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 39-26-716 - Agriculture and livestock - special fuels - definitions

(1)
For purposes of this section, unless the context otherwise requires:
(a)
Repealed.
(b)
"Attachments" means any equipment or machinery added to an exempt farm tractor or implement of husbandry that aids or enhances the performance of such tractor or implement.
(c)
"Dairy equipment" means any item that is used at a farm dairy in connection with the production of raw milk and not at a commercial dairy in connection with the production of pasteurized, separated milk products for retail sale, including, without limitation, milking claws, shells, inflators, pulsators, meters, cow identification systems, transponders, automatic takeoffs, piping, receiver jars, pumps, filter assemblies, milk containment tanks, cooling compressors, wash vats, clean in place assemblies, wash lines, wash control units, pulsator controls, milking system controls, programmable logical control systems, vacuum pumps, vacuum distribution tanks, backflush and related valves, rubber and similar hoses, rubber and similar gaskets, and any other similar or related item used in any farm dairy facility or farm dairy operation or in the production of raw milk, regardless of whether or not the item has become a fixture. To the extent the farm dairy is also involved in the production of pasteurized, separated milk products for retail sale, only the equipment used exclusively in the production of raw milk constitutes dairy equipment for purposes of this section.
(d)
"Farm equipment" means any farm tractor, as defined in section
42-1-102 (33)
, any implement of husbandry, as defined in section
42-1-102 (44)
, and irrigation equipment having a per unit purchase price of at least one thousand dollars. "Farm equipment" also includes, regardless of purchase price, attachments and baling wire, binders twine, and surface wrap used primarily and directly in any farm operation. On and after July 1, 2000, "farm equipment" also includes, regardless of purchase price, parts that are used in the repair or maintenance of the farm equipment described in this subsection (1)(d), all shipping pallets, crates, or aids paid for by a farm operation, and aircraft designed or adapted to undertake agricultural applications. On and after July 1, 2001, "farm equipment" also includes, regardless of purchase price, dairy equipment. On and after September 1, 2019, "farm equipment" also includes, regardless of purchase price, any visual, electronic identification, or matched pair ear tags and electronic identification readers used to scan ear tags that are used by a farm operation to identify or track food animals, including animals used for food or in the production of food. Except for shipping pallets, crates, or aids used in the transfer or shipping of agricultural products, "farm equipment" does not include:
(I)
Vehicles subject to the registration requirements of section
42-3-103
, C.R.S., regardless of the purpose for which such vehicles are used;
(II)
Machinery, equipment, materials, and supplies used in a manner that is incidental to a farm operation;
(III)
Maintenance and janitorial equipment and supplies; and
(IV)
Tangible personal property used in any activity other than farming, such as office equipment and supplies and equipment and supplies used in the sale or distribution of farm products, research, or transportation.
(e)
"Farm operation" means the production of any of the following products for profit, including, but not limited to, a business that hires out to produce or harvest such products:
(I)
Agricultural, viticultural, fruit, and vegetable products;
(II)
Livestock, as defined in section
39-26-102
(5.5);
(III)
Milk;
(IV)
Honey; and
(V)
Poultry and eggs.
(2) and (3)
Repealed.
(4)
The following are exempt from taxation under the provisions of parts 1 and 2 of this article 26:
(a)
All sales and purchases of livestock, all sales and purchases of live fish for stocking purposes, and all farm close-out sales and the storage, use, or consumption of such property;
(b)
All sales and purchases of feed for livestock, all sales and purchases of seeds, and all sales and purchases of orchard trees and the storage, use, or consumption of such property;
(c)
All sales and purchases of straw and other bedding for use in the care of livestock and the storage, use, or consumption of straw and other bedding for use in the care of livestock;
(d)
The sale of special fuel, as defined in section
39-27-101 (29)
, used for the operation of farm vehicles when such vehicles are being used on farms and ranches and the storage, use, or consumption of such special fuel;
(e)
All sales and purchases of farm equipment and the storage, use, or consumption of farm equipment; and
(f)
(I)
Any farm equipment under lease or contract, if the fair market value of the equipment is at least one thousand dollars and the equipment is rented or leased for use primarily and directly in any farm operation.
(II)
Unless the department of revenue determines pursuant to section
39-26-730 (2)
that the affidavit can be consolidated with another form or eliminated, the lessor or seller of such farm equipment shall obtain a signed affidavit from the lessee, renter, or purchaser affirming that the farm equipment will be used primarily and directly in a farm operation.
(5)
(Deleted by amendment, L. 2011, (HB 11-1005), ch. 755, p. 755, § 3, effective July 1, 2011.)
Amended by 2022 Ch. 54, § 7, eff. 8/10/2022.
Amended by 2021 Ch. 119, § 2, eff. 9/7/2021.
Amended by 2019 Ch. 266, § 2, eff. 8/2/2019.
L. 2004: Entire part added with relocations, p. 1030, § 2, effective July 1. L. 2010: (2)(d), (2)(e), (3)(d), and (3)(e) amended and (5) added, (HB 10 -1195), ch. 62, p. 62, § 1, effective February 24. L. 2011: (2)(d), (2)(e), (3)(d), (3)(e), and (5) amended, (HB 11-1005), ch. 755, p. 755, § 3, effective July 1. L. 2012: (2)(d), (2)(e), (3)(d), and (3)(e) amended, (HB 12-1037), ch. 1248, p. 1248, § 3, effective June 4. L. 2019: IP(1)(d) amended, (HB 19-1162), ch. 2512, p. 2512, § 2, effective August 2. L. 2021: (1)(a), (2), and (3) repealed, IP(4), (4)(b), and (4)(c) amended, and (4)(d), (4)(e), and (4)(f) added, (HB 21 -1158), ch. 456, p. 456, § 2, effective September 7.
(1) The provisions of this section are similar to several former provisions of §§
39-26-114
and
39-26-203
as they existed prior to 2004.
(2) Subsections (2)(d)(II), (2)(e)(II), (3)(d)(II), and (3)(e)(II) provided for the repeal of subsections (2)(d), (2)(e), (3)(d), and (3)(e), respectively, effective June 30, 2013. (See L. 2012, p. 1249.)
2022 Ch. 54, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
2021 Ch. 119, was passed without a safety clause. See Colo. Const. art. V, § 1(3).