2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › SALES AND USE TAX (§§ 39-26-101 — 39-26.1-101) › Article 26 - Sales and Use Tax (§§ 39-26-101 — 39-26-901) › Part 7 - SALES AND USE TAX EXEMPTIONS (§§ 39-26-701 — 39-26-734) › Section 39-26-704 - Miscellaneous sales tax exemptions - governmental entities - hotel residents - schools - exchange of property

(1)
All sales to the United States government and to the state of Colorado, its departments and institutions, and the political subdivisions thereof in their governmental capacities only shall be exempt from taxation under the provisions of part 1 of this article.
(1.5)
All transactions specified in section
29-4-227(1)
, C.R.S., are exempt from taxation under the provisions of parts 1 and 2 of this article.
(2)
There shall be exempt from taxation under the provisions of part 1 of this article 26 all sales that the state of Colorado is prohibited from taxing under the constitution or laws of the United States or the state of Colorado.
(3)
(a)
There shall be exempt from taxation under the provisions of part 1 of this article 26 all sales and purchases of commodities and services under the provisions of section
39-26-102(11)
to any natural person who is a permanent resident of any hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court or park and who enters into or has entered into a written agreement for occupancy of a room or accommodations for a period of at least thirty consecutive days during the calendar year or preceding year.
(b)
Notwithstanding any provision of law to the contrary, on or after January 1, 2021, for any local government or political subdivision of the state that levies a sales or use tax based on the sales or use tax levied by the state pursuant to this article 26, all sales and purchases of commodities and services under the provisions of section
39-26-102(11)
to any occupant who is a permanent resident of any hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court or park and who enters into or has entered into a written agreement for occupancy of a room or accommodations for a period of at least thirty consecutive days during the calendar year or preceding calendar year shall be exempt from the sales or use tax of such local government or political subdivision, unless the local government or political subdivision expressly subjects such sale to its sales or use tax for the applicable period at the time of adoption of its initial sales or use tax ordinance or resolution or subsequent amendment thereto.
(4)
All sales made to schools, other than schools held or conducted for private or corporate profit, shall be exempt from taxation under the provisions of part 1 of this article.
(5)
There shall be exempt from taxation under the provisions of part 1 of this article all transactions specified in section
39-26-104(1)(b)(I)
in which the fair market value of the exchanged property is excluded from the consideration or purchase price because the exchanged property is covered by section
39-26-104(1)(b)(I)(A) or (1)(b)(I)(B)
, and in which, because there is no additional consideration involved in the transaction, there is no purchase price within the meaning of section
39-26-102(7)
.
Amended by 2020 Ch. 58,§ 2, eff. 9/14/2020.
Amended by 2020 Ch. 53,§ 2, eff. 9/14/2020 and applicable to sales taxes levied on or after 1/1/2021.
L. 2004: Entire part added with relocations, p. 1018, § 2, effective July 1. L. 2016: (1.5) added, (HB 16-1006), ch. 610, p. 610, § 3, effective August 10. L. 2020: (2) amended, (HB 20-1182), ch. 198, p. 198, § 2, effective September 14; (3) amended, (HB 20-1020), ch. 185, p. 185, § 2, effective September 14.
The provisions of this section are similar to several former provisions of §
39-26-114
as they existed prior to 2004.
For the legislative declaration in HB 16-1006, see section 1 of chapter 177, Session Laws of Colorado 2016. For the legislative declaration in HB 20-1020, see section 1 of chapter 53, Session Laws of Colorado 2020. For the legislative declaration in HB 20-1182, see section 1 of chapter 58, Session Laws of Colorado 2020.