(1) The sales tax
ordinance or proposal of any incorporated town, city, or county adopted pursuant to
this article 2 shall be imposed on the sale of tangible personal property at retail or
the furnishing of services, as provided in subsection (1)(d) of this section. Any
countywide or incorporated town or city sales tax ordinance or proposal shall
include the following provisions:
(a) A provision imposing a tax on the sale of tangible personal property at
retail or the furnishing of services, as provided in paragraph (d) of this subsection
(1);
(b) A provision that, for the purpose of the sales tax ordinance or proposal
enacted in accordance with this article 2, all retail sales are sourced as specified in
section 39-26-104 (3);
(c) A provision that the amount subject to tax shall not include the amount of
any sales or use tax imposed by article 26 of title 39, C.R.S.;
(d) (I) A provision that the sale of tangible personal property and services
taxable pursuant to this article 2 is the same as the sale of tangible personal
property and services taxable pursuant to section 39-26-104, except as otherwise
provided in this subsection (1)(d). The sale of tangible personal property and
services taxable pursuant to this article 2 is subject to the same sales tax
exemptions as those specified in part 7 of article 26 of title 39; except that the sale
of the following may be exempted from a town, city, or county sales tax only by the
express inclusion of the exemption either at the time of adoption of the initial sales
tax ordinance or resolution or by amendment thereto:
(A) The exemption for sales of machinery or machine tools specified in
section 39-26-709 (1), C.R.S., other than machinery or machine tools used in the
processing of recovered materials by a business listed in the inventory prepared by
the department of public health and environment pursuant to section 30-20-122
(1)(a)(V), C.R.S.;
(A.5) The exemption for sales of machinery or machine tools specified in
section 39-26-709 (1), C.R.S., used in the processing of recovered materials by a
business listed in the inventory prepared by the department of public health and
environment pursuant to section 30-20-122 (1)(a)(V), C.R.S.;
(B) The exemption for sales of electricity, coal, wood, gas, fuel oil, or coke
specified in section 39-26-715 (1)(a)(II), C.R.S.;
(C) The exemption for sales of food specified in section 39-26-707 (1)(e),
C.R.S.;
(D) The exemption for vending machine sales of food specified in section 39-26-714 (2), C.R.S.;
(E) The exemption for sales by a charitable organization specified in section
39-26-718 (1)(b), C.R.S.;
(F) The exemption for sales of farm equipment and farm equipment under
lease or contract specified in section 39-26-716 (4)(e) and (4)(f). The express
inclusion of the exemption by a town, city, or county before August 2, 2019, does
not exempt from the town, city, or county sales tax any visual, electronic
identification, or matched pair ear tags and electronic identification readers used to
scan ear tags that are used by a farm operator to identify or track food animals,
including animals used for food or in the production of food, that were added to the
definition of farm equipment set forth in section 39-26-716 (1)(d) by House Bill 19-1162, enacted in 2019, and thereby exempted from state sales and use taxes but
such a town, city, or county may expressly exempt such items by a subsequent
amendment to its sales tax ordinance or resolution.
(G) The exemption for sales of motor vehicles, power sources, or parts used
for converting such power sources as specified in section 39-26-719 (1);
(H) Repealed.
(I) The exemption for sales of wood from salvaged trees killed or infested in
Colorado by mountain pine beetles or spruce beetles as specified in section 39-26-723, C.R.S.;
(J) The exemption for sales of components used in the production of energy,
including but not limited to alternating current electricity, from a renewable energy
source specified in section 39-26-724, C.R.S.; except that this sub-subparagraph (J)
shall not apply to any incorporated town, city, or county that adopted the
exemption specified in sub-subparagraph (A) of this subparagraph (I) prior to May
27, 2008;
(K) The exemption for sales that benefit a Colorado school specified in
section 39-26-725, C.R.S.;
(L) The exemption for sales by an association or organization of parents and
teachers of public school students that is a charitable organization as specified in
section 39-26-718 (1)(c), C.R.S.;
(M) The exemption for sales of property for use in space flight specified in
section 39-26-728, C.R.S.;
(N) Repealed.
(O) The exemption for retail sales of marijuana upon which the retail
marijuana sales tax is imposed pursuant to section 39-28.8-202 as specified in
section 39-26-729;
(P) The exemption for manufactured homes, modular homes, tiny homes, and
any closed panel system utilized in construction of a factory-built residential
structure set forth in section 39-26-721 (3);
(Q) The exemption for sales of period products as specified in section 39-26-717 (2)(m);
(R) The exemption for sales of incontinence products and diapers as
specified in section 39-26-717 (2)(n);
(S) The exemption for sales of eligible decarbonizing building materials set
forth in section 39-26-731;
(T) The exemption for sales of heat pump systems and heat pump water
heaters set forth in section 39-26-732; and
(U) The exemption for sales of energy storage systems set forth in section
39-26-733.
(II) Repealed.
(III) In the absence of an express provision for any exemption specified in
subparagraph (I) of this paragraph (d), all sales tax ordinances and resolutions shall
be construed as imposing or continuing to impose the town, city, or county sales tax
on such items;
(e) A provision that all sales of personal property on which a specific
ownership tax has been paid or is payable shall be exempt from said county, town,
or city sales tax when such sales meet both of the following conditions:
(I) The purchaser is a nonresident of or has his principal place of business
outside of the local taxing entity; and
(II) Such personal property is registered or required to be registered outside
the limits of the local taxing entity under the laws of this state.
(f) Repealed.
(1.5) (a) All sales tax ordinances or resolutions adopted by a county, town, or
city prior to, on, or after August 1, 2002, that impose a sales tax pursuant to section
39-26-104 (1)(c), C.R.S., on a mobile telecommunications service shall impose such
tax in accordance with the provisions of the act, and, pursuant to section 117 (b) of
the act, mobile telecommunications service taxable by the county, town, or city on
or after August 1, 2002, may be subject to any sales tax or other charge imposed by
said entity on the service only if the customer's place of primary use is within the
geographical boundaries of the entity.
(b) As used in this subsection (1.5), unless the context otherwise requires:
(I) Act means the federal Mobile Telecommunications Sourcing Act, 4
U.S.C. secs. 116 to 126, as amended.
(II) Customer means customer as defined in section 124 (2) of the act.
(III) Mobile telecommunications service means mobile telecommunications
service as defined in section 124 (7) of the act.
(IV) Place of primary use means the place of primary use as defined in
section 124 (8) of the act.
(2) No sales tax of any statutory or home rule city, town, city and county, or
county shall apply to the sale of construction and building materials, as the term is
used in section 29-2-109, if the purchaser of such materials presents to the retailer
a building permit or other documentation acceptable to such local government
evidencing that a local use tax has been paid or is required to be paid.
(3) No sales tax of any statutory or home rule county shall apply to the sale
of tangible personal property at retail or the furnishing of services if the transaction
was previously subjected to a sales or use tax lawfully imposed on the purchaser or
user by another statutory or home rule county equal to or in excess of that sought
to be imposed by the subsequent statutory or home rule county. A credit shall be
granted against the sales tax imposed by the subsequent statutory or home rule
county with respect to such transaction equal in amount to the lawfully imposed
local sales or use tax previously paid by the purchaser or user to the previous
statutory or home rule county. The amount of the credit shall not exceed the sales
tax imposed by the subsequent statutory or home rule county.
(4) No sales tax of any statutory or home rule city and county, city, or town
shall apply to the sale of tangible personal property at retail or the furnishing of
services if the transaction was previously subjected to a sales or use tax lawfully
imposed on the purchaser or user by another statutory or home rule city and
county, city, or town equal to or in excess of that sought to be imposed by the
subsequent statutory or home rule city and county, city, or town. A credit shall be
granted against the sales tax imposed by the subsequent statutory or home rule
city and county, city, or town with respect to such transaction equal in amount to
the lawfully imposed local sales or use tax previously paid by the purchaser or user
to the previous statutory or home rule city and county, city, or town. The amount of
the credit shall not exceed the sales tax imposed by the subsequent statutory or
home rule city and county, city, or town.
(5) The following provision shall apply in defining the applicability of its
higher rate to the sales tax ordinance or resolution of any statutory or home rule
city, town, city and county, or county which provides a higher rate of taxation on
prepared food or food for immediate consumption than its general rate of taxation:
Prepared food or food for immediate consumption shall exclude any food for
domestic home consumption.
(6) No sales or use tax of any statutory or home rule city, town, city and
county, or county shall apply to the sale of food purchased with food stamps. For
the purposes of this subsection (6), food shall have the same meaning as provided
in 7 U.S.C. sec. 2012 (g), as such section exists on October 1, 1987, or is thereafter
amended.
(7) No sales or use tax of any statutory or home rule city, town, city and
county, or county shall apply to the sale of food purchased with funds provided by
the special supplemental food program for women, infants, and children, 42 U.S.C.
sec. 1786. For the purposes of this subsection (7), food shall have the same
meaning as provided in 42 U.S.C. sec. 1786, as such section exists on October 1,
1987, or is thereafter amended.
(8) Any statutory or home rule city, town, city and county, or county which
provides an exemption for the sale of food shall define food as defined in section
39-26-102 (4.5), C.R.S.
(9) Notwithstanding any provision of this section to the contrary, sales of
cigarettes shall be exempt from a town, city, county, or city and county sales tax
that is created pursuant to the authority set forth in this article.
(10) (a) Notwithstanding any provision of this section to the contrary, and
except as provided in paragraph (b) of this subsection (10), a town, city, or county
may exempt from its sales tax sales to a telecommunications provider of equipment
used directly in the provision of telephone service, cable television service,
broadband communications service, or mobile telecommunications service.
(b) A town, city, or county may not adopt a sales tax exemption pursuant to
the authority set forth in paragraph (a) of this subsection (10) unless the exemption
applies in a uniform and nondiscriminatory manner to the telecommunications
providers of telephone service, cable television service, broadband communications
service, and mobile telecommunications service.
Source: L. 67: p. 661, � 5. C.R.S. 1963: � 138-10-5. L. 69: pp. 1145, 1146, �� 1, 1. L. 73: p. 242, � 26. L. 77: (1)(b) amended, p. 1398, � 1, effective July 1. L. 79: (1)(d)
amended, p. 1429, � 13, effective July 3. L. 80: (1)(d) amended, p. 684, � 7, effective
May 1; (1)(d) amended, p. 734, � 4, effective May 2; (1)(d) amended, p. 799, � 68,
effective June 5. L. 81: (1) amended and (1)(f) added, p. 1402, � 2, effective June 9. L.
83: (1)(d) amended, p. 1208, � 1, effective April 28. L. 85: (2), (3), and (4) added, p.
1030, � 1, effective January 1, 1986. L. 87: (5) to (8) added, p. 1462, effective October
1. L. 94: (1)(d) amended, p. 1325, � 7, effective May 25. L. 95: (1)(d) amended, p. 329,
� 2, effective April 27. L. 99: (1)(d) amended, p. 980, � 3, effective May 28; (1)(d)
amended, p. 1324, � 5, effective July 1; (1)(d) amended, p. 1275, � 3, effective July 1;
(1)(d) amended, p. 1356, � 4, effective January 1, 2000. L. 2000: (1)(d) amended, p.
550, � 5, effective July 1. L. 2001: (1)(d) amended, p. 382, � 3, effective July 1. L.
2002: (1.5) added, p. 253, � 3, effective April 12; (1)(f) amended, p. 1036, � 81,
effective June 1. L. 2004: (1)(d) amended, p. 1036, � 3, effective July 1. L. 2008: (1)(d)
R&RE, p. 1321, � 5, effective May 27; (1)(d) R&RE, p. 1545, � 3, effective May 28; (1)(d)
R&RE, p. 967, � 1, effective August 5; (1)(f) repealed, p. 991, � 9, effective August 5;
(1)(d) R&RE, p. 971, � 1, effective September 1. L. 2009: (1)(d)(I)(J) amended, (HB 09-1126), ch. 254, p. 1149, � 4, effective May 15; (9) added, (HB 09-1342), ch. 354, p.
1847, � 3, effective July 1. L. 2011: (1)(d)(II) repealed, (SB 11-178), ch. 216, p. 945, � 1,
effective August 10; (10) added, (HB 11-1109), ch. 221, p. 954, � 1, effective August 10. L. 2012: (1)(d)(I)(I) amended, (HB 12-1045), ch. 191, p. 765, � 2, effective May 21;
(1)(d)(I)(H) amended, (HB 12-1037), ch. 251, p. 1247, � 1, effective June 4. L. 2014: (1)(d)(I)(N) added, (HB 14-1159), ch. 229, p. 852, � 2, effective May 17; (1)(d)(I)(K) and
(1)(d)(I)(L) amended and (1)(d)(I)(M) added, (HB 14-1178), ch. 234, p. 867, � 3, effective
May 20. L. 2016: (1)(d)(I)(A) amended and (1)(d)(I)(A.5) added, (SB 16-124), ch. 258, p.
1058, � 2, effective June 8. L. 2017: IP(1) and IP(1)(d)(I) amended and (1)(d)(I)(O)
added, (SB 17-267), ch. 267, p. 1467, � 23, effective May 30. L. 2018: IP(1) and
IP(1)(d)(I) amended and (1)(d)(I)(P) added, (HB 18-1315), ch. 240, p. 1496, � 2, effective
August 8. L. 2019: (1)(b) and (2) amended, (HB 19-1240), ch. 264, p. 2502, � 9,
effective June 1; (1)(d)(I)(F) amended, (HB 19-1162), ch. 266, p. 2511, � 1, effective
August 2. L. 2021: (1)(d)(I)(G) amended, (HB 21-1155), ch. 109, p. 433, � 2, effective
May 7; (1)(d)(I)(F) amended, (HB 21-1158), ch. 119, p. 458, � 3, effective September 7. L. 2022: IP(1)(d)(I) and (1)(d)(I)(P) amended, (HB 22-1242), ch. 172, p. 1139, � 36,
effective August 10; (1)(d)(I)(Q) and (1)(d)(I)(R) added, (HB 22-1055), ch. 359, p. 2574,
� 2, effective August 10; (1)(d)(I)(S), (1)(d)(I)(T), and (1)(d)(I)(U) added, (SB 22-051), ch.
333, p. 2359, � 6, effective August 10. L. 2024: (1)(d)(I)(P) amended, (HB 24-1036),
ch. 373, p. 2536, � 37, effective August 7.