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 39-27-105.5 - Lien to secure payment of taxes - exemption - recovery

(1)
(a)
The state of Colorado and the department of revenue shall have a lien to secure the payment of the taxes, penalties, and interest imposed pursuant to this part 1 upon all the assets and property of the distributor owing the tax, including the stock in trade, business fixtures, and equipment owned or used by the distributor in the conduct of his or her business, as long as a delinquency in the payment of such tax continues. Such lien is prior to any lien of any kind whatsoever, including existing liens for taxes.
(b)
Any distributor or person in possession shall provide a copy of any lease pertaining to the assets and property described in subsection (1)(a) of this section to the department of revenue within ten days after seizure by the department of such assets and property. The department shall verify that such lease is bona fide and notify the owner that such lease has been received by the department. The department shall use its best efforts to notify the owner of the real or personal property which might be subject to the lien created in subsection (1)(a) of this section. The real or personal property of an owner who has made a bona fide lease to a distributor is exempt from the lien created in subsection (1)(a) of this section if such property can reasonably be identified from the lease description or if the lessee is given an option to purchase in such lease and has not exercised such option to become the owner of the property leased. This exemption is effective from the date of the execution of the lease. The exemption also applies if the lease is recorded with the county clerk and recorder of the county where the property is located or based or a memorandum of the lease is filed with the department of revenue on such forms as may be prescribed by said department after the execution of the lease at a cost for such filing of two dollars and fifty cents per document. Motor vehicles which are properly registered in this state, showing the lessor as owner thereof, shall be exempt from the lien created in subsection (1)(a) of this section; except that said lien applies to the extent that the lessee has an earned reserve, allowance for depreciation not to exceed fair market value, or similar interest which is or may be credited to the lessee. Where the lessor and lessee are blood relatives or relatives by law or have twenty-five percent or more common ownership, a lease between such lessee and such lessor is not considered as bona fide for the purposes of this section.
(c)
When the property of any licensee is seized upon any mesne or final process of any court of this state or when the business of any licensee is suspended by the action of creditors or put into the hands of any assignee, receiver, or trustee, then in all such cases all gasoline or special fuel taxes due from and payable by such licensee together with any penalties and interest thereon under this part 1 are considered and treated as preferred claims, and the state of Colorado is a preferred creditor and to be paid in full.
(d)
(I)
The tax imposed by this part 1, except when paid by the user to a vendor, together with penalties and interest thereon, constitutes a lien against any motor vehicle in connection with which the taxable use is made. The lien shall not be removed until the tax, together with penalties and interest, is paid or the motor vehicle subject to the lien is sold in payment of the tax, penalty, and interest. The lien is prior to all private liens and encumbrances and to the rights of a conditional vendor or other holder of the legal or equitable title to the motor vehicle.
(II)
If ownership of a motor vehicle subject to lien under this subsection (1)(d) is transferred by operation of law or otherwise, registration or title with respect to the vehicle shall not be issued until the lien has been removed.
(2)
If any person fails or refuses to comply with section
39-27-105
, the executive director of the department of revenue may seek to enforce collection of the unpaid taxes, penalties, and interest in accordance with article
21
of this title 39.
Amended by 2021 Ch. 453, § 8, eff. 1/1/2022.
L. 87: Entire section added, p. 486, § 33, effective July 1. L. 92: (1)(b) amended, p. 2203, § 6, effective April 16. L. 2000: (2) amended, p. 1927, § 5, effective October 1. L. 2004: (2) amended, p. 1211, § 96, effective August 4. L. 2021: Entire section amended, (HB 21-1322), ch. 3017, p. 3017, § 8, effective 1/1/2022.