(1) (Deleted by amendment, L. 2005, p. 866, § 2, effective July 1, 2005.)
(1.5) Except as otherwise provided in paragraphs (a) and (b) of subsection (2) of this section, paragraph (b) of subsection (3) of this section, and section 39-27-102 (1)(b), indelible dye meeting federal regulations must be added to special fuel before or upon withdrawal at a terminal or refinery rack for that special fuel to be exempt from the excise tax imposed pursuant to this part 1. Such tax-exempt special fuel shall not be used for taxable purposes; except that dyed special fuel may be used for a taxable purpose to the extent that such use is allowed under federal law or regulations with such fuel being subject to the excise tax imposed pursuant to this part 1. For purposes of this subsection (1.5), "taxable purpose" means any use on which an excise tax on special fuel is imposed pursuant to this part 1. The terminal operator shall ensure that tax-exempt special fuel is dyed before it leaves the terminal. The seller shall give notice to the purchaser in accordance with federal regulations that the dyed special fuel is not legal for taxable use.
(2) (a) Dyed diesel fuel purchased to propel farm vehicles, when the same are being used on farms and ranches, farm tractors, and implements of husbandry only incidentally operated or moved on a highway, when operated off the public highways, and vehicles or construction equipment operated within the confines of highway construction projects when the same are actually being used in the construction of such highways shall be exempt from the excise tax imposed pursuant to this part 1. In accordance with section 39-27-104 (1)(d.5), dyed diesel fuel may be blended by a licensed distributor with biodiesel fuel after withdrawal at a terminal or refinery rack up to the maximum federally allowable blend. Such blended special fuel shall be exempt from the excise tax imposed pursuant to this part 1, so long as it is purchased for the purposes set forth in this paragraph (a). A person who purchases undyed special fuel for the purposes set forth in this paragraph (a) may, in accordance with section 39-27-103, apply to the department of revenue for a refund of the excise tax paid thereon.
(b) (I) (Deleted by amendment, L. 2005, p. 866, § 2, effective July 1, 2005.)
Dyed diesel purchased by the state of Colorado, any of its agencies, any town, city,county, city and county, school district of this state, or any other political subdivision of this state shall be exempt from the excise tax imposed pursuant to this part 1 if the special fuel is used exclusively by the governmental entity in performing its governmental functions and activities. A person who purchases dyed diesel fuel for the purposes set forth in this subparagraph (II) may, in accordance with section 39-27-103, apply to the department of revenue for a refund of the excise tax paid thereon.
Any state or local governmental entity referred to in subparagraph (II) of this paragraph (b) may obtain an exemption certificate from the executive director of the department of revenue pursuant to subsection (3) of this section. Upon receipt of an exemption certificate, such governmental entity may purchase from a distributor undyed special fuel without payment of the excise tax imposed pursuant to this part 1 if the special fuel is used exclusively by the governmental entity in performing its governmental functions and activities.
(c) Any person operating a vehicle other than a qualified motor vehicle pursuant to the motor fuel tax cooperative agreement entered into under part 3 of this article may bring into this state for the operation of such vehicle only the amount of special fuel that is in the ordinary fuel tank attached to such vehicle without being liable for the payment of the tax under this part 1.
(3) (a) The tax collected by the distributor pursuant to this section is deemed to have been received by the distributor at the time the fuel is acquired or, in the case of liquefied petroleum gas, at the time the fuel is placed in a fuel tank or used to propel a cargo tank motor vehicle, irrespective of when payment is received by the distributor for the amount of the invoice, including the tax, and the tax required to be collected by the distributor constitutes a debt owed by the distributor to this state.
The executive director of the department of revenue shall issue an exemption certificate to a user of special fuel to purchase undyed special fuel from a distributor without payment of the tax if such user is exempt under the provisions of paragraph (b) of subsection (2) of this section.
With each sale of special fuel made without payment of the tax pursuant to thissubsection (3), the distributor shall secure evidence that the user has authorization from the executive director of the department of revenue to purchase special fuel ex-tax, together with the distributor's name and address and such other information as the executive director may require. (4) (Deleted by amendment, L. 2000, p. 1932, § 15, effective October 1, 2000.)
(5) to (8) Repealed.
(9) Compressed natural gas used to propel a motor vehicle on the highways of this state that is supplied to the user at a residential home is exempt from the special fuel tax imposed by this article.
Source: L. 2000: Entire section added with relocated provisions, p. 1932, § 15, effective October 1. L. 2002: (2)(a), (2)(b)(I), (2)(b)(II), and (7) amended, p. 552, § 1, effective May 24. L. 2005: (1), (1.5), (2)(b)(I), IP(5)(a), (5)(b), (5)(e), (5)(f), (6)(a), and (7) amended, p. 866, § 2, effective July 1. L. 2009: (1.5) and (2)(a) amended, (SB 09-098), ch. 195, p. 877, § 2, effective August 5. L. 2013: (5), (6), and (8) repealed, (7) amended, and (9) added, (HB 13-1110), ch. 225, p. 1060, § 7, effective January 1, 2014. L. 2015: (3)(a) amended, (HB 15-1228), ch. 315, p. 1287, § 4, effective January 1, 2016. L. 2020: (7) repealed, (HB 20-1181), ch. 91, p. 365, § 2, effective September 14.
Editor's note: This section is similar to former § 39-27-202 as it existed prior to 2000.
Cross references: (1) For the legislative declaration in the 2013 act repealing subsections (5), (6), and (8), amending subsection (7), and adding subsection (9), see section 1 of chapter 225, Session Laws of Colorado 2013.
For the legislative declaration in HB 15-1228, see section 1 of chapter 315, SessionLaws of Colorado 2015.
For the legislative declaration in HB 20-1181, see section 1 of chapter 91, SessionLaws of Colorado 2020.