The following list of exemptions cannot be increased by implication or similarity. In all cases, the burden of proof is upon the taxpayer to establish an exemption. The following are exempt from the use tax imposed by this subchapter:
(A) The storage, use or consumption of any tangible personal property the sale of which is subject to a retail sales tax imposed by the town;
(B) The storage, use or consumption of any tangible personal property purchased for resale in the town, either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of a business;
(C) The storage, use or consumption of tangible personal property brought into the town by a nonresident thereof for his or her own storage, use or consumption while temporarily within the town; however, this exemption does not apply to the storage, use or consumption of tangible personal property brought into the state by a nonresident to be used in the conduct of a business in this state;
(D) The storage, use or consumption of tangible personal property by the United States government, the state or its institutions or political subdivision in their governmental capacities only, or religious or charitable corporations in the conduct of their regular religious or charitable functions;
(E) The storage, use or consumption of tangible personal property by a person engaged in the business of manufacturing or compounding for sale, profit or use of any article, substance or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the product or service which is manufactured, compounded or furnished and the container, label or furnished shipping case thereof;
(F) The storage, use or consumption of any article of tangible personal property the sale or use of which has already been subjected to a legally imposed sales or use tax of another municipality equal to or in excess of 2%. A credit shall be granted against the town’s use tax with respect to a person’s storage, use or consumption in the town of tangible personal property; the amount of the credit to equal the tax paid by him or her by reason of the imposition of a sales; or use tax of the previous municipality on the purchase or use of the property. The amount of credit shall not exceed 2%;
(G) The storage, use or consumption of tangible personal property and household effects acquired outside of the town and brought into it by a nonresident acquiring residency;
(H) The storage or use of a motor vehicle if the owner is or was, at the time of purchase, a nonresident of the town and he or she purchased the vehicle outside of the town for use outside the town and actually so used it for a substantial and primary purpose for which it was acquired, and he or she registered, titled and licensed said motor vehicle outside of the town;
(I) The storage, use or consumption of any construction and building materials and vehicles on which registration is required if a written contract for the purchase thereof was entered into prior to the effective date of the initial ordinance codified herein;
(J) The storage, use or consumption of any construction and building materials required or made necessary in the performance of any construction contract bid, let or entered into at any time prior to the effective date of the initial ordinance codified herein;
(K) The storage of construction and building materials; and
(L) Any transaction which the town is prohibited from taxing under the U.S. Constitution and laws of the United States, or under the Colorado Constitution and laws of the state.
(Ord. 10-2017, passed 7-26-2017)