The following goods and services shall be exempt from sales tax under the provisions of this chapter:
(A) All sales to the United States government and to the state, its departments and institutions and the political subdivisions thereof in their governmental capacities only;
(B) All sales made to charitable organizations in the conduct of their regular charitable functions and activities;
(C) All sales which the town is prohibited from taxing under the constitutional laws of the United States, the state or the town’s Charter;
(D) All sales of cigarettes;
(E) Prescription drugs for humans; glucose usable for treatment of insulin reactions; urine and blood testing kits and materials; insulin measuring and injecting devices, including hypodermic syringes and needles; oxygen, oxygen concentrators and oxygen-related accessories for medical use; prosthetic devices; wheelchairs and hospital beds; drugs or materials when furnished by a doctor as part of professional services provided to a patient; and corrective eyeglasses, contact lenses or hearing aids;
(F) All sales made to schools, including post-secondary schools, other than schools or post-secondary schools held or conducted for private or corporate profit. For purposes of this exemption, post-secondary schools are schools for enrollment after twelfth grade;
(G) All sales of construction and building materials, as such term is used in C.R.S. § 29-2-109, if such materials are picked up by the purchaser or if the purchaser of such materials gives to the retailer a building permit number;
(H) The transfer of tangible personal property without consideration (other than the purchase, sales or promotion of the transferor’s product) to a vendee located outside the town for use outside the town in selling products normally sold by wholesale sales by the transferor;
(I) All commodities which are taxed under the provisions of C.R.S. Title 39, Article 27, and all commodities which are taxed under such provisions and for which the tax is refunded, the sale of special fuel, and the sale of fuel used for the operation of farm vehicles being used on farms and ranches;
(J) “Exempt commercial packaging materials” as defined in § 4-3-1-2 of this chapter;
(K) (1) All sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration or repair of structures, highways, roads, streets and other public works owned or used by:
(a) The United States government, the state, its departments and institutions, and the political subdivisions thereof in their governmental capacities only;
(b) Charitable organizations in the conduct of their regular charitable functions and activities; or
(c) Schools, other than schools held or conducted for private or corporate profit.
(2) On application by a purchaser or seller, the Finance Director shall issue to a contractor or subcontractor a certificate or certificates of exemption indicating that the contractor’s or subcontractor’s purchase of construction or building materials is for a purpose stated in subsection (K)(1) of this section and is, therefore, free from sales tax. The Finance Director shall provide forms for such application and for such certificate and shall have the authority to verify that the contractor or subcontractor is, in fact, entitled to the issuance of such certificate prior to such issuance.
(L) (1) Sales to and purchases of tangible personal property, including without limitation sales and purchases of commercial packaging materials, commercial shipping materials, containers, labels or the furnished shipping cases thereof, by a person engaged in the business of manufacturing, compounding for sale, profit or use, any article, substance, or commodity, when the tangible personal property enters into the processing of or becomes an ingredient or component part of the product or service that is manufactured, compounded or furnished.
(2) As used in subsection (L)(1) of this section with regard to food products, tangible personal property enters into the processing of such products and, therefore, is exempt from taxation when:
(a) It is intended that such property become an integral or constituent part of a food product which is intended to be sold ultimately at retail for human consumption; or
(b) Such property, whether or not it becomes an integral or constituent part of a food product, is a chemical, solvent, agent, mold skin casing, or other material, is used for the purpose of producing or inducing a chemical or physical change in a food product or is used for the purpose, of placing a food product in a more marketable condition and is directly utilized and consumed, dissipated or destroyed, to the extent it is rendered unfit for further use, in the processing of a food product which is intended to be sold ultimately at retail for human consumption.
(M) All sales and purchases of electricity, coal, gas, fuel oil, coke or nuclear fuel, for use in processing, manufacturing, mining, refining, irrigation, construction, telecommunication services and street and railroad transportation services and all industrial uses;
(N) In any case in which a sales tax has been imposed under this chapter on lubricating oil used other than in automotive vehicles, the purchaser thereof shall be entitled to a refund equal to the amount of the sales tax paid on that portion of the sales tax price thereof which is attributable to the federal excise tax imposed on the sale of such lubricating oil. The refund allowed under this subsection (N) shall be paid by the Finance Director upon receiving under § 6425 of the Internal Revenue Code of 1954, as amended, a refund of the federal excise tax paid on the sale of such lubricating oil. The claim for a refund shall be made upon forms furnished by the Finance Department;
(O) All sales and purchases of refectory materials and carbon electrodes used by a person manufacturing iron and steel for sale or profit and all sales and purchases of inorganic chemicals used in the processing of vanadium-uranium ores;
(P) All sales and purchases of newsprint and printer’s ink for use by publishers of newspapers and all sales and purchases of newspapers;
(Q) All sales of tangible personal property purchased or sold within the town if delivered outside the town to the purchaser;
(R) “Modified computer software programs” as defined in § 4-3-1-2 of this chapter;
(S) The “sale of food” as defined in 7 U.S.C. § 2012(g) as of, and as it may be amended after, October 1, 1987, that is purchased by the medium of exchange commonly known as “food stamps”, and the “sale of food” as defined in or pursuant to 42 U.S.C. § 1786 as of, and as it may be amended after, October 1, 1987, that is purchased with vouchers, checks or similar certificates of exchange for the special supplemental food program for women, infants and children; and
(T) Garage or yard sales but only when the sales are conducted in a residential area; the sales do not exceed a consecutive three-day period nor a total of six days per calendar year; the sales are not conducted by a professional or compensated agent of the owner of the items to be sold; and the items for sale are not also held out for sale in a commercial establishment.
(Ord. 45(1991) § 1; Ord. 24(1993) § 1; Ord. 6(1998) § 2; Ord. 32(2002) § 8; Ord. 27(2005) § 8; Ord. 2(2019) § 5)
Editor’s note:
The effective date of Ordinance 27(2005) is January 1, 2006.