CO Code § 39-26-716 (2021)
2021 Colorado Code|Title 39 - Taxation|Article 26 - Sales and Use Tax|Part 7 - Sales and Use Tax Exemptions|§ 39-26-716. Agriculture and Livestock - Special Fuels - Definitions

  For purposes of this section, unless the context otherwise requires:   Repealed.    “Attachments” means any equipment or machinery added to an exempt farm tractor or implement of husbandry that aids or enhances the performance of such tractor or implement.    “Dairy equipment” means any item that is used at a farm dairy in connection with the production of raw milk and not at a commercial dairy in connection with the production of pasteurized, separated milk products for retail sale, including, without limitation, milking claws, shells, inflators, pulsators, meters, cow identification systems, transponders, automatic takeoffs, piping, receiver jars, pumps, filter assemblies, milk containment tanks, cooling compressors, wash vats, clean in place assemblies, wash lines, wash control units, pulsator controls, milking system controls, programmable logical control systems, vacuum pumps, vacuum distribution tanks, backflush and related valves, rubber and similar hoses, rubber and similar gaskets, and any other similar or related item used in any farm dairy facility or farm dairy operation or in the production of raw milk, regardless of whether or not the item has become a fixture. To the extent the farm dairy is also involved in the production of pasteurized, separated milk products for retail sale, only the equipment used exclusively in the production of raw milk constitutes dairy equipment for purposes of this section.    “Farm equipment” means any farm tractor, as defined in section 42-1-102 (33), any implement of husbandry, as defined in section 42-1-102 (44), and irrigation equipment having a per unit purchase price of at least one thousand dollars. “Farm equipment” also includes, regardless of purchase price, attachments and baling wire, binders twine, and surface wrap used primarily and directly in any farm operation. On and after July 1, 2000, “farm equipment” also includes, regardless of purchase price, parts that are used in the repair or maintenance of the farm equipment described in this subsection (1)(d), all shipping pallets, crates, or aids paid for by a farm operation, and aircraft designed or adapted to undertake agricultural applications. On and after July 1, 2001, “farm equipment” also includes, regardless of purchase price, dairy equipment. On and after September 1, 2019, “farm equipment” also includes, regardless of purchase price, any visual, electronic identification, or matched pair ear tags and electronic identification readers used to scan ear tags that are used by a farm operation to identify or track food animals, including animals used for food or in the production of food. Except for shipping pallets, crates, or aids used in the transfer or shipping of agricultural products, “farm equipment” does not include:   Vehicles subject to the registration requirements of section 42-3-103, C.R.S., regardless of the purpose for which such vehicles are used;    Machinery, equipment, materials, and supplies used in a manner that is incidental to a farm operation;    Maintenance and janitorial equipment and supplies; and    Tangible personal property used in any activity other than farming, such as office equipment and supplies and equipment and supplies used in the sale or distribution of farm products, research, or transportation.       “Farm operation” means the production of any of the following products for profit, including, but not limited to, a business that hires out to produce or harvest such products:   Agricultural, viticultural, fruit, and vegetable products;    Livestock, as defined in section 39-26-102 (5.5);    Milk;    Honey; and    Poultry and eggs.             Repealed.    The following are exempt from taxation under the provisions of parts 1 and 2 of this article 26:   All sales and purchases of livestock, all sales and purchases of live fish for stocking purposes, and all farm close-out sales and the storage, use, or consumption of such property;    All sales and purchases of feed for livestock, all sales and purchases of seeds, and all sales and purchases of orchard trees and the storage, use, or consumption of such property;    All sales and purchases of straw and other bedding for use in the care of livestock and the storage, use, or consumption of straw and other bedding for use in the care of livestock;    The sale of special fuel, as defined in section 39-27-101 (29), used for the operation of farm vehicles when such vehicles are being used on farms and ranches and the storage, use, or consumption of such special fuel;    All sales and purchases of farm equipment and the storage, use, or consumption of farm equipment; and      Any farm equipment under lease or contract, if the fair market value of the equipment is at least one thousand dollars and the equipment is rented or leased for use primarily and directly in any farm operation. (f) (I) Any farm equipment under lease or contract, if the fair market value of the equipment is at least one thousand dollars and the equipment is rented or leased for use primarily and directly in any farm operation.    The lessor or seller of such farm equipment shall obtain a signed affidavit from the lessee, renter, or purchaser affirming that the farm equipment will be used primarily and directly in a farm operation.          (Deleted by amendment, L. 2011, (HB 11-1005), ch. 194, p. 755, § 3, effective July 1, 2011.)      History. Source: L. 2004: Entire part added with relocations, p. 1030, § 2, effective July 1. L. 2010: (2)(d), (2)(e), (3)(d), and (3)(e) amended and (5) added,(HB 10-1195), ch. 11, p. 62, § 1, effective February 24. L. 2011: (2)(d), (2)(e), (3)(d), (3)(e), and (5) amended,(HB 11-1005), ch. 194, p. 755, § 3, effective July 1. L. 2012: (2)(d), (2)(e), (3)(d), and (3)(e) amended,(HB 12-1037), ch. 251, p. 1248, § 3, effective June 4. L. 2019: IP(1)(d) amended,(HB 19-1162), ch. 266, p. 2512, § 2, effective August 2. L. 2021: (1)(a), (2), and (3) repealed, IP(4), (4)(b), and (4)(c) amended, and (4)(d), (4)(e), and (4)(f) added,(HB 21-1158), ch. 119, p. 456, § 2, effective September 7.    Editor's note:    The provisions of this section are similar to several former provisions of §§ 39-26-114 and 39-26-203 as they existed prior to 2004. For a detailed comparison, see the comparative tables located in the back of the index.    Subsections (2)(d)(II), (2)(e)(II), (3)(d)(II), and (3)(e)(II) provided for the repeal of subsections (2)(d), (2)(e), (3)(d), and (3)(e), respectively, effective June 30, 2013. (SeeL. 2012, p. 1249.)