(1) (a) The following are exempt from
taxation under the provisions of part 1 of this article:
(I) All commodities that are taxed under the provisions of article 27 of this
title; and all commodities that are taxed under said provisions and the tax is
refunded; and all sales and purchases of aviation fuel upon which no Colorado sales
tax was in fact collected and retained prior to July 1, 1963; except that aviation fuel
used in turbo-propeller or jet engine aircraft and upon which a sales tax was
collected prior to January 1, 1989, shall not be exempt.
(II) On and after June 10, 2016, all sales and purchases of electricity, coal,
wood, gas, fuel oil, or coke sold for residential use. Residential use is presumed
when a utility company charges a residential utility rate and such utility company
may conclusively rely on such presumption. For purposes of this subparagraph (II):
(A) Gas includes natural, manufactured, and liquefied petroleum gas.
(B) Residence means a separate dwelling in a multiunit apartment,
condominium, townhouse, or mobile trailer home park, or a separate single-unit
dwelling, that is either billed under a single utility meter or a master utility meter
and either charged at a residential, commercial, or other nonresidential utility rate.
Residence includes minor buildings associated with the residence that are billed
under the residential utility meter, such as a shed, garage, or barn.
(C) Residential use means the use of electricity, coal, wood, gas, fuel oil, or
coke for domestic purposes, including powering lights, refrigerators, stoves, water
heaters, space heaters, air conditioners, or other domestic items that require power
or fuel in a residence.
(III) All sales of dyed diesel.
(b) Based upon reports submitted by retailers pursuant to the provisions of
part 1 of this article, the department of revenue shall compile a monthly report
showing the amount of sales taxes collected on aviation fuel used in turbo-propeller or jet engine aircraft during the previous month by each retailer. The
monthly report shall be transmitted to the aeronautics division created in section
43-10-103, C.R.S., for use by the division in distributing moneys in the aviation fund
in accordance with section 43-10-110, C.R.S.
(2) The following are exempt from taxation under the provisions of part 2 of
this article 26:
(a) (I) The storage, use, or consumption of gasoline that is taxed under the
provisions of part 1 of article 27 of this title 39 and all gasoline that is taxed under
said provisions and the tax on which is refunded; except that aviation fuel used in
turbo-propeller or jet engine aircraft and upon which a tax was collected pursuant
to the provisions of part 2 of this article 26 prior to January 1, 1989, shall not be
exempt.
(II) Based upon reports submitted by users or consumers pursuant to the
provisions of part 2 of this article, the department of revenue shall compile a
monthly report showing the amount of use taxes collected on aviation fuel used in
turbo-propeller or jet engine aircraft during the previous month by each user or
consumer. The monthly report shall be transmitted to the aeronautics division
created in section 43-10-103, C.R.S., for use by the division in distributing moneys in
the aviation fund in accordance with section 43-10-110, C.R.S.
(b) (I) The storage, use, or consumption of electricity, coal, coke, fuel oil,
steam, nuclear fuel, or gas for use in processing, manufacturing, mining, refining,
irrigation, building construction, telegraph, telephone, and radio communication,
street and railroad transportation services, and all industrial uses.
(II) and (III) Repealed.
(c) On and after June 10, 2016, the storage, use, or consumption of electricity,
coal, wood, gas, fuel oil, or coke sold for residential use. Residential use is
presumed when a utility company charges a residential utility rate and such utility
company may conclusively rely on such presumption. For purposes of this
paragraph (c):
(I) Gas includes natural, manufactured, and liquefied petroleum gas.
(II) Residence means a separate dwelling in a multiunit apartment,
condominium, townhouse, or mobile trailer home park, or a separate single-unit
dwelling, that is either billed under a single utility meter or a master utility meter
and either charged at a residential, commercial, or other nonresidential utility rate.
Residence includes minor buildings associated with the residence that are billed
under the residential utility meter, such as a shed, garage, or barn.
(III) Residential use means the use of electricity, coal, wood, gas, fuel oil, or
coke for domestic purposes, including powering lights, refrigerators, stoves, water
heaters, space heaters, air conditioners, or other domestic items that require power
or fuel in a residence.
(d) The storage, use, or consumption of dyed diesel.
(3) In any case in which a sales tax has been imposed under part 1 of this
article on lubricating oil used other than in motor vehicles, the purchaser shall be
entitled to a refund equal to the amount of the state sales tax paid on that portion
of the sale price that is attributable to the federal excise tax imposed on the sale of
such lubricating oil. In any case in which a use tax has been imposed under part 2 of
this article on lubricating oil used other than in motor vehicles, the payer of such
tax is entitled to a refund equal to the amount of such use tax paid on that portion
of the amount upon which the use tax was imposed that is attributable to the
federal excise tax paid on such lubricating oil. The refund allowed under this
subsection (3) shall be paid by the executive director of the department of revenue
upon receiving evidence that the purchaser has received under section 6424 of the
federal Internal Revenue Code of 1986, as amended, a refund of the federal
excise tax paid on the sale of such lubricating oil. The claim for a refund shall be
made upon such forms as shall be prescribed and furnished by the executive
director, which forms shall contain such information as the executive director may
prescribe.
(4) As used in this section, dyed diesel has the same meaning as set forth
in section 39-27-101 (8).