Colorado Department of Revenue – Pesticide Exemptions

SALT Report 1589 – The Colorado Department of Revenue recently updated their guidance regarding purchases of pesticides. Effective July 1, 2012 sales of pesticides will be considered wholesale sales and not subject to state or state collected local sales or use taxes. In addition, any spray adjuvants used to increase the effectiveness of pesticides will also be considered wholesale sales and not subject to state or state collected local sales or use taxes.
After July 1, 2012 sales of pesticides should be recorded on the Colorado Retail Sales Tax Return (DR 0100) Deductions and Exemptions Schedule, line 2b(8), other  deductions, sales of agricultural compounds and pesticides.  After July 1, 2012 sales of pesticides should no longer be recorded on line 3b(5) local exemptions, pesticides.
Substances not registered for agricultural use and purchases from non-registered dealers will remain taxable.
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