(1) The
use tax ordinance, resolution, or proposal of any town, city, or county adopted
pursuant to this article 2 shall be imposed only for the privilege of using or
consuming in the town, city, or county any construction and building materials
purchased at retail or for the privilege of storing, using, or consuming in the town,
city, or county any motor and other vehicles, purchased at retail on which
registration is required, or both. For the purposes of this subsection (1), the term
construction and building materials shall not include parts or materials utilized in
the fabrication, construction, assembly, or installation of passenger tramways, as
defined in section 12-150-103 (5), by any ski area operator, as defined in section 33-44-103 (7), or any person fabricating, constructing, assembling, or installing a
passenger tramway for a ski area operator. The ordinance, resolution, or proposal
may recite that the use tax shall not apply to the storage and use of wood from
salvaged trees killed or infested in Colorado by mountain pine beetles or spruce
beetles as exempted from the state use tax pursuant to section 39-26-723. The
ordinance, resolution, or proposal may recite that the use tax shall not apply to the
storage and use of components used in the production of energy, including but not
limited to alternating current electricity, from a renewable energy source, as
exempted from the state use tax pursuant to section 39-26-724. The ordinance,
resolution, or proposal may recite that the use tax shall not apply to the storage
and use of eligible decarbonizing building materials, as exempted from the state
use tax pursuant to section 39-26-731. The ordinance, resolution, or proposal shall
recite that the use tax shall not apply:
(a) To the storage, use, or consumption of any tangible personal property the
sale of which is subject to a retail sales tax imposed by the town, city, or county;
(b) To the storage, use, or consumption of any tangible personal property
purchased for resale in the town, city, or county, either in its original form or as an
ingredient of a manufactured or compounded product, in the regular course of a
business;
(c) To the storage, use, or consumption of tangible personal property
brought into the town, city, or county by a nonresident thereof for his own storage,
use, or consumption while temporarily within the town, city, or county; however, this
exemption does not apply to the storage, use, or consumption of tangible personal
property brought into this state by a nonresident to be used in the conduct of a
business in this state;
(d) To the storage, use, or consumption of tangible personal property by the
United States government, or the state of Colorado, or its institutions, or its political
subdivisions in their governmental capacities only or by religious or charitable
corporations in the conduct of their regular religious or charitable functions;
(e) To the storage, use, or consumption of tangible personal property by a
person engaged in the business of manufacturing or compounding for sale, profit,
or use any article, substance, or commodity, which tangible personal property
enters into the processing of or becomes an ingredient or component part of the
product or service which is manufactured, compounded, or furnished and the
container, label, or the furnished shipping case thereof;
(f) (I) With respect to the use tax of a town or city, to the storage, use, or
consumption of any article of tangible personal property the sale or use of which
has already been subjected to a legally imposed sales or use tax of another
statutory or home rule town, city, or city and county equal to or in excess of that
imposed by this article. A credit shall be granted against the use tax imposed by
this article with respect to a person's storage, use, or consumption in the town or
city of tangible personal property purchased by him in a previous statutory or home
rule town, city, or city and county. The amount of the credit shall be equal to the tax
paid by him by reason of the imposition of a sales or use tax of the previous
statutory or home rule town, city, or city and county on his purchase or use of the
property. The amount of the credit shall not exceed the tax imposed by this article.
(II) With respect to the use tax of a statutory or home rule county, to the
storage, use, or consumption of any article of tangible personal property the sale or
use of which has already been subjected to a legally imposed sales or use tax of
another statutory or home rule county equal to or in excess of that imposed by this
article. A credit shall be granted against the use tax imposed by this article with
respect to a person's storage, use, or consumption in the subsequent statutory or
home rule county of tangible personal property purchased by him in a previous
statutory or home rule county. The amount of the credit shall be equal to the tax
paid by him by reason of the imposition of a sales or use tax of the previous
statutory or home rule county on his purchase or use of the property. The amount of
the credit shall not exceed the tax imposed by this article.
(g) To the storage, use, or consumption of tangible personal property and
household effects acquired outside of the town, city, or county and brought into it
by a nonresident acquiring residency;
(h) To the storage or use of a motor vehicle if the owner is or was, at the time
of purchase, a nonresident of the town, city, or county and he purchased the vehicle
outside of the town, city, or county for use outside the town, city, or county and
actually so used it for a substantial and primary purpose for which it was acquired
and he registered, titled, and licensed said motor vehicle outside of the town, city,
or county;
(i) To the storage, use, or consumption of any construction and building
materials and motor and other vehicles on which registration is required if a written
contract for the purchase thereof was entered into prior to the effective date of
such use tax;
(j) To the storage, use, or consumption of any construction and building
materials required or made necessary in the performance of any construction
contract bid, let, or entered into at any time prior to the effective date of such use
tax ordinance, resolution, or proposal.
(1.5) Repealed.
(2) No use tax of any town shall be imposed with respect to the use or
consumption of taxable tangible personal property within the town that occurs
more than three years after the most recent sale of the property if, within the three
years following such sale, the property has been significantly used within the state
for the principal purpose for which it was purchased.
(3) Construction equipment which is located within the boundaries of a home
rule city, town, or city and county for a period of thirty consecutive days or less
shall be subjected to the use tax of such home rule city, town, or city and county in
an amount which does not exceed the amount calculated as follows: The purchase
price of the equipment shall be multiplied by a fraction, the numerator of which is
one and the denominator of which is twelve, and the result shall be multiplied by
the use tax rate of the home rule city, town, or city and county. Where the
provisions of this subsection (3) are utilized, the credit provisions of subsection (6)
of this section shall apply at such time as the aggregate sales and use taxes legally
imposed by and paid to other statutory and home rule cities, towns, and cities and
counties on any such equipment equal the full use tax of the subsequent home rule
city, town, or city and county.
(4) In order to avail himself of the provisions of subsection (3) of this section,
the taxpayer shall comply with the following procedure:
(a) Prior to or on the date the equipment is located within the boundaries of a
home rule city, town, or city and county, the taxpayer shall file with such home rule
city, town, or city and county an equipment declaration on a form provided by such
home rule city, town, or city and county. Such declaration shall state the dates on
which the taxpayer anticipates the equipment will be located within and removed
from the boundaries of the home rule city, town, or city and county, shall include a
description of each such anticipated piece of equipment, shall state the actual or
anticipated purchase price of each such anticipated piece of equipment, and shall
include such other information as reasonably deemed necessary by the home rule
city, town, or city and county.
(b) The taxpayer shall file with the home rule city, town, or city and county an
amended equipment declaration reflecting any changes in the information
contained in any previous equipment declaration no less than once every ninety
days after the equipment is brought into the boundaries of such home rule city,
town, or city and county or, for equipment which is brought into the boundaries of a
home rule city, town, or city and county for a project of less than ninety days
duration, no later than ten days after substantial completion of the project.
(c) The taxpayer need not report on any equipment declaration any
equipment for which the purchase price was under two thousand five hundred
dollars. If such equipment declaration is given, then as to any item of construction
equipment for which the customary purchase price is under two thousand five
hundred dollars which was brought into the boundaries of the home rule city, town,
or city and county temporarily for use on a construction project, it shall be
presumed that the item was purchased in a jurisdiction having a local sales or use
tax as high as that of such home rule city, town, or city and county where the
construction takes place and that such sales or use tax was previously paid. In such
case the burden of proof in any proceeding before such city, town, or city and
county, the executive director of the department of revenue, or the district court,
shall be on such home rule, city, town, or city and county where the construction
takes place to prove such local sales or use tax was not paid.
(5) If the taxpayer fails to comply with the provisions of subsection (4) of this
section, the taxpayer may not avail himself of the provisions of subsection (3) of
this section. However, substantial compliance with the provisions of subsection (4)
of this section shall allow the taxpayer to avail himself of the provisions of
subsection (3) of this section.
(6) No use tax of any home rule city, town, or city and county shall apply to
the storage, use, or consumption of any article of tangible personal property the
sale or use of which has already been subjected to a sales or use tax of another
statutory or home rule city, town, or city and county legally imposed on the
purchaser or user equal to or in excess of that imposed by the subsequent home
rule city, town, or city and county. A credit shall be granted against the use tax of
the home rule city, town, or city and county with respect to the person's storage,
use, or consumption in the home rule city, town, or city and county of tangible
personal property, the amount of the credit to equal the tax paid by him by reason
of the imposition of a sales or use tax of the previous statutory or home rule city,
town, or city and county on his purchase or use of the property. The amount of the
credit shall not exceed the tax imposed by the subsequent home rule city, town, or
city and county.
(7) The use tax of any town, city, city and county, or county, whether home
rule or statutory, shall not apply to the storage of construction and building
materials.