SALT Report 2193 – The Colorado Department of Revenue recently revised its publication regarding the state sales and use tax exemption for low-emitting heavy vehicles. Colorado provides the sales and use tax exemption for motor vehicles that are greater than 10,000 pounds gross vehicle weight rating and certified by the Federal Environmental Protection Agency or any state provided in the Federal Clean Air Act and meet an emission standard equal to, or more stringent than, the low-emitting vehicle standard. This exemption also applies to parts used to convert the power source of a vehicle greater than 10,000 pounds GVWR to a LEV vehicle.
Claiming the Exemption
The dealer should not collect the state sales tax on vehicles that qualify for the exemption; however local taxes may still be due. Likewise, the state tax should not be collected when the vehicle is registered at the county office. If sales tax is paid in error, the purchaser has three years from the date of purchase to file a Claim for Refund with the state using Form DR 0137.
Registering an Exempt Vehicle
The FYI provides a copy of Form DR 1369. This form must be completed by the motor vehicle dealer for every exempt vehicle sold if it is to be registered in Colorado. When the purchaser registers the vehicle they must take the completed form to the county clerk’s office so that the county does not charge state sales or use tax on that exempt vehicle.
The FYI also states that the Department will no longer publish a list of vehicles that qualify for the exemption.
For Further Information