State Update…

2010 Colorado Legislation

As we have passed the 30 day mark following the close of the 2010 Colorado General Assembly Session. All legislation has had to clear the Governor’s desk. Since the legislature adjourned on Wednesday, May 12 (the last day possible under the constitutionally mandated 120 day limit), Governor Ritter had until last Friday, June 11 to act on those bills.  You can see a full list of the bills that passed the legislature and the final disposition of those bills.

Sales Tax Ag Exemption

The Colorado Department of Revenue is in the middle of their rulemaking process on the “Energy Use Tax Measure”, HB10-1190 (Concerning the suspension of the exemption from the state sales and use taxes for fuels used for industrial purposes). Colorado Farm Bureau joined other Ag and energy stakeholders, including the Colo. Rural Electric Association, in submitting a letter to the Colo. Dept. of Revenue seeking clarifying language in regards to the Ag exemption amendment done in HB 1190. The amendment was done in order to exempt all fuel uses purchased for agricultural purposes. The intention of the joint letter was to recommend alternative language to the proposed changes to regulation 39-26-102.21 to define “agricultural purposes” in order to offer clear guidance to the utilities that are required to collect the sales tax at the point of energy distribution and for agriculture producers to have a clear understanding.  Ultimately, clearer regulatory language will reduce compliance issues for all parties and DOR.  The focus of this language would be to define the purpose of the energy consumption instead of attempting to compile a comprehensive list of activities within agriculture production.  We will provide further updates as this rulemaking progresses.


One response to this post.

  1. […] the AG’s office regarding the language in the next week or two. The Department did accept the stakeholder’s suggested language and the regulation specifies that the suspension of the tax exemption does not apply to energy […]


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