CO Code § 42-3-116 (2021)
2021 Colorado Code|Title 42 - Vehicles and Traffic|Article 3 - Registration, Taxation, and License Plates|Part 1 - Registration and Taxation|§ 42-3-116. Manufacturers or Dealers - Definition

  Upon application using the proper form and payment of the fees required by law, a manufacturer of, drive-away or tow-away transporter of, or dealer in, motor vehicles, trailers, special mobile machinery, or semitrailers operating such vehicle upon any highway, in lieu of registering each vehicle, may obtain from the department and attach to each such vehicle one number plate, as required in this article for different classes of vehicles. Such plate shall bear a distinctive number; the name of this state, which may be abbreviated; the year issued; and a distinguishing word or symbol indicating that such plate was issued to a manufacturer, drive-away or tow-away transporter, or dealer. Such plates may, during the registration period for which they were issued, be transferred from one such vehicle to another when owned and operated by or with the authority of such manufacturer or representative of such manufacturer or operated by such drive-away or tow-away transporter or dealer.    No manufacturer of or dealer in motor vehicles, trailers, or semitrailers shall cause or permit a vehicle owned by such person to be operated or moved upon a public highway without displaying upon such vehicle a number plate, except as otherwise authorized in this article.    A manufacturer of motor vehicles, trailers, or semitrailers may operate or move upon the highways any such vehicle from the factory where manufactured to a railway depot, vessel, or place of shipment or delivery, without registering the same and without an attached number plate, under a written permit first obtained from the police authorities with jurisdiction over such highways and upon displaying upon each such vehicle a placard bearing the name and address of the manufacturer authorizing or directing such movement, plainly readable from one hundred feet away during daylight.      Any dealer in motor vehicles, trailers, or semitrailers may operate, move, or transport a vehicle owned by such dealer on the streets and highways of this state without registering such vehicle and without an attached numbered plate if there is displayed on such vehicle a depot tag issued by the department. Such tag may be purchased from the department for a fee of five dollars. Such tags shall only be used for moving authorized vehicles for purposes of testing, repairs, or transporting them from the point of delivery to the dealer's place of business and for similar legitimate business purposes; but nothing in this section shall be construed to allow the use of such tag for private purposes. (4) (a) Any dealer in motor vehicles, trailers, or semitrailers may operate, move, or transport a vehicle owned by such dealer on the streets and highways of this state without registering such vehicle and without an attached numbered plate if there is displayed on such vehicle a depot tag issued by the department. Such tag may be purchased from the department for a fee of five dollars. Such tags shall only be used for moving authorized vehicles for purposes of testing, repairs, or transporting them from the point of delivery to the dealer's place of business and for similar legitimate business purposes; but nothing in this section shall be construed to allow the use of such tag for private purposes.    The executive director of the department shall promulgate rules for the use of depot tags and dealer plates, and a violation of such rules shall subject the violator to a suspension or revocation of the violator's depot tag and dealer plates after a hearing pursuant to article 4 of title 24, C.R.S.   Owners or co-owners of the licensed dealership or wholesale motor vehicle business;    An employee of the motor vehicle dealer or wholesaler;    To any person, including former, current, and prospective customers, in order to serve the legitimate business interest of the motor vehicle dealership or motor vehicle wholesale business; and    A spouse or dependent child living in the same household as the licensed dealer or wholesaler.          A manufacturer or dealer, upon transferring a motor vehicle, trailer, or semitrailer, whether by sale, lease, or otherwise, to any person other than a manufacturer or dealer shall immediately give written notice of such transfer to the department upon the form provided by the department. Such notice shall contain the date of such transfer, the names and addresses of the transferor and transferee, and such description of the vehicle as may be required by the department.    (a) (I) An application for a full-use dealer plate may be submitted by a motor vehicle dealer or wholesaler who:   Has sold more than twenty-five motor vehicles in the twelve-month period preceding application;    Purchases an existing motor vehicle dealership or wholesale business that has sold more than twenty-five vehicles during the twelve-month period preceding application; or    Obtains a license to operate a new or used motor vehicle dealership or wholesale business with an inventory of fifty or more motor vehicles.         A person who sells special mobile machinery in the ordinary course of business may submit an application for a demonstration plate. (7) (a) A person who sells special mobile machinery in the ordinary course of business may submit an application for a demonstration plate.      The department shall issue a demonstration plate upon payment of the fee specified in subparagraph (II) of this paragraph (b) and upon application of a motor vehicle dealer or wholesaler accompanied by satisfactory evidence that the applicant is entitled to the plate in accordance with this subsection (7). (b) (I) The department shall issue a demonstration plate upon payment of the fee specified in subparagraph (II) of this paragraph (b) and upon application of a motor vehicle dealer or wholesaler accompanied by satisfactory evidence that the applicant is entitled to the plate in accordance with this subsection (7).    The department shall establish and adjust the annual fee for a demonstration plate based on the average of specific ownership taxes and registration fees paid for items of special mobile machinery that are seven model years old or newer during the previous year.    A demonstration plate shall be valid for one year.    The owner of a demonstration plate shall return the plate to the department within ten days after the sale or closure of the business that sells special mobile machinery in the ordinary course of business.    At the discretion of the executive director of the department, the department may issue one number plate for any vehicle not listed in subparagraph (I) of this paragraph (a).    The department may require the return to the department of all number plates upon termination of the lawful use of such plates by the owner.    Any validating tab or sticker that evidences the receipt of taxes under this article may be obtained by the department through normal purchasing procedures and may be produced and issued by the department through its authorized agents. Such validation tab or sticker shall be produced in accordance with the minimum specifications of the department, and such specifications shall reflect, at a minimum, the same quality control standards employed by the department of corrections in the production of such validation tab or sticker as those standards existed on January 1, 1999.       No person shall operate special mobile machinery with a demonstration plate unless the machinery is offered for sale and being demonstrated for the purposes of a sale. The owner may transfer the plate from one item of special mobile machinery to another and without reporting the transfer to the department.    A person who violates this subsection (7) commits a class 2 misdemeanor, and shall be punished as provided in section 18-1.3-501, C.R.S.        (b) (I) The department shall issue full-use dealer plates upon payment of the fee specified in subparagraph (II) of this paragraph (b) and upon application of a motor vehicle dealer or wholesaler accompanied by satisfactory evidence that the applicant is entitled to the plate in accordance with the criteria established in subparagraph (I) of paragraph (a) of this subsection (6).   (c) Full-use dealer plates may be used only for vehicles owned and offered for sale by the dealer or wholesaler. Full-use dealer plates shall not be used on vehicles owned by dealerships or wholesalers that are commonly used by that dealer as tow trucks or vehicles commonly used by that dealer to pick up or deliver parts. At the dealer's or wholesaler's discretion, the full-use plate may be transferred from one motor vehicle to another motor vehicle. The dealer or wholesaler shall not be required to report any such transfer to the department.   (d) A motor vehicle dealer or wholesaler may assign a full-use dealer plate only to the following persons:   (e) As used in this subsection (6), “motor vehicle dealer or wholesaler” includes motor vehicle dealers, used motor vehicle dealers, and wholesalers as those terms are defined in section 44-20-102 .   History. Source: L. 2005: Entire article amended with relocations, p. 1099, § 2, effective August 8. L. 2007: (4)(a) amended, p. 30, § 5, effective August 3. L. 2010: (7) added, (HB 10-1172), ch. 320, p. 1490, § 7, effective October 1. L. 2011: (7)(d) amended, (HB 11-1303), ch. 264, p. 1181, § 107, effective August 10. L. 2017: (6)(e) amended, (SB 17-240), ch. 395, p. 2065, § 50, effective July 1. L. 2018: (6)(e) amended, (SB 18-030), ch. 7, p. 141, § 16, effective October 1.    Editor's note:   This section is similar to former § 42-3-127 as it existed prior to 2005.   ANNOTATION   Annotator's note. Since § 42-3-116 is similar to § 42-3-127 as it existed prior to the 2005 amendment to article 3 of title 42, which resulted in the relocation of provisions, relevant cases construing that provision and its predecessors have been included in the annotations to this section.   Legislative intent in adopting subsection (1) was to accommodate dealers by not requiring registration of each vehicle in the dealer's inventory and to permit dealers to operate their vehicles upon highways with the ease of transferring one license plate from one vehicle to another. Dept. of Rev. v. A A Auto Wrecking, Inc., 625 P.2d 1021 (Colo. 1981).   There was no violation when a dealer illegally gave a purchaser a dealer plate. The statute was enacted to collect taxes and not to protect the public. Liebelt v. Bob Penkhus Volvo-Mazda, Inc., 961 P.2d 1147 (Colo. App. 1998).   Department may not limit number of dealer licenses to one dealer. A department of revenue regulation, limiting the number of dealer license plates that may be issued to an automobile dealer, is inconsistent with this section and is, therefore, invalid. A A Auto Wrecking, Inc. v. Dept. of Rev., 43 Colo. App. 85, 602 P.2d 10 .   Dealer may not obtain unlimited number of plates. Subsection (1) does not provide that a dealer may obtain an unlimited number of dealer plates, nor would such an interpretation lead to a just and reasonable result. Dept. of Rev. v. A A Auto Wrecking, Inc., 625 P.2d 1021 (Colo. 1981).   Colorado appellate decisions support the proposition that nondelivery of the certificate of title to a motor vehicle does not prevent a change of ownership, and that delivery of possession constitutes a transfer of ownership as between the parties involved. Hall v. Hong Seung Gee, 725 P.2d 1164 (Colo. App. 1986).