130-198 Exemptions | Aurora City Code

Sec. 130-198. Exemptions.

The tax on the storage, consumption and use of tangible personal property and taxable services is declared to be supplementary to the city sales tax as provided in this article and shall not apply to the following:

(1) The storage, use or consumption of any tangible personal property or taxable service, upon the lease or sale of which city sales tax has been paid as provided in this article.

(2) The storage, use or consumption of any tangible personal property purchased for resale in this city, either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of a business.

(3) The storage, use or consumption of gasoline and special fuel upon which there has accrued or has been paid the state gasoline and special fuel tax prescribed by C.R.S. tit. 39, art. 27 (C.R.S. § 39-27-101 et seq.), and which is not subject to refund.

(4) Reserved.

Editor's note: Ord. No. 2021-64, § 7, adopted Nov. 22, 2021, repealed § 130-198(4), which pertained to the storage, use or consumption of tangible personal property by nonresidents and derived from Code 1979, § 36-95; Ord. No. 2000-133, § 3, 12-18-2000; Ord. No. 2000-134, § 3, 12-18-2000; Ord. No. 2003-20, § 5, 5-12-2003; Ord. No. 2009-55, § 2, 12-7-2009; Ord. No. 2011-01, § 13, 2-14-2011; Ord. No. 2012-20, § 4, 5-7-2012; Ord. No. 2013-14, § 3, 5-20-2013; Ord. No. 2017-13, § 29, 4-3-2017; Ord. No. 2019-64, § 2, 10-7-2019; Ord. No. 2021-09, § 3, 3-22-2021; Ord. No. 2022-16, § 3, 3-28-2022.

(5) The storage, use or consumption of tangible personal property and taxable services by the United States government, and the state, their institutions and political subdivisions, including the City, provided the storage, use or consumption is conducted in their governmental capacities; and by charitable organizations in the conduct of their regular charitable functions and activities.

(6) The storage, use or consumption of tangible personal property by a person engaged in manufacturing or compounding for profit or sale, which tangible personal property meets all the following conditions:

a. Is actually and factually transformed by the process of manufacturing;

b. Becomes, by the manufacturing processes, a necessary and recognizable ingredient component and constituent part of the finished product; and

c. Is, by its physical presence in the finished product, essential to the use thereof in the hands of the ultimate consumer.

The term "manufacturing" shall not include, without limitation, the preparation, baking, and cooking of food and beverages; the generation and distribution of electricity; or the extraction of raw materials from the earth through mining, quarrying, the sinking of wells, or any other process.

Such personal property, when not sold for resale, shall be deemed to have been sold at wholesale and shall be exempt from taxation under this division.

(7) The storage, use or consumption of exempt commercial packaging materials

(8) The storage and use within this city of neat cattle, horses, sheep, lambs, swine and goats; or mares and stallions kept, held and used for breeding purposes only; and of tangible personal property purchased at a farm closeout sale by an agricultural producer.

(9) The storage of tangible personal property purchased from a nonresident retailer by a public utility company which is engaged in business in the City, provided such tangible personal property is not used or consumed in the City.

(10) The storage, use or consumption of prescription drugs for animals or humans and prosthetic devices for humans which shall not include therapeutic devices.

(11) The storage, use, distribution or consumption of tangible personal property or taxable services if a municipal sales or use tax at a rate equal to or greater than the applicable city use tax has been lawfully imposed on the user.

(12) The use, storage, distribution or consumption of tangible personal property of a resident, if such personal property was purchased and used for a longer duration than one-third of its depreciable life, using the straight-line depreciation method, prior to the time the property was brought into the city, and if such property was used for the primary purpose for which it was acquired prior to the time it was brought into the city. This exemption does not apply to construction equipment, tools and machinery.

(13) The storage, use, or consumption of tangible personal property or taxable services exempt under the terms of a letter of commitment issued pursuant to subsection 130-63(c).

(14) The storage of construction materials, provided such materials are not used or consumed in the City.

(15) The storage, use or consumption of farm equipment by an agricultural producer.

(16) The storage, use or consumption of food for home consumption, except such food as is expressly subject to taxation under subsections 130-156(4) and 130-156(12).

(17) The storage, use or consumption of food for home consumption purchased with food stamps.

(18) The storage, use or consumption of food for home consumption purchased with funds provided by the special supplemental food program for women, infants, and children, as provided for in 42 U.S.C. § 1786.

(19) The storage, use or consumption of tangible personal property and taxable services which the City is prohibited from taxing under the constitution or laws of the United States or the state.

(20) The storage, use or consumption of feed for livestock or poultry, seeds, and orchard trees by an agricultural producer.

(21) The storage, use or consumption of used factory-built housing on which state sales or use tax was paid on a prior purchase.

(22) To the extent of 48 percent of the purchase price, the storage, use or consumption of new factory-built housing and used factory-built housing upon the prior purchase of which state sales or use tax was not paid.

(23) The storage, use or consumption of insulin in all its forms dispensed pursuant to the direction of a licensed practitioner of the healing arts, glucose to be used for the treatment of insulin reactions, diabetic urine-and blood-testing kits and materials, and insulin measuring and injecting devices.

(24) The storage, use or consumption of newspapers.

(25) The use or consumption of recreation services which are sold by tax-exempt organizations.

(26) The use or consumption of internet access services.

(27) The storage, use, or consumption of machinery or machine tools, or parts thereof, in excess of $500.00 to be used in the city directly and predominantly in manufacturing tangible personal property, for sale or profit. For purposes of this subsection:

a. A parent corporation and all closely held subsidiary corporations shall be considered one person and, as a group, shall be subject to the provisions of this subsection.

b. Direct use in manufacturing is deemed to begin for items normally manufactured from inventoried raw material at the point at which raw material is moved from plant inventory on a contiguous plant site and to end at a point at which manufacturing has altered the raw material to its completed form, including packaging, if required. Machinery used during the manufacturing process to move material from one direct production step to another in a continuous flow and machinery used in testing during the manufacturing process is deemed to be directly used in manufacturing.

c. In order to qualify for the exemption provided in this subsection, a sale must be of such nature that it would have qualified for the investment tax credit against federal income tax as was provided by section 38 of the Internal Revenue Code of 1954, as amended.

d. An exemption may not be claimed under this subsection for municipal sales tax paid in another state that is credited against city sales tax or use tax or both.

e. To receive an exemption under this subsection, a declaration of entitlement must be filed by the purchaser with the retailer of the machinery or machine tools or parts thereof and with the finance director.

(28) The use or consumption of telecommunications service, if such service is provided to a customer whose place of primary use is outside the boundaries of the City. Telecommunication service does not include separately stated non-transmission services which constitute computer processing applications used to act on the information to be transmitted.

(29) The storage, use, or consumption of tangible personal property or taxable services that are sold for the benefit of a Colorado school, if the sale is made by any of the following:

a. A school;

b. An association or organization of parents and school teachers;

c. A booster club or other club, group, or organization whose primary purpose is to support a school activity; or

d. A school class or student club, group, or organization;

provided, however, that no such entity shall be regularly engaged in the business of selling commodities or services at retail.

(30) The storage, use, or consumption of tangible personal property or taxable services that are sold by an association or organization of parents and teachers of students that is a charitable organization, if the association or organization uses the funds raised through the sale for the benefit of a school or an organized school activity or to pay the reasonable expenses of the association or organization; provided, however, that no such association or organization shall be regularly engaged in the business of selling at retail.

(31) The storage, use, or consumption of precious metal bullion and collector coins.

(32) The storage, use, or consumption of menstrual care products.

(33) The storage, use, or consumption of diapers.

(34) Any government fees imposed directly on consumers and required to be held in trust by the imposing government and separately stated on the invoice provided to the consumer at the time of purchase and subject to use taxes under this section. (Code 1979, § 36-95; Ord. No. 2022-45, § 2, 8-22-2022; Ord. No. 2022-16, § 3, 3-28-2022; Ord. No. 2021-64, §§ 6, 7, 11-22-2021; Ord. No. 2021-09, § 3, 3-22-2021; Ord. No. 2019-64, § 2, 10-7-2019; Ord. No. 2017-13, § 29, 4-3-2017; Ord. No. 2013-14, § 3, 5-20-2013; Ord. No. 2012-20, § 4, 5-7-2012; Ord. No. 2011-01, § 13, 2-14-2011; Ord. No. 2009-55, § 2, 12-7-2009; Ord. No. 2003-20, § 5, 5-12-2003; Ord. No. 2000-134, § 3, 12-18-2000; Ord. No. 2000-133, § 3, 12-18-2000)