Attention: This is not a current document. It is an excerpt from the Web page of the former Colorado governor, Roy Romer. It is displayed by the Colorado State Archives for its historical value.
June 1, 1998
The Honorable Colorado Senate
Sixty-first General Assembly
Second Regular Session
Denver, CO 80203
Ladies and Gentlemen:
I am returning to the Secretary of State Senate Bill 98-074, "Concerning the
Reinstatement of the Sales and Use Exemption for Bulk Sales of Coins and Precious Metal
Bullion," which I vetoed today at 1:22 P.M. . This letter sets forth my
reasoning for vetoing this bill.
S.B. 74 would have reinstated the sales and use tax exemption that expired in 1995 for
all precious metal bullion and coins. In 1995 and 1997, I vetoed nearly identical
bills and I continue to believe that this exemption is not warranted.
Proponents of S. B. 74 argue that special tax treatment is necessary for this industry
to prosper in Colorado. However, during 1991 to 1995, when the sales were exempt,
the industry had the opportunity to establish itself, and sales showed strong growth. Once
established, the industry should continue without a tax subsidy. Colorado's current law of
taxing these sales is comparable to other states. Twenty-nine states fully tax such sales,
with only four states completely exempting them.
If enacted, this exemption would result in a loss to the general fund of about
$168,000 annually. As I have stated in vetoing other tax legislation this session, one of
our fundamental responsibilities as elected officials is to ensure a long-term, stable
funding base for public education, public safety, transportation, health care and other
essential services for the people of Colorado. Undermining that base is unwise. In
addition, because of TABOR, the General Assembly would be unable to remove this exemption
in future years if the situation warranted it. Finally, we cannot approach tax policy on a
piece-meal basis, giving breaks to narrow, special interests.
For these reasons, I have vetoed S.B. 74.
Last modified June 18, 2003