CO Code § 29-2-105 (2021)
2021 Colorado Code|Title 29 - Government - Local|Article 2 - County and Municipal Sales or Use Tax|§ 29-2-105. Contents of Sales Tax Ordinances and Proposals

  The sales tax ordinance or proposal of any incorporated town, city, or county adopted pursuant to this article 2 shall be imposed on the sale of tangible personal property at retail or the furnishing of services, as provided in subsection (1)(d) of this section. Any countywide or incorporated town or city sales tax ordinance or proposal shall include the following provisions:   A provision imposing a tax on the sale of tangible personal property at retail or the furnishing of services, as provided in paragraph (d) of this subsection (1);    A provision that, for the purpose of the sales tax ordinance or proposal enacted in accordance with this article 2, all retail sales are sourced as specified in section 39-26-104 (3);    A provision that the amount subject to tax shall not include the amount of any sales or use tax imposed by article 26 of title 39, C.R.S.;      A provision that the sale of tangible personal property and services taxable pursuant to this article 2 shall be the same as the sale of tangible personal property and services taxable pursuant to section 39-26-104, except as otherwise provided in this subsection (1)(d). The sale of tangible personal property and services taxable pursuant to this article 2 shall be subject to the same sales tax exemptions as those specified in part 7 of article 26 of title 39; except that the sale of the following may be exempted from a town, city, or county sales tax only by the express inclusion of the exemption either at the time of adoption of the initial sales tax ordinance or resolution or by amendment thereto: (d) (I) A provision that the sale of tangible personal property and services taxable pursuant to this article 2 shall be the same as the sale of tangible personal property and services taxable pursuant to section 39-26-104, except as otherwise provided in this subsection (1)(d). The sale of tangible personal property and services taxable pursuant to this article 2 shall be subject to the same sales tax exemptions as those specified in part 7 of article 26 of title 39; except that the sale of the following may be exempted from a town, city, or county sales tax only by the express inclusion of the exemption either at the time of adoption of the initial sales tax ordinance or resolution or by amendment thereto:   The exemption for sales of machinery or machine tools specified in section 39-26-709 (1), C.R.S., other than machinery or machine tools used in the processing of recovered materials by a business listed in the inventory prepared by the department of public health and environment pursuant to section 30-20-122 (1)(a)(V), C.R.S.;  (A.5) The exemption for sales of machinery or machine tools specified in section 39-26-709 (1) , C.R.S., used in the processing of recovered materials by a business listed in the inventory prepared by the department of public health and environment pursuant to section 30-20-122 (1)(a)(V) , C.R.S.;     The exemption for sales of electricity, coal, wood, gas, fuel oil, or coke specified in section 39-26-715 (1)(a)(II), C.R.S.;    The exemption for sales of food specified in section 39-26-707 (1)(e), C.R.S.;    The exemption for vending machine sales of food specified in section 39-26-714 (2), C.R.S.;    The exemption for sales by a charitable organization specified in section 39-26-718 (1)(b), C.R.S.;    The exemption for sales of farm equipment and farm equipment under lease or contract specified in section 39-26-716 (4)(e) and (4)(f). The express inclusion of the exemption by a town, city, or county before August 2, 2019, does not exempt from the town, city, or county sales tax any visual, electronic identification, or matched pair ear tags and electronic identification readers used to scan ear tags that are used by a farm operator to identify or track food animals, including animals used for food or in the production of food, that were added to the definition of “farm equipment” set forth in section 39-26-716 (1)(d) by House Bill 19-1162, enacted in 2019, and thereby exempted from state sales and use taxes but such a town, city, or county may expressly exempt such items by a subsequent amendment to its sales tax ordinance or resolution.    The exemption for sales of motor vehicles, power sources, or parts used for converting such power sources as specified in section 39-26-719 (1);    Repealed.    The exemption for sales of wood from salvaged trees killed or infested in Colorado by mountain pine beetles or spruce beetles as specified in section 39-26-723, C.R.S.;       Repealed.    In the absence of an express provision for any exemption specified in subparagraph (I) of this paragraph (d), all sales tax ordinances and resolutions shall be construed as imposing or continuing to impose the town, city, or county sales tax on such items.       A provision that all sales of personal property on which a specific ownership tax has been paid or is payable shall be exempt from said county, town, or city sales tax when such sales meet both of the following conditions:   The purchaser is a nonresident of or has his principal place of business outside of the local taxing entity; and    Such personal property is registered or required to be registered outside the limits of the local taxing entity under the laws of this state.       Repealed. (1.5)   All sales tax ordinances or resolutions adopted by a county, town, or city prior to, on, or after August 1, 2002, that impose a sales tax pursuant to section 39-26-104 (1)(c), C.R.S., on a mobile telecommunications service shall impose such tax in accordance with the provisions of the act, and, pursuant to section 117 (b) of the act, mobile telecommunications service taxable by the county, town, or city on or after August 1, 2002, may be subject to any sales tax or other charge imposed by said entity on the service only if the customer's place of primary use is within the geographical boundaries of the entity.    As used in this subsection (1.5), unless the context otherwise requires:   “Act” means the federal “Mobile Telecommunications Sourcing Act”, 4 U.S.C. secs. 116 to 126, as amended.    “Customer” means customer as defined in section 124 (2) of the act.    “Mobile telecommunications service” means mobile telecommunications service as defined in section 124 (7) of the act.    “Place of primary use” means the place of primary use as defined in section 124 (8) of the act.             No sales tax of any statutory or home rule city, town, city and county, or county shall apply to the sale of construction and building materials, as the term is used in section 29-2-109, if the purchaser of such materials presents to the retailer a building permit or other documentation acceptable to such local government evidencing that a local use tax has been paid or is required to be paid.    No sales tax of any statutory or home rule county shall apply to the sale of tangible personal property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule county equal to or in excess of that sought to be imposed by the subsequent statutory or home rule county. A credit shall be granted against the sales tax imposed by the subsequent statutory or home rule county with respect to such transaction equal in amount to the lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule county. The amount of the credit shall not exceed the sales tax imposed by the subsequent statutory or home rule county.    No sales tax of any statutory or home rule city and county, city, or town shall apply to the sale of tangible personal property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule city and county, city, or town equal to or in excess of that sought to be imposed by the subsequent statutory or home rule city and county, city, or town. A credit shall be granted against the sales tax imposed by the subsequent statutory or home rule city and county, city, or town with respect to such transaction equal in amount to the lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule city and county, city, or town. The amount of the credit shall not exceed the sales tax imposed by the subsequent statutory or home rule city and county, city, or town.    The following provision shall apply in defining the applicability of its higher rate to the sales tax ordinance or resolution of any statutory or home rule city, town, city and county, or county which provides a higher rate of taxation on prepared food or food for immediate consumption than its general rate of taxation: Prepared food or food for immediate consumption shall exclude any food for domestic home consumption.    No sales or use tax of any statutory or home rule city, town, city and county, or county shall apply to the sale of food purchased with food stamps. For the purposes of this subsection (6), “food” shall have the same meaning as provided in 7 U.S.C. sec. 2012 (g), as such section exists on October 1, 1987, or is thereafter amended.    No sales or use tax of any statutory or home rule city, town, city and county, or county shall apply to the sale of food purchased with funds provided by the special supplemental food program for women, infants, and children, 42 U.S.C. sec. 1786. For the purposes of this subsection (7), “food” shall have the same meaning as provided in 42 U.S.C. sec. 1786, as such section exists on October 1, 1987, or is thereafter amended.    Any statutory or home rule city, town, city and county, or county which provides an exemption for the sale of food shall define “food” as defined in section 39-26-102 (4.5), C.R.S.    Notwithstanding any provision of this section to the contrary, sales of cigarettes shall be exempt from a town, city, county, or city and county sales tax that is created pursuant to the authority set forth in this article.      Notwithstanding any provision of this section to the contrary, and except as provided in paragraph (b) of this subsection (10), a town, city, or county may exempt from its sales tax sales to a telecommunications provider of equipment used directly in the provision of telephone service, cable television service, broadband communications service, or mobile telecommunications service.    A town, city, or county may not adopt a sales tax exemption pursuant to the authority set forth in paragraph (a) of this subsection (10) unless the exemption applies in a uniform and nondiscriminatory manner to the telecommunications providers of telephone service, cable television service, broadband communications service, and mobile telecommunications service.         (J) The exemption for sales of components used in the production of energy, including but not limited to alternating current electricity, from a renewable energy source specified in section 39-26-724 , C.R.S.; except that this sub-subparagraph (J) shall not apply to any incorporated town, city, or county that adopted the exemption specified in sub-subparagraph (A) of this subparagraph (I) prior to May 27, 2008;   (K) The exemption for sales that benefit a Colorado school specified in section 39-26-725 , C.R.S.;   (L) The exemption for sales by an association or organization of parents and teachers of public school students that is a charitable organization as specified in section 39-26-718 (1)(c) , C.R.S.;   (M) The exemption for sales of property for use in space flight specified in section 39-26-728 , C.R.S.;   (N) Repealed.   (O) The exemption for retail sales of marijuana upon which the retail marijuana sales tax is imposed pursuant to section 39-28.8-202 as specified in section 39-26-729 .   (P) The exemption for manufactured homes set forth in section 39-26-721 (3) .   History. Source: L. 67: P. 661, § 5. C.R.S. 1963: § 138-10-5. L. 69: Pp. 1145, 1146, §§ 1, 1. L. 73: P. 242, § 26. L. 77: (1)(b) amended, p. 1398, § 1, effective July 1. L. 79: (1)(d) amended, p. 1429, § 13, effective July 3. L. 80: (1)(d) amended, p. 684, § 7, effective May 1; (1)(d) amended, p. 734, § 4, effective May 2; (1)(d) amended, p. 799, § 68, effective June 5. L. 81: (1) amended and (1)(f) added, p. 1402, § 2, effective June 9. L. 83: (1)(d) amended, p. 1208, § 1, effective April 28. L. 85: (2), (3), and (4) added, p. 1030, § 1, effective January 1, 1986. L. 87: (5) to (8) added, p. 1462, effective October 1. L. 94: (1)(d) amended, p. 1325, § 7, effective May 25. L. 95: (1)(d) amended, p. 329, § 2, effective April 27. L. 99: (1)(d) amended, p. 980, § 3, effective May 28; (1)(d) amended, p. 1324, § 5, effective July 1; (1)(d) amended, p. 1275, § 3, effective July 1; (1)(d) amended, p. 1356, § 4, effective January 1, 2000. L. 2000: (1)(d) amended, p. 550, § 5, effective July 1. L. 2001: (1)(d) amended, p. 382, § 3, effective July 1. L. 2002: (1.5) added, p. 253, § 3, effective April 12; (1)(f) amended, p. 1036, § 81, effective June 1. L. 2004: (1)(d) amended, p. 1036, § 3, effective July 1. L. 2008: (1)(d) R&RE, p. 1321, § 5, effective May 27; (1)(d) R&RE, p. 1545, § 3, effective May 28; (1)(d) R&RE, p. 967, § 1, effective August 5; (1)(f) repealed, p. 991, § 9, effective August 5; (1)(d) R&RE, p. 971, § 1, effective September 1. L. 2009: (1)(d)(I)(J) amended,(HB 09-1126), ch. 254, p. 1149, § 4, effective May 15; (9) added,(HB 09-1342), ch. 354, p. 1847, § 3, effective July 1. L. 2011: (1)(d)(II) repealed,(SB 11-178), ch. 216, p. 945, § 1, effective August 10; (10) added,(HB 11-1109), ch. 221, p. 954, § 1, effective August 10. L. 2012: (1)(d)(I)(I) amended,(HB 12-1045), ch. 191, p. 765, § 2, effective May 21; (1)(d)(I)(H) amended,(HB 12-1037), ch. 251, p. 1247, § 1, effective June 4. L. 2014: (1)(d)(I)(N) added,(HB 14-1159), ch. 229, p. 852, § 2, effective May 17; (1)(d)(I)(K) and (1)(d)(I)(L) amended and (1)(d)(I)(M) added,(HB 14-1178), ch. 234, p. 867, § 3, effective May 20. L. 2016: (1)(d)(I)(A) amended and (1)(d)(I)(A.5) added,(SB 16-124), ch. 258, p. 1058, § 2, effective June 8. L. 2017: IP(1) and IP(1)(d)(I) amended and (1)(d)(I)(O) added,(SB 17-267), ch. 267, p. 1467, § 23, effective May 30. L. 2018: IP(1) and IP(1)(d)(I) amended and (1)(d)(I)(P) added,(HB 18-1315), ch. 240, p. 1496, § 2, effective August 8. L. 2019: (1)(b) and (2) amended,(HB 19-1240), ch. 264, p. 2502, § 9, effective June 1; (1)(d)(I)(F) amended,(HB 19-1162), ch. 266, p. 2511, § 1, effective August 2. L. 2021: (1)(d)(I)(G) amended,(HB 21-1155), ch. 109, p. 433, § 2, effective May 7; (1)(d)(I)(F) amended,(HB 21-1158), ch. 119, p. 458, § 3, effective September 7. History. Source: L. 67: P. 661, § 5. C.R.S. 1963: § 138-10-5. L. 69: Pp. 1145, 1146, §§ 1, 1. L. 73: P. 242, § 26. L. 77: (1)(b) amended, p. 1398, § 1, effective July 1. L. 79: (1)(d) amended, p. 1429, § 13, effective July 3. L. 80: (1)(d) amended, p. 684, § 7, effective May 1; (1)(d) amended, p. 734, § 4, effective May 2; (1)(d) amended, p. 799, § 68, effective June 5. L. 81: (1) amended and (1)(f) added, p. 1402, § 2, effective June 9. L. 83: (1)(d) amended, p. 1208, § 1, effective April 28. L. 85: (2), (3), and (4) added, p. 1030, § 1, effective January 1, 1986. L. 87: (5) to (8) added, p. 1462, effective October 1. L. 94: (1)(d) amended, p. 1325, § 7, effective May 25. L. 95: (1)(d) amended, p. 329, § 2, effective April 27. L. 99: (1)(d) amended, p. 980, § 3, effective May 28; (1)(d) amended, p. 1324, § 5, effective July 1; (1)(d) amended, p. 1275, § 3, effective July 1; (1)(d) amended, p. 1356, § 4, effective January 1, 2000. L. 2000: (1)(d) amended, p. 550, § 5, effective July 1. L. 2001: (1)(d) amended, p. 382, § 3, effective July 1. L. 2002: (1.5) added, p. 253, § 3, effective April 12; (1)(f) amended, p. 1036, § 81, effective June 1. L. 2004: (1)(d) amended, p. 1036, § 3, effective July 1. L. 2008: (1)(d) R&RE, p. 1321, § 5, effective May 27; (1)(d) R&RE, p. 1545, § 3, effective May 28; (1)(d) R&RE, p. 967, § 1, effective August 5; (1)(f) repealed, p. 991, § 9, effective August 5; (1)(d) R&RE, p. 971, § 1, effective September 1. L. 2009: (1)(d)(I)(J) amended,(HB 09-1126), ch. 254, p. 1149, § 4, effective May 15; (9) added,(HB 09-1342), ch. 354, p. 1847, § 3, effective July 1. L. 2011: (1)(d)(II) repealed,(SB 11-178), ch. 216, p. 945, § 1, effective August 10; (10) added,(HB 11-1109), ch. 221, p. 954, § 1, effective August 10. L. 2012: (1)(d)(I)(I) amended,(HB 12-1045), ch. 191, p. 765, § 2, effective May 21; (1)(d)(I)(H) amended,(HB 12-1037), ch. 251, p. 1247, § 1, effective June 4. L. 2014: (1)(d)(I)(N) added,(HB 14-1159), ch. 229, p. 852, § 2, effective May 17; (1)(d)(I)(K) and (1)(d)(I)(L) amended and (1)(d)(I)(M) added,(HB 14-1178), ch. 234, p. 867, § 3, effective May 20. L. 2016: (1)(d)(I)(A) amended and (1)(d)(I)(A.5) added,(SB 16-124), ch. 258, p. 1058, § 2, effective June 8. L. 2017: IP(1) and IP(1)(d)(I) amended and (1)(d)(I)(O) added,(SB 17-267), ch. 267, p. 1467, § 23, effective May 30. L. 2018: IP(1) and IP(1)(d)(I) amended and (1)(d)(I)(P) added,(HB 18-1315), ch. 240, p. 1496, § 2, effective August 8. L. 2019: (1)(b) and (2) amended,(HB 19-1240), ch. 264, p. 2502, § 9, effective June 1; (1)(d)(I)(F) amended,(HB 19-1162), ch. 266, p. 2511, § 1, effective August 2. L. 2021: (1)(d)(I)(G) amended,(HB 21-1155), ch. 109, p. 433, § 2, effective May 7; (1)(d)(I)(F) amended,(HB 21-1158), ch. 119, p. 458, § 3, effective September 7.    Editor's note:    Amendments to subsection (1)(d) by House Bill 99-1002, House Bill 99-1015, House Bill 99-1271, and House Bill 99-1381 were harmonized.    Amendments to subsection (1)(d) by House Bill 08-1269, House Bill 08-1013, House Bill 08-1358, and House Bill 08-1368 were harmonized.    Subsection (1)(d)(I)(H) provided for the repeal of subsection (1)(d)(I)(H), effective June 30, 2013.    Subsection (1)(d)(I)(P) was lettered as (1)(d)(I)(Q) in HB 18-1315 but has been relettered on revision for ease of location.    Subsection (1)(d)(I)(N) provided for the repeal of subsection (1)(d)(I)(N), effective July 1, 2019. (SeeL. 2014, p. 852.)     Cross references:    For the legislative declaration contained in the 1999 act amending subsection (1)(d), see section 1 of chapter 318, Session Laws of Colorado 1999.    For the legislative declaration contained in the 2002 act enacting subsection (1.5), see section 1 of chapter 92, Session Laws of Colorado 2002.    For the legislative declaration contained in the 2008 act amending subsection (1)(d), see section 1 of chapter 332, Session Laws of Colorado 2008.    For the legislative intent contained in the 2008 act amending subsection (1)(d), see section 9 of chapter 302, Session Laws of Colorado 2008.    For the legislative declaration contained in the 2009 act amending subsection (1)(d)(I)(J), see section 1 of chapter 254, Session Laws of Colorado 2009.    For the legislative declaration in HB 14-1178, see section 1 of chapter 234, Session Laws of Colorado 2014.    For the legislative declaration in SB 17-267, see section 1 of chapter 267, Session Laws of Colorado 2017.     ANNOTATION   Prior to the submission of a proposal initiated pursuant to subsection (1) to the electorate, a county has a discretionary duty to review the proposal for compliance with the procedural requirements of the county sales tax act and a court has jurisdiction to determine whether such an initiative complies with those procedural requirements. In contrast to a municipal or statewide initiative explicitly allowed by the Colorado Constitution, a statutorily authorized county initiative is limited and defined by the procedural and substantive provisions of the authorizing statute and the exercise of the statutory power of the initiative must comply with that statute. Bd. of County Comm'rs v. County Road Users Ass'n, 11 P.3d 432 (Colo. 2000).   Writ of mandamus ordering a county to submit a proposal initiated pursuant to subsection (1) to the electorate was inappropriate where the proposal failed to comply with the procedural requirements of the county sales tax act. Bd. of County Comm'rs v. County Road Users Ass'n, 11 P.3d 432 (Colo. 2000).   Applicability of use tax to rotable aircraft parts held constitutional and not violative of the commerce clause of the federal constitution. United Air Lines, Inc. v. City and County of Denver, 973 P.2d 647 (Colo. App. 1998).   This section cannot be extended by statutory construction to allow the regional transportation district to impose sales or use tax on transactions exempt from state taxation other than transactions exempted from state taxation pursuant to § 39-26-114 (11)(d) . Ball Corp. v. Fisher, 51 P.3d 1053 (Colo. App. 2001).   Applied in Associated Dry Goods Corp. v. City of Arvada, 197 Colo. 491 , 593 P.2d 1375 (1979).