TR 34: Public Utilities
The retail sale of gas, electricity and other fuels for any purpose are subject to sales/use tax, unless the sale is to a properly licensed charitable, religious or governmental entity. The retail sale is taxable whether sold for residential, commercial or industrial use and whether furnished by a municipal, public or private corporation.
The energy sold by the above, when used by a manufacturer, is considered to be used in the manufacturing process and to not be a component of the finished product. Therefore, the energy would not meet the resale exemption and would be subject to sales/use tax. The State of Colorado does exempt the use of some energy producing products when used for industrial purposes, see the State of Colorado FYI - Sales Tax Exemption on Industrial Utility Usage and Special Regulation - Gas and Electrical Services for detail. The City of Boulder does not have such an exemption.
Gasoline and aviation gasoline (see section 39-27-101 C.R.S.) fuels are not subject to City sales/use tax. However, if these special fuels are used for a purpose other than that stated in the Colorado Revised Statutes, they would be subject to sales/use tax. Aviation jet fuels (section 39-27-111 C.R.S.) are subject to Boulder sales/use tax. "Special Fuel," defined at (subsection 39-27-101(29) C.R.S.) is subject to Boulder sales/use tax unless excise tax has been charged and paid in accordance with (39-27-102 C.R.S.).
Last Updated on Wednesday, 11 July 2012 12:23