First Regular Session Sixty-seventh General Assembly STATE OF COLORADO INTRODUCED LLS NO. 09-0085.01 Esther van Mourik HOUSE BILL 09-1029 HOUSE SPONSORSHIP Sonnenberg, Fischer, Levy, Marostica, McFadyen, McNulty, Primavera, Rice, Vaad SENATE SPONSORSHIP Renfroe, Gibbs, Spence, Williams House Committees Senate Committees Transportation & Energy A BILL FOR AN ACT Concerning the registration of mobile machinery operated in interstate commerce. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Transportation Legislation Review Committee. Designates every item of mobile machinery and self-propelled construction equipment operated in interstate commerce as Class A personal property for purposes of imposing graduated annual specific ownership tax, but specifies the same rate structure currently applied to Class F personal property. By classifying this particular subset of Class F personal property as Class A personal property, clarifies application of the international registration plan, or any successor plan, to this subset of Class F personal property. Makes conforming amendments. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 42-3-106 (2) (a) and (2) (e), Colorado Revised Statutes, are amended to read: 42-3-106. Tax imposed - classification - taxable value. (2) For the purpose of imposing graduated annual specific ownership taxes, the personal property specified in section 6 of article X of the state constitution is classified as follows: (a) Every motor vehicle, truck, laden or unladen truck tractor, trailer, and semitrailer used in the business of transporting persons or property over any public highway in this state as an interstate commercial carrier, and every item of mobile machinery and self-propelled construction equipment operated in interstate commerce, for which an application is made for apportioned registration, regardless of base jurisdiction, shall be Class A personal property. (e) Except as provided in paragraph (a) of this subsection (2), every item of mobile machinery and self-propelled construction equipment required to be registered under this article shall be Class F personal property. SECTION 2. 42-3-107 (1) (a) (I), the introductory portion to 42-3-107 (2), 42-3-107 (3), (14), and (15) (a), the introductory portions to 42-3-107 (15) (b) and (15) (c), and 42-3-107 (15) (d), (15) (f), and (17) (a) (III), Colorado Revised Statutes, are amended, and the said 42-3-107 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read: 42-3-107. Taxable value of classes of property - rate of tax - when and where payable - department duties - apportionment of tax collections - definitions. (1) (a) (I) The taxable value of every item of Class A or Class B personal property, other than items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a), greater than sixteen thousand pounds declared empty vehicle weight shall be the actual purchase price of such property. Such price shall not include any applicable federal excise tax, including the excise tax on the first retail sale of a heavy truck, trailer, or tractor for which the seller is liable, transportation or shipping costs, or preparation and delivery costs. The taxable value of every item of Class A or Class B personal property, other than items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a), less than or equal to sixteen thousand pounds declared empty vehicle weight shall be seventy-five percent of the manufacturer's suggested retail price. (2) Except as provided in subsection (2.5) of this section, the annual specific ownership tax payable on every item of Class A personal property shall be computed in accordance with the following schedule: (2.5) The annual specific ownership tax payable on every item of mobile machinery and self-propelled construction equipment operated in interstate commerce that is classified as Class A personal property as specified in section 42-3-106 (2) (a) shall be computed in accordance with the following schedule: Year of service Rate of tax First year 2.10% of taxable value Second year 1.50% of taxable value Third year 1.25% of taxable value Fourth year 1.00% of taxable value Fifth year .75% of taxable value Sixth and each later year .50% of taxable value, but not less than $ 5 (3) The owner of any Class A personal property shall file a list with the department describing each item owned, reciting the year of manufacture or model designation, and stating the original sale price of any mounted equipment, or mobile machinery and self-propelled construction equipment, mounted on or attached to such item after its manufacture or first retail sale. As soon thereafter as practicable, the department shall compute the annual specific ownership tax payable on each item shown on such list and shall send to the owner a statement showing the aggregate amount of specific ownership tax payable by such owner. (14) The department shall designate suitable compilations of the manufacturer's suggested retail price or actual purchase price of all items of Class A, Class B, Class C, and Class D personal property, other than items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a), and shall provide each authorized agent with copies. Unless the actual purchase price is used as the taxable value, such compilation shall be uniformly used to compute the annual specific ownership tax payable on any item of such classified personal property purchased outside Colorado and registered for the first time in Colorado. Such actual purchase price shall not be used unless the department receives or has received a manufacturer's statement or certificate of origin for such vehicle. The department shall provide continuing supplements of such compilation to each authorized agent in order that the agent may have available current information relative to the manufacturer's suggested retail price of newly manufactured items. (15) (a) The property tax administrator shall compile and have printed a comprehensive schedule of all vehicles defined and designated as Class F personal property and of all items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a), wherein all such vehicles shall be listed according to make, model, year of manufacture, capacity, weight, and any other terms that serve to describe such vehicles. (b) Except as provided in paragraph (c) of this subsection (15) for property acquired prior to January 1, 1997, the taxable value of Class F personal property and of items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a) shall be determined by the property tax administrator and shall be either: (c) The taxable value of Class F personal property and of items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a) acquired on or after January 1, 1997, shall be determined by the property tax administrator and shall be either: (d) By whichever of the above three methods determined, the taxable value of each every item of Class F personal property and of every item of mobile machinery and self-propelled construction equipment operated in interstate commerce that is classified as Class A personal property as specified in section 42-3-106 (2) (a) shall be listed opposite its description in the schedule required by this subsection (15) to be compiled by the property tax administrator. (f) The county clerk and recorder shall include the value of all equipment that has been mounted on or attached to Class F personal property and of all items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a) in the calculation of the annual specific ownership tax. The registrations for such personal property and equipment shall be made available to the county assessor. (17) (a) For purposes of this subsection (17), unless the context otherwise requires: (III) "Special mobile machinery" means every item of Class F personal property described in section 42-3-106 (2) (e), and every item of mobile machinery and self-propelled construction equipment operated in interstate commerce that is classified as Class A personal property as specified in section 42-3-106 (2) (a), that is required to be registered under section 42-3-103. SECTION 3. 42-3-304 (18) (a) and (24), Colorado Revised Statutes, are amended to read: 42-3-304. Registration fees - passenger and passenger-mile taxes - clean screen fund. (18) (a) In addition to any other fee imposed by this section, the owner shall pay, at the time of registration, a fee of fifty cents on every item of Class A, B, or C personal property, other than items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a), required to be registered pursuant to this article. Such The fee shall be transmitted to the state treasurer, who shall credit the same it to a special account within the highway users tax fund, to be known as the AIR account, and such moneys shall be used, subject to appropriation by the general assembly, to cover the direct costs of the motor vehicle emissions activities of the department of public health and environment in the presently defined nonattainment area, and to pay for the costs of the air quality control commission in performing its duties under section 25-7-106.3, C.R.S. In the program areas within counties affected by this article, the authorized agent shall impose and retain an additional fee of up to seventy cents on every such registration to cover reasonable costs of administration of the emissions compliance aspect of vehicle registration. The department of public health and environment may accept and expend grants, gifts, and moneys from any source for the purpose of implementing its duties and functions under this section or section 25-7-106.3, C.R.S. (24) In addition to any other fee imposed by this section, at the time of registration, the owner shall pay a fee of twenty-five cents on every item of Class A, B, or C personal property, other than items of mobile machinery and self-propelled construction equipment operated in interstate commerce that are classified as Class A personal property as specified in section 42-3-106 (2) (a), required to be registered pursuant to this article. Notwithstanding the requirements of section 43-4-203, C.R.S., such the fee shall be transmitted to the state treasurer, who shall credit the same it to the peace officers standards and training board cash fund, created in section 24-31-303 (2) (b), C.R.S.; except that county clerks clerk and recorders shall be entitled to retain five percent of the fee collected to cover the clerks' clerk and recorders' expenses in the collection and remittance of such the fee. All of the moneys in the fund that are collected pursuant to this subsection (24) shall be used by the peace officers standards and training board for the purposes specified in section 24-31-310, C.R.S. SECTION 4. Act subject to petition - effective date. (1) This act shall take effect January 1, 2010. (2) However, if a referendum petition is filed against this act or an item, section, or part of this act during the 90-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution, then the act, item, section, or part, shall not take effect unless approved by the people at a biennial regular general election and shall take effect on the date specified in subsection (1) or on the date of the official declaration of the vote thereon by proclamation of the governor, whichever is later.