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 - Collection of tax on gasoline and special fuel - rules - repeal

(1)
Except as otherwise provided in this section, every distributor, supplier, carrier, exporter, importer, blender, refiner, or terminal operator of gasoline or special fuel other than liquefied petroleum gas on or before the twenty-sixth day of each calendar month shall file with the executive director of the department of revenue, on forms prescribed and furnished by the department, an itemized statement made under penalty of perjury in the second degree, showing the following:
(a)
The number of gallons of gasoline or special fuel acquired in, imported into, or removed from any terminal in this state from any source whatsoever during the preceding calendar month;
(b)
The quantity of the different kinds of gasoline or special fuel so acquired, imported, or removed;
(c)
The amount of gasoline or special fuel exported from this state, with the date of shipment, the car number and initials, and the number of invoiced gallons of gasoline or special fuel contained in each tank car if exported by rail, and the name of the owner and the make and license number of the tank truck or tank wagon if such transportation is used, and the name of the person to whom such exported gasoline or special fuel was sold, the point of shipment, and the point of delivery;
(d)
The date of acquisition, import, or removal of each shipment of gasoline or special fuel acquired, imported, or removed, the name of the person from whom purchased or acquired, the point of origin and point of destination of each shipment, the quantity in gallons of each of said purchases or shipments, the name of the carrier, the number of each tank car, its initial, and the number of invoiced gallons contained in each tank car if shipped by rail, and the name of the owner and the make, license number, and capacity in gallons of the tank truck or tank wagon if such transportation was used;
(d.3)
In the case of a blender of gasoline or special fuel, the amount and character of the unblended products and the blended products on hand on the last day of the preceding calendar month, the amount of unblended products acquired and the amount of products blended during the calendar month, and any other information relative to the disposition of the blended products as the executive director may deem necessary or advisable for the correct determination of the amount of excise tax applicable to gasoline or special fuel acquired, used, or sold by the blender; and
(e)
Any further information as the executive director may require pertaining to the acquisition, import, or removal of gasoline or special fuel and its disposition and the tax due, collected, or paid thereon, if any.
(f)
(Deleted by amendment, L. 2021.)
(1.1)
The information required for reporting acquisition or disposition of gasoline or special fuel pursuant to this article 27 must be submitted electronically in the manner prescribed by the department of revenue. The department, in consultation with licensees, shall develop standards regarding filing of information that includes, but is not limited to, the data elements, the format of the data elements, and the method and medium of transmission to the department. The department shall incorporate into the standards, to the extent practicable, the uniform forms and reporting methods prescribed by the federation of tax administrators or other similar association of states.
(1.2)
(a)
Every distributor, exporter, or importer of liquefied petroleum gas on or before the twenty-sixth day of each calendar month shall file with the executive director of the department of revenue, on forms prescribed and furnished by the department, a statement made under penalty of perjury in the second degree, showing the following aggregated amounts:
(I)
The number of gallons of liquefied petroleum gas that the distributor placed in a fuel tank and that are subject to the excise tax under this part 1;
(II)
The number of gallons of liquefied petroleum gas that the distributor placed in a fuel tank and that are exempt from the excise tax under this part 1;
(III)
The number of gallons of liquefied petroleum gas, not placed in a fuel tank, that are sold to the state of Colorado, any of its agencies, any town, city, county, city and county, school district of this state, or any other political subdivision of this state;
(IV)
The number of gallons of liquefied petroleum gas sold to a nonprofit transit agency that are not placed in a fuel tank;
(V)
The number of gallons of liquefied petroleum gas imported into the state; and
(VI)
The number of gallons of liquefied petroleum gas exported from this state.
(b)
Repealed.
(1.3)
(a)
(Deleted by amendment, L. 2005, p. 869, § 5, effective July 1, 2005.)
(b)
The executive director of the department of revenue, if said executive director deems it necessary in order to ensure payment of the tax imposed by this part 1 or to facilitate the administration of this part 1, may require a report of a distributor and payment of the tax due by the distributor to be made for other than, or in addition to, the monthly period. When such option is authorized, the amount of surety bond required by section
39-27-104 (2)
may be adjusted by the executive director proportionately with the change in liability.
(c)
Distributors may aggregate figures stated in the reports required by this part 1 for natural gas for all service stations or other facilities that dispense natural gas for sale to users and that are owned or operated by the same distributor.
(d)
Distributors may aggregate figures stated in the reports required by this part 1 for natural gas for sales of such fuels to a particular class or type of individual user. Distributors of natural gas shall not be required to separately report the amount of sales to individual users.
(e)
Any inventory reporting requirements established pursuant to this subsection (1.3) shall not apply to distributors of natural gas whose service stations or other facilities receive special fuel for sale through a pipeline and have a maximum special fuel storage capacity of less than one-thousand-gallon equivalents at the site where sales are made to users.
(f)
Distributors of liquefied petroleum gas shall aggregate figures stated in the reports required by this part 1.
(1.5)
Repealed.
(2)
(a)
(I)
It is the duty of every distributor of gasoline or special fuel other than liquefied petroleum gas to compute the amount of tax payable on all gasoline or special fuel imported, removed from a terminal, or otherwise acquired during the preceding calendar month at the rate of tax per gallon imposed thereon in section
39-27-102 (1)
, and, in computing the amount of tax, the allowance of two percent provided for in section
39-27-102 (1)(b)(I)(A)
shall be taken into account.
(II)
It is the duty of every distributor of liquefied petroleum gas to compute the amount of tax payable on the liquefied petroleum gas placed in a fuel tank or used to propel a cargo tank motor vehicle in the preceding calendar month at the rate of tax per gallon imposed thereon.
(b)
From the amount of tax computed under subsection (2)(a) of this section, the distributor shall deduct one-half of one percent to cover expenses of payment of the tax and bad debt losses and shall pay the remaining balance to the department of revenue and file the statement required by subsection (1) of this section on or before the twenty-sixth day of each calendar month. If any distributor is delinquent in remitting the tax, except in unusual circumstances shown to the satisfaction of the executive director of the department of revenue, the retailer shall not be allowed to deduct any amount under this subsection (2)(b).
(c)
(I)
If any person fails to file any return or statement when due as provided in this section, the executive director shall impose and collect a penalty of one hundred dollars.
(II)
If any person fails to pay the tax when due as provided in this section, the executive director shall impose and collect a penalty of thirty dollars or ten percent of the tax due, plus one-half of one percent per month from the date when due, not to exceed eighteen percent in the aggregate, whichever is greater, in addition to any other penalties provided by this part 1. The executive director shall also collect interest at the rate imposed under section
39-21-110.5
.
(III)
If the penalties provided for in subsection (2)(c)(I) and (2)(c)(II) both apply, then the executive director shall impose and collect only the larger of the two penalties. The executive director may waive, for good cause shown, any penalty or interest added pursuant to this subsection (2)(c).
(d)
(I)
The executive director shall waive the penalties imposed under subsection (2)(c) of this section for tax periods between January 1, 2022, and December 31, 2022, if the distributor demonstrates a good-faith effort to comply with the changes made by House Bill 21-1322, enacted in 2021, to the satisfaction of the executive director; amends any returns filed; and pays any tax deficiency resulting from those amended returns on or before March 31, 2023.
(II)
This subsection (2)(d) is repealed, effective July 1, 2026.
(3)
If any person fails or refuses to make and file the sworn statement required by this section and pay the tax due, if any, for any calendar month or if a person makes and files any incorrect or fraudulent statement or return for any calendar month as required by this part 1, the executive director of the department of revenue, upon such information as is available in his or her office or elsewhere, shall determine the amount of gasoline or special fuel taxes due from that person and shall add to that amount a penalty of thirty percent thereof for failure to file such report or for filing the false or fraudulent report and collect the amount of the tax and penalty plus interest on the whole amount due from that person at the rate imposed under section
39-21-110.5
from the date due until paid. Upon making such estimate, and adding the penalty and interest as provided in this section, the executive director shall mail a notice of deficiency as provided in section
39-21-103
. A hearing may be held and the executive director shall make a final determination pursuant to that section. The taxpayer may appeal that final determination in the manner provided in section
39-21-105
. The executive director may waive, for good cause shown, any penalty or interest added as provided in this article 27 and article
21
of this title 39.
(4)
(a)
(I)
Every person who has obtained a passenger-mile tax permit pursuant to section
42-3-309
, C.R.S., where such permit relates to a motor vehicle that is powered by special fuel, shall, on or before the last day of the month following the end of the quarter, file with the executive director of the department of revenue a report stating the amount of special fuel subject to the tax imposed by this part 1 consumed by such person during the prior quarter and such other information relating to the use of special fuel for the propulsion of a motor vehicle on the highways of this state as the executive director may require. The executive director, under rules and procedures established by said executive director, may exempt from the reporting requirement of this subsection (4) any motor vehicle used exclusively within this state. Failure to receive the authorized report form does not relieve such person from the obligation of submitting a report to the executive director setting forth all information required on the prescribed report form. The report shall contain or be accompanied by a written declaration that it is made under the penalties of perjury in the second degree, as defined in section
18-8-503
, C.R.S.
(II)
The tax due pursuant to subparagraph (I) of this paragraph (a) shall be computed by multiplying the rate per gallon as set forth in section
39-27-102 (1)(a)(II)(B)
by the number of gallons of special fuel used in this state.
(b)
From the tax due, an authorized user may claim credit for tax paid on purchases of special fuel from vendors within this state. Any credit in excess of the tax due from a user under this part 1 may be claimed on a consolidated report authorized under paragraph (c) of this subsection (4) as a credit against the taxes imposed under sections
42-3-304
to
42-3-306
, C.R.S. Otherwise, such credit is refundable under the provisions of section
39-27-103
and such rules and procedures as the executive director of the department of revenue may adopt.
(c)
The executive director of the department of revenue may authorize, under rules and procedures established by said executive director, the consolidation of the report required by this subsection (4) and the report required by section
42-3-308
, C.R.S., into a single report.
(d)
Notwithstanding any other provision of this section to the contrary, any owner or operator of a motor vehicle required to pay a special fuel tax imposed by the provisions of paragraph (a) of this subsection (4) may pay the tax and file the statement required by said paragraph (a) on a quarterly basis. The executive director of the department of revenue, under rules and procedures established by the executive director, may exempt from the reporting requirement of this subsection (4) any motor vehicle used exclusively within this state.
(5)
(a)
Except as provided in subsection (4)(a) of this section and in section
39-27-102.5 (2)(c)
, every person who imports into this state special fuel within the fuel tank of a motor vehicle and who is not required to report special fuel usage under subsection (4) of this section shall obtain from the port of entry, from the office of the department of revenue nearest the point of entry into this state, or from any officer of the Colorado state patrol a single trip permit that contains a description of the motor vehicle, a description of the points of travel within the state of Colorado, and such other information as the executive director of the department of revenue may require. At the time of issuance of such single trip permit, a tax will be computed and paid based on the consumption rate of four miles per gallon for special fuel consumed within Colorado at the special fuel tax rate provided by section
39-27-102 (1)(a)(II)(B)
. A fee of one dollar shall be paid for each single trip permit and the permit shall be valid for a period of seventy-two hours.
(b)
(I)
The holder of a single trip permit shall be entitled to a refund of any tax imposed by this part 1 paid to a vendor within this state if:
(A)
The special fuel, upon which such tax is paid, is placed into the fuel tank of the motor vehicle described within the permit; and
(B)
The sale and delivery of such special fuel is within the seventy-two-hour period for which the permit is valid.
(II)
The refund allowed by this paragraph (b) shall be issued under the provisions of section
39-27-103
and such rules and procedures as the executive director of the department of revenue may adopt.
(c)
Any person whose use of special fuel is for the propulsion of a privately operated automobile shall be exempt from the provisions of this subsection (5). A privately operated passenger automobile does not include a motor vehicle used for the transportation of persons for hire or for compensation or designed, used, or maintained primarily for the transportation of property. A motor vehicle exempt from the mileage taxes of article
3
of title
42
, C.R.S., is deemed to be a privately operated passenger automobile for purposes of this subsection (5).
(d)
Any person who violates this subsection (5) is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of seventy-five dollars, which shall be in addition to the civil penalties imposed by section
39-27-104 (1)(g)
.
(6)
(a)
Every person who imports gasoline or special fuel into this state for use or sale in this state without a single trip permit or a valid importer's, supplier's, blender's, or distributor's license is liable for and shall pay an excise tax pursuant to section
39-27-102 (1)
on all gasoline and undyed special fuel other than liquefied petroleum gas such person imports for use or sale in this state.
(b)
Immediately upon discovering a violation of this subsection (6), the department of revenue and agents thereof:
(I)
May demand payment of such excise tax and all applicable fines and penalties associated with the unlicensed importation of special fuel, as set forth in this subsection (6); and
(II)
May detain the shipment of gasoline or special fuel until such excise tax, fines, and penalties are collected.
(c)
Any person who imports gasoline or special fuel, including liquified petroleum gas, into this state without a valid license pursuant to section
39-27-104
is subject to the civil penalties set forth in section
39-27-104 (1)(g)
.
(7)
(a)
If any person other than a licensed distributor or supplier physically diverts to one or more destinations within the boundaries of this state all or any portion of a shipment of gasoline or special fuel that is claimed as an export on the bill of lading or other affidavit, such person shall report to the department of revenue the destinations within this state to which the diverted gasoline or special fuel shipment was delivered within one working day after such diversion. Such person shall be liable for payment of the excise tax established in this part 1 on the amount of gasoline or special fuel other than liquefied petroleum gas diverted to a destination within this state.
(b)
Any licensed distributor or supplier who diverts gasoline or special fuel for use or sale within this state after claiming such shipment as an export shall report such diversion to the department of revenue within one working day after the diversion.
(c)
Any person who violates the reporting requirements of this subsection (7) shall be subject to the civil penalties set forth in section
39-27-104 (1)(g)
.
(d)
Immediately upon discovery of a violation of this section, the department of revenue and agents thereof may require payment of the excise tax and all applicable civil penalties from any person who violates this section and may detain the shipment of gasoline or special fuel until payment is collected.
(8) to (10)
(Deleted by amendment, L. 2005, p. 869, § 5, effective July 1, 2005.)
(11)
Distributors who sell natural gas exclusively to distributors, vendors, or other retailers of special fuels shall be exempt from the reporting and tax collection and remittance requirements of this section. This subsection (11) shall not apply to any distributor who sells natural gas to a user.
Amended by 2021 Ch. 453, § 6, eff. 1/1/2022.
Amended by 2018 Ch. 274, § 84, eff. 5/29/2018.
L. 33: p. 726, § 5. CSA: C. 16, § 385. CRS 53: § 138-3-5. C.R.S. 1963: § 138-2-5. L. 67: p. 350, § 1. L. 69: p. 1142, § 6. L. 77: (2) amended, p. 1843, § 1, effective July 1. L. 79: Entire section amended, p. 1481, § 5, effective 1/1/1980. L. 81: (3) amended, p. 1867, § 14, effective July 8. L. 85: (2) and (3) amended, p. 1259, § 17, effective 1/1/1986. L. 95: IP(1), (1)(a), (1)(b), (1)(d), (1)(e) and (2) amended and (1)(f) added, p. 984, § 4, effective July 1. L. 98: IP(1) and (1)(e) amended and (1.5) added, p. 1030, § 4, effective July 1. L. 2000: IP(1), (1)(e), (1.5), (2), and (3) added and (1.3), (4), (5), (6), (7), (8), (9), (10), and (11) amended with relocations, p. 1922, § 4, effective October 1. L. 2002: (4)(b) and (5)(b)(II) amended, p. 557, § 4, effective May 24. L. 2005: (1), (1.3)(a), (1.3)(c), (1.3)(d), (1.5), (2), (3), (4)(a), (6)(a), (7)(a), (7)(b), (8), (9), (10) amended, p. 869, § 5, effective July 1; (4)(a), (4)(b), and (4)(c) amended, p. 1184, § 36, effective August 8. L. 2013: (1.3)(d) amended, (HB 13-1110), ch. 1063, p. 1063, § 9, effective 1/1/2014. L. 2015: IP(1), (1.3)(c), (1.3)(d), (2), (6)(a), and (7)(a) amended and (1.2) and (1.3)(f) added, (HB 15-1228), ch. 1288, p. 1288, § 7, effective 1/1/2016. L. 2018: (1.5) amended, (HB 18-1375), ch. 1723, p. 1723, § 84, effective May 29. L. 2021: (1), (2), (3), (5)(a), (6), and (7)(d) amended, (1.1) added, (1.2)(b) and (1.5) repealed, (HB 21-1322), ch. 3013, p. 3013, § 6, effective 1/1/2022.
(1) The provisions of this section are similar to several former provisions of § 39-27-205 as they existed prior to 2000. For a detailed comparison of this section, see House Bill 00-1479, L. 2000, p. 1922.
(2) Amendments to subsection (4)(a) by Senate Bill 05-222 and House Bill 05-1107 were harmonized.
(1) For the legislative declaration in the 2013 act amending subsection (1.3)(d), see section 1 of chapter 225, Session Laws of Colorado 2013. (2) For the legislative declaration in HB 15-1228, see section 1 of chapter 315, Session Laws of Colorado 2015.