Colo. Code Regs. 39-26-202

Current through Register Vol. 47, No. 11, June 10, 2024

Rule 39-26-202 - Imposition of Use Tax

Basis and Purpose. The statutory bases for this rule are sections 39-21-112(1) and 39-26-202, C.R.S. The purpose of this rule is to clarify when use tax is imposed.

(1) As used in part 2 of article 26 of title 39, "consumption" means the act or process of consuming; the term includes waste, destruction, depreciation, depletion, and using up.

(2) Unless otherwise exempt from tax, if sales tax was not paid to a retailer, the purchaser shall remit use tax directly to the department.

(3) To bring about the imposition of use tax, the property's use need not necessarily be the actual and ultimate use of the property. Instead, the use may be only such use as is made by the owner or purchaser in exercising control. Use shall be deemed sufficient for the imposition of use tax when the article purchased is actually used or made available for use after the purchaser (or the purchaser's designee) takes possession even if such use is temporary, as well as keeping, storing, withdrawing from storage, moving, installing, or performing any other act by which dominion or control over the property is assumed by the purchaser unless otherwise exempt.

(4) If tangible personal property is traded or exchanged between unlicensed persons, each person shall pay sales or use tax on the fair market value of the tangible personal property the person received in exchange, excluding exchanges of motor vehicles governed by section 39-26-704(5), C.R.S.

39-26-202

37 CR 18, September 25, 2014, effective 10/15/2014

38 CR 02, January 25, 2015, effective 2/14/2015

39 CR 10, May 25, 2016, effective 6/14/2016

40 CR 12, June 25, 2017, effective 7/15/2017

40 CR 23, December 10, 2017, effective 1/1/2018

41 CR 13, July 10, 2018, effective 7/30/2018

41 CR 14, July 25, 2018, effective 8/14/2018

42 CR 02, January 25, 2019, effective 12/18/2018, expires 4/17/2019.

42 CR 02, January 25, 2019, effective 12/18/2018

42 CR 06, March 25, 2019, effective 4/14/2019

43 CR 04, February 25, 2020, effective 3/16/2020

43 CR 17, September 10, 2020, effective 9/30/2020

44 CR 01, January 10, 2021, effective 1/30/2021

44 CR 07, April 10, 2021, effective 4/30/2021

44 CR 08, April 25, 2021, effective 5/15/2021

45 CR 04, February 25, 2022, effective 3/17/2022

45 CR 23, December 10, 2022, effective 12/30/2022

46 CR 08, April 25, 2023, effective 5/15/2023