2021 Colorado Code
Title 44 - Revenue - Regulation of Activities
Article 3 - Alcohol Beverages
Part 4 - Classes of Licenses and Permits
§ 44-3-418. Club License - Legislative Declaration

1. A club license shall be issued to persons selling alcohol beverages by the drink only to members of the club and guests and only for consumption on the premises of the club.
2. 1. Every person selling alcohol beverages as provided in this section shall purchase the alcohol beverages only from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c).
   2. The club licensee shall retain evidence of each purchase of malt, vinous, or spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to the state and local licensing authorities at all times during business hours.

3. 1. The general assembly finds, determines, and declares that the people of the state of Colorado desire to promote and achieve tax equity and fairness among all the state's citizens and further desire to conform to the public policy of nondiscrimination. The general assembly further declares that the provisions of this subsection (3) are enacted for these reasons and for no other purpose.
   2. Any club licensee that has a policy to restrict membership on the basis of sex, sexual orientation, gender identity, gender expression, marital status, race, creed, religion, color, ancestry, or national origin shall, when issuing a receipt for expenses that may otherwise be used by taxpayers for deduction purposes pursuant to section 162 (a) of the federal “Internal Revenue Code of 1986”, as amended, for purposes of determining taxes owed pursuant to article 22 of title 39, incorporate a printed statement on the receipt as follows:

4. It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a club license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that:
   1. Such a person may have an interest in an arts license or an airline public transportation system license granted under this article 3, or in a financial institution referred to in section 44-3-308 (4);
   2. Any person who owns, in whole or in part, directly or indirectly, any other license issued pursuant to this article 3 or article 4 of this title 44 may be listed as an officer or director on a club license if the person does not individually manage or receive any direct financial benefit from the operation of the license.

The expenditures covered by this receipt are

nondeductible for state income tax purposes.

History. Source: L. 2018: Entire article added with relocations,(HB 18-1025), ch. 152, p. 1021, § 2, effective October 1. L. 2019: (2) amended,(SB 19-011), ch. 1, p. 11, § 17, effective January 31. L. 2021: (3)(b) amended,(HB 21-1108), ch. 156, p. 899, § 49, effective September 7.

This section is similar to former § 12-47-416 as it existed prior to 2018.

1. For section 162 (a) of the federal “Internal Revenue Code of 1986”, see 26 U.S.C. § 162 (a).
2. For the legislative declaration in HB 21-1108, see section 1 of chapter 156, Session Laws of Colorado 2021.