(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(a) Repealed.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.)
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.
Editor's note: (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. For a detailed comparison, see the comparative tables located in the back of the index.
(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.)
39-26-717. Drugs and medical and therapeutic devices - legislative declaration - definitions. (1) As used in this section, unless the context otherwise requires:
(a) (I) Durable medical equipment means equipment, including repair and replacement parts for such equipment, dispensed pursuant to a prescription order, that:
(A) Can withstand repeated use;
(B) Is primarily and customarily used to serve a medical purpose;
(C) Is generally not useful to a person in the absence of illness or injury; and
(D) Is not worn in or on the body.
(II) Durable medical equipment includes hospital beds, intravenous poles and pumps, trapeze bars, toileting aids, bath and shower aids, standing aids, adaptive car seats, communication devices, and any related accessories for such items.
(a.5) Incontinence products and diapers means absorbent cloth or disposable products worn by humans who are incapable of, or have difficulty, controlling their bladder or bowel movements.
(b) (I) Mobility enhancing equipment means equipment, including repair and replacement parts for such equipment, dispensed pursuant to a prescription order, that:
(A) Is primarily and customarily used to provide or increase the ability to move from one place to another;
(B) Is appropriate for use in a home, in a person's community, or in a motor vehicle;
(C) Is not generally used by persons with normal mobility; and
(D) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
(II) Mobility enhancing equipment includes wheelchairs and wheelchair components or accessories, walking aids such as crutches, canes, or walkers, grab bars, trapeze bars, lift chairs, patient lifts, motorized carts, scooters, controls that are installed on motor vehicles, and any related accessories for such items.
(b.5) Period products means consumer products used to manage menstruation.
(c) Practitioner has the same meaning as set forth in section 12-280-103 (40).
(d) Prescription has the same meaning as set forth in section 12-280-103 (41).
(e) For purposes of subsections (1)(a)(I), (1)(b)(I), (2)(g), (2)(h), and (2)(i) of this section, prescription order means any order for a prescription that:
(I) (A) Is in writing, dated, and signed by a practitioner; or
(B) Is given orally by a practitioner and immediately reduced to writing by the pharmacist or pharmacy intern, or by a representative of a business licensed to sell items described in subsection (2)(g), (2)(h), (2)(i), or (2)(j) of this section so long as such prescription order is also followed by an electronic submission of the prescription order to the business; and
(II) Specifying the name and address of the person for whom an item described in subsection (2)(g), (2)(h), (2)(i), or (2)(j) of this section is prescribed and directions, if any, to be included with such item.
(2) The following are exempt from taxation under part 1 of this article 26:
(a) All sales of prescription drugs dispensed in accordance with a prescription by a practitioner or furnished by a practitioner as part of professional services provided to a patient or client;
(b) All sales of insulin in all its forms dispensed pursuant to the direction of a practitioner;
(c) All sales of glucose useable for treatment of insulin reactions;
(d) All sales of urine- and blood-testing kits and materials;
(e) All sales of insulin measuring and injecting devices, including hypodermic syringes and needles;
(f) All sales of prosthetic devices;
(g) All sales of oxygen delivery equipment and disposable medical supplies related to oxygen delivery dispensed pursuant to a prescription order;
(h) All sales of medical, feeding, and disposable supplies, including any related accessories, for incontinence, infusion, enteral nutrition, ostomy, urology, diabetic care, and wound care dispensed pursuant to a prescription order;
(i) All sales of equipment and related accessories for sleep therapy, inhalation therapy, and electrotherapy dispensed pursuant to a prescription order;
(j) All sales of durable medical equipment and mobility enhancing equipment;
(k) All sales of nonprescription drugs or materials when furnished by a practitioner as part of professional services provided to a patient;
(l) All sales of corrective eyeglasses, contact lenses, or hearing aids; and
(m) (I) All sales of period products purchased on and after January 1, 2023.
(II) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:
(A) The general legislative purpose of the exemption allowed by this subsection (2)(m) is to provide tax relief for certain individuals;
(B) The specific legislative purpose of the exemption allowed by this subsection (2)(m) is to increase the affordability of period products and to redress the inequitable burden that the imposition of sales tax places on millions of women in Colorado for whom such products are essential; and
(C) In order to allow the general assembly and the state auditor to measure the effectiveness of the exemption, the state auditor shall identify available data sources and estimate the savings that the exemption provides to taxpayers in Colorado for whom period products are essential during the state auditor's evaluation of the exemption pursuant to section 39-21-305.
(III) Notwithstanding section 39-21-304 (4), the exemption in this subsection (2)(m) continues indefinitely.
(n) (I) All sales of incontinence products and diapers purchased on and after January 1, 2023.
(II) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:
(A) The general legislative purpose of the exemption allowed by this subsection (2)(n) is to provide tax relief for certain individuals;
(B) The specific legislative purpose of the exemption allowed by this subsection (2)(n) is to increase the affordability of incontinence products and diapers and to redress the inequitable burden that the imposition of sales tax places on millions of parents, individuals caring for infants and young children, and other users of incontinence products in Colorado for whom such products are essential; and
(C) In order to allow the general assembly and the state auditor to measure the effectiveness of the credit, the state auditor shall identify available data sources and estimate the savings the exemption provides to taxpayers in Colorado for whom incontinence products and diapers are essential during the state auditor's evaluation of the exemption pursuant to section 39-21-305.
(III) Notwithstanding section 39-21-304 (4), the exemption in this subsection (2)(n) continues indefinitely.
(3) The storage, use, or consumption of any item that is exempt from sales tax by operation of subsection (2) of this section is exempt from taxation under the provisions of part 2 of this article 26.
Source: L. 2004: Entire part added with relocations, p. 1034, � 2, effective July 1. L. 2011: (1)(a) and (1)(b) amended and (3) added, (SB 11-263), ch. 278, p. 1247, � 1, effective July 1; entire section amended, (HB 11-1091), ch. 235, p. 1011, � 1, effective August 10. L. 2016: (1)(g)(II), (1)(h)(II), (1)(i)(II), (2)(a)(III), and (2)(b)(III) amended, (SB 16-158), ch. 204, p. 730, � 24, effective August 10. L. 2018: Entire section R&RE, (SB 18-129), ch. 128, p. 847, � 2, effective August 8. L. 2019: (1)(c) and (1)(d) amended, (HB 19-1172), ch. 136, p. 1732, � 257, effective October 1. L. 2021: (3) added, (HB 21-1177), ch. 55, p. 229, � 3, effective September 7. L. 2022: (1)(a.5), (1)(b.5), (2)(m), and (2)(n) added and (2)(k) and (2)(l) amended, (HB 22-1055), ch. 359, p. 2572, � 1, effective August 10.
Editor's note: (1) The provisions of this section are similar to several former provisions of � 39-26-114 as they existed prior to 2004. For a detailed comparison, see the comparative tables located in the back of the index.
(2) Amendments to provisions of subsection (1) by House Bill 11-1091 and Senate Bill 11-263 were harmonized.
Cross references: (1) For the legislative declaration in SB 16-158, see section 1 of chapter 204, Session Laws of Colorado 2016.
(2) For the legislative declaration in SB 18-129, see section 1 of chapter 128, Session Laws of Colorado 2018.
39-26-718. Charitable organizations - association or organization of parents and teachers of public school students. (1) The following shall be exempt from taxation under the provisions of part 1 of this article 26:
(a) All sales made to charitable organizations, in the conduct of their regular charitable functions and activities;
(b) (I) All sales by a charitable organization of tangible personal property, commodities, or services otherwise subject to tax under this article 26 if:
(A) The net proceeds from sales by the charitable organizations of tangible personal property, commodities, or services otherwise subject to tax under this article 26 do not exceed forty-five thousand dollars during the preceding calendar year; and
(B) The funds raised by the charitable organization through these sales are retained by the organization to be used in the course of the organization's charitable service.
(II) The exemption in this subsection (1)(b) shall not apply to sales made by a charitable organization on and after the date that the net proceeds from sales by the charitable organization of tangible personal property, commodities, or services otherwise subject to tax under this article 26 exceeds forty-five thousand dollars during the current calendar year.
(c) On or after September 1, 2008, a sale by an association or organization of parents and teachers of public school students that is a charitable organization, if the association or organization uses the funds raised through the sale for the benefit of a public school or an organized public school activity or to pay the reasonable expenses of the association or organization.
(2) The storage, use, or consumption of any item that is exempt from sales tax by operation of subsection (1)(b) or (1)(c) of this section is exempt from taxation under the provisions of part 2 of this article 26.
Source: L. 2004: Entire part added with relocations, p. 1034, � 2, effective July 1. L. 2008: Entire section amended, p. 973, � 3, effective September 1. L. 2018: IP(1) and (1)(a) amended, (HB 18-1218), ch. 380, p. 2296, � 3, effective July 1. L. 2019: (1)(b) amended, (HB 19-1323), ch. 263, p. 2487, � 1, effective August 2. L. 2021: (2) added, (HB 21-1177), ch. 55, p. 229, � 4, effective September 7.
Editor's note: Subsection (1)(a) is similar to former � 39-26-114 (1)(a)(II), and subsection (1)(b) is similar to former � 39-26-114 (18), as they existed prior to 2004.
39-26-719. Motor vehicles - tax preference performance statement - definitions - repeal. (1) (a) Prior to January 1, 2025, and on and after August 1, 2025, but prior to January 1, 2029, there shall be exempt from taxation under the provisions of part 1 of this article 26 the sale of any motor vehicle, power source for any motor vehicle, or parts used for converting the power source for any motor vehicle, if:
(I) Repealed.
(II) For sales occurring on or after July 1, 2014:
(A) The gross vehicle weight rating of the motor vehicle is greater than twenty-six thousand pounds and if the power source or parts used for converting the power source are certified by the United States environmental protection agency as provided in the federal heavy-duty national program that includes new greenhouse gas emissions standards as established by the United States environmental protection agency; or
(B) The gross vehicle weight rating of the motor vehicle is greater than ten thousand pounds and if the motor vehicle, power source, or parts used for converting the power source meets the definition of a category 4, 4 A, 4 B, 4 C, 7, or 7 A truck as defined in section 39-22-516.8.
(b) For purposes of this subsection (1), unless the context otherwise requires:
(I) Motor vehicle means any self-propelled vehicle required to be licensed or subject to licensing for operation upon the highways of this state, including a vehicle that uses a hybrid propulsion system.
(II) Parts used for converting shall mean the wiring, fuel lines, engine coolant system, fuel storage containers, fuel control system, and other components associated with reducing the emissions characteristics of an engine or motor.
(III) Power source means the engine or motor and associated wiring, fuel lines, engine coolant system, fuel storage containers, and miscellaneous components.
(c) This subsection (1) is repealed, effective January 1, 2034.
(1.5) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure or extends an expiring tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly finds and declares that the purposes of the tax exemption provided in this section are, by providing an exemption from taxation pursuant to the provisions of part 1 or part 2 of this article 26:
(a) To provide tax relief for certain businesses and individuals, specifically businesses and individuals that purchase, store, use, or consume low-emitting heavy motor vehicles, power sources for such motor vehicles, or parts used for converting the power source of motor vehicles to a low-emitting power source; and
(b) To induce certain designated behavior by taxpayers, specifically the sale, purchase, storage, use, and consumption of low-emitting heavy motor vehicles, power sources for such motor vehicles, and parts used for converting the power sources of motor vehicles to a low-emitting power source.
(2) The following shall be exempt from taxation under the provisions of part 2 of this article 26:
(a) The storage, use, or consumption of a motor vehicle, if the owner is or was, at the time of purchase, a nonresident of Colorado and the owner purchased the vehicle outside of this state for use outside this state and actually so used it for a substantial and primary purpose for which it was acquired and the owner registered, titled, and licensed said motor vehicle outside of Colorado.
(b) (I) Prior to January 1, 2025, and on and after August 1, 2025, but prior to January 1, 2029, the storage, use, or consumption of a motor vehicle, power source for a motor vehicle, and parts used for converting the power source of a motor vehicle, if:
(A) Repealed.
(B) For sales occurring on or after July 1, 2014, the gross vehicle weight rating of the motor vehicle is greater than twenty-six thousand pounds and if the power source or parts used for converting the power source are certified by the United States environmental protection agency as provided in the federal heavy-duty national program that includes new greenhouse gas emissions standards as established by the United States environmental protection agency; or
(C) For sales occurring on or after July 1, 2014, the gross vehicle weight rating of the motor vehicle is greater than ten thousand pounds and if the motor vehicle, power source, or parts used for converting the power source meets the definition of a category 4, 4 A, 4 B, 4 C, 7, or 7 A truck as defined in section 39-22-516.8.
(II) For purposes of this paragraph (b), unless the context otherwise requires:
(A) Motor vehicle means any self-propelled vehicle required to be licensed or subject to licensing for operation upon the highways of this state, including a vehicle that uses a hybrid propulsion system.
(B) Parts used for converting shall mean the wiring, fuel lines, engine coolant system, fuel storage containers, fuel control system, and other components associated with reducing the emissions characteristics of an engine or motor.
(C) Power source means the engine or motor and associated wiring, fuel lines, engine coolant system, fuel storage containers, and miscellaneous components.
(III) This subsection (2)(b) is repealed, effective January 1, 2034.
Source: L. 2004: Entire part added with relocations, p. 1035, � 2, effective July 1. L. 2009: (1)(b)(I), (1)(b)(III), (2)(b)(II)(A), and (2)(b)(II)(C) amended, (HB 09-1331), ch. 416, p. 2310, � 11, effective June 4. L. 2014: (1)(a) and (2)(b)(I) amended, (HB 14-1326), ch. 357, p. 1677, � 5, effective June 6. L. 2024: IP(1)(a), IP(2), and IP(2)(b)(I) amended and (1)(c) and (2)(b)(III) added, (HB 24-1036), ch. 373, p. 2530, � 18, effective August 7. L. 2025: IP(1)(a), (1)(c), IP(2)(b)(I), and (2)(b)(III) amended, (1.5) added, and (2)(b)(I)(A) repealed, (SB 25-320), ch. 386, p. 2169, � 1, effective June 3.
Editor's note: (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. For a detailed comparison, see the comparative tables located in the back of the index.
(2) Subsection (1)(a)(I)(B) provided for the repeal of subsection (1)(a)(I), effective December 31, 2015. (See L. 2014, p. 1677.)
Cross references: (1) For the federal Clean Air Act, see 42 U.S.C. � 7401 et seq.
(2) In 2009, subsections (1)(b)(I), (1)(b)(III), (2)(b)(II)(A), and (2)(b)(II)(C) were amended by the Motor Vehicle Innovation Act. For the short title, see section 1 of chapter 416, Session Laws of Colorado 2009.
(3) For the legislative declaration in HB 14-1326, see section 1 of chapter 357, Session Laws of Colorado 2014. For the legislative declaration in HB 24-1036, see section 1 of chapter 373, Session Laws of Colorado 2024.