Colorado Code
Part 1 - Gasoline Tax
§ 39-27-102.5. Exemptions on Tax Imposed - Ex-Tax Purchases - Definition

(1.5) [ Editor's note: This version of subsection (1.5) is effective January 1, 2022. ] Except as otherwise provided in this section, diesel engine fuel and kerosene is presumed to be for use for a taxable purpose unless indelible dye meeting federal regulations is added to the diesel engine fuel or kerosene before or upon removal from a terminal. Such dyed special fuel is exempt from the excise tax imposed pursuant to this part 1. The tax-exempt special fuel shall not be used for taxable purposes; except that dyed special fuel may be used for a taxable purpose to the extent that such use is allowed under federal law or regulations with such fuel being subject to the excise tax imposed pursuant to this part 1. For purposes of this subsection (1.5), "taxable purpose" means any use on which an excise tax on special fuel is imposed pursuant to this part 1. The terminal operator shall ensure that tax-exempt special fuel is dyed before it leaves the terminal. Every seller thereafter shall give notice to any purchaser in accordance with federal regulations that the dyed special fuel may not be used for a taxable purpose.

(b) The executive director of the department of revenue shall issue an exemption certificate to a user of special fuel to purchase undyed special fuel from a distributor without payment of the tax if such user is exempt under the provisions of paragraph (b) of subsection (2) of this section.
(c) With each sale of special fuel made without payment of the tax pursuant to this subsection (3), the distributor shall secure evidence that the user has authorization from the executive director of the department of revenue to purchase special fuel ex-tax, together with the distributor's name and address and such other information as the executive director may require.
(3) [ Editor's note: This version of subsection (3) is effective January 1, 2022. ] (a) (Deleted by amendment, L. 2021.)
(b) (I) The executive director of the department of revenue shall issue an exemption certificate to a user of gasoline or special fuel to purchase ex-tax gasoline or special fuel if the user is exempt under subsection (2) or (2.5) of this section.
(II) A distributor may sell ex-tax gasoline or special fuel pursuant to subsections (2) and (2.5) of this section. The distributor may claim a credit against the tax accrued and payable for taxes due on ex-tax gasoline or special fuel or for taxes paid on ex-tax gasoline or special fuel by such distributor in a prior taxable period. If the distributor establishes that a tax was imposed and paid under this article 27 by a licensed distributor, special fuel is allowed as a credit on the distributor's next return. To the extent the credit exceeds the tax due, the executive director of the department of revenue shall issue a refund of such excess. The manifest, bill of lading, invoice, or other similar document issued by the supplier, importer, or distributor must state that the gasoline or special fuel is sold on an ex-tax basis.
(c) With each sale of gasoline or special fuel made without payment of the tax pursuant to this subsection (3), the distributor shall secure evidence that the user is exempt from tax under this section.
(d) A distributor has the burden of proving that gasoline or special fuel is exempt from tax pursuant to this section. The department of revenue may prescribe reasonable requirements of proof for the exemption.

Source: L. 2000: Entire section added with relocated provisions, p. 1932, § 15, effective October 1. L. 2002: (2)(a), (2)(b)(I), (2)(b)(II), and (7) amended, p. 552, § 1, effective May 24. L. 2005: (1), (1.5), (2)(b)(I), IP(5)(a), (5)(b), (5)(e), (5)(f), (6)(a), and (7) amended, p. 866, § 2, effective July 1. L. 2009: (1.5) and (2)(a) amended, (SB 09-098), ch. 195, p. 877, § 2, effective August 5. L. 2013: (5), (6), and (8) repealed, (7) amended, and (9) added, (HB 13-1110), ch. 225, p. 1060, § 7, effective January 1, 2014. L. 2015: (3)(a) amended, (HB 15-1228), ch. 315, p. 1287, § 4, effective January 1, 2016. L. 2020: (7) repealed, (HB 20-1181), ch. 91, p. 365, § 2, effective September 14. L. 2021: (1.5), (2)(a), (2)(b)(II), (2)(b)(III), and (3) amended and (2.5) and (10) added, (HB 21-1322), ch. 453, p. 3004, § 3, effective January 1, 2022.
Editor's note: This section is similar to former § 39-27-202 as it existed prior to 2000.
Cross references: (1) For the legislative declaration in the 2013 act repealing subsections (5), (6), and (8), amending subsection (7), and adding subsection (9), see section 1 of chapter 225, Session Laws of Colorado 2013.
(2) For the legislative declaration in HB 15-1228, see section 1 of chapter 315, Session Laws of Colorado 2015.
(3) For the legislative declaration in HB 20-1181, see section 1 of chapter 91, Session Laws of Colorado 2020.