Colorado: Dyed Diesel Exemption Expanded
- Apr 3, 2015 | Gail Cole
Currently in Colorado, dyed diesel fuel is exempt from sales and use tax in most situations. However, sales and use tax does apply to a handful of dyed diesel fuel transactions under current law; for example, tax applies when dyed diesel fuel is purchased to power hospital generators.
Lawmakers have determined that these nonexempt uses create “an administrative burden for retailers.” Since they also “generate an insignificant amount of revenue,” all sales of dyed diesel are henceforth exempt from sales and use taxation. HB 1012, which was signed by the governor on March 26, 2015, provides additional details.
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