2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › GASOLINE AND SPECIAL FUEL TAX (§§ 39-27-101 — 39-27-310) › Article 27 - Gasoline and Special Fuel Tax (§§ 39-27-101 — 39-27-310) › Part 1 - GASOLINE TAX (§§ 39-27-101 — 39-27-123) › Section 39-27-104 - License and deposit - exception

(1)
(a)
It is unlawful for any person to act as a distributor, supplier, terminal operator, importer, exporter, carrier, or blender of gasoline or special fuel in this state without being licensed as such. Any person who acts as a distributor, supplier, terminal operator, importer, exporter, carrier, or blender of gasoline or special fuel within this state without being licensed as such is guilty of a misdemeanor. Each day of operation without a license is considered a separate offense. Such person is also subject to the civil penalties imposed pursuant to subsection (1)(g) of this section.
(b)
Each applicant for a license required by this section must file with the executive director of the department of revenue an application in such form and manner as the executive director prescribes, stating the name and address of the applicant and any other information as may be required by this section or by the executive director. The application must include a statement that such application is signed under oath and under the penalty of perjury in the second degree, as defined in section
18-8-503
. An applicant for a license to export gasoline or special fuel from this state shall provide verification as required by the executive director that the applicant has an appropriate license valid in any state into which the gasoline will be exported. Each application must be accompanied by a ten-dollar filing fee.
(c)
The executive director of the department of revenue shall issue a license to an applicant if the application is in proper form, has been accepted for filing, and meets the other conditions and requirements of this section. The license is valid until surrendered, suspended, or revoked.
(d)
A person who engages in the business of blending or compounding any products to make gasoline or special fuel thereof shall obtain a blender license and set forth in his or her application the kind and general characteristics of the products to be blended, the place where such blending is done, the purpose of such blending, and the intended disposition of such blended products and any other information as the executive director of the department of revenue deems necessary or advisable for the enforcement of this part 1.
(d.5)
No person shall blend exempt dyed diesel fuel with biodiesel fuel after withdrawal at a terminal rack unless such person is a licensed blender in accordance with subsection (1)(d) of this section who has a valid federal blending permit. Any person who violates this subsection (1)(d.5) or the reporting or other requirements of this section relating to such blending or who misrepresents the amount of biodiesel fuel that is blended with dyed diesel fuel is subject to the following civil penalties:
(I)
A five-thousand-dollar fine for the first violation;
(II)
A ten-thousand-dollar fine for the second or subsequent violation; and
(III)
In accordance with rules promulgated pursuant to the "State Administrative Procedure Act", article
4
of title
24
, C.R.S., revocation of any license issued in accordance with the provisions of this section for the third violation.
(e)
When any person ceases to be a distributor, supplier, terminal operator, importer, exporter, carrier, or blender of gasoline or special fuel by reason of discontinuance, sale, or transfer of such person's business at any location, such person shall notify the executive director of the department of revenue in writing at the time the discontinuance, sale, or transfer takes effect. The notice must state the date of discontinuance and, in the event of sale or transfer, the name and address of the purchaser or transferee. All taxes, penalties, and interest not yet due and payable under this part 1, notwithstanding any other provisions of this part 1, are due and payable concurrently with the discontinuance, sale, or transfer; and the person shall make a report and pay all taxes, penalties, and interest and shall surrender to the executive director of the department of revenue the license together with all duplicates issued to him or her.
(f)
The license issued under this section is required to be conspicuously displayed in the established place of business of the licensee. A licensee shall obtain a duplicate license for each established branch office or location, which shall be displayed in a like manner as the original license. The executive director of the department of revenue shall issue a duplicate license upon payment of a five-dollar fee.
(g)
(I)
No person shall act as a distributor, supplier, terminal operator, importer, exporter, or carrier without a valid license pursuant to this section. Any person who violates the reporting requirements of this part 1, exports gasoline or special fuel out of this state without a valid license, or imports gasoline or special fuel into this state without a license or permit, or otherwise operates in this state without the license required by this section is subject to the following civil penalties:
(A)
A five-thousand-dollar fine for the first violation;
(B)
A ten-thousand-dollar fine for the second violation;
(C)
A fifteen-thousand-dollar fine for a third or subsequent violation.
(II)
The executive director of the department of revenue is authorized to waive, for good cause shown, any civil penalty assessed pursuant to this paragraph (g).
(III)
All moneys collected pursuant to this paragraph (g) shall be credited to the highway users tax fund, created in section
43-4-201
, C.R.S., and allocated and expended as specified in section
43-4-205
(5.5)(a), C.R.S.
(IV)
Nothing in this paragraph (g) shall be construed to prohibit the criminal prosecution of any person who commits a criminal offense in connection with or as a result of violating any provision of this part 1.
(V)
Immediately upon discovery of a violation of this paragraph (g), the department of revenue and agents thereof:
(A)
May require payment of the excise tax imposed pursuant to section
39-27-102 (1)(a)
and all applicable civil penalties imposed pursuant to this paragraph (g) from any person who violates the provisions of this paragraph (g); and
(B)
May detain the shipment of gasoline or special fuel until payment is collected.
(h)
The executive director of the department of revenue may refuse to issue a license if the executive director finds, after affording the applicant due notice and an opportunity to be heard, that the application:
(I)
Was filed by any person whose license has previously been suspended or revoked for cause by the executive director of the department of revenue;
(II)
Contains any misrepresentation, misstatement, or omission of material information required by the application;
(III)
Was filed by some person other than the real person in interest whose license has been previously suspended or revoked for cause by the executive director of the department of revenue;
(IV)
Was filed by any person who is or has been delinquent in the payment of any fee, tax, penalty, or other amount due to the department of revenue for more than two taxable periods; or
(V)
Was submitted by a person who the executive director of the department of revenue determines is unable or unwilling to perform the duties and responsibilities of a licensed gasoline or special fuel distributor, supplier, terminal operator, importer, exporter, carrier, or blender, as applicable, based upon evidence furnished to him or her.
(2) and (2.1)
Repealed.
(2.2)
(a)
The executive director of the department of revenue, in accordance with rules promulgated pursuant to the "State Administrative Procedure Act", article
4
of title
24
, C.R.S., may revoke or suspend the license of any licensee who:
(I)
Fails to timely file any report required under this part 1 or files a false report;
(II)
Fails to pay the tax imposed pursuant to this part 1 together with any applicable penalty and interest;
(III)
Fails to pay any civil penalty assessed pursuant to this part 1;
(IV)
Is convicted of any criminal offense related to a violation of the provisions of this part 1;
(V)
Abuses the privileges for which the license was issued;
(VI)
Fails to produce records requested or otherwise fails to cooperate with the department in the administration of the provisions of this part 1.
(b)
The executive director of the department of revenue may reinstate a license, terminate a suspension, or grant a new license to a person whose license has been revoked if no fact or condition exists that would constitute grounds for the executive director to refuse to reinstate, grant, or terminate a suspension of a license.
(2.5) and (3)
Repealed.
(4)
Notwithstanding the amount specified for any fee in subsection (1) of this section, the executive director of the department of revenue, 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, 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.
(5)
(a)
A person who sells liquefied petroleum gas at the retail level of trade that is not used as special fuel does not act as a distributor and does not need to be licensed as one under this section if the person:
(I)
Submits an affidavit, signed under penalty of perjury, stating that the person will not place liquefied petroleum gas in a fuel tank as part of any sale and that, if the person does place the fuel in a fuel tank, the person is subject to the penalties set forth in this section; and
(II)
Conspicuously posts at the distribution point a sign indicating that the liquefied petroleum gas is not for sale for use in motor vehicles.
(b)
The department of revenue shall establish the form of the affidavit required under subparagraph (I) of this subsection (5).
Amended by 2021 Ch. 453, § 5, eff. 1/1/2022.
L. 33: p. 722, § 4. CSA: C. 16, § 384. L. 51: p. 186, § 1. CRS 53: § 138-3-4. C.R.S. 1963: § 138-2-4. L. 73: p. 1455, § 5. L. 77: (3) amended, p. 887, § 74, effective 7/1/1979. L. 79: (2)(a) amended, p. 427, § 22, effective July 1; (1)(a), (1)(c), (2)(a), (2)(b), and (3) amended, p. 1480, § 4, January 1, 1980. L. 87: (2.5) added, p. 486, § 32, effective July 1. L. 89: (3) amended, p. 853, § 146, effective July 1. L. 95: (1)(a) and (2)(b) amended, p. 983, § 3, effective July 1. L. 98: (1) and (3) amended and (2.2) added, p. 1026, § 3, effective July 1. L. 2000: (1) and (2) amended and (2.1) and (4) added with relocations, p. 1917, § 3, effective October 1. L. 2002: (3) amended, p. 1558, § 354, effective October 1. L. 2005: (1)(g)(III) amended, p. 141, § 5, effective April 5; (1)(g)(V)(A) amended, p. 869, § 4, effective July 1. L. 2009: (1)(d.5) added, (SB 09-098), ch. 878, p. 878, § 3, effective August 5. L. 2015: (2)(a)(I) and (2)(b) amended and (5) added, (HB 15-1228), ch. 1287, p. 1287, § 6, effective 1/1/2016. L. 2021: (1)(a), (1)(b), (1)(c), IP(1)(d.5), (1)(e), (1)(f), IP(1)(g)(I), IP(1)(h), and (1)(h)(V) amended, (2)(f), (2)(g), (2.1)(d), and (2.1)(e) added, and (2.5) and (3) repealed, (HB 21-1322), ch. 3011, p. 3011, § 5, effective 1/1/2022.
(1) The effective date for amendments made to this section by chapter 216, L. 77, was changed from July 1, 1978, to April 1, 1979, by chapter 1, First Extraordinary Session, L. 78, and was subsequently changed to July 1, 1979, by chapter 157, § 23, L. 79. See People v. McKenna, 199 Colo. 452, 611 P.2d 574 (1980).
(2) Subsections (2)(a)(II), (2)(e), (2.1), (2.1)(c), and (4) are similar to provisions of former § 39-27-204 as they existed prior to 2000.
(1) For the legislative declaration contained in the 2002 act amending subsection (3), see section 1 of chapter 318, Session Laws of Colorado 2002. (2) For the legislative declaration in HB 15-1228, see section 1 of chapter 315, Session Laws of Colorado 2015.