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Colorado Tax Exemption for Low-Emitting Heavy Vehicles


The Colorado Department of Revenue released a bulletin explaining the sales and use tax exemption for heavy vehicles that meet low-emission standards. 

According to the bulletin, vehicles that weigh more than 10,000 pounds that are certified by the Federal Environmental Protection Agency, or any qualified state, are exempt from Colorado sales and use tax.

In addition, "Parts used for converting the power source of a vehicle greater than 10,000 pounds GVWR [Gross Vehicle Weight Rating] to a LEV [Low Emissions Vehicle] are also exempt from state sales and use tax."

Despite the state sales tax exemption, owners of such vehicles may still have to pay local sales and use tax, unless the relevant local jurisdiction allows the same exemption.

The bulletin provides a list of Low Emission Vehicles that are exempt from Colorado sales and use tax.

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Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.