Avalara Taxrates > Blog > Fuel Tax News > Colorado: Dyed Diesel Exemption Expanded - Avalara

Colorado: Dyed Diesel Exemption Expanded


 Colorado capitol.

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.

Automated sales tax Software-as-a-Service simplifies management of transaction taxes and exemptions, increasing compliance. Learn more.

Photo credit


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.