2023 Colorado Revised Statutes › Title 42 - VEHICLES AND TRAFFIC (§§ 42-1-101 — 42-21-106) › TAXATION (§§ 42-3-101 — 42-3-314) › Article 3 - REGISTRATION, TAXATION, AND LICENSE PLATES (§§ 42-3-101 — 42-3-314) › Part 1 - REGISTRATION AND TAXATION (§§ 42-3-101 — 42-3-127) › Section 42-3-107 - Taxable value of classes of property - rate of tax - when and where payable - department duties - apportionment of tax collections - definitions - rules - repeal

(1)
(a)
(I)
Except as provided in subsections (1)(a)(I.5) and (1)(a)(IV) of this section, the taxable value of every item of Class A or Class B personal property greater than sixteen thousand pounds declared empty vehicle weight shall be the actual purchase price of such property. Such price shall not include any applicable federal excise tax, including the excise tax on the first retail sale of a heavy truck, trailer, or tractor for which the seller is liable, transportation or shipping costs, or preparation and delivery costs. The taxable value of every item of Class A or Class B personal property less than or equal to sixteen thousand pounds declared empty vehicle weight shall be seventy-five percent of the manufacturer's suggested retail price.
(I.5)
(A)
The taxable value of every item of Class A or Class B personal property greater than sixteen thousand pounds declared empty vehicle weight that meets the definition of category 4, category 4 A, category 4 B, category 4 C, category 7, category 7 A, and category 9 trucks, as defined in section
39-22-516.8
, C.R.S., is seventy-five percent of the actual purchase price of such property.
(B)
This subparagraph (I.5) is repealed, effective December 31, 2026.
(II)
For the purposes of this section, the actual purchase price used to set taxable value shall be the price of the vehicle when the vehicle is initially purchased at the retail level by a person who intends to put the vehicle into initial use. The taxable value shall not change for the life of the vehicle.
(III)
For the purposes of this section, "actual purchase price" means the gross selling price, including all property traded to the seller in exchange for credit toward the purchase of a vehicle.
(IV)
(A)
On or after January 1, 2024, but before January 1, 2028, the taxable value of every item of new Class A or Class B personal property that is a fleet vehicle and is greater than sixteen thousand pounds declared empty vehicle weight and that meets the definition of category 7 trucks, as defined in section
39-22-516.8 (1)(l)
, is fifty percent of the actual purchase price of such property.
(B)
On or after January 1, 2024, but before January 1, 2028, the taxable value of every item of new Class A or Class B personal property that is a fleet vehicle and is less than or equal to sixteen thousand pounds declared empty vehicle weight and that meets the definition of category 7 trucks, as defined in section
39-22-516.8 (1)(l)
, is fifty percent of the manufacturer's suggested retail price of such property.
(C)
On or after January 1, 2028, but before January 1, 2033, the taxable value of every item of new Class A or Class B personal property that is a fleet vehicle and is greater than sixteen thousand pounds declared empty vehicle weight and that meets the definition of category 7 trucks, as defined in section
39-22-516.8 (1)(l)
, is sixty percent of the actual purchase price of such property.
(D)
On or after January 1, 2028, but before January 1, 2033, the taxable value of every item of new Class A or Class B personal property that is a fleet vehicle and is less than or equal to sixteen thousand pounds declared empty vehicle weight and that meets the definition of category 7 trucks, as defined in section
39-22-516.8 (1)(l)
, is sixty percent of the manufacturer's suggested retail price of such property.
(E)
This subsection (1)(a)(IV) is repealed, effective January 1, 2034.
(b)
Every licensed motor vehicle dealer in Colorado shall furnish on the application for title the manufacturer's suggested retail price and the actual purchase price on each new motor vehicle sold and delivered in Colorado.
(c)
If a motor vehicle purchased outside Colorado is registered for the first time in Colorado and neither the manufacturer's suggested retail price nor the actual purchase price is available, the agent of the department shall establish the taxable value of such vehicle through the use of a compilation of values furnished by the department.
(2)
The annual specific ownership tax payable on every item of Class A personal property shall be computed in accordance with the following schedule:
Year of service
Rate of tax
First year
2.10% of taxable value
Second year
1.50% of taxable value
Third year
1.20% of taxable value
Fourth year
.90% of taxable value
Fifth, sixth, seventh, eighth, and ninth years
.45% of taxable value or $10, whichever is greater
Tenth and each later year
$ 3
(3)
The owner of any Class A personal property shall file a list with the department describing each item owned, reciting the year of manufacture or model designation, and stating the original sale price of any mounted equipment mounted on or attached to such item after its manufacture or first retail sale. As soon thereafter as practicable, the department shall compute the annual specific ownership tax payable on each item shown on such list and shall send to the owner a statement showing the aggregate amount of specific ownership tax payable by such owner.
(4)
In computing the amount of annual specific ownership tax payable on an item of Class A or Class B personal property, the department may take into account the length of time such item may be operated in intrastate or interstate commerce within Colorado, giving due consideration to any reciprocal agreements concerning general property taxation of such item as may exist between Colorado and other states, and also to the number of miles traveled by such item in each state.
(5)
The annual specific ownership tax on Class A personal property shall become due and payable to the department on the last day of the month at the end of each twelve-month registration period and shall be renewed, upon application by the owner and payment of required fees, no later than one month after the date of expiration.
(6)
The aggregate amount of specific ownership taxes to be collected by the department on Class A personal property during a registration period shall be apportioned to each county of the state in the proportion that the mileage of the state highway system located within the boundaries of each county bears to the total mileage of the state highway system.
(7)
The department shall transmit all specific ownership taxes collected on items of Class A and Class F personal property to the state treasurer and shall advise the treasurer on the last day of each month of the amounts apportioned to each county from the preceding month's collections. The state treasurer shall pay such amounts to the respective treasurers of each county.
(8)
(a)
Except as provided in paragraph (b) of this subsection (8), the annual specific ownership tax payable on every item of Class B personal property is:
Year of service
Rate of tax
First year
2.10% of taxable value
Second year
1.50% of taxable value
Third year
1.20% of taxable value
Fourth year
.90% of taxable value
Fifth, sixth, seventh, eighth, and ninth years
.45% of taxable value or $10, whichever is greater
Tenth and each later year
$ 3
(b)
(I)
In lieu of paying the specific ownership tax required in paragraph (a) of this subsection (8), an owner who qualifies may pay ownership tax under this paragraph (b). The specific ownership tax payable on Class B personal property under sixteen thousand pounds empty weight is one dollar for each full year while the owner is a member of the United States armed forces and has orders to serve outside the United States. If the owner serves less than a full year outside the United States, the tax is the amount established by paragraph (a) of this subsection (8), prorated according to the number of months the owner was in the United States.
(II)
In order to qualify for the tax rate imposed by this paragraph (b), the owner must:
(A)
Show the department military orders to serve outside the United States or any evidence acceptable to the department that the owner served outside the United States; and
(B)
File a signed affidavit that the motor vehicle will not be operated on a highway when the tax rate applies.
(III)
If a person has already paid taxes at the rate required in paragraph (a) of this subsection (8) but is eligible to pay taxes under this paragraph (b), the department shall credit the person the difference between the rate in paragraph (a) of this subsection (8) and the prorated rate imposed in this paragraph (b) towards the person's specific ownership taxes for succeeding years.
(IV)
This paragraph (b) only applies to a motor vehicle that is less than ten model-years old and less than sixteen thousand pounds empty weight.
(9)
(a)
The taxable value of every item of Class C or Class D personal property shall be eighty-five percent of the manufacturer's suggested retail price, not including applicable federal excise tax, transportation or shipping costs, or preparation and delivery costs.
(b)
Every licensed motor vehicle dealer in Colorado shall furnish on the application for title the manufacturer's suggested retail price of each new motor vehicle sold and delivered in Colorado.
(c)
If a motor vehicle purchased outside of Colorado is registered for the first time in Colorado and the manufacturer's suggested retail price is not available, the agent of the department shall establish the taxable value of such vehicle through the use of a compilation of values furnished by the department.
(d)
The computation of taxable values as set forth in this subsection (9) shall apply to each motor vehicle sold on or after September 1, 1981, and shall not apply to a motor vehicle sold or registered prior to that date.
(10)
(a)
Except as provided in paragraph (b) of this subsection (10), the annual specific ownership tax payable on every item of Class C personal property is:
Year of service
Rate of tax
First year
2.10% of taxable value
Second year
1.50% of taxable value
Third year
1.20% of taxable value
Fourth year
.90% of taxable value
Fifth, sixth, seventh, eighth, and ninth years
.45% of taxable value
Tenth and each later year
$ 3
(b)
(I)
In lieu of paying the specific ownership tax required in paragraph (a) of this subsection (10), an owner who qualifies may pay ownership tax under this paragraph (b). The specific ownership tax payable on Class C personal property is one dollar for each full year while the owner is a member of the United States armed forces and has orders to serve outside the United States. If the owner serves less than a full year outside the United States, the tax is the amount established by paragraph (a) of this subsection (10), prorated according to the number of months the owner was in the United States.
(II)
In order to qualify for the tax rate imposed by this paragraph (b), the owner must:
(A)
Show the department military orders to serve outside the United States or any evidence acceptable to the department that the owner served outside the United States; and
(B)
File a signed affidavit that the motor vehicle will not be operated on a highway when the tax rate applies.
(III)
If a person has already paid taxes at the rate required in paragraph (a) of this subsection (10) but is eligible to pay taxes under this paragraph (b), the department shall credit the person the difference between the rate in paragraph (a) of this subsection (10) and the prorated rate imposed in this paragraph (b) towards the person's specific ownership taxes for succeeding years.
(IV)
This paragraph (b) only applies to a motor vehicle that is less than ten model-years old.
(11)
(a)
In lieu of payment of the annual specific ownership tax in the manner specified in subsections (2), (8), and (10) of this section, a person who owns vehicles that are based in Colorado for rental purposes and whose primary business is the rental of such vehicles for periods of less than forty-five days, including renewals, to another person may elect to pay specific ownership tax as authorized in this subsection (11).
(b)
To obtain authorization to pay specific ownership tax pursuant to this subsection (11), an owner shall apply to the authorized agent in the county in which the principal place of business of the owner of such rental vehicles in Colorado is located. Such authorization shall apply to all rental vehicles of the owner that satisfy the requirements set forth in this section.
(c)
Upon receiving authorization as provided in paragraph (b) of this subsection (11), the owner shall collect from the user of a rental vehicle the specific ownership tax in an amount equivalent to two percent of the amount of the rental payment, or portion thereof, that is subject to the imposition of sales tax pursuant to part 1 of article
26
of title
39
, C.R.S. Such specific ownership tax shall be collected on vehicles that are based in Colorado for rental purposes and rented from a place of business in Colorado. No later than the twentieth day of each month, the owner shall submit a report, using forms furnished by the department, to the authorized agent in the county where the vehicles are rented and the remittance for all specific ownership taxes collected for the preceding month. A copy of the report shall be submitted simultaneously by the owner to the department. The department may also require, by rule, the owner to submit a copy of the owner's monthly sales tax collection form to the authorized agent when the owner's monthly report is submitted.
(d)
Failure to submit the report or to remit the specific ownership tax collected for the preceding month by the last day of each month shall be grounds for the termination of the right of an owner to pay specific ownership tax under this subsection (11). If an owner fails to remit specific ownership tax received pursuant to this subsection (11), the authorized agent may collect such delinquent taxes in the manner authorized in subsection (21) of this section.
(e)
A person who owns vehicles and whose primary business is the rental of such vehicles as specified in paragraph (a) of this subsection (11) shall be exempt from payment of the specific ownership tax at the time of registration if such tax is collected and remitted pursuant to this subsection (11). Such owner shall pay a fee of one dollar per rental vehicle registered at the time of registration. Such fee shall be in addition to other registration fees and shall be distributed pursuant to subsection (22) of this section.
(f)
Every person who owns vehicles and whose primary business is the rental of such vehicles as specified in paragraph (a) of this subsection (11) shall register and pay all applicable taxes and fees for all vehicles rented from a place of business located in Colorado. If the owner of such vehicles fails to register or to pay such taxes and fees, the owner shall, upon conviction, be punished by a fine equal to two percent of the annual gross dollar volume of the primary business of such person that is attributable to the rental of vehicles from a place of business in Colorado.
(12)
(a)
In lieu of payment of the annual specific ownership tax in the manner specified in subsections (2), (8), and (10) of this section, any person who owns vehicles that are based in a state other than Colorado for rental purposes and whose primary business is the rental of such vehicles for periods of less than forty-five days, including renewals, to another person shall pay specific ownership tax as prescribed in this subsection (12).
(b)
The owner shall collect from the user of a rental vehicle the specific ownership tax in an amount equivalent to two percent of the amount of the rental payment, or portion thereof, that is subject to the imposition of sales tax pursuant to part 1 of article
26
of title
39
, C.R.S. Such specific ownership tax shall be collected on all vehicles based in a state other than Colorado for rental purposes that are rented from a place of business in Colorado. By the twentieth day of each month, the owner shall submit a report, using forms furnished by the department, to the authorized agent in the county where the vehicles are rented, together with the remittance for all specific ownership taxes collected for the preceding month. A copy of the report shall be submitted simultaneously by the owner to the department. The department may also require, by rule, the owner to submit a copy of the owner's monthly sales tax collection form to the authorized agent when the owner's monthly report is submitted.
(c)
If any owner fails to remit specific ownership tax received pursuant to this subsection (12), the authorized agent may proceed to collect such delinquent taxes in the manner authorized in subsection (21) of this section.
(d)
Every person who owns vehicles and whose primary business is the rental of such vehicles as specified in paragraph (a) of this subsection (12) shall pay all applicable taxes for all vehicles based in a state other than Colorado and rented from a place of business located in Colorado. If the owner of such vehicles fails to pay such taxes, the owner shall, upon conviction, be punished by a fine in an amount equal to two percent of the annual gross dollar volume of the primary business of such person that is attributable to the rental of vehicles from a place of business in Colorado.
(13)
The annual specific ownership tax payable on every item of Class D personal property shall be computed in accordance with the following schedule:
Year of service
Rate of tax
First year
2.10% of taxable value
Second year
1.50% of taxable value
Third year
1.20% of taxable value
Fourth year
.90% of taxable value
Fifth, sixth, seventh, eighth, and ninth years
.45% of taxable value
Tenth and each later year
.45% of taxable value or $ 3, whichever is greater
(14)
The department shall designate suitable compilations of the manufacturer's suggested retail price or actual purchase price of all items of Class A, Class B, Class C, and Class D personal property and shall provide each authorized agent with copies. Unless the actual purchase price is used as the taxable value, such compilation shall be uniformly used to compute the annual specific ownership tax payable on any item of such classified personal property purchased outside Colorado and registered for the first time in Colorado. Such actual purchase price shall not be used unless the department receives or has received a manufacturer's statement or certificate of origin for such vehicle. The department shall provide continuing supplements of such compilation to each authorized agent in order that the agent may have available current information relative to the manufacturer's suggested retail price of newly manufactured items.
(15)
(a)
The property tax administrator shall compile and have printed a comprehensive schedule of all vehicles defined and designated as Class F personal property, wherein all such vehicles shall be listed according to make, model, year of manufacture, capacity, weight, and any other terms that serve to describe such vehicles.
(b)
Except as provided in paragraph (c) of this subsection (15) for property acquired prior to January 1, 1997, the taxable value of Class F personal property shall be determined by the property tax administrator and shall be either:
(I)
The factory list price and, in case any equipment has been mounted on or attached to such vehicle subsequent to its manufacture, the factory list price plus seventy-five percent of the original price of such mounted equipment, exclusive of any state and local sales taxes; or
(II)
When the factory list price of such vehicle is not available, then seventy-five percent of its original retail delivered price, exclusive of any state and local taxes, and, in case any equipment has been mounted on or attached to such vehicle subsequent to its first retail sale, then seventy-five percent of such original retail delivered price plus seventy-five percent of the original retail delivered price of such mounted equipment, exclusive of any state and local sales taxes; or
(III)
When neither the factory list price of such vehicle nor the original retail delivered price of the vehicle or any equipment subsequently mounted thereon is ascertainable, then such value as the property tax administrator shall establish based on the best information available to the property tax administrator.
(c)
The taxable value of Class F personal property acquired on or after January 1, 1997, shall be determined by the property tax administrator and shall be either:
(I)
Eighty-five percent of the manufacturer's suggested retail price and, in case any equipment has been mounted on or attached to such vehicle subsequent to its manufacture, eighty-five percent of the manufacturer's suggested retail price plus eighty-five percent of the manufacturer's suggested retail price of such mounted equipment, exclusive of any state and local sales taxes; or
(II)
When the manufacturer's suggested retail price of such vehicle is not available, then one hundred percent of its original retail delivered price to the customer, exclusive of any state and local taxes, and, in case any equipment has been mounted on or attached to such vehicle subsequent to its first retail sale, then one hundred percent of such original retail delivered price to the customer plus one hundred percent of the original retail delivered price to the customer of such mounted equipment, exclusive of any state and local taxes; or
(III)
When neither the manufacturer's suggested retail price of such vehicle nor the original retail delivered price of either the vehicle or any equipment subsequently mounted thereon is ascertainable, then such value as the property tax administrator shall establish based on eighty-five percent of the value set forth in a nationally recognized standard or reference for such figures or, if such a standard or reference for the figures is not available, then on the best information available to the property tax administrator.
(d)
By whichever of the above three methods determined, the taxable value of each item of Class F personal property shall be listed opposite its description in the schedule required by this subsection (15) to be compiled by the property tax administrator.
(e)
The annual specific ownership tax payable on each item of Class F personal property shall be computed in accordance with the following schedule:
Year of service
Rate of tax
First year
2.10% of taxable value
Second year
1.50% of taxable value
Third year
1.25% of taxable value
Fourth year
1.00% of taxable value
Fifth year
.75% of taxable value
Sixth and each later year
.50% of taxable value, but not less than $ 5
(f)
The authorized agent shall include the value of all equipment that has been mounted on or attached to Class F personal property in the calculation of the annual specific ownership tax. The registrations for such personal property and equipment shall be made available to the county assessor.
(16)
(a)
In lieu of payment of the annual specific ownership tax in the manner provided in subsection (15) of this section, the owner of special mobile machinery who is an equipment dealer regularly engaged in the sale or rental of special mobile machinery and who rents or leases such equipment to another person in which the owner has not held an interest for at least thirty days may elect to pay specific ownership tax as prescribed in this subsection (16).
(b)
Authorization for payment of specific ownership tax under this subsection (16) shall be obtained from the authorized agent in the county in which the owner's principal place of business is located; except that, for an item of equipment that is covered by a registration exempt certificate issued by the department in accordance with subsection (16)(g) of this section, authorization for the payment of specific ownership tax under this subsection (16) shall be obtained directly from the department. Except in the case of an item of equipment that is covered by a registration exempt certificate issued by the department in accordance with subsection (16)(g) of this section, the owner shall also apply for an identifying decal for each item of equipment to be rented or leased that shall be affixed to the item when it is rented or leased. The owner shall keep records of each identifying decal issued and a description of the item of equipment to which it is affixed. The fee for each identifying decal shall be five dollars, paid upon application to the authorized agent. An identifying decal shall expire when the registration of the special mobile machinery to which it is affixed expires pursuant to section
42-3-114
. An identifying decal shall not be issued to special mobile machinery unless the machinery is registered, but a decal may be issued concurrently with the registration and shall expire pursuant to section
42-3-114
. The owner shall be required to remove an identifying decal upon the sale or change of ownership of such item of equipment. The fee of five dollars for each identifying decal as required by this section shall be distributed as follows:
(I)
Two dollars shall be retained by the authorized agent issuing such decal; and
(II)
Three dollars shall be available upon appropriation by the general assembly to fund the administration and enforcement of this section.
(c)
(I)
Upon receiving authorization under paragraph (b) of this subsection (16), the owner shall collect from the user the specific ownership tax in the amount equivalent to two percent of the amount of the rental or lease payment.
(II)
No later than the twentieth day of each month, the owner shall submit a report, using forms furnished by the department, to the authorized agent in each county where the equipment is used, together with the remittance of the taxes collected for the use in the county for the preceding month. The owner shall simultaneously submit a copy of each report to the department. This subparagraph (II) does not apply when modified by subparagraph (III) of paragraph (d) of this subsection (16).
(d)
(I)
Except as modified by subparagraph (III) of this paragraph (d), the owner shall make the report monthly to the department and to the authorized agent in the county where the equipment is located with a user, even if no specific ownership taxes were collected by the owner in the previous month.
(II)
Failure to make such report in a period of sixty days is grounds for the termination of the owner's right to pay the specific ownership taxes on the owner's Class F personal property in the manner provided under this subsection (16). If the owner fails to remit specific ownership taxes received from a renter or lessee during such sixty-day period, the authorized agent may proceed to collect the delinquent taxes in the manner authorized in subsection (21) of this section.
(III)
The department shall allow the owner to file the report electronically with the department of revenue either by electronic transmission or by electronically readable media as determined by rule. If the filing is made under this subsection (16)(d)(III), the owner does not need to file with the authorized agent. The department shall make the information in the report available to the authorized agents in the counties where the equipment is rented or used. Except as provided in subsection (16)(g)(II) of this section, this subsection (16)(d)(III) does not relieve the owner of the requirement to remit payment of the tax to the county in accordance with subsection (16)(c)(II) of this section.
(e)
The owner of an item of special mobile machinery that is required to be registered for highway use under section
42-3-304 (14)
shall be exempt from payment of the specific ownership tax at the time of registration if such tax is collected and remitted under this subsection (16).
(f)
(I)
If the owner of special mobile machinery who is paying specific ownership tax under this subsection (16) regularly has more than ten pieces of special mobile machinery that are not exempt from registration pursuant to section
42-3-104 (3)
in the state, the department may issue to the owner a registration period certificate. The owner must present the registration period certificate to the appropriate authorized agent no later than the tenth day after the month when registration of any motor vehicle is required by this article 3. When so presented, the twelve-month period stated in the registration period certificate governs the date when registration is required for each fleet vehicle not exempted from registration pursuant to section
42-3-104 (3)
that is owned or leased by the owner.
(II)
Notwithstanding any provision of this title, the department may promulgate rules to establish requirements for an owner to register a special mobile machinery fleet that is identified by special license plates or an identifying decal. The department shall not require the plates to have an annual validating tab or sticker. Registration fees payable on the machinery under a multi-year agreement are not discounted below the otherwise applicable annual registration fees.
(III)
Special mobile machinery registered under this paragraph (f) or after the issuance of a registration period certificate or the execution of a multi-year agreement are subject to section
42-3-109
.
(IV)
(A)
The owner shall pay the annual registration fees required by sections
42-3-304
to
42-3-306
for special mobile machinery, reduced by twenty-five percent for each elapsed quarter, before applying for the balance of the registration period.
(B)
The fees and taxes for special mobile machinery registered under this paragraph (f) prior to the effective date of the registration period certificate or multi-year agreement must be apportioned in the manner required by subparagraph (III) of this paragraph (f).
(C)
An authorized agent may issue individual registration number plates, an identifying decal, or certificates upon application by an owner of special mobile machinery or the owner's agent and the payment of a registration fee of seven dollars. Of the seven-dollar fee, three dollars and sixty cents is to be retained by the authorized agent or department issuing the plates, identifying decal, or certificates; forty cents is to be remitted monthly to the department, which shall then transmit it to the state treasurer for credit to the highway users tax fund; and three dollars is available upon appropriation by the general assembly to fund the administration and enforcement of this paragraph (f). The owner or the owner's agent may then affix the plate, identifying decal, or certificate to special mobile machinery purchased or brought into the state pending registration.
(V)
An owner issued a registration period certificate under subparagraph (I) of this paragraph (f) may register and pay registration fees and other license fees due for the special mobile machinery no later than the twentieth day of each quarter for all new special mobile machinery delivered into the state during the preceding quarter. The owner shall submit a report identifying new equipment, using forms furnished by the department, to the authorized agent in the county where the machinery was first delivered into the state, together with the remittance for all fees due for the preceding quarter. The owner shall simultaneously submit a copy of each report to the department. The machinery is deemed registered pending the timely filing of the report so long as the machinery displays the numbered plate, identifying decal, or certificate required by the department.
(g)
(I)
An owner of special mobile machinery who pays specific ownership taxes in accordance with this subsection (16) may apply to the department for a registration exempt certificate, which the department shall issue to the owner if:
(A)
The department verifies that the owner regularly has at least two hundred fifty items of special mobile machinery in the state;
(B)
Each item of such special mobile machinery is clearly marked or painted in a manner that identifies it as being owned by the owner;
(C)
Each item of special mobile machinery bears a visible and readily identifiable unique identification number assigned by the owner;
(D)
Each item of special mobile machinery bears a visible toll-free telephone number for the owner that can be used for verification of ownership; and
(E)
The owner of the special mobile machinery has paid all fees and surcharges referenced in this section.
(II)
A person to whom the department has issued a registration exempt certificate shall pay all specific ownership tax for an item of special mobile machinery that is covered by the registration exempt certificate directly to the department.
(III)
An item of special mobile machinery that is owned by a person to whom the department has issued a registration exempt certificate is not required to be registered, and the department shall not require the owner of any such item of the special mobile machinery to obtain license plates, annual validating tabs, or identifying decals for the item of special mobile machinery. Notwithstanding the exemptions from registration and licensing requirements for any such item of special mobile machinery, upon the application, renewal, or expiration of a registration exempt certificate, the owner of the item shall pay directly to the department all fees and surcharges, as indicated in subsection (16)(g)(V) of this section, that would otherwise be paid at the time of registration pursuant to subsection (16)(g)(V) of this section; except that the owner shall not pay any fee imposed pursuant to section
42-3-301
for the purpose of covering the direct costs of license plates, decals, or validating tabs or any fee that would otherwise be retained by an authorized agent for the purpose of defraying the direct costs incurred by the authorized agent in registering or issuing license plates, decals, or validating tabs for the item. The department shall transmit all additional registration fees imposed pursuant to section
42-3-310
that it receives from owners of special mobile machinery to whom the department has issued a registration exempt certificate to the county treasurer of each county of the state in proportion to the total amount of vehicle registrations statewide represented by vehicle registrations within the county, and each county treasurer shall apportion the fees within the county in the manner specified in section
42-3-310
.
(IV)
The department may promulgate rules to establish the process by which an owner applies for a registration exempt certificate, allow the department to verify that the owner satisfies the requirements set forth in subsection (16)(g)(I) of this section, and otherwise implement this subsection (16)(g).
(V)
(A)
An owner of an item of special mobile machinery that is issued a registration exempt certificate pursuant to this subsection (16)(g) shall pay, for each item of special mobile machinery, all fees and surcharges that would otherwise be paid at the time of registration and any other fees and surcharges due.
(B)
Upon application for a registration exempt certificate for an item of special mobile machinery, the owner shall submit a report to the department that identifies all of the owner's special mobile machinery located in the state at the time of submittal of the report. The report must be on a form furnished by the department. When a registration exempt certificate application is approved, an owner shall make payment directly to the department for any item of special mobile machinery that is currently in the state, as identified in the report. An owner shall pay for each item of special mobile machinery an amount based on the period covered by the issued registration exempt certificate.
(C)
Upon a request for renewal of a registration exempt certificate for an item of special mobile machinery, the owner shall submit a report to the department that identifies all of the owner's special mobile machinery located in the state at the time of submittal of the report and that identifies each item of the owner's special mobile machinery that is new or was delivered or operated in the state during the period covered by the expiring registration exempt certificate. The report must be on a form furnished by the department. Upon approval by the department of a request for renewal of a registration exempt certificate, an owner shall pay the department for each item of special mobile machinery located in the state at the time of submittal of the report and for each item of special mobile machinery that is new or was delivered or operated in the state during the period covered by the preceding registration exempt certificate, as indicated in the report. For each item of special mobile machinery that is new or was delivered or operated in the state during the term of the expiring registration exempt certificate, the owner shall pay the department for each item based on a period beginning in the month when a new, delivered, or operated item of special mobile machinery was added and ending on the expiration date of the expiring registration exempt certificate.
(D)
Within twenty days after the expiration of a registration exempt certificate which has not been renewed, an owner shall submit a report to the department that identifies each item of special mobile machinery that is new, was delivered, or was operated during the term of the previous registration exempt certificate. The report must be on a form furnished by the department. For each item of special mobile machinery that is new, was delivered, or was operated during the term of the previous registration exempt certificate, the owner shall pay the department based on the period beginning in the month when the new, delivered, or operated machinery was added and ending on the expiration date of the expiring registration exempt certificate.
(17)
(a)
For purposes of this subsection (17), unless the context otherwise requires:
(I)
"Owner" means an owner, as defined in section
42-1-102 (66)
, that owns an item of special mobile machinery. The term includes any person authorized to act on the owner's behalf.
(II)
"Prorated specific ownership tax" means the prorated special mobile machinery specific ownership tax assessed pursuant to this subsection (17).
(III)
"Special mobile machinery" means every item of Class F personal property described in section
42-3-106 (2)(e)
that is required to be registered under section
42-3-103
.
(b)
In lieu of payment of the annual specific ownership tax in the manner provided in subsection (15) of this section, an owner may apply for and pay prorated specific ownership tax in accordance with this subsection (17).
(c)
To be eligible for prorated specific ownership tax, an owner shall have entered into a written contract to perform a service requiring use of the special mobile machinery for which specific ownership tax under this section is required.
(d)
(I)
An owner who desires prorated specific ownership tax shall submit an application to the department. The application shall include the terms of the owner's service, which shall be evidenced by a copy of the written contract specified in paragraph (c) of this subsection (17) and signed by the owner. The validity of the contract shall be evidenced either by sufficient documentation to substantiate its validity or by the fact that such owner is an established business in Colorado, as shown by registration with the Colorado secretary of state or department of revenue as required by law.
(II)
An owner of special mobile machinery that is not registered in Colorado shall submit the application upon the arrival in Colorado of the special mobile machinery for which specific ownership tax under this section is required.
(III)
An owner of special mobile machinery that is registered in Colorado shall submit the application when the owner renews the registration of the special mobile machinery for which specific ownership tax under this section is required.
(IV)
When satisfied as to the genuineness and regularity of the application submitted, the department shall assess, and the owner shall pay, the prorated specific ownership tax in an amount equal to the annual specific ownership tax that would otherwise be imposed pursuant to subsection (15) of this section, prorated by the number of months during which the owner is expected to use the special mobile machinery in Colorado.
(V)
(A)
Prorated specific ownership taxes shall be assessed for a period of not less than two months nor more than eleven months in a twelve-month period.
(B)
After a prorated specific ownership tax has been assessed and paid, an owner may have the prorated specific ownership tax assessment period adjusted for between two and eleven months upon the owner's request to the department that the owner requires additional time to complete the contract referred to in paragraph (c) of this subsection (17) and upon payment of any additional prorated specific ownership tax pursuant to this subsection (17).
(e)
(I)
A person who, in an application made under this subsection (17), uses a false or fictitious name or address, knowingly makes a false statement, knowingly conceals a material fact, or otherwise perpetrates a fraud commits a class 2 misdemeanor traffic offense. Such person continues to be liable for any unpaid specific ownership taxes.
(II)
A person shall not operate special mobile machinery in Colorado unless the owner has paid the specific ownership tax assessed pursuant to this article, and a person shall not operate special mobile machinery in Colorado after the expiration of the period for which the specific ownership tax was paid. A person who violates this subparagraph (II) is subject to, in addition to any other penalty, an administrative penalty of the lesser of five hundred dollars or double the amount of the specific ownership tax. The penalty may be levied by an authorized agent or a peace officer under the authority granted by section
42-8-104 (2)
. The violation is to be determined by, paid to, and retained by the municipality or county where the motor vehicle is or should have been registered, subject to judicial review pursuant to rule 106 (a)(4) of the Colorado rules of civil procedure.
(18)
(a)
The annual specific ownership tax provided in subsection (15) of this section for Class F personal property registered in Colorado shall be determined and collected by the authorized agent in the county in which the owner of such Class F personal property resides.
(b)
(I)
The owner of any Class F personal property shall, within sixty days after the purchase of new or used Class F personal property, apply for registration with the authorized agent.
(II)
No person shall operate Class F personal property unless the property is registered with the authorized agent or exempt from registration pursuant to section
42-3-104 (3)
.
(c)
The property tax administrator shall furnish each authorized agent with a printed copy of the schedule of taxable values of Class F personal property compiled as provided in subsection (15) of this section, and such schedule shall be uniformly used by every authorized agent in computing the amount of annual specific ownership tax payable on any Class F personal property. The property tax administrator shall also furnish continuing supplements of such schedule to each authorized agent in order that the agent may have available current information relative to the taxable value of newly manufactured Class F personal property.
(19)
The annual specific ownership tax on each item of Class B, Class C, Class D, and Class F personal property shall become due and payable to the authorized agent in the county where such item is to be registered, shall be paid at the time of registration of such item, and if not paid within one month after the date a registration expires, shall become delinquent.
(20)
Except as provided in subsection (27) of this section, it is the duty of each authorized agent to collect the registration fee on every item of classified personal property located in the agent's county when registered and to collect the specific ownership taxes payable on each such item registered, except those items classified as Class A upon which the specific ownership tax is collected by the department and except those items classified as Class F when such tax is collected under subsection (16) of this section, at the time of registration. The failure of any authorized agent to collect the registration fee and specific ownership tax on any item of classified personal property shall not release the owner thereof from liability for the registration of such vehicle.
(21)
Each authorized agent shall advise the owner of any item of Class F personal property upon which the annual specific ownership tax is due, by notice mailed to such owner indicating the amount of tax due. If payment is not made, the authorized agent shall report such fact to the county treasurer, who shall thereupon proceed to collect the amount of delinquent tax by distraint, seizure, and sale of the item upon which the tax is payable, in the same manner as is provided in section
39-10-113
, C.R.S., for the collection of ad valorem taxes on personal property.
(22)
Each authorized agent shall retain, out of the amount of annual specific ownership tax collected on each item of classified personal property, the sum of fifty cents as remuneration for the collection of such tax. The sums so retained shall be transmitted to the county treasurer and credited in the manner provided by law. In addition, each authorized agent shall retain, out of the amount of annual specific ownership tax collected on each item of classified personal property, the sum of fifty cents, which shall be transmitted to the state treasurer and credited to the Colorado DRIVES vehicle services account created in section
42-1-211 (2)
.
(23)
Each authorized agent shall transmit to the county treasurer, at least once each week, all specific ownership taxes collected on items of classified personal property, reporting the aggregate amount collected for each class.
(24)
(a)
Each January, the treasurer of each county shall calculate the percentages that the dollar amount of ad valorem taxes levied in the treasurer's county during the preceding calendar year for county purposes and for the purposes of each political and governmental subdivision located within the boundaries of the treasurer's county were of the aggregate dollar amount of ad valorem taxes levied in such county during the preceding calendar year for said purposes. The percentages so calculated shall be used for the apportionment between the county itself and each political and governmental subdivision located within its boundaries of the aggregate amount of specific ownership tax revenue to be paid over to the treasurer during the current calendar year.
(b)
On the tenth day of each month, the aggregate amount of specific ownership taxes on Class A, B, C, D, and F personal property received or collected by the county treasurer during the preceding calendar month shall be apportioned between the county and each political and governmental subdivision located within the boundaries of the county according to the percentages calculated in the manner prescribed in paragraph (a) of this subsection (24), and the respective amounts so determined shall be credited or paid over to the county and each such subdivision.
(c)
The fee for the collection of specific ownership taxes having been charged when collected by the authorized agent, the treasurer shall make no further charge against the amount of specific ownership taxes credited or paid over to any political or governmental subdivision located in the treasurer's county.
(d)
An insolvent taxing district, as defined in section
32-1-1402 (2)
, C.R.S., that has increased its mill levy for the purpose of paying for maturing bonds of the district, interest on bonds of the district, or prior deficiencies of the district shall not be entitled to receive any larger proportion of the specific ownership taxes collected in the county in which such district is located as the result of such increase in the district's mill levy. For the purpose of apportioning specific ownership tax revenues in a county, dollar amounts from the levying of ad valorem taxes by an insolvent taxing district located in the county for the purpose of paying for maturing bonds of the district, interest on bonds of the district, or prior deficiencies of the district shall be excluded from the calculation of the percentages required by paragraph (a) of this subsection (24).
(25)
(a)
(I)
Except as provided in subsection (25)(b) of this section, the department shall allow a credit for taxes, surcharges, and registration fees paid on any item of Class A, Class B, Class C, Class D, or Class F personal property, other than Class F personal property for which the department has issued a registration exempt certificate in accordance with subsection (16)(g) of this section, if the owner disposes of the vehicle during the registration period or if the owner converts the vehicle from any class of personal property to Class F property. The credit may apply to payments of taxes, surcharges, and registration fees on a subsequent application by the owner for registration of an item of Class A, Class B, Class C, Class D, or Class F personal property made during the registration period, or the credit may be assigned by the owner to the transferee of the property for which taxes, surcharges, or registration fees were paid; except that, when the transferee is a dealer in new or used vehicles, the transferee shall account to the owner for any assignment of the credit.
(II)
The credit authorized by this subsection (25)(a) is prorated based on the number of months remaining in the registration period after the transfer, conversion to Class F personal property, or disposal of the vehicle. The proration calculation for the credit begins with the first day of the month after the transfer, conversion to Class F personal property, or disposal and ends the last day of the month for which the vehicle was registered.
(III)
The credit is allowed only if the total ownership tax, surcharge, and registration fee credit due exceeds ten dollars.
(b)
The credit authorized in subsection (25)(a) of this section does not apply to fees imposed in sections
42-3-301
;
42-3-304 (5), (6), (7), (19), and (22)
;
42-3-312
; and
42-3-313
.
(26)
Notwithstanding the amount specified for the fees in paragraph (e) of subsection (11) and paragraph (b) of subsection (16) of this section, the executive director of the department by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary pursuant to section
24-75-402 (3)
, C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director of the department by rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section
24-75-402 (4)
, C.R.S.
(27)
(a)
Notwithstanding any provision in this article to the contrary, a fleet owner may process the registration renewal for any fleet vehicle, with the exception of Class A personal property, in the county in which the fleet owner's principal office or principal fleet management facility is located instead of in the county in which the fleet vehicle is located at the time of registration. A fleet vehicle for which the registration renewal is processed pursuant to this subsection (27) shall continue to be registered in the county in which it is located at the time of registration. This subsection (27) shall not apply to a fleet vehicle that was not previously registered in Colorado at the time of registration.
(b)
If a fleet owner chooses to process the registration renewal of a fleet vehicle in the county in which the owner's principal office or principal fleet management facility is located instead of in the county in which the vehicle is located, the authorized agent in the county where the owner's principal office or principal fleet management facility is located shall collect the registration fee and specific ownership tax payable on each fleet vehicle for which the registration renewal is processed by the fleet owner in such county.
(c)
The authorized agent in a county in which a fleet vehicle registration renewal is processed pursuant to this section shall retain and not disburse the sum authorized pursuant to section
42-1-210 (1)(a)
to defray the costs associated with vehicle registration. The authorized agent in the county in which a fleet vehicle registration renewal is processed pursuant to this section shall transmit to the department all fees and moneys collected by the agent pursuant to section
42-1-214
.
(d)
The authorized agent in the county in which a fleet vehicle registration renewal is processed pursuant to this section shall transmit the registration fees collected pursuant to section
42-3-310
to the department. The department shall then transmit such fees to the authorized agent in the county in which the fleet vehicle is located at the time of registration, and the authorized agent shall transmit such fees to the county treasurer pursuant to section
42-3-310
.
(e)
The annual specific ownership tax on each fleet vehicle for which the registration renewal is processed in the county in which the fleet owner's principal office or principal fleet management facility is located shall become due and payable to the authorized agent in such county pursuant to this article. The authorized agent in such county shall apportion the specific ownership taxes collected for all fleet vehicles for which the registration renewal is processed in such county pursuant to this subsection (27) to the counties in which the fleet vehicles are located at the time of registration in proportion to the number of fleet vehicles located in each county.
(f)
(I)
This subsection (27) applies to registration renewal for fleet vehicles.
(II)
Repealed.
(g)
Nothing in this section shall be construed to affect the allocation of highway users tax fund moneys to counties or municipalities pursuant to sections
43-4-207
and
43-4-208
, C.R.S.
(28)
The prepaid annual specific ownership tax for a registration issued under section
42-3-102 (4)
is ninety-five dollars and fifty cents.
Amended by 2023 Ch. 319,§ 1, eff. 8/7/2023.
Amended by 2023 Ch. 167,§ 15, eff. 5/11/2023.
Amended by 2022 Ch. 135, § 16, eff. 7/1/2022.
Amended by 2021 Ch. 478, § 3, eff. 7/1/2022.
Amended by 2019 Ch. 231, § 1, eff. 1/1/2020.
Amended by 2017 Ch. 101, § 12, eff. 8/9/2017.
Amended by 2014 Ch. 264, § 1, eff. 8/6/2014.
Amended by 2014 Ch. 357, § 6, eff. 6/6/2014.
Amended by 2013 Ch. 199, § 1, eff. 8/7/2013.
L. 2005: Entire article amended with relocations, p. 1080, § 2, effective August 8. L. 2006: (11)(a) and (12)(a) amended, p. 975, § 1, effective July 1. L. 2008: (1)(a)(I) amended, p. 810, § 2, effective September 1. L. 2010: (16)(a), IP(16)(b), (16)(e), (17)(b), (18)(b), and (25) amended, (HB 10-1172), ch. 1489, p. 1489, § 6, effective October 1. L. 2011: (16)(c) and (17)(e)(II) amended, (HB 11-1093), ch. 1132, p. 1132, § 2, effective June 2; (27)(f)(II) repealed, (HB 11-1303), ch. 1181, p. 1181, § 106, effective August 10. L. 2012: (28) added, (HB 12-1038), ch. 1456, p. 1456, § 3, effective June 8. L. 2012, 1st Ex. Sess.: (16)(f) added, (SB 12S-001), ch. 3, p. 2433, § 1, effective August 15. L. 2013: (16)(c) and (16)(d) amended, (HB 13-1153), ch. 810, p. 810, § 1, effective August 7. L. 2014: (1)(a)(I) amended and (1)(a)(I.5) added, (HB 14-1326), ch. 1679, p. 1679, § 6, effective June 6; (8) and (10) amended, (SB 14-075), ch. 1058, p. 1058, § 1, effective August 6. L. 2017: (15)(f) and (27)(f)(I) amended, (HB 17-1107), ch. 101, p. 367, § 12, effective August 9. L. 2019: (25) amended, (HB 19-1138), ch. 2318, p. 2318, § 1, effective 1/1/2020. L. 2021: IP(16)(b), (16)(f)(I), and (25)(a)(I) amended and (16)(g) added, (SB 21-257), ch. 478, p. 3418, § 3, effective 7/1/2022.
Section 4 of chapter 231 (HB 19-1138), Session Laws of Colorado 2019, provides that the act changing this section applies to taxes, surcharges, or fees due on or after January 1, 2020.
2023 Ch. 319, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
For the legislative declaration in the 2012 act adding subsection (28), see section 1 of chapter 276, Session Laws of Colorado 2012. For the legislative declaration in HB 14-1326, see section 1 of chapter 357, Session Laws of Colorado 2014.