Agriculture and livestock - special fuels - definitions

(d) Farm equipment means any farm tractor, as defined in section 42-1-102

(33), any implement of husbandry, as defined in section 42-1-102 (44), and irrigation equipment having a per unit purchase price of at least one thousand dollars. Farm equipment also includes, regardless of purchase price, attachments and baling wire, binders twine, and surface wrap used primarily and directly in any farm operation. On and after July 1, 2000, farm equipment also includes, regardless of purchase price, parts that are used in the repair or maintenance of the farm equipment described in this subsection (1)(d), all shipping pallets, crates, or aids paid for by a farm operation, and aircraft designed or adapted to undertake agricultural applications. On and after July 1, 2001, farm equipment also includes, regardless of purchase price, dairy equipment. On and after September 1, 2019, farm equipment also includes, regardless of purchase price, any visual, electronic identification, or matched pair ear tags and electronic identification readers used to scan ear tags that are used by a farm operation to identify or track food animals, including animals used for food or in the production of food. Except for shipping pallets, crates, or aids used in the transfer or shipping of agricultural products, farm equipment does not include:

(I) Vehicles subject to the registration requirements of section 42-3-103, C.R.S., regardless of the purpose for which such vehicles are used;

(II) Machinery, equipment, materials, and supplies used in a manner that is incidental to a farm operation;

(III) Maintenance and janitorial equipment and supplies; and

(IV) Tangible personal property used in any activity other than farming, such as office equipment and supplies and equipment and supplies used in the sale or distribution of farm products, research, or transportation.

(e) Farm operation means the production of any of the following products for profit, including, but not limited to, a business that hires out to produce or harvest such products:

(I) Agricultural, viticultural, fruit, and vegetable products;

(II) Livestock, as defined in section 39-26-102 (5.5);

(III) Milk;

(IV) Honey; and

(V) Poultry and eggs.

(2) and (3) Repealed.

(4) The following are exempt from taxation under the provisions of parts 1 and 2 of this article 26:

(a) All sales and purchases of livestock, all sales and purchases of live fish for stocking purposes, and all farm close-out sales and the storage, use, or consumption of such property;

(b) All sales and purchases of feed for livestock, all sales and purchases of seeds, and all sales and purchases of orchard trees and the storage, use, or consumption of such property;

(c) All sales and purchases of straw and other bedding for use in the care of livestock and the storage, use, or consumption of straw and other bedding for use in the care of livestock;

(d) The sale of special fuel, as defined in section 39-27-101 (29), used for the operation of farm vehicles when such vehicles are being used on farms and ranches and the storage, use, or consumption of such special fuel;

(e) All sales and purchases of farm equipment and the storage, use, or consumption of farm equipment; and

(f) (I) Any farm equipment under lease or contract, if the fair market value of the equipment is at least one thousand dollars and the equipment is rented or leased for use primarily and directly in any farm operation.

(II) Unless the department of revenue determines pursuant to section 39-26-730 (2) that the affidavit can be consolidated with another form or eliminated, the lessor or seller of such farm equipment shall obtain a signed affidavit from the lessee, renter, or purchaser affirming that the farm equipment will be used primarily and directly in a farm operation.

(5) (Deleted by amendment, L. 2011, (HB 11-1005), ch. 194, p. 755, § 3, effective July 1, 2011.)