Colorado § 39-26-715 - Fuel and oil - definitions.

§ 39-26-715. Fuel and oil - definitions.

(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.

(IV) Beginning July 1, 2026, but before July 1, 2046, for purposes of this subsection (2)(b), the deemed usage rules set forth in section 39-26-102 (21)(c)(I) apply.

(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).

Source: L. 2004: Entire part added with relocations, p. 1029, § 2, effective July 1. L. 2010: (2)(b) amended, (HB 10-1190), ch. 6, p. 42, § 2, effective February 24. L. 2015: IP(1)(a) and IP(2) amended and (1)(a)(III), (2)(d), and (4) added, (HB 15-1012), ch. 55, p. 133, § 2, effective March 26. L. 2016: (1)(a)(II) and (2)(c) amended, (HB 16-1457), ch. 315, p. 1274, § 2, effective June 10. L. 2021: IP(2) and (2)(a)(I) amended, (HB 21-1158), ch. 119, p. 456, § 1, effective September 7. L. 2026: (2)(b)(IV) added, (HB 26-1223), ch. 379, p. 2357, § 7, effective June 4.

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 (2)(b)(III) provided for the repeal of subsections (2)(b)(II) and (2)(b)(III), effective July 1, 2012. (See L. 2010, p. 42.)

Cross references: (1) For the legislative declaration in HB 15-1012, see section 1 of chapter 55, Session Laws of Colorado 2015.

(2) For the legislative declaration in HB 16-1457, see section 1 of chapter 315, Session Laws of Colorado 2016.