Colorado – Exemption for Low Emitting Heavy Vehicles

SALT Report 1590 – The Colorado Department of Revenue issued guidance regarding the sales and use tax exemption for heavy vehicles that meet low emission standards.
According to the bulletin, motor vehicles that weigh more than 10,000 pounds and are certified by the Federal Environmental Protection Agency or by any state listed in the Federal Clean Air Act are exempt from state sales and use taxes.  Any parts used to convert the power source of a vehicle greater than 10,000 pounds into a low emission vehicle are also exempt from state sales and use taxes.
In some instances, owners of these vehicles may have to pay local sales and use taxes unless the local jurisdiction provides the same exemption.  The Department urges taxpayers to contact home-rule cities directly for their rules regarding the taxability of heavy vehicles.
The bulletin provides a list of all qualified low emission heavy vehicles.  However, if you own a vehicle that is not listed and have paid sales tax you may file a Claim or Refund (DR 0137).  All refund claims must include proof of sales tax paid and a copy of the EPA certificate or California Air Resource Board certificate.
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