CO Code § 29-2-109 (2021)
2021 Colorado Code|Title 29 - Government - Local|Article 2 - County and Municipal Sales or Use Tax|§ 29-2-109. Contents of Use Tax Ordinances and Proposals - Repeal

  The use tax ordinance, resolution, or proposal of any town, city, or county adopted pursuant to this article 2 shall be imposed only for the privilege of using or consuming in the town, city, or county any construction and building materials purchased at retail or for the privilege of storing, using, or consuming in the town, city, or county any motor and other vehicles, purchased at retail on which registration is required, or both. For the purposes of this subsection (1), the term “construction and building materials” shall not include parts or materials utilized in the fabrication, construction, assembly, or installation of passenger tramways, as defined in section 12-150-103 (5), by any ski area operator, as defined in section 33-44-103 (7), or any person fabricating, constructing, assembling, or installing a passenger tramway for a ski area operator. The ordinance, resolution, or proposal may recite that the use tax shall not apply to the storage and use of wood from salvaged trees killed or infested in Colorado by mountain pine beetles or spruce beetles as exempted from the state use tax pursuant to section 39-26-723. The ordinance, resolution, or proposal may recite that the use tax shall not apply to the storage and use of components used in the production of energy, including but not limited to alternating current electricity, from a renewable energy source, as exempted from the state use tax pursuant to section 39-26-724. The ordinance, resolution, or proposal shall recite that the use tax shall not apply:   To the storage, use, or consumption of any tangible personal property the sale of which is subject to a retail sales tax imposed by the town, city, or county;    To the storage, use, or consumption of any tangible personal property purchased for resale in the town, city, or county, either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of a business;    To the storage, use, or consumption of tangible personal property brought into the town, city, or county by a nonresident thereof for his own storage, use, or consumption while temporarily within the town, city, or county; however, this exemption does not apply to the storage, use, or consumption of tangible personal property brought into this state by a nonresident to be used in the conduct of a business in this state;    To the storage, use, or consumption of tangible personal property by the United States government, or the state of Colorado, or its institutions, or its political subdivisions in their governmental capacities only or by religious or charitable corporations in the conduct of their regular religious or charitable functions;    To the storage, use, or consumption of tangible personal property by a person engaged in the business of manufacturing or compounding for sale, profit, or use any article, substance, or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the product or service which is manufactured, compounded, or furnished and the container, label, or the furnished shipping case thereof;      With respect to the use tax of a town or city, to the storage, use, or consumption of any article of tangible personal property the sale or use of which has already been subjected to a legally imposed sales or use tax of another statutory or home rule town, city, or city and county equal to or in excess of that imposed by this article. A credit shall be granted against the use tax imposed by this article with respect to a person's storage, use, or consumption in the town or city of tangible personal property purchased by him in a previous statutory or home rule town, city, or city and county. The amount of the credit shall be equal to the tax paid by him by reason of the imposition of a sales or use tax of the previous statutory or home rule town, city, or city and county on his purchase or use of the property. The amount of the credit shall not exceed the tax imposed by this article. (f) (I) With respect to the use tax of a town or city, to the storage, use, or consumption of any article of tangible personal property the sale or use of which has already been subjected to a legally imposed sales or use tax of another statutory or home rule town, city, or city and county equal to or in excess of that imposed by this article. A credit shall be granted against the use tax imposed by this article with respect to a person's storage, use, or consumption in the town or city of tangible personal property purchased by him in a previous statutory or home rule town, city, or city and county. The amount of the credit shall be equal to the tax paid by him by reason of the imposition of a sales or use tax of the previous statutory or home rule town, city, or city and county on his purchase or use of the property. The amount of the credit shall not exceed the tax imposed by this article.    With respect to the use tax of a statutory or home rule county, to the storage, use, or consumption of any article of tangible personal property the sale or use of which has already been subjected to a legally imposed sales or use tax of another statutory or home rule county equal to or in excess of that imposed by this article. A credit shall be granted against the use tax imposed by this article with respect to a person's storage, use, or consumption in the subsequent statutory or home rule county of tangible personal property purchased by him in a previous statutory or home rule county. The amount of the credit shall be equal to the tax paid by him by reason of the imposition of a sales or use tax of the previous statutory or home rule county on his purchase or use of the property. The amount of the credit shall not exceed the tax imposed by this article.       To the storage, use, or consumption of tangible personal property and household effects acquired outside of the town, city, or county and brought into it by a nonresident acquiring residency;    To the storage or use of a motor vehicle if the owner is or was, at the time of purchase, a nonresident of the town, city, or county and he purchased the vehicle outside of the town, city, or county for use outside the town, city, or county and actually so used it for a substantial and primary purpose for which it was acquired and he registered, titled, and licensed said motor vehicle outside of the town, city, or county;    To the storage, use, or consumption of any construction and building materials and motor and other vehicles on which registration is required if a written contract for the purchase thereof was entered into prior to the effective date of such use tax;    To the storage, use, or consumption of any construction and building materials required or made necessary in the performance of any construction contract bid, let, or entered into at any time prior to the effective date of such use tax ordinance, resolution, or proposal. (1.5)   Repealed.          No use tax of any town shall be imposed with respect to the use or consumption of taxable tangible personal property within the town that occurs more than three years after the most recent sale of the property if, within the three years following such sale, the property has been significantly used within the state for the principal purpose for which it was purchased.    Construction equipment which is located within the boundaries of a home rule city, town, or city and county for a period of thirty consecutive days or less shall be subjected to the use tax of such home rule city, town, or city and county in an amount which does not exceed the amount calculated as follows: The purchase price of the equipment shall be multiplied by a fraction, the numerator of which is one and the denominator of which is twelve, and the result shall be multiplied by the use tax rate of the home rule city, town, or city and county. Where the provisions of this subsection (3) are utilized, the credit provisions of subsection (6) of this section shall apply at such time as the aggregate sales and use taxes legally imposed by and paid to other statutory and home rule cities, towns, and cities and counties on any such equipment equal the full use tax of the subsequent home rule city, town, or city and county.    In order to avail himself of the provisions of subsection (3) of this section, the taxpayer shall comply with the following procedure:   Prior to or on the date the equipment is located within the boundaries of a home rule city, town, or city and county, the taxpayer shall file with such home rule city, town, or city and county an equipment declaration on a form provided by such home rule city, town, or city and county. Such declaration shall state the dates on which the taxpayer anticipates the equipment will be located within and removed from the boundaries of the home rule city, town, or city and county, shall include a description of each such anticipated piece of equipment, shall state the actual or anticipated purchase price of each such anticipated piece of equipment, and shall include such other information as reasonably deemed necessary by the home rule city, town, or city and county.    The taxpayer shall file with the home rule city, town, or city and county an amended equipment declaration reflecting any changes in the information contained in any previous equipment declaration no less than once every ninety days after the equipment is brought into the boundaries of such home rule city, town, or city and county or, for equipment which is brought into the boundaries of a home rule city, town, or city and county for a project of less than ninety days duration, no later than ten days after substantial completion of the project.    The taxpayer need not report on any equipment declaration any equipment for which the purchase price was under two thousand five hundred dollars. If such equipment declaration is given, then as to any item of construction equipment for which the customary purchase price is under two thousand five hundred dollars which was brought into the boundaries of the home rule city, town, or city and county temporarily for use on a construction project, it shall be presumed that the item was purchased in a jurisdiction having a local sales or use tax as high as that of such home rule city, town, or city and county where the construction takes place and that such sales or use tax was previously paid. In such case the burden of proof in any proceeding before such city, town, or city and county, the executive director of the department of revenue, or the district court, shall be on such home rule, city, town, or city and county where the construction takes place to prove such local sales or use tax was not paid.       If the taxpayer fails to comply with the provisions of subsection (4) of this section, the taxpayer may not avail himself of the provisions of subsection (3) of this section. However, substantial compliance with the provisions of subsection (4) of this section shall allow the taxpayer to avail himself of the provisions of subsection (3) of this section.    No use tax of any home rule city, town, or city and county shall apply to the storage, use, or consumption of any article of tangible personal property the sale or use of which has already been subjected to a sales or use tax of another statutory or home rule city, town, or city and county legally imposed on the purchaser or user equal to or in excess of that imposed by the subsequent home rule city, town, or city and county. A credit shall be granted against the use tax of the home rule city, town, or city and county with respect to the person's storage, use, or consumption in the home rule city, town, or city and county of tangible personal property, the amount of the credit to equal the tax paid by him by reason of the imposition of a sales or use tax of the previous statutory or home rule city, town, or city and county on his purchase or use of the property. The amount of the credit shall not exceed the tax imposed by the subsequent home rule city, town, or city and county.    The use tax of any town, city, city and county, or county, whether home rule or statutory, shall not apply to the storage of construction and building materials.     History. Source: L. 73: P. 1479, § 5. C.R.S. 1963: § 138-10-10. L. 75: Entire section R&RE, p. 963, § 6, effective July 14. L. 85: IP(1) and (1)(f) amended and (2), (3), and (4) added, p. 1036, § 5, effective January 1, 1986. L. 99: (2) amended, p. 1338, § 1, effective August 4. L. 2000: IP(1) amended, p. 1163, § 2, effective May 26. L. 2008: IP(1) amended, p. 1322, § 7, effective May 27; IP(1) amended, p. 1547, § 5, effective May 28. L. 2009: IP(1) amended,(HB 09-1126), ch. 254, p. 1149, § 5, effective May 15. L. 2012: IP(1) amended,(HB 12-1045), ch. 191, p. 766, § 3, effective May 21. L. 2014: (1.5) added,(HB 14-1159), ch. 229, p. 852, § 3, effective May 17. L. 2019: IP(1) amended,(HB 19-1172), ch. 136, p. 1717, § 208, effective October 1. History. Source: L. 73: P. 1479, § 5. C.R.S. 1963: § 138-10-10. L. 75: Entire section R&RE, p. 963, § 6, effective July 14. L. 85: IP(1) and (1)(f) amended and (2), (3), and (4) added, p. 1036, § 5, effective January 1, 1986. L. 99: (2) amended, p. 1338, § 1, effective August 4. L. 2000: IP(1) amended, p. 1163, § 2, effective May 26. L. 2008: IP(1) amended, p. 1322, § 7, effective May 27; IP(1) amended, p. 1547, § 5, effective May 28. L. 2009: IP(1) amended,(HB 09-1126), ch. 254, p. 1149, § 5, effective May 15. L. 2012: IP(1) amended,(HB 12-1045), ch. 191, p. 766, § 3, effective May 21. L. 2014: (1.5) added,(HB 14-1159), ch. 229, p. 852, § 3, effective May 17. L. 2019: IP(1) amended,(HB 19-1172), ch. 136, p. 1717, § 208, effective October 1.    Editor's note:    Amendments to the introductory portion to subsection (1) by House Bill 08-1269 and House Bill 08-1368 were harmonized.    Subsection (1.5)(b) provided for the repeal of subsection (1.5), effective July 1, 2019. (SeeL. 2014, p. 852.)     Cross references:    For the legislative declaration contained in the 2000 act amending the introductory portion to subsection (1), see section 2 of chapter 260, Session Laws of Colorado 2000.    For the legislative declaration contained in the 2008 act amending the introductory portion to subsection (1), see section 1 of chapter 332, Session Laws of Colorado 2008.    For the legislative intent contained in the 2008 act amending the introductory portion to subsection (1), see section 9 of chapter 302, Session Laws of Colorado 2008.    For the legislative declaration contained in the 2009 act amending the introductory portion to subsection (1), see section 1 of chapter 254, Session Laws of Colorado 2009.     ANNOTATION   County's interpretation of “construction and building materials” to include equipment used in connection with natural gas operations was unreasonably broad. The general assembly intended to impose a use tax on “construction and building materials” that constitute permanent improvements to real property, not on other systems used for industrial operations. Bd. of County Comm'rs of Rio Blanco v. ExxonMobil, 192 P.3d 582 (Colo. App. 2008), aff'd by an equally divided court, 222 P.3d 303 (Colo. 2009).   State statute prohibiting the imposition of local use taxes on tangible personal property purchased more than three years prior to its use is inapplicable where it is in conflict with a home rule city use tax that deals with a matter of local concern such as an excise tax constituting a one time use fee imposed on a privilege at the time the privilege is exercised. Winslow Constr. Co. v. City and County of Denver, 960 P.2d 685 (Colo. 1998).   Applied in Rancho Colo., Inc. v. City of Broomfield, 196 Colo. 444 , 586 P.2d 659 (1978); Associated Dry Goods Corp. v. City of Arvada, 197 Colo. 491 , 593 P.2d 1375 (1979).