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

Colorado § 39-26-716

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Sales and Use Tax

Text

(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(a) Repealed.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. 194, p. 755, � 3,
effective July 1, 2011.)

Legislative History

Source: 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. 11, p. 62, � 1, effective February 24. L. 2011: (2)(d), (2)(e), (3)(d), (3)(e), and (5) amended, (HB 11-1005), ch. 194, p. 755, � 3, effective July 1. L. 2012: (2)(d), (2)(e), (3)(d), and (3)(e) amended, (HB 12-1037), ch. 251, p. 1248, � 3, effective June 4. L. 2019: IP(1)(d) amended, (HB 19-1162), ch. 266, 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. 119, p. 456, � 2, effective September 7. L. 2022: (4)(f)(II) amended, (HB 22-1039), ch. 54, p. 256, � 7, effective August 10.