Colorado § 39-3-119 - Inventories - materials and supplies - held for consumption or primarily for sale - exemption.

§ 39-3-119. Inventories - materials and supplies - held for consumption or primarily for sale - exemption.

Inventories of merchandise and materials and supplies that are held for consumption by any business or are held primarily for sale shall be exempt from the levy and collection of property tax. The property tax administrator shall publish in the manuals, appraisal procedures, and instructions prepared and published pursuant to section 39-2-109 (1)(e) a definition or description of the types of personal property that are "held for consumption by any business" and therefore exempt from the levy and collection of property tax pursuant to this section.

Source: L. 89: Entire article R&RE, p. 1476, § 1, effective April 23. L. 2000: Entire section amended, p. 750, § 2, effective May 23.

Editor's note: This section is similar to former § 39-3-101 (1)(k) as it existed prior to 1989.

ANNOTATION

Television signal boxes and filters owned by a television service provider and leased to customers are exempt property. The property tax administrator's published guidelines for the consumable personal property tax exemption allow for personal property to be exempt from taxation if the acquisition cost of the property is $250 or less. Because the value of each box and filter, or each combination of one box and one filter, was less than $250 and the boxes and filters were produced by different manufacturers and recorded as separate assets by the television service provider, the boxes and filters are considered individual items worth less than $250 rather than components of a larger system worth more than $250. EchoStar Satellite, L.L.C. v. Arapahoe County Bd. of Equaliz., 171 P.3d 633 (Colo. App. 2007).