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 39-27-102 - Tax imposed on gasoline and special fuel - deposits - penalties

(1)
(a)
(I)
(A)
An excise tax is imposed upon and is required to be paid by a distributor on all gasoline or special fuel acquired in, sold in, imported into, removed from any terminal in, or used in this state for any purpose whatsoever, but only one tax is required to be paid upon the same gasoline or special fuel in this state. For purposes of this subsection (1)(a)(I)(A), "special fuel" does not include liquefied petroleum gas.
(B)
An excise tax is imposed upon and is required to be paid by a distributor on liquefied petroleum gas when it is placed in a fuel tank, unless the use of the special fuel is exempt. If the liquefied petroleum gas is placed in the fuel tank by a distributor, the distributor shall pay the tax to the department of revenue in accordance with this section.
(C)
If a distributor uses liquefied petroleum gas from a cargo tank to propel a cargo tank motor vehicle on the highways in this state, an excise tax is imposed upon and is required to be paid by a distributor on the liquefied petroleum gas that is used as special fuel. The liquefied petroleum gas that is carried in the cargo tank but not used as special fuel is not subject to the excise tax. The tax imposed is computed upon an estimate of the total amount of liquefied petroleum gas, measured in gallons, used to propel the cargo tank motor vehicle based on the number of miles that the vehicle traveled. A distributor shall report to the department of revenue the number of miles that the vehicle traveled based on odometer readings. The department shall establish the form to be used to report this information.
(D)
The tax imposed by this subsection (1)(a)(I) shall not apply to any acquisition, sale, import, or removal of gasoline or special fuel by bulk transfer to, from, or within a terminal or refinery in this state if the person acquiring, importing, or removing the gasoline or special fuel and the terminal operator or refinery are licensees. For purposes of this subsection (1)(a)(I)(D), a refinery is a licensee if the refiner is licensed to act as a terminal operator or a supplier in this state.
(II)
(A)
Except as provided in subsection (1)(a)(IV) of this section, the excise tax imposed on gasoline is twenty-two cents per gallon or fraction thereof.
(B)
The excise tax imposed on special fuel by subsection (1)(a)(I) of this section is twenty and one-half cents per gallon or a fraction thereof. This subsection (1)(a)(II)(B) does not apply to any special fuel specified in subsections (1)(a)(VI), (1)(a)(VII), and (1)(a)(VIII) of this section.
(III)
(Deleted by amendment, L. 2005, p. 863, § 1, effective July 1, 2005.)
(IV)
(A)
The excise tax imposed by subsection (1)(a)(I) of this section is six cents per gallon or fraction thereof on gasoline used as fuel for the propulsion of nonturbo-propeller or nonjet engine aircraft and is four cents per gallon or fraction thereof on gasoline used as fuel for the propulsion of turbo-propeller or jet engine aircraft.
(B)
(Deleted by amendment, L. 2021.)
(C)
Based upon reports submitted pursuant to this article 27, the department of revenue shall compile a monthly report showing the amount of excise taxes collected on gasoline pursuant to this subsection (1)(a)(IV). The department shall transmit the monthly report to the division of aeronautics created in section
43-10-103
for use by the division in distributing money in the aviation fund in accordance with section
43-10-110
.
(V)
Repealed.
(VI)
The excise tax imposed on compressed natural gas by subparagraph (I) of this paragraph (a) is:
(A)
Three cents per gallon or a fraction thereof for the 2014 calendar year;
(B)
Six cents per gallon or a fraction thereof for the 2015 calendar year;
(C)
Nine cents per gallon or a fraction thereof for the 2016 calendar year;
(D)
Twelve cents per gallon or a fraction thereof for the 2017 calendar year;
(E)
Fifteen cents per gallon or a fraction thereof for the 2018 calendar year; and
(F)
Eighteen and three-tenths cents per gallon or a fraction thereof for calendar years beginning on and after January 1, 2019.
(VII)
The excise tax imposed on liquefied natural gas by subparagraph (I) of this paragraph (a) is:
(A)
Three cents per gallon or a fraction thereof for the 2014 calendar year;
(B)
Five cents per gallon or a fraction thereof for the 2015 calendar year;
(C)
Seven cents per gallon or a fraction thereof for the 2016 calendar year;
(D)
Eight cents per gallon or a fraction thereof for the 2017 calendar year;
(E)
Ten cents per gallon or a fraction thereof for the 2018 calendar year; and
(F)
Twelve cents per gallon or a fraction thereof for calendar years beginning on and after January 1, 2019.
(VIII)
The excise tax imposed on liquefied petroleum gas by subparagraph (I) of this paragraph (a) is:
(A)
Three cents per gallon or a fraction thereof for the 2014 calendar year;
(B)
Five cents per gallon or a fraction thereof for the 2015 calendar year;
(C)
Seven cents per gallon or a fraction thereof for the 2016 calendar year;
(D)
Nine cents per gallon or a fraction thereof for the 2017 calendar year;
(E)
Eleven cents per gallon or a fraction thereof for the 2018 calendar year; and
(F)
Thirteen and one-half cents per gallon or a fraction thereof for calendar years beginning on and after January 1, 2019.
(b)
(I)
In the case of gasoline or special fuel removed from a terminal, the tax is imposed upon the person first receiving the gasoline or special fuel at the terminal even if such person is also the supplier. In the case of gasoline or special fuel removed from a terminal by a common carrier, the consignor who owns the gasoline or special fuel removed by the common carrier is deemed to be the remover and first recipient thereof. The amount of gasoline or special fuel removed is deemed to be the amount shipped from the terminal, measured in gallons, as shown by the terminal manifest; except that an allowance of two percent of the total amount of gasoline or special fuel acquired during any calendar month, as shown by terminal manifests, is deducted by the licensed distributor to cover losses in transit and in unloading the gasoline or special fuel but there is no allowance for liquefied petroleum gas or removal by bulk transfer. The two percent allowance provided under this subsection (1)(b)(I) is allowed whether the terminal is within or without this state.
(II)
(Deleted by amendment, L. 2021.)
(III)
In the case of gasoline or special fuel imported into this state, except as provided in subsection (1)(a)(I)(D) of this section, the tax is imposed upon the importer at the time the gasoline or special fuel is first brought into this state from another state for sale, use, or storage and is measured by the number of gallons of gasoline or special fuel imported.
(IV)
In the case of liquefied petroleum gas or natural gas sold by a vendor or by a distributor described in section
39-27-101 (7)(a)(V)
, or used by a private commercial fleet operator, the tax is imposed upon the vendor, distributor, or private commercial fleet operator at the time of such sale or use and is measured by the number of gallons placed into a fuel tank or receptacle from which a fuel tank is supplied.
(V)
In the case of blended gasoline or blended special fuel sold by a blender thereof, the tax is imposed upon the blender at the time of sale. If the blender establishes that a tax was imposed and paid under this section, by the blender or by a licensed distributor from whom the blender acquired the gasoline or special fuel, the amount of tax so paid is allowed as a credit against the tax imposed by reason of this subsection (1)(b)(V).
(VI)
In the case of a user, the tax imposed by this section is measured by the gallons of special fuel imported into this state or acquired without payment of the tax imposed by this section and used in the propulsion of a motor vehicle on the highways of this state.
(VII)
In any other case, the tax imposed by this section is imposed upon the acquisition by each distributor and computed upon the total amount of gasoline or special fuel, measured in gallons, acquired by each distributor in this state and is required to be paid in the manner provided in this part 1. If the distributor establishes that a tax was imposed by this section upon the gasoline or special fuel acquired and paid by a licensed distributor, the amount of tax so paid is allowed as a credit against the tax imposed by reason of this subsection (1)(b)(VII).
(1.5)
(Deleted by amendment, L. 2000, p. 1916, § 2, effective October 1, 2000.)
(2)
(a)
Except as set forth in section
39-27-102.5 (9)
, every person who uses any gasoline or special fuel for propelling a motor vehicle on the public highways of this state, upon which gasoline or special fuel a licensed distributor has not paid or is not liable to pay the tax imposed in this section, is deemed to be a distributor and is liable for and shall pay an excise tax at a rate established by subsection (1)(a) of this section on all such gasoline or special fuel so used in this state. Such person shall pay such tax to the department of revenue in the same manner as a distributor under section
39-26-105
, on or before the twenty-sixth day of the calendar month following the month in which such gasoline or special fuel was used and shall, at the time of payment, render to the department, on forms provided by it, an itemized statement, signed under the penalties of perjury in the second degree, as defined in section
18-8-503
, of all such gasoline or special fuel so used or imported during such preceding calendar month. When such gasoline or special fuel is delivered from a terminal in a carload lot, the quantity thereof and the amount of tax thereon is computed in the same manner as in the case of a distributor.
(b)
A person operating a passenger car into this state may bring into the state, for the operation of such passenger car, not more than the capacity for gasoline or special fuel in the ordinary fuel tank attached to such passenger car without being liable for payment of the tax on such gasoline or special fuel. Any person operating a motor truck or motor bus into this state, except those persons operating a qualified motor vehicle pursuant to motor fuel tax cooperative agreement entered into under part 3 of this article, may bring into this state, for the operation of such motor truck or motor bus, not more than the capacity for gasoline or special fuel in the ordinary fuel tank attached to such motor truck or motor bus without being liable for payment of the tax on such gasoline or special fuel. Any person operating an aircraft into this state, other than an aircraft operated by scheduled air carriers or commuter airline operators, may bring into this state, for the operation of such aircraft, not more than the capacity for gasoline or special fuel in the ordinary fuel tank attached to such aircraft without being liable for payment of the tax on such gasoline or special fuel. In the event of a disagreement between the operator, driver, or owner of any vehicle, truck, or bus and any officer or inspector of this state regarding the capacity of the ordinary fuel tank of any vehicle traveling upon the highways, the operator, driver, or owner shall be required, at his or her own expense, to prove to the satisfaction of the officer or inspector the capacity of the ordinary fuel tank attached to such vehicle, and, in the event it exceeds that exempted by law, he or she shall be required to pay the tax on any additional gallonage then and there, securing a receipt from the officer or inspector with whom such disagreement occurred.
(c) and (d)
Repealed.
(2.5) to (9)
Repealed.
(10)
Nothing in this section 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.
(11)
The tax imposed by this section is a debt owed to this state. Every person subject to it shall pay the tax imposed by this section in the manner prescribed by this part 1 irrespective of when payment is received by such person for the amount of any invoice for the sale of gasoline or special fuel including the tax thereon.
(12)
On and after January 1, 2022, no supplier, distributor, importer, or terminal operator may sell gasoline or special fuel on a tax-deferred or tax-exempt basis, except as provided in section
39-27-102.5
.
Amended by 2021 Ch. 453, § 2, eff. 1/1/2022.
L. 33: p. 718, § 2. L. 35: p. 905, § 2. CSA: C. 16, § 382. L. 53: p. 152, § 1. CRS 53: § 138-3-2. L. 63: p. 942, § 2. C.R.S. 1963: § 138-2-2. L. 64: p. 656, § 15. L. 65: pp. 1114-1118, §§ 2-5. L. 67: pp. 335, 336, 985, §§ 1, 2, 3, 1. L. 69: pp. 1140, 1141, §§ 1-5. L. 71: pp. 1257, 1258, §§ 1, 2. L. 72: p. 572, § 60. L. 73: pp. 1454, 1457, 1458, §§ 3, 4, 1, 2. L. 75: (4)(a) amended, p. 1517, § 1, effective 1/1/1976. L. 77: (2)(b) amended, p. 1838, § 1, effective July 1; (3)(a), (4)(a), and (5)(a) amended and (4)(b) repealed, pp. 1840, 1841, §§ 2, 3, effective 1/1/1978. L. 78: (1)(a) amended, p. 516, § 1, effective July 1. L. 79: (1)(a)(II) amended, p. 1330, § 3, effective May 8; (3)(a) and (6)(a) amended, p. 426, § 21, effective July 1; (1)(a)(I), (1)(a)(II), (1)(b), (2)(a), and (2)(b) amended and (2)(c), (2)(d), (3), (4), (5), (6), (7), and (8) repealed, pp. 1475, 1501, §§ 2, 29, effective 1/1/1980. L. 80: (1)(b) amended, p. 737, § 1, effective April 10. L. 81: (1)(a)(II) amended, p. 459, § 2, effective May 18; (1)(a) and (2)(a) amended, p. 1893, § 1, effective June 19. L. 82: (1)(a)(III) amended, p. 573, § 1, effective April 23. L. 83: (1)(a)(II) amended, p. 1539, § 1, effective July 1. L. 84: (1)(a)(III) amended, p. 1024, § 1, effective July 1. L. 85: (1)(a)(III) R&RE, p. 1285, § 1, effective June 6. L. 86: (1)(a)(II) amended, p. 1127, § 1, effective July 1. L. 88: (1)(b) amended, p. 1330, § 1, effective April 13; (2)(b) amended, p. 1336, § 2, effective April 14; (1)(a)(I) and (2)(b) amended and (1)(a)(IV) added, p. 1091, § 7, effective 1/1/1989. L. 89, 1st Ex. Sess.: (1)(a)(II) R&RE and (1)(b) amended, p. 51, §§ 1, 3, effective July 1; (1)(a)(II) R&RE and (1)(b) amended, p. 53, §§ 1, 2, effective August 1. L. 91: (1)(a)(IV)(C) added, p. 2397, § 22, effective July 1. L. 91, 1st Ex. Sess.: (1)(a)(IV)(C) added, p. 7, § 11, effective July 1. L. 95: (1)(a)(I) and (1)(b) amended, p. 982, § 2, effective July 1. L. 98: (1)(a)(I), (1)(b), and (2)(a) amended and (1.5), (2.5), (9), and (10) added, p. 1023, § 2, effective July 1. L. 2000: (1)(a)(I) and (1.5) amended, p. 1916, § 2, effective October 1. L. 2003: (1)(a)(IV)(B) and (1)(b) amended, p. 1817, § 3, effective August 6. L. 2005: (9)(c) amended, p. 140, § 4, effective April 5; (1)(a)(I), (1)(a)(II), (1)(a)(III), (1)(b), (2)(a), (2)(b), (2.5), and IP(9)(a) amended and (1)(a)(V) added, p. 863, § 1, effective July 1. L. 2013: (1)(a)(II)(B) and (2)(a) amended and (1)(a)(VI), (1)(a)(VII), and (1)(a)(VIII) added, (HB 13-1110), ch. 1059, p. 1059, § 6, effective 1/1/2014. L. 2014: (1)(b) amended, (HB 14 -1105), ch. 393, p. 393, § 1, effective August 6. L. 2015: (1)(a)(I), (1)(b)(I), and (2.5) amended, (HB 15-1228), ch. 1285, p. 1285, § 3, effective 1/1/2016. L. 2016: (1)(a)(IV)(B) amended, (SB 16-189), ch. 796, p. 796, § 114, effective June 6. L. 2021: (1)(a)(I), (1)(a)(II), (1)(a)(IV), (1)(b), and (2)(a) amended, (1)(a)(V), (2.5), and (9) repealed, and (11) and (12) added, (HB 21-1322), ch. 2999, p. 2999, § 2, effective 1/1/2022.
(1) Amendments to subsection (2)(b) by Senate Bill 88-28 and House Bill 88-1250 were harmonized.
(2) The amendment to this section made by chapter 1, L. 91, First Extraordinary Session, p. 7, section 12, supersedes the amendment made by chapter 330, L. 91, p. 2397, section 22. Both acts contained a July 1, 1991, effective date. However the Governor did not sign the act enacted at the First Extraordinary Session until July 5. The act contained in chapter 1 from the First Extraordinary Session was subject to an interrogatory submitted to the Supreme Court by the Governor. The court held the act constitutional on its face. (See In re House Bill 91S-1005, 814 P.2d 875 (Colo. 1991).)
(3) Section 3 of chapter 107 (HB 14-1105), Session Laws of Colorado 2014, provides that changes to this section by the act apply to fuel sales between governmental entities that occur prior to, on, or after August 6, 2014.
(1) For the legislative declaration contained in the 2003 act amending subsections (1)(a)(IV)(B) and (1)(b), see section 1 of chapter 278, Session Laws of Colorado 2003. (2) For the legislative declaration in the 2013 act amending subsections (1)(a)(II)(B) and (2)(a) and adding subsections (1)(a)(VI), (1)(a)(VII), and (1)(a)(VIII), see section 1 of chapter 225, Session Laws of Colorado 2013. (3) For the legislative declaration in HB 15-1228, see section 1 of chapter 315, Session Laws of Colorado 2015.