposed pursuant to law. (2) (a) The collection, administration, and enforcement of a sales tax imposed pursuant to subsection (1) of this section shall be performed by the executive director of the department of revenue in the same manner as that for the collection, administration, and enforcement of the state sales tax imposed pursuant to article 26 of title 39, C.R.S., including, without limitation, the retention by a vendor of the percentage of the amount remitted to cover the vendor's expense in the collection and remittance of the sales tax as provided in section 39-26-105, C.R.S. The executive director of the department of revenue shall make monthly distributions of sales tax collections to the unit of government hospital care provider. The unit of government hospital care provider shall pay the net incremental cost incurred by the department of revenue in the administration and collection of the sales tax. (b) (I) A qualified purchaser may provide a direct payment permit number issued pursuant to section 39-26-103.5, C.R.S., to a vendor or retailer that is liable and responsible for collecting and remitting any sales tax levied on a sale made to the qualified purchaser pursuant to the provisions of this article. A vendor or retailer that has received a direct payment permit number in good faith from a qualified purchaser shall not be liable or responsible for collection and remittance of any sales tax imposed on the sale that is paid for directly from the qualified purchasers' funds and not the personal funds of any individual. (II) A qualified purchaser that provides a direct payment permit number to a vendor or retailer shall be liable and responsible for the amount of sales tax levied on a sale made to the qualified purchaser pursuant to the provisions of this article in the same manner as liability would be imposed on a qualified purchaser for state sales tax pursuant to section 39-26-105 (3), C.R.S. (3) A sales tax shall not be levied by a unit of government hospital care provider without first complying with this section and section 25-42-106.

C.R.S. § 25-42-104 Use of revenues derived from sales tax

25-42-104. Use of revenues derived from sales tax. The revenues derived by a unit of government hospital care provider from the levy and collection of the sales tax authorized by this article shall be in addition to and shall not be used to replace any state funding that the unit of government hospital care provider or any other state or local government entity would otherwise be entitled to receive from the state. The unit of government hospital care provider may use said revenues for any purpose permitted by law or by the terms of its organizational documents.

C.R.S. § 25-42-105 Preservation of enterprise status of certain providers and activities

25-42-105. Preservation of enterprise status of certain providers and activities. The authority granted in this article shall be subject to affirmative action of the governing body of a unit of government hospital care provider to avail itself of this authority and shall be contingent upon electoral approval at an election held pursuant to sections 25-42-103 (1)(a) and 25-42-106. The enactment of this article shall not affect the treatment of any existing or future activity of a unit of government hospital care provider as an enterprise for purposes of section 20 of article X of the state constitution.

C.R.S. § 25-42-106 Call, notice, conduct, and determination of results of tax elections

25-42-106. Call, notice, conduct, and determination of results of tax elections. An election held pursuant to this article may be conducted under the provisions of either the "Uniform Election Code of 1992", articles 1 to 13 of title 1, C.R.S., or the "Colorado Municipal Election Code of 1965", article 10 of title 31, C.R.S.

C.R.S. § 25-42-107 Authority granted supplemental to other authority

25-42-107. Authority granted supplemental to other authority. The authority granted by this article shall be in addition and supplemental to, and not in lieu of, the authority granted by other laws.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-25.docxFetched: 10/6/2026