Colorado § 39-26-719 - Motor vehicles - tax preference performance statement - definitions - repeal.

§ 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(I) Repealed.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(c) This subsection (1) is repealed, effective January 1, 2034.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.