Colorado Revised Statutes Title 39. Taxation § 39-27-102. Tax imposed on gasoline and special fuel--deposits--penalties

(1)(a)(I)(A) An excise tax is imposed and shall be collected on all gasoline or special fuel acquired, sold, offered for sale, or used in this state for any purpose whatsoever, but only one tax shall be paid upon the same gasoline or special fuel in this state.  Except as otherwise provided in this subparagraph (I), no more than three tax-deferred transactions shall take place after the gasoline or special fuel has left the terminal of its origin, either within or outside of this state;  except that, for purposes of counting the applicable transactions in order to collect the tax imposed by this subparagraph (I), counting shall begin when the gasoline or special fuel first enters this state, whether by truck or by rail.  If more than three distributors acquire the gasoline or special fuel, the third distributor shall be liable for payment of the tax imposed.  Nothing in this paragraph (a) shall preclude previous distributors from paying the tax.  A distributor shall not be required to pay tax on gasoline or special fuel that is exempt pursuant to section 39-27-103(2) .  The tax imposed shall be computed upon the total amount of gasoline or special fuel, measured in gallons, acquired by each distributor in this state and shall be paid in the manner provided in this section.  For purposes of this sub-subparagraph (A), “special fuel” does not include liquefied petroleum gas.

(B) An excise tax is imposed on liquefied petroleum gas when it is placed in a fuel tank, unless the use of the special fuel is exempt.  The tax imposed is computed upon the total amount of liquefied petroleum gas, measured in gallons, that is placed in the fuel tank.  If the liquefied petroleum gas is placed in the fuel tank by a distributor, the distributor shall pay the tax to the department of revenue in accordance with this section.

(C) If a distributor uses liquefied petroleum gas from a cargo tank to propel a cargo tank motor vehicle on the highways in this state, an excise tax is imposed on the liquefied petroleum gas that is used as special fuel.  The liquefied petroleum gas that is carried in the cargo tank but not used as special fuel is not subject to the excise tax.  The tax imposed is computed upon an estimate of the total amount of liquefied petroleum gas, measured in gallons, used to propel the cargo tank motor vehicle based on the number of miles that the vehicle traveled.  A distributor shall report to the department of revenue the number of miles that the vehicle traveled based on odometer readings.  The department shall establish the form to be used to report this information.

(II)(A) The excise tax imposed on gasoline by subparagraph (I) of this paragraph (a) shall be twenty cents per gallon or fraction thereof from August 1, 1989, through December 31, 1990, and twenty-two cents per gallon or fraction thereof for calendar years beginning on and after January 1, 1991.

(B) The excise tax imposed on special fuel by subparagraph (I) of this paragraph (a) is twenty and one-half cents per gallon or a fraction thereof for calendar years beginning on and after January 1, 1992.  This sub-subparagraph (B) does not apply to any special fuel specified in subparagraphs (VI), (VII), and (VIII) of this paragraph (a).

(IV)(A) The excise tax imposed by subparagraph (I) of this paragraph (a) shall be six cents per gallon or fraction thereof on gasoline used as fuel for the propulsion of nonturbo-propeller or nonjet engine aircraft and shall be four cents per gallon or fraction thereof on gasoline used as fuel for the propulsion of turbo-propeller or jet engine aircraft.

(B) The provisions of this subparagraph (IV) shall not apply to domestic or foreign part 121 air carriers as defined in section 39-27-101(19) or part 135 commuter air carriers as defined in section 39-27-101(20) authorized to provide passenger and cargo air transportation services pursuant to the regulations of the office of the secretary of transportation and federal aviation administration of the United States department of transportation.  The provisions of this subparagraph (IV) also shall not apply to direct air carriers as defined in section 39-27-101(6) , providing air transportation to authorized public charter operators pursuant to 14 CFR 380.  For those air carriers that are certificated by the United States department of transportation for both part 121 air carrier operations and part 135 on-demand operations, the provisions of this sub-subparagraph (B) shall not apply to the air carrier's part 135 on-demand operations.

(C) Based upon reports submitted by wholesalers or distributors pursuant to the provisions of this article, the department of revenue shall compile a monthly report showing the amount of excise taxes collected on gasoline pursuant to the provisions of this subparagraph (IV).  Such monthly report shall be transmitted to the division of aeronautics created in section 43-10-103, C.R.S ., for use by the division in distributing moneys in the aviation fund in accordance with section 43-10-110, C.R.S .

(V) In the case of a user, the tax imposed by this section shall be measured by the gallons of special fuel imported into this state or acquired without payment of the tax imposed by this section and used in the propulsion of a motor vehicle on the highways of this state.

(VI) The excise tax imposed on compressed natural gas by subparagraph (I) of this paragraph (a) is:

(A) Three cents per gallon or a fraction thereof for the 2014 calendar year;

(B) Six cents per gallon or a fraction thereof for the 2015 calendar year;

(C) Nine cents per gallon or a fraction thereof for the 2016 calendar year;

(D) Twelve cents per gallon or a fraction thereof for the 2017 calendar year;

(E) Fifteen cents per gallon or a fraction thereof for the 2018 calendar year;  and

(F) Eighteen and three-tenths cents per gallon or a fraction thereof for calendar years beginning on and after January 1, 2019.

(VII) The excise tax imposed on liquefied natural gas by subparagraph (I) of this paragraph (a) is:

(A) Three cents per gallon or a fraction thereof for the 2014 calendar year;

(B) Five cents per gallon or a fraction thereof for the 2015 calendar year;

(C) Seven cents per gallon or a fraction thereof for the 2016 calendar year;

(D) Eight cents per gallon or a fraction thereof for the 2017 calendar year;

(E) Ten cents per gallon or a fraction thereof for the 2018 calendar year;  and

(F) Twelve cents per gallon or a fraction thereof for calendar years beginning on and after January 1, 2019.

(VIII) The excise tax imposed on liquefied petroleum gas by subparagraph (I) of this paragraph (a) is:

(A) Three cents per gallon or a fraction thereof for the 2014 calendar year;

(B) Five cents per gallon or a fraction thereof for the 2015 calendar year;

(C) Seven cents per gallon or a fraction thereof for the 2016 calendar year;

(D) Nine cents per gallon or a fraction thereof for the 2017 calendar year;

(E) Eleven cents per gallon or a fraction thereof for the 2018 calendar year;  and

(F) Thirteen and one-half cents per gallon or a fraction thereof for calendar years beginning on and after January 1, 2019.

(b)(I) In the case of gasoline or special fuel shipped to a distributor from a terminal, the amount of gasoline or special fuel acquired is deemed to be the amount shipped from the terminal, as shown by the terminal manifest;  except that an allowance of two percent of the total amount of gasoline or special fuel acquired during any calendar month, as shown by terminal manifests, shall be deducted by the licensed distributor to cover losses in transit and in unloading the gasoline or special fuel and costs of collection and payment to the state of the tax imposed by this section, out of which allowance the distributor shall make to each retailer an allowance of one percent of the amount of gasoline or special fuel delivered during each calendar month by the distributor to the retailer, as shown by delivery invoices signed by the retailer, but there is no allowance for liquefied petroleum gas.

(II) The tax imposed by this section is exempted on each recorded and reported sale by a distributor to the United States, or any of its agencies, and to any town, city, county, city and county, special district, or school district when the gasoline or special fuel is used exclusively by the governmental entity in performing its governmental functions and activities.  The exemption applies solely to machines owned or operated by the United States or any of its agencies, by the state, or by any town, city, county, city and county, school district, or other political division of the state.  Exemptions for persons conducting business for such governmental entities on a contract basis using an aircraft must be based solely on the applicable operating certificate of the aircraft operator pursuant to sub-subparagraph (B) of subparagraph (IV) of paragraph (a) of this subsection (1).  Any governmental entity referred to in this paragraph (b) shall obtain an exemption certificate from the executive director of the department of revenue.  Upon receipt of an exemption certificate, a governmental entity may:

(A) Purchase gasoline or special fuel from a distributor without payment of the excise tax imposed pursuant to this part 1 if the gasoline or special fuel is used exclusively by the governmental entity in performing its governmental functions and activities.

(B) Sell to or purchase gasoline or special fuel from another governmental entity that has a fuel tax exemption certificate, and the transaction is exempt from the excise tax imposed pursuant to this part 1 if the gasoline or special fuel is used exclusively by the governmental entity in performing its governmental functions and activities.  The governmental entity is required to keep a copy of the fuel tax exemption certificate on file for any entity to which it resells or distributes fuel.  A governmental entity that sells gasoline or special fuel pursuant to this sub-subparagraph (B) is not required to be a licensee pursuant to the provisions of section 39-27-104 .  Sales authorized pursuant to this sub-subparagraph (B) are intended to facilitate intergovernmental efficiencies with respect to sales for individual vehicles or equipment.  It is not the intent of this sub-subparagraph (B) for intergovernmental sales to include purchases in excess of five hundred gallons in a single transaction unless required for unusual, unforseen, or emergency circumstances.

(2)(a) Except as set forth in section 39-27-102.5(9) , every person who uses any gasoline or special fuel for propelling a motor vehicle on the public highways of this state or who is licensed to import any gasoline or special fuel into this state for use or sale in this state, upon which gasoline or special fuel a licensed distributor has not paid or is not liable to pay the tax imposed in this section, is deemed to be a distributor and is liable for and shall pay an excise tax at a rate established by paragraph (a) of subsection (1) of this section on all such gasoline or special fuel so used, or imported for use or sale, in this state.  Such person shall pay such tax to the department of revenue, pursuant to section 39-27-105.3 , on or before the twenty-sixth day of the calendar month following the month in which such gasoline or special fuel was used or imported and shall, at the time of payment, render to the department, on forms provided by it, an itemized statement, signed under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S ., of all such gasoline or special fuel so used or imported during such preceding calendar month.  When such gasoline or special fuel is delivered from a terminal in a carload lot, the quantity thereof and the amount of tax thereon shall be computed in the same manner as in the case of a distributor.

(b) A person operating a passenger car into this state may bring into the state, for the operation of such passenger car, not more than the capacity for gasoline or special fuel in the ordinary fuel tank attached to such passenger car without being liable for payment of the tax on such gasoline or special fuel.  Any person operating a motor truck or motor bus into this state, except those persons operating a qualified motor vehicle pursuant to motor fuel tax cooperative agreement entered into under part 3 of this article, may bring into this state, for the operation of such motor truck or motor bus, not more than the capacity for gasoline or special fuel in the ordinary fuel tank attached to such motor truck or motor bus without being liable for payment of the tax on such gasoline or special fuel.  Any person operating an aircraft into this state, other than an aircraft operated by scheduled air carriers or commuter airline operators, may bring into this state, for the operation of such aircraft, not more than the capacity for gasoline or special fuel in the ordinary fuel tank attached to such aircraft without being liable for payment of the tax on such gasoline or special fuel.  In the event of a disagreement between the operator, driver, or owner of any vehicle, truck, or bus and any officer or inspector of this state regarding the capacity of the ordinary fuel tank of any vehicle traveling upon the highways, the operator, driver, or owner shall be required, at his or her own expense, to prove to the satisfaction of the officer or inspector the capacity of the ordinary fuel tank attached to such vehicle, and, in the event it exceeds that exempted by law, he or she shall be required to pay the tax on any additional gallonage then and there, securing a receipt from the officer or inspector with whom such disagreement occurred.

(c) and (d) Repealed by Laws 1979, S.B.295, § 29.

(2.5) Except as otherwise provided in paragraph (b) of subsection (2) of this section, every person who imports gasoline or special fuel other than liquefied petroleum gas into this state for use or sale in this state without a valid importer, supplier, blender, or distributor license is liable for and shall pay an excise tax pursuant to paragraph (a) of subsection (1) of this section on all gasoline or special fuel such person imports for use or sale in this state.  In addition to the excise tax, such person shall be subject to the civil penalties set forth in subsection (9) of this section.  Every person who imports liquefied petroleum gas into this state without a valid importer, supplier, or distributor license is subject to the civil penalties set forth in subsection (9) of this section.  Immediately upon discovery of a violation of this subsection (2.5), the department of revenue and agents thereof may demand payment of such excise tax, if owed, and all applicable fines associated with the unlicensed importation of gasoline or special fuel and may detain the shipment of gasoline or special fuel until such excise tax and fines are collected.

(3) to (8) Repealed by Laws 1979, S.B.295, § 29.

(9)(a) Any person who imports or distributes gasoline or special fuel into this state without a license shall be subject to the following civil penalties:

(I) A five-thousand-dollar fine for the first violation;

(II) A ten-thousand-dollar fine for the second violation;

(III) A fifteen-thousand-dollar fine for a third or subsequent violation.

(b) The executive director of the department of revenue is authorized to waive, for good cause shown, any civil penalty assessed pursuant to this subsection (9).

(c) All moneys collected pursuant to this subsection (9) shall be credited to the highway users tax fund, created in section 43-4-201, C.R.S ., and allocated and expended as specified in section 43-4-205(5.5)(a), C.R.S .

(10) Nothing in this section shall be construed to prohibit the criminal prosecution of any person who commits a criminal offense in connection with or as a result of violating any provision of this part 1.

Cite this article: FindLaw.com - Colorado Revised Statutes Title 39. Taxation § 39-27-102. Tax imposed on gasoline and special fuel--deposits--penalties - last updated January 01, 2019 | https://codes.findlaw.com/co/title-39-taxation/co-rev-st-sect-39-27-102.html


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