CO Code § 39-26-102 (2021)
2021 Colorado Code|Title 39 - Taxation|Article 26 - Sales and Use Tax|Part 1 - Sales Tax|§ 39-26-102. Definitions

 As used in this article 26, unless the context otherwise requires:    “Agricultural commodity” means any agricultural commodity as defined in section 35-28-104 (1), C.R.S.; except that, for purposes of this article, “agricultural commodity” shall also include sugar beets, timber and timber products, oats, malting barley, barley, hops, rice, milo, and any other feed grain. (1.3) “Auction sale” means any sale conducted or transacted at a permanent place of business operated by an auctioneer or a sale conducted and transacted at any location where tangible personal property is sold by an auctioneer when such auctioneer is acting either as agent for the owner of such personal property or is in fact the owner thereof. The auctioneer at any sale defined in subsection (11) of this section, except when acting as an agent for a duly licensed retailer or vendor or when selling only tangible personal property that is exempt under the provisions of section 39-26-716 (4)(a) and (4)(b), is a retailer or vendor as defined in subsection (8) of this section and the sale made by the auctioneer is a retail sale as defined in subsection (9) of this section, and the business conducted by said auctioneer in accomplishing such sale is the transaction of a business as defined by subsection (2) of this section.    “Business” includes all activities engaged in or caused to be engaged in with the object of gain, benefit, or advantage, direct or indirect.  (2.5) “Charitable organization” means any entity organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office, or any veterans' organization registered under section 501 (c)(19) of the federal “Internal Revenue Code of 1986”, as amended.   (2.6) “Coins” means monetized bullion or other forms of money manufactured from gold, silver, platinum, palladium, or other such metals now, in the future, or heretofore designated as a medium of exchange under the laws of this state, the United States, or any foreign nation.   (2.7) “Cooperative direct mail advertising” means advertising for one or more businesses which is in the form of discount coupons, advertising leaflets, or other printed advertising which are delivered by mail in a single package or bundle to potential customers of such businesses participating in such advertising.  (2.8) “Direct mail advertising materials” means discount coupons, advertising leaflets, and other printed advertising, including, but not limited to, accompanying envelopes and labels.    “Doing business in this state” means the selling, leasing, or delivering in this state, or any activity in this state in connection with the selling, leasing, or delivering in this state, of tangible personal property or taxable services by a retail sale as defined in this section, for use, storage, distribution, or consumption within this state. This subsection (3) affects the imposition, application, or collection of sales and use taxes only. “Doing business in this state” includes, but shall not be limited to, the following acts or methods of transacting business:   The maintaining within this state, directly or indirectly or by a subsidiary, of an office, distribution facility, salesroom, warehouse, storage place, or other similar place of business, including the employment of a resident of this state who works from a home office in this state; or    The soliciting, either by direct representatives, indirect representatives, manufacturers' agents, or by distribution of catalogues or other advertising, or by use of any communication media, or by use of the newspaper, radio, or television advertising media, or by any other means whatsoever, of business from persons residing in this state and by reason thereof receiving orders from, or selling or leasing tangible personal property to, such persons residing in this state for use, consumption, distribution, and storage for use or consumption in this state.    Economic nexus. (I) Except as provided in subsection (3)(c)(II) of this section, a person is doing business in this state in a calendar year:   (A) If in the previous calendar year the person has made retail sales of tangible personal property, commodities, or services in the state as specified in section 39-26-104 (3), exceeding one hundred thousand dollars; or    Beginning October 1, 2019, for purposes of determining whether the thresholds set forth in subsection (3)(c)(I) of this section are met:   A marketplace facilitator shall include all sales made by marketplace sellers in and through its marketplace; and    A marketplace seller shall not include any sales made in or through a marketplace facilitator's marketplace.       This subsection (3)(c) does not apply to any person who is doing business in this state under subsection (3)(a) of this section but otherwise applies to any other person.          “Farm close-out sale” means a sale by auction or private treaty of all tangible personal property of a farmer or rancher previously used by him in carrying on his farming or ranching operations. Unless said farmer or rancher is making or attempting to make full and final disposition of all property used in his farming or ranching operations and is abandoning the said operations on the premises whereon they were previously conducted, such sale shall not be deemed a “farm close-out sale” within the meaning of this article. (4.5)   “Food” means food for domestic home consumption as defined in 7 U.S.C. sec. 2012 (k), as amended, for purposes of the federal food stamp program, or any successor program, as defined in 7 U.S.C. sec. 2012 (l), as amended; except that “food” does not include carbonated water marketed in containers; chewing gum; seeds and plants to grow foods; prepared salads and salad bars; packaged and unpackaged cold sandwiches; deli trays; and hot or cold beverages served in unsealed containers or cups that are vended by or through machines or non-coin-operated coin-collecting food and snack devices on behalf of a vendor.    In determining whether a food product is for domestic home consumption, unless the vendor is described in section 39-26-104 (1)(e), no inference shall be drawn from the type of vendor selling the product, the location of the product within a store, or the manner in which the product is marketed.       “Gross taxable sales” means the total amount received in money, credits, or property, excluding the fair market value of exchanged property which is to be sold thereafter in the usual course of the retailer's business, or other consideration valued in money from sales and purchases at retail within this state, and embraced within the provisions of this article. The taxpayer may take credit in this report of gross sales for an amount equal to the sale price of property returned by the purchaser when the full sale price thereof is refunded whether in cash or by credit. The fair market value of any exchanged property which is to be sold thereafter in the usual course of the retailer's business, if included in the full price of a new article, shall be excluded from the gross sales. On all sales at retail, valued in money, when such sales are made under conditional sales contract, or under other forms of sale where the payment of the principal sum thereunder is extended over a period longer than sixty days from the date of sale thereof, only such portion of the sale amount thereof may be counted for the purpose of imposition of the tax imposed by this article as has actually been received in cash by the taxpayer during the period for which the tax imposed by this article is due and payable. Taxes paid on gross sales represented by accounts found to be worthless and actually charged off for income tax purposes may be credited upon a subsequent payment of the tax provided in this article, but if any such accounts are thereafter collected by the taxpayer, a tax shall be paid upon the amounts so collected. (5.5) “Livestock” means cattle, horses, mules, burros, sheep, lambs, poultry, swine, ostrich, llama, alpaca, and goats, regardless of use, and any other animal which is raised primarily for food, fiber, or hide production. “Livestock” shall also mean “alternative livestock” as defined under section 35-41.5-102 , C.R.S. “Livestock” shall not mean a pet animal as defined under section 35-80-102 (10) , C.R.S.  (5.6) “Livestock production facility” means any structure used predominately for the housing, containing, sheltering, or feeding of livestock, including, without limitation, barns, corrals, feedlots, and swine houses.   (5.7) “Mainframe computer access” means the provision of access to computer equipment for the purpose of storing or processing data. “Mainframe computer access” does not include the provision of access to computer equipment for the purpose of examining or acquiring data maintained by the vendor. “Mainframe computer access” does not include the provision of access to computer equipment incident to electronic computer software delivery, as defined in subsection (15)(c)(II)(C) of this section, or incident to the use of computer software hosted by an application service provider, as defined in subsection (15)(c)(II)(A) of this section.  (5.8) “Marketplace” means a physical or electronic forum, including, but not limited to, a store, a booth, an internet website, a catalog, or a dedicated sales software application, where tangible personal property, commodities, or services are offered for sale. (5.9)   “Marketplace facilitator” means a person who:   Contracts with a marketplace seller to facilitate for consideration, regardless of whether the consideration is deducted as fees from the transaction, the sale of the marketplace seller's tangible personal property, commodities, or services through the person's marketplace;    Engages directly or indirectly, through one or more affiliated persons, in transmitting or otherwise communicating the offer or acceptance between a purchaser and the marketplace seller; and    Either directly or indirectly, through agreements or arrangements with third parties, collects the payment from the purchaser and transmits the payment to the marketplace seller.       A “marketplace facilitator” does not include a person that exclusively provides internet advertising services or lists products for sale, and that does not otherwise meet the definition set forth in subsection (5.9)(a) of this section.       “Marketplace seller” means a person, regardless of whether the person is doing business in this state, who has an agreement with a marketplace facilitator and offers for sale tangible personal property, commodities, or services through a marketplace owned, operated, or controlled by a marketplace facilitator. (6.1) “Medical marijuana” has the same meaning as set forth in section 44-10-103 (34) .  (6.2) “Multichannel seller” means a retailer that offers for sale tangible personal property, commodities, or services through a marketplace owned, operated, or controlled by a marketplace facilitator, and through other means.   (6.3) “Person” includes any individual, firm, limited liability company, partnership, joint venture, corporation, estate, or trust or any group or combination acting as a unit, and the plural as well as the singular number.   (6.4) “Packing and crating” means tangible personal property furnished to prepare tangible personal property purchased at retail for delivery to a location designated by the purchaser.   (6.5) “Photocopying” means the sale of a document rendered on paper or other similar material by a machine that creates an accurate reproduction of the original. “Photocopying” does not include the provision of a photocopy in connection with services if the purchaser is not charged separately for photocopying.   (6.6) “Precious metal bullion” means any precious metal, including, but not limited to, gold, silver, platinum, and palladium, that has been put through a process of refining and is in such a state or condition that its value depends upon its precious metal content and not its form.   (6.7) “Pre-press preparation printing materials” means those tangible products converted to use for a specific print job that are subsequently saved but can only be reused for that same print client on rerun. Title to such pre-press preparation printing materials must pass to an independent customer with the sale of the printed materials, and they must be reusable for their original purpose or a similar purpose after the press run. Examples of “pre-press preparation printing materials” include, but are not limited to, photos, color keys, dies, engravings, light sensitive film or paper, masking sheets of any material, plates, rotogravure cylinders, and proofing samples of any material. No disposable materials or materials consumed to a significant degree are pre-press preparation printing materials for the purposes of this article. Examples of disposable or consumable materials include, but are not limited to, tape, alcohol, glues, adhesives, washes, silicon solutions, pens, markers, and cleaners.  (6.8) “Public school” means a public school of a school district in this state or an institute charter school.      “Purchase price” means the price to the consumer, exclusive of any direct tax imposed by the federal government or by this article 26, exclusive of any retail delivery fee and enterprise retail delivery fees imposed or collected as specified in section 43-4-218, and, in the case of all retail sales involving the exchange of property, also exclusive of the fair market value of the property exchanged at the time and place of the exchange, if:   Such exchanged property is to be sold thereafter in the usual course of the retailer's business; or    Such exchanged property is a vehicle and is exchanged for another vehicle and both vehicles are subject to licensing, registration, or certification under the laws of this state, including, but not limited to, vehicles operating upon public highways, off-highway recreation vehicles, watercraft, and aircraft.       In the case of the sale or transfer of wireless telecommunication equipment as an inducement to a consumer to enter into or continue a contract for telecommunication services that are taxable pursuant to this part 1, “purchase price” means and shall be limited to the monetary amount paid by the consumer and shall not reflect any sales commission or other compensation received by the retailer as a result of the consumer entering into or continuing a contract for such telecommunication services. Nothing in this paragraph (b) shall be construed to define “purchase price” as it applies to the amount a retailer collects from a consumer who defaults or terminates a contract for telecommunication services.    With respect to the purchase price of a heavy truck, trailer, or tractor, the price to the consumer shall also be exclusive of the federal excise tax on the first retail sale of the heavy truck, trailer, or tractor for which the retailer is liable. (7.5) “Qualified purchaser” means a person domiciled in Colorado who has been issued a direct payment permit number pursuant to section 39-26-103.5 . (7.6) and (7.7) Repealed.       “Retailer” or “vendor” means a person doing business in this state known to the trade and public as such, and selling to the user or consumer, and not for resale. The term includes a marketplace facilitator, a marketplace seller, and a multichannel seller doing business in this state.    “Retail sale” includes all sales made within the state except wholesale sales.    “Sale” or “sale and purchase” includes installment and credit sales and the exchange of property as well as the sale thereof for money; every such transaction, conditional or otherwise, for a consideration, constituting a sale; and the sale or furnishing of electrical energy, gas, steam, telephone, or telegraph services taxable under the terms of this article. Neither term includes:   A division of partnership or limited liability company assets among the partners or limited liability company members according to their interests in the partnership or limited liability company;    The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all the corporation's outstanding stock, except qualifying shares, in proportion to the assets contributed;    The transfer of assets of shareholders in the formation or dissolution of professional corporations;    The dissolution and the pro rata distribution of the corporation's assets to its stockholders;    The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty percent by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation;    The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty percent by the parent corporation to a parent corporation or to another subsidiary which is owned at least eighty percent by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets;    A transfer of a limited liability company or partnership interest;    The transfer in a reorganization qualifying under section 368 (a)(1) of the “Internal Revenue Code of 1986”, as amended;    The formation of a limited liability company or partnership by the transfer of assets to the limited liability company or partnership or transfers to a limited liability company or partnership in exchange for proportionate interests in the limited liability company or partnership;    The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder;    The transfer of assets between parent and closely held subsidiary corporations, or between subsidiary corporations closely held by the same parent corporation, or between corporations which are owned by the same shareholders in identical percentage of stock ownership amounts, computed on a share-by-share basis, when a tax imposed by this article was paid by the transferor corporation at the time it acquired such assets, except to the extent provided by subsection (12) of this section. For the purposes of this paragraph (k), a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at least eighty percent of the total combined voting power of all classes of stock entitled to vote and owns at least eighty percent of the total number of shares of all other classes of stock.       “Sale” or “sale and purchase”, in addition to the items included in subsection (10) of this section, includes the transaction of furnishing rooms or accommodations by any person, partnership, limited liability company, association, corporation, estate, receiver, trustee, assignee, lessee, or person acting in a representative capacity or any other combination of individuals by whatever name known to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park, under any concession, permit, right of access, license to use, or other agreement, or otherwise.    Except as otherwise provided in this subsection (12), the sales tax is imposed on the full purchase price of articles sold after manufacture or after having been made to order and includes the full purchase price for material used and the service performed in connection therewith, excluding, however, such articles as are otherwise exempted in this article. In connection with the transactions referred to in paragraph (k) of subsection (10) of this section, the sales tax is imposed only on the amount of any increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor corporation. Except as otherwise provided in this subsection (12), the sales price is the gross value of all materials, labor, and service, and the profit thereon, included in the price charged to the user or consumer.    “School” means an educational institution having a curriculum comparable to grade, grammar, junior high, high school, or college, or any combination thereof, requiring daily attendance, having an enrollment of at least forty students, and charging a tuition fee. (13.5) (Deleted by amendment, L. 2011, (HB 11-1293), ch. 299, p. 1437, § 4, effective July 1, 2012.)    “State treasurer” or “treasurer” means the state treasurer of the state of Colorado.        “Tangible personal property” means corporeal personal property. The term embraces all goods, wares, merchandise, products and commodities, and all tangible or corporeal things and substances that are dealt in and capable of being possessed and exchanged, except as set forth in this subsection (15). The term shall not be construed to include newspapers, as legally defined by section 24-70-102, preprinted newspaper supplements that become attached to or inserted in and distributed with such newspapers, or direct mail advertising materials that are distributed in Colorado by any person engaged solely and exclusively in the business of providing cooperative direct mail advertising; except that, commencing March 1, 2010, for purposes of the state sales or use tax, “tangible personal property” shall include direct mail advertising materials that are distributed in Colorado by any person engaged solely and exclusively in the business of providing cooperative direct mail advertising. (a) (I)“Tangible personal property” means corporeal personal property. The term embraces all goods, wares, merchandise, products and commodities, and all tangible or corporeal things and substances that are dealt in and capable of being possessed and exchanged, except as set forth in this subsection (15). The term shall not be construed to include newspapers, as legally defined by section 24-70-102, preprinted newspaper supplements that become attached to or inserted in and distributed with such newspapers, or direct mail advertising materials that are distributed in Colorado by any person engaged solely and exclusively in the business of providing cooperative direct mail advertising; except that, commencing March 1, 2010, for purposes of the state sales or use tax, “tangible personal property” shall include direct mail advertising materials that are distributed in Colorado by any person engaged solely and exclusively in the business of providing cooperative direct mail advertising.    No funding received from revenues received as a result of the passage of House Bill 10-1189, enacted in 2010, shall be used to fund additional full-time equivalent state employees.       (Deleted by amendment, L. 2011, (HB 11-1293), ch. 299, p. 1437, 4, effective July 1, 2012.)    (b.5) (I) “Tangible personal property” includes digital goods. The method of delivery does not impact the taxability of a sale of tangible personal property. Examples of methods used to deliver tangible personal property under current technology include but are not limited to compact disc, electronic download, and internet streaming.    As used in this subsection (15)(b.5), “digital good” means any item of tangible personal property that is delivered or stored by digital means, including but not limited to video, music, or electronic books.         “Tangible personal property”, commencing July 1, 2012, shall include computer software if the computer software meets all of the following criteria: (c) (I) “Tangible personal property”, commencing July 1, 2012, shall include computer software if the computer software meets all of the following criteria:   The computer software is prepackaged for repeated sale or license;    The use of the computer software is governed by a tear-open nonnegotiable license agreement; and    The computer software is delivered to the customer in a tangible medium. Computer software is not delivered to the customer in a tangible medium if it is provided through an application service provider, delivered by electronic computer software delivery, or transferred by load and leave computer software delivery.       As used in this paragraph (c), unless the context otherwise requires:   “Application service provider” or “ASP” means an entity that retains custody over or hosts computer software for use by third parties. Users of the computer software hosted by an ASP typically will access the computer software via the internet. The ASP may or may not own or license the computer software, but generally will own and maintain hardware and networking equipment required for the user to access the computer software. Where the ASP owns the computer software, the ASP may charge the user a license fee for the computer software or a fee for maintaining the computer software or hardware used by its customer.    “Computer software” means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.    “Electronic computer software delivery” means computer software transferred by remote telecommunications to the purchaser's computer, where the purchaser does not obtain possession of any tangible medium in the transaction.    “Load and leave computer software delivery” means delivery of computer software to the purchaser by use of a tangible medium where the title to or possession of the tangible medium is not transferred to the purchaser, and where the computer software is manually loaded by the vendor, or the vendor's representative, at the purchaser's location.    “Prepackaged for repeated sale or license” means computer software that is prepackaged for repeated sale or license in the same form to multiple users without modification, and is typically sold in a shrink-wrapped box.    “Tangible medium” means a tape, disk, compact disc, card, or comparable physical medium.    “Tear-open nonnegotiable license agreement” means a license agreement contained on or in the package, which by its terms becomes effective upon opening of the package and accepting the licensing agreement. “Tear-open nonnegotiable license agreement” does not include a written license agreement or contract signed by the licensor and the licensee.       The internalized instruction code that controls the basic operations, such as arithmetic and logic, of the computer causing it to execute instructions contained in system programs is an integral part of the computer and is not normally accessible or modifiable by the user. Such internalized instruction code is considered part of the hardware and considered tangible personal property that is taxable pursuant to section 39-26-104 (1)(a). The fact that the vendor does or does not charge separately for such code is immaterial.    If a retailer sells computer software to a Colorado purchaser that is considered tangible personal property taxable pursuant to section 39-26-104 (1)(a) and the Colorado purchaser pays the retailer for a quantity of computer software licenses with the intent to distribute the computer software to any of the purchaser's locations outside of Colorado, the measure of Colorado sales tax due is the total of the license fees associated only with the licenses that are actually used in Colorado. The Colorado purchaser shall provide a written statement to the retailer, attesting to the amount of the license fees associated with Colorado and with points outside of Colorado. The written statement shall relieve the retailer of any liability associated with the proration.          “Tax” means either the tax payable by the purchaser of a commodity or service subject to tax, or the aggregate amount of taxes due from the vendor of such commodities or services during the period for which he is required to report his collections, as the context may require.    “Taxpayer” means any person obligated to account to the executive director of the department of revenue for taxes collected or to be collected under the terms of this article.    “Wholesaler” means a person doing a regularly organized wholesale or jobbing business, and known to the trade as such and selling to retail merchants, jobbers, dealers, or other wholesalers, for the purpose of resale.      “Wholesale sale” means a sale by wholesalers to retail merchants, jobbers, dealers, or other wholesalers for resale and does not include a sale by wholesalers to users or consumers not for resale, and the latter sales shall be deemed retail sales and subject to the provisions of this article.    “Wholesale sale” includes sales of all pre-press preparation printing materials, as defined in subsection (6.7) of this section, that are used by a printer for a specific printing contract where the printed product is sold at retail to a customer accepting delivery within this state.      “Wholesale sale” includes sales of agricultural compounds and spray adjuvants to be consumed by, administered to, or otherwise used in caring for livestock and all sales of semen for agricultural or ranching purposes. (c) (I) “Wholesale sale” includes sales of agricultural compounds and spray adjuvants to be consumed by, administered to, or otherwise used in caring for livestock and all sales of semen for agricultural or ranching purposes.    For purposes of this paragraph (c), “agricultural compounds” means:   Insecticides, fungicides, growth-regulating chemicals, enhancing compounds, vaccines, and hormones;    Drugs, whether dispensed in accordance with a prescription or not, that are used for the prevention or treatment of disease or injury in livestock;    Animal pharmaceuticals that have been approved by the food and drug administration.       For purposes of this paragraph (c), “spray adjuvants” means products that are used to increase the effectiveness of a pesticide.       “Wholesale sale” includes sales of pesticides that are registered by the commissioner of agriculture for use in the production of agricultural and livestock products pursuant to the “Pesticide Act”, article 9 of title 35, C.R.S., and offered for sale by dealers licensed to sell such pesticides pursuant to section 35-9-115, C.R.S.    “Wholesale sale” includes sales of fertilizer for use in the production of agricultural commodities. For purposes of this subsection (19)(e), “fertilizer” means fertilizer as defined in section 35-12-103 (12), but not including specialty fertilizer as defined in section 35-12-103 (30).    “Wholesale sale” includes sales of spray adjuvants for use in the production of agricultural commodities. For purposes of this subsection (19)(f), “spray adjuvants” means products that are used to increase the effectiveness of a pesticide.    For purposes of this subsection (19), “agricultural commodities” does not include products regulated under articles 11 and 12 of title 44.         Sales to and purchases of tangible personal property by a person engaged in the business of manufacturing, 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, shall be deemed to be wholesale sales and shall be exempt from taxation under this part 1.    As used in paragraph (a) of this subsection (20) with regard to food products, tangible personal property enters into the processing of such products and is therefore exempt from taxation when:   It is intended that such property become an integral or constituent part of a food product which is intended to be sold ultimately at retail for human consumption; or    Such property, whether or not it becomes an integral or constituent part of a food product, is a chemical, solvent, agent, mold, skin casing, or other material; is used for the purpose of producing or inducing a chemical or physical change in a food product or is used for the purpose of placing a food product in a more marketable condition; and is directly utilized and consumed, dissipated, or destroyed, to the extent it is rendered unfit for further use, in the processing of a food product which is intended to be sold ultimately at retail for human consumption.            Sales and purchases of electricity, coal, gas, fuel oil, steam, coke, or nuclear fuel, for use in processing, manufacturing, mining, refining, irrigation, construction, telegraph, telephone, and radio communication, street and railroad transportation services, and all industrial uses, and newsprint and printer's ink for use by publishers of newspapers and commercial printers shall be deemed to be wholesale sales and shall be exempt from taxation under this part 1.    Repealed.       [ ] Should a dispute arise between the purchaser and seller as to whether or not any such sale is exempt from taxation, nevertheless the seller shall collect and the purchaser shall pay such tax, and the seller shall thereupon issue to the purchaser a receipt or certificate, on forms prescribed by the executive director of the department of revenue, showing the names of the seller and purchaser, the items purchased, the date, price, amount of tax paid, and a brief statement of the claim of exemption. The purchaser thereafter may apply to the said executive director for a refund of such taxes, and it is his duty to determine the question of exemption, subject to review by the courts, as provided in section 39-21-105. It is a misdemeanor, punishable as provided in this article, for any seller to fail to collect or purchaser to fail to pay the tax levied by this article and on sales on which exemption is disputed.   A petty offense if the amount is less than three hundred dollars;    A class 2 misdemeanor if the amount is three hundred dollars or more but less than one thousand dollars;    A class 1 misdemeanor if the amount is one thousand dollars or more but less than two thousand dollars;    A class 6 felony if the amount is more than two thousand dollars but less than five thousand dollars;    A class 5 felony if the amount is five thousand dollars or more but less than twenty thousand dollars;    A class 4 felony if the amount is twenty thousand dollars or more but less than one hundred thousand dollars;    A class 3 felony if the amount is one hundred thousand dollars or more but less than one million dollars; and    A class 2 felony if the amount is one million dollars or more.       Except as provided in section 39-26-713 (1)(a), when right to continuous possession or use for more than three years of any article of tangible personal property is granted under a lease or contract and such transfer of possession would be taxable if outright sale were made, such lease or contract shall be considered the sale of such article, and the tax shall be computed and paid by the vendor upon the rentals paid.    Editor's note: This version of subsection (22) is effective until March 1, 2022.  (22) [ ] Should a dispute arise between the purchaser and seller as to whether or not any such sale is exempt from taxation, nevertheless the seller shall collect and the purchaser shall pay such tax, and the seller shall thereupon issue to the purchaser a receipt or certificate, on forms prescribed by the executive director of the department of revenue, showing the names of the seller and purchaser, the items purchased, the date, price, amount of tax paid, and a brief statement of the claim of exemption. The purchaser thereafter may apply to the said executive director for a refund of such taxes, and it is the executive director's duty to determine the question of exemption, subject to review by the courts, as provided in section 39-21-105 . If any seller fails to collect or purchaser fails to pay the tax levied by this article 26 and on sales on which exemption is disputed, the seller or purchaser commits:  Editor's note: This version of subsection (22) is effective March 1, 2022.  History. Source: L. 35: P. 1000, § 2. CSA: C. 144, § 2. L. 37: P. 1075, § 1. L. 41: P. 660, §§ 2, 3. L. 43: P. 538, §§ 1, 2. L. 45: P. 575, § 1. CRS 53: § 138-6-2. L. 59: P. 800, § 1. C.R.S. 1963: § 138-5-2. L. 64: P. 816, § 1. L. 67: P. 333, § 1. L. 69: P. 221, § 2. L. 71: P. 1262, § 1. L. 73: P. 241, § 23. L. 75: (11) amended, p. 1468, § 14, effective July 18. L. 76: (10) amended, p. 318, § 75, effective May 2. L. 77: (10) amended, p. 1821, § 1, effective June 3; (23) amended, p. 1823, § 1, effective July 15. L. 78: (2.5) added, p. 506, § 1, effective March 8; (10)(k) added and (12) amended, p. 510, §§ 1, 2, effective April 18; (7) amended, p. 508, § 1, effective July 1. L. 79: (4.5) added, p. 1427, § 6, effective July 3. L. 82: (20) and (21) amended, p. 568, § 1, effective July 1. L. 85: (15) amended, p. 1280, § 1, effective June 6. L. 87: (4.5) R&RE, p. 1463, § 2, effective October 1. L. 88: (4.5) amended, p. 1328, § 1, effective April 4; (10)(h) amended, p. 1326, § 3, effective April 6. L. 90: (2.6) and (2.7) added and (15) amended, p. 1742, § 1, effective April 3; (2.8) and (6.5) added, p. 1740, § 1, effective April 17; (6), (10)(a), (10)(g), (10)(i), and (11) amended, p. 457, § 40, effective April 18. L. 92: (6.7) added and (19) amended, p. 2256, § 1, effective May 27. L. 95: (21) amended, p. 1214, § 3, effective May 31. L. 96: (7) amended, p. 757, § 2, effective May 22. L. 97: (5.5) added, p. 370, § 1, effective July 1. L. 99: (2.5) amended, p. 1271, § 1, effective June 3; (2.6) and (6.5) RC&RE, p. 1297, § 1, effective June 3; (4.5) amended, p. 1355, § 2, effective January 1, 2000; (7.5) added, p. 10, § 1, effective January 1, 2000. L. 2000: (1) amended and (1.3) and (5.7) added, p. 548, § 2, effective July 1. L. 2004: (1.3) and (23) amended, p. 1044, § 15, effective July 1. L. 2008: (6.8) added, p. 972, § 2, effective September 1; (7)(c) added, p. 810, § 1, effective September 1. L. 2010: (3)(b) and (8) amended,(HB 10-1193), ch. 9, p. 54, § 1, effective February 24; (15) amended,(HB 10-1189), ch. 5, p. 38, § 1, effective February 24; (21) amended,(HB 10-1190), ch. 6, p. 41, § 1, effective February 24; (13.5) added and (15) amended,(HB 10-1192), ch. 8, p. 51, § 3, effective March 1; (5.8) added,(HB 10-1284), ch. 355, p. 1685, § 7, effective July 1. L. 2011: (4.5) amended,(HB 11-1303), ch. 264, p. 1175, § 93, effective August 10; (13.5) and (15) amended,(HB 11-1293), ch. 299, p. 1437, § 4, effective July 1, 2012. L. 2012: (4.5) amended,(SB 12-094), ch. 8, p. 22, § 1, effective July 1; (19) amended,(HB 12-1037), ch. 251, p. 1248, § 2, effective July 1. L. 2013: (5.6), (7.6), and (7.7) added and (5.7), (8), and (9) amended,(HB 13-1295), ch. 314, p. 1645, § 2, effective July 1, 2014. L. 2014: (9) amended,(HB 14-1348), ch. 300, p. 1254, § 1, effective May 31; (3) amended,(HB 14-1269), ch. 364, p. 1740, § 2, effective July 1. L. 2018: IP and (2.5) amended,(HB 18-1218), ch. 380, p. 2295, § 1, effective July 1; IP and (5.8) amended,(HB 18-1023), ch. 55, p. 591, § 25, effective October 1. L. 2019: (19)(e), (19)(f), and (19)(g) added,(HB 19-1329), ch. 267, p. 2513, § 2, effective May 23; (3) amended and (5.7), (7.6), and (7.7) repealed,(HB 19-1240), ch. 264, p. 2489, § 1, effective June 1; (5.8), (6), and (8) amended and (5.9), (6.1), (6.2), and (6.3) added,(HB 19-1240), ch. 264, p. 2489, § 1, effective October 1; (5.8) amended,(SB 19-224), ch. 315, p. 2943, § 33, effective January 1, 2020. L. 2021: IP(7)(a) amended,(SB 21-260), ch. 250, p. 1402, § 14, effective June 17; (5.7) RC&RE, (6.4), (6.6), and (15)(b.5) added, and (6.5) and (15)(a)(I) amended,(HB 21-1312), ch. 299, p. 1795, § 8, effective July 1; (22) amended,(SB 21-271), ch. 462, p. 3295, § 693, effective March 1, 2022. History. Source: L. 35: P. 1000, § 2. CSA: C. 144, § 2. L. 37: P. 1075, § 1. L. 41: P. 660, §§ 2, 3. L. 43: P. 538, §§ 1, 2. L. 45: P. 575, § 1. CRS 53: § 138-6-2. L. 59: P. 800, § 1. C.R.S. 1963: § 138-5-2. L. 64: P. 816, § 1. L. 67: P. 333, § 1. L. 69: P. 221, § 2. L. 71: P. 1262, § 1. L. 73: P. 241, § 23. L. 75: (11) amended, p. 1468, § 14, effective July 18. L. 76: (10) amended, p. 318, § 75, effective May 2. L. 77: (10) amended, p. 1821, § 1, effective June 3; (23) amended, p. 1823, § 1, effective July 15. L. 78: (2.5) added, p. 506, § 1, effective March 8; (10)(k) added and (12) amended, p. 510, §§ 1, 2, effective April 18; (7) amended, p. 508, § 1, effective July 1. L. 79: (4.5) added, p. 1427, § 6, effective July 3. L. 82: (20) and (21) amended, p. 568, § 1, effective July 1. L. 85: (15) amended, p. 1280, § 1, effective June 6. L. 87: (4.5) R&RE, p. 1463, § 2, effective October 1. L. 88: (4.5) amended, p. 1328, § 1, effective April 4; (10)(h) amended, p. 1326, § 3, effective April 6. L. 90: (2.6) and (2.7) added and (15) amended, p. 1742, § 1, effective April 3; (2.8) and (6.5) added, p. 1740, § 1, effective April 17; (6), (10)(a), (10)(g), (10)(i), and (11) amended, p. 457, § 40, effective April 18. L. 92: (6.7) added and (19) amended, p. 2256, § 1, effective May 27. L. 95: (21) amended, p. 1214, § 3, effective May 31. L. 96: (7) amended, p. 757, § 2, effective May 22. L. 97: (5.5) added, p. 370, § 1, effective July 1. L. 99: (2.5) amended, p. 1271, § 1, effective June 3; (2.6) and (6.5) RC&RE, p. 1297, § 1, effective June 3; (4.5) amended, p. 1355, § 2, effective January 1, 2000; (7.5) added, p. 10, § 1, effective January 1, 2000. L. 2000: (1) amended and (1.3) and (5.7) added, p. 548, § 2, effective July 1. L. 2004: (1.3) and (23) amended, p. 1044, § 15, effective July 1. L. 2008: (6.8) added, p. 972, § 2, effective September 1; (7)(c) added, p. 810, § 1, effective September 1. L. 2010: (3)(b) and (8) amended,(HB 10-1193), ch. 9, p. 54, § 1, effective February 24; (15) amended,(HB 10-1189), ch. 5, p. 38, § 1, effective February 24; (21) amended,(HB 10-1190), ch. 6, p. 41, § 1, effective February 24; (13.5) added and (15) amended,(HB 10-1192), ch. 8, p. 51, § 3, effective March 1; (5.8) added,(HB 10-1284), ch. 355, p. 1685, § 7, effective July 1. L. 2011: (4.5) amended,(HB 11-1303), ch. 264, p. 1175, § 93, effective August 10; (13.5) and (15) amended,(HB 11-1293), ch. 299, p. 1437, § 4, effective July 1, 2012. L. 2012: (4.5) amended,(SB 12-094), ch. 8, p. 22, § 1, effective July 1; (19) amended,(HB 12-1037), ch. 251, p. 1248, § 2, effective July 1. L. 2013: (5.6), (7.6), and (7.7) added and (5.7), (8), and (9) amended,(HB 13-1295), ch. 314, p. 1645, § 2, effective July 1, 2014. L. 2014: (9) amended,(HB 14-1348), ch. 300, p. 1254, § 1, effective May 31; (3) amended,(HB 14-1269), ch. 364, p. 1740, § 2, effective July 1. L. 2018: IP and (2.5) amended,(HB 18-1218), ch. 380, p. 2295, § 1, effective July 1; IP and (5.8) amended,(HB 18-1023), ch. 55, p. 591, § 25, effective October 1. L. 2019: (19)(e), (19)(f), and (19)(g) added,(HB 19-1329), ch. 267, p. 2513, § 2, effective May 23; (3) amended and (5.7), (7.6), and (7.7) repealed,(HB 19-1240), ch. 264, p. 2489, § 1, effective June 1; (5.8), (6), and (8) amended and (5.9), (6.1), (6.2), and (6.3) added,(HB 19-1240), ch. 264, p. 2489, § 1, effective October 1; (5.8) amended,(SB 19-224), ch. 315, p. 2943, § 33, effective January 1, 2020. L. 2021: IP(7)(a) amended,(SB 21-260), ch. 250, p. 1402, § 14, effective June 17; (5.7) RC&RE, (6.4), (6.6), and (15)(b.5) added, and (6.5) and (15)(a)(I) amended,(HB 21-1312), ch. 299, p. 1795, § 8, effective July 1; (22) amended,(SB 21-271), ch. 462, p. 3295, § 693, effective March 1, 2022.    Editor's note:    Subsections (2.6), (2.7), and (2.8) were enacted as (2.8), (2.6), and (2.7) in 1990 but were renumbered on revision in 1991 to put the definitions in alphabetical order.    Subsections (2.6)(b) and (6.5)(b) provided for the repeal of subsections (2.6) and (6.5), respectively, effective April 17, 1995. (SeeL. 90, p. 1740.) Subsections (2.6) and (6.5) have subsequently been reenacted.    Section 2 of chapter 288, Session Laws of Colorado 1990, provides that section 1 of the act amending subsection (15) shall be deemed to have remedied a defect in the prior law and shall not be construed to interfere with any vested right or contract. In view of the foregoing, the amendment to subsection (15) shall apply to any legal or administrative proceeding, whether commenced prior to, on, or after April 3, 1990.    In 2008, the federal food stamp program was renamed the supplemental nutrition assistance program by Pub.L. 110-234 and Pub.L. 110-246. The term “food stamp program” has been retained in subsection (4.5) to maintain conformity with existing state law and programs.    Amendments to subsection (15) by House Bill 10-1189 and House Bill 10-1192 were harmonized.    Subsection (21)(b)(II) provided for the repeal of subsection (21)(b), effective July 1, 2012. (SeeL. 2010, p. 41.)    Amendments to subsection (5.8) by SB 19-224 were harmonized with HB 19-1240 and relocated to subsection (6.1).    Section 16(3) of chapter 314, Session Laws of Colorado 2013, provides that the act amending subsection (9) takes effect only if congress enacts an act that authorizes states to require certain retailers to pay, collect, or remit state or local sales taxes. Subsection (9) as amended in section 2 of chapter 314 was further amended by House Bill 19-1240 to repeal the changes made by said chapter 314, effective June 1, 2019, and therefore reverts the statutory language to what is currently in effect.    Section 803(2) of chapter 462 (SB 21-271), Session Laws of Colorado 2021, provides that the act changing this section applies to offenses committed on or after March 1, 2022.     Cross references:    For the legislative declaration contained in the 1996 act amending this section, see section 1 of chapter 160, Session Laws of Colorado 1996.    For the legislative declaration in the 2013 act adding subsections (5.6), (7.6), and (7.7) and amending subsections (5.7), (8), and (9), see section 1 of chapter 314, Session Laws of Colorado 2013.    For the short title (“Marketplace Fairness and Small Business Protection Act”) in HB 14-1269, see section 1 of chapter 364, Session Laws of Colorado 2014.    For the legislative declaration in HB 21-1312, see section 1 of chapter 299, Session Laws of Colorado 2021. For the legislative declaration in SB 21-260, see section 1 of chapter 250, Session Laws of Colorado 2021.     ANNOTATION   Analysis     I. GENERAL CONSIDERATION.    II. RETAIL SALES.    III. WHOLESALE SALES.     I. GENERAL CONSIDERATION.   Law reviews. For note, “The Validity of Colorado's New Chain Store Tax”, see 7 Rocky Mt. L. Rev. 138 (1935). For note, “Doing Business in Colorado for Foreign Corporations: Service of Process, Qualification, Taxation”, see 49 Den. L.J. 529 (1973). For article, “Recent Developments in Colorado Sales and Use Taxes”, see 18 Colo. Law. 2101 (1989). For article, “Taxability of Delivery Services in Colorado Before and After A.D. Stores”, see 31 Colo. Law. 97 (May 2002).   The unconstitutionality of Colorado's tax system prior to 1978 amendments. Matthews v. State Dept. of Rev., 193 Colo. 44 , 562 P.2d 415 (1977).   Company not selling or leasing equipment not denied equal protection. The fact that a competing corporation, which purchased telephone equipment and leased it to its subscribers, did not pay any sales or use tax on the purchase did not mean that the imposition of the tax on a telephone company, which purchased equipment but did not sell or lease it to its subscribers, denied equal protection to the telephone company. W. Elec. Co. v. Weed, 185 Colo. 340 , 524 P.2d 1369 (1974).   When the credit specified in subsection (5) of this section is in conflict with a similar deduction allowed in § 39-26-113 (6) , the requirements of the specific statute prevail. The general assembly would not have taken pains in § 39-26-113 (6) to award tax deductions only to seller-financers of motor vehicles if all other motor vehicle retailers might avail themselves of tax credits provided in subsection (5). Daimler Chrysler Fin. v. Dept. of Rev., 2014 COA 24 , 384 P.3d 356.   No limit to number of times merchandise subject to tax. There is no limit to the number of times a particular article of merchandise may be subject to a sales tax so long as it remains in the stream of commerce and passes through the regular channels of trade, and the dealer must collect the tax unless the property is exempt. Bedford v. Hartman Bros., 104 Colo. 190 , 89 P.2d 584 (1939).   Resold automobile. Where an automobile dealer accepts a used car in part payment of a new one, he must collect the sales tax on the full price of the new car, and on disposing of the old one he also must collect the tax on the price for which it is sold. The collection of taxes in such a transaction does not constitute double taxation. Bedford v. Hartman Bros., 104 Colo. 190 , 89 P.2d 584 (1939).   When a buyer at a public foreclosure sale receives a public trustee's certificate of purchase and subsequently assigns the certificate of purchase to a third party who had no interest in the property prior to the assignment, the assignment of the certificate constitutes a sale or sale and purchase of tangible personal property within the meaning of this section and is therefore a taxable event for sales tax purposes. The fact that the sale is subject to the redemption rights of the debtor and junior interest holders does not alter the character of the transaction at the time it occurred or its tax implications. Telluride Resort & Spa v. Colo. Dept. of Rev., 20 P.3d 1212 (Colo. App. 2000), aff'd, 40 P.3d 1260 (Colo. 2002).   The definition of “charitable organization” in a municipal tax code lends itself to two conflicting plain-meaning interpretations. In the first interpretation, in order to be eligible for a sales and use tax exemption, both religious and nonreligious charitable organizations must meet strict guidelines; in the second, a distinction is made between religious and charitable organizations, and the guidelines apply only to those organizations whose functions are nonreligious in nature. The court is obligated to support the first interpretation so as to avoid invoking a violation of the establishment clause of the federal constitution. Catholic Health Initiatives Colo. v. City of Pueblo, 207 P.3d 812 (Colo. 2009).   “Person” construed. Montgomery Ward & Co. v. State Dept. of Rev., 628 P.2d 85 (Colo. 1981).   The existence of many specific narrow exclusions from the definition of “sale” and “sale and purchase” is indication that the general assembly intended the scope of the tax to be very sweeping and all or virtually all encompassing. Telluride Resort & Spa v. Colo. Dept. of Rev., 20 P.3d 1212 (Colo. App. 2000), aff'd, 40 P.3d 1260 (Colo. 2002).   The tax statutes, and in particular the narrow exception of subsection (10)(j), address whether the sale of land is a taxable event more specifically than the foreclosure and public trustee provisions and is consistent with the general assembly's statutory design and intent in regard to the differing purposes of the tax code and the foreclosure and public trustee provisions. Telluride Resort & Spa v. Colo. Dept. of Rev., 40 P.3d 1260 (Colo. 2002).   Exclusion from “tangible personal property” includes property that loses its identity when it becomes an integral and inseparable part of realty and that is removable only with substantial damage to the premises. District court did not err in determining that sand used in oil and gas fracturing was not tangible personal property based on this exclusion. Noble Energy v. Colo. Dept. of Rev., 232 P.3d 293 (Colo. App. 2010).   Electricity is not tangible personal property for sales and use tax purposes. Rather, it is taxed as a service. Dept. of Rev. v. Pub. Serv. Co., 2014 CO 59, 330 P.3d 385.   II. RETAIL SALES.   Unlicensed seller involved in an isolated transaction is not a “vendor” or “retailer” within the meaning of this section and is not liable to the state for the payment of tax. J. A. Tobin Constr. Co. v. Weed, 158 Colo. 430 , 407 P.2d 350 (1965).   Vendee pays tax to state if vendor not “retailer”. The entire article clearly indicates a legislative intent to impose a tax in the amount levied upon purchases of tangible personal property at retail, such tax to be either in the nature of an addition to the sales price and collected by the seller if he is a licensed “vendor”, or a tax to be paid by the consumer when the seller of the merchandise is not a “retailer” or “vendor” as those terms are defined by this section. J. A. Tobin Constr. Co. v. Weed, 158 Colo. 430 , 407 P.2d 350 (1965).   Vendee should not pay tax to unlicensed vendor. One who makes a purchase from a seller who does not hold a license as a “retailer” or “vendor” cannot with safety pay to the seller the amount of sales tax due. J. A. Tobin Constr. Co. v. Weed, 158 Colo. 430 , 407 P.2d 350 (1965).   Contractors purchasing items to install deemed users and liable for tax. When painting and electrical contractors purchase items of personal property and build them into a structure as an integral part of their entire contract, and then dispose of the completed work to the owner, they are users and consumers and not “retailers” to the owner of each item, and they are liable for the sales tax. Craftsman Painters & Decorators, Inc. v. Carpenter, 111 Colo. 1 , 137 P.2d 414 (1942).   Purchase of items, not resold, by a telephone company falls within “retail sales” definition. The purchase by a telephone company of instruments, apparatus, cable, wire, etc., which the company does not resell to its subscribers, falls within the definition of “retail sales” rather than “wholesale sales” for the purpose of the sales and use tax laws. W. Elec. Co. v. Weed, 185 Colo. 340 , 524 P.2d 1369 (1974).   Characterization of transaction may be corrected from “wholesale” to “retail”. Where the buyer's ultimate disposition of the item purchased cannot be known at the time of purchase, the transaction's tentative characterization as “wholesale” may be corrected to “retail” by considering later events. Int'l Bus. Machs. Corp. v. Charnes, 198 Colo. 374 , 601 P.2d 622 (1979).   In considering the meaning of statutory use tax exemption, the definitions of wholesale and retail sale established by the general assembly differ from the ordinarily accepted general conception of those terms. Hirschfeld Press v. Denver, 806 P.2d 917 (Colo. 1991).   III. WHOLESALE SALES.   “Container” exemption construed. Glass bottles purchased from bottle manufacturer are exempt, whether or not a bottle is returnable. Weed v. Occhiato, 175 Colo. 509 , 488 P.2d 877 (1971).   A beer keg is exempt as a “container” regardless of the fact that it is continuously reused by brewer and never sold or given away. Adolph Coors Co. v. Charnes, 690 P.2d 893 (Colo. App. 1984), aff'd, 724 P.2d 1341 (Colo. 1986).   Wholesale exemption depends entirely upon disposition of purchased product by buyer. The definitions of “wholesale sale” and “retail sale” are at variance with the generally accepted meanings of the terms “wholesale” and “retail”. A purchaser may buy in large quantities what is commercially known as at “wholesale” and get wholesale prices and still the sale may not be exempt. Exemption depends entirely upon the disposition of a purchased product by the buyer. Carpenter v. Carman Distrib. Co., 111 Colo. 566 , 144 P.2d 770 (1943).   All sales which are not wholesale sales fall within category of retail sales, even though they are casual or isolated transactions. Palmer v. Perkins, 119 Colo. 533 , 205 P.2d 785 (1949).   Purchase of laundry business not wholesale sale. The purchase of a laundry business, including all tangible and intangible property connected therewith, is deemed not to be a wholesale sale and is therefore within the category of retail sales. Palmer v. Perkins, 119 Colo. 533 , 205 P.2d 785 (1949).   Neither is sale by wholesaler to driverless-car business owner. Under the provisions of subsections (9) and (19), the sale of an automobile by a wholesaler to the owner of a driverless-car business is a sale by a wholesaler to a user or consumer not for resale, and is therefore subject to a sales tax as a retail sale. The user and consumer of an automobile may be not only he who devotes it to his own personal use, but also he who, for hire, lends or leases it to a third person. Herbertson v. Cruse, 115 Colo. 274 , 170 P.2d 531, 172 A.L.R. 1312 (1946).   Sales tax collected only on end transaction, not intermediate sales of items. The exemption from taxation by subsection (20) of the intermediate sales of items incorporated in a product finally sold in a finished form at retail not only was promulgated to avoid a pyramiding of sales taxes into the cost of the finished product, but also contemplated that a sales tax should be collected on the end transaction and that such should be the measure of the total imposition on the composited product. Carpenter v. Carman Distrib. Co., 111 Colo. 566 , 144 P.2d 770 (1943).   Mining operations not “manufacturing” and machinery and equipment purchased by mining company taxable. The mining operations of a corporation, even though the products thereof are devoted exclusively and necessarily to the manufacture of final products offered for sale by the company, is not “manufacturing” within the meaning of that term as used in this and following sections, and any machinery and equipment purchased and used in the company's mining operations are taxable. Bedford v. Colo. Fuel & Iron Corp., 102 Colo. 538 , 81 P.2d 752 (1938).   Recapping of tires not manufacturing process. A recapper of tires does not sell his customers an article which was manufactured by him, and hence itself subject to the sales tax, but rather renders a service by repairing and restoring an article theretofore manufactured, and there is no sales tax collectible on “the end transaction” between the recapper and his customer; accordingly, to hold that recapping is a manufacturing process and that the materials entering into the processing are exempt from taxation, would be contrary to the intent of this section. Zook v. Perkins, 118 Colo. 464 , 195 P.2d 962 (1948).   Packaging material used by laundry not exempt. The sale of wrapping paper, bags, etc., used to package the articles laundered or cleaned for return to customers are not exempted specifically. Carpenter v. Carman Distrib. Co., 111 Colo. 566 , 144 P.2d 770 (1943).   Test for determining whether purchase is purchase for resale is whether primary purpose of transaction is the acquisition of tangible personal property for resale in unaltered and basically unused condition. In making determination, court should consider: (1) Nature of purchaser's contractual obligations, if any, to alter or consume property to produce goods or perform services; (2) degree to which items purchased are essential to purchaser's performance of obligations; (3) degree to which purchaser controls manner items are used, altered, or consumed prior to transfer to third parties; (4) and degree to which form, character, and composition of items when transferred to third parties differs from form, character, and composition of items at time of initial purchase. Colo. Springs v. Inv. Hotel Props., 806 P.2d 375 (Colo. 1991).   Property transferred to an out-of-state vendee without consideration for use outside the state in selling products qualifies for exemption even if vendee is ultimate consumer. Scott's Liquid Gold-Inc. v. Charnes, 772 P.2d 658 (Colo. App. 1989).   Purchase of hotel property located in guest rooms does not constitute wholesale sale. Colo. Springs v. Inv. Hotel Props., 806 P.2d 375 (Colo. 1991).   In considering the meaning of statutory use tax exemption, the definitions of wholesale and retail sale established by the general assembly differ from the ordinarily accepted general conception of those terms. Hirschfeld Press v. Denver, 806 P.2d 917 (Colo. 1991).