§ 4.04.090. Sales tax—Exempt items designated.

The following classes of tangible personal property are exempt from taxation:

A.

Automotive vehicles registered outside the city. The purchase of any automotive vehicle outside the city by a person having a primary residence in the city, or otherwise a resident of the city using such vehicle within the city to any extent, shall be subject to tax hereunder, which tax shall be payable at the time the registration license is issued by the county clerk and recorder of Boulder or Weld County. In the event a resident of the city maintains a primary residence outside the city, however, using such vehicle within the city, such resident shall be entitled to a credit against the tax to the extent that any comparable municipal tax has been paid to the municipality representing the principal place of residency. If any person having a principal residency in the city registers a vehicle in any other county of Colorado, that person shall be guilty of a violation of this chapter and shall be punished as provided in this Code;

B.

Sales under conditional sales contracts made prior to the effective date of this chapter;

C.

Sales of tangible personal property shall be exempted if both of the following conditions exist:

1.

The sales are to those who are residents of or doing business in the State of Colorado outside the city; and

2.

The articles purchased are to be delivered to the purchaser outside the city by common carrier or by the conveyance of the seller or by mail. Sales of farm machinery for use outside the limits of the city and all sales of farm machinery parts for use on property outside the city shall be exempt; provided, that trucks having a manufacturer's rating of one ton or less shall not be considered as farm machinery for the purpose of this exemption.

D.

Sales of fuel used for the operation of internal combustion engines. All commodities which are taxed under the provisions of Colorado Motor Fuel Tax of 1933 shall be exempt from taxation under this chapter;

E.

Sales of tangible personal property shall be exempted from the operation of this chapter if all the following conditions exist:

1.

The sales are made to a purchaser engaged in manufacturing, processing, mining, construction or railroading;

2.

The articles sold are to be used by the purchaser in the conduct of manufacturing, processing, mining, construction or railroading business outside the city;

3.

Delivery of the articles sold is to be made to the purchaser at a point outside the city or to a carrier for delivery of the articles to a purchaser at a point outside the city, or the railroad, in case the railroad is the purchaser, or to a truck of the construction company in case of a sale to a construction company.

F.

Drugs and prosthetic devices for humans dispensed in accordance with a prescription, and insulin and insulin-injecting devices together with glucose measuring and testing equipment and supplies;

G.

Sales to the United States Government, to the State of Colorado, its departments or institutions and the political subdivisions thereof, in their governmental capacities only, and all sales to the city and any department thereof;

H.

Sales to religious or charitable organizations in the conduct of their regular religious or charitable functions and activities;

I.

Sales which the city is prohibited from taxing under the Constitution or laws of the United States, or the State of Colorado, shall be exempt under this chapter;

J.

Sales and purchase of cattle, sheep, lambs, swine and goats, all sales and purchases of mares and stallions for breeding purposes and all farm close-out sales shall be exempt from taxation under this chapter;

K.

Sales and purchase of feed for commercial feeding of livestock or poultry, and all sales and purchases of commercial seeds, shall be exempt from taxation under this chapter;

L.

Sales of all cigarettes;

M.

Sales of newspapers;

N.

Sales of tangible personal property to a public utility doing business both within and without the city, for use in its business operations outside of the city, even though delivery thereof is made within the city;

O.

Nonbusiness and occasional sales of secondhand household and other goods incidental to household uses which includes all lawful sales under chapter 6.104 of this Code;

P.

Sales of construction materials, if such materials are picked up by the purchaser and if the purchaser of such materials presents to the retailer a building permit or other documentation acceptable to the city, evidencing that a local use tax has been paid or is required to be paid;

Q.

The sale of tangible personal property at retail or the furnishings of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule municipality equal to or in excess of the rate set forth in section 4.04.130. A credit shall be granted against the city's sales tax with respect to such transaction equal in amount to the lawfully imposed local sales or use tax previously paid by the purchaser or user to the other municipality, however, not exceeding the rate established locally;

R.

Industrial machinery and machine tools, measurement and inspection equipment or research and development equipment used in manufacturing or research and development by a business new to the city, for the initial, consecutive two years of operation. This exemption shall not apply to an existing business. An existing business is a business which has been located in the city within one year before the purchase of such business;

S.

1.

Purchases of industrial machinery or machine tools, allocated a cost in excess of $1,000.00 as a separate item by a person engaged in manufacturing to be used in Longmont directly and exclusively by such person in manufacturing tangible personal property, for sale or profit, are exempt from taxation subject to the following provisions:

a.

A parent corporation and all closely held subsidiary corporations, as set forth in C.R.S. § 39-26-102(10)(k), shall be considered and taxed as one person for purposes of the exemption set forth in this chapter;

b.

For purposes of this exemption, "manufacturing" means the operation of producing a new product, article, substance or commodity different from and having a distinctive name, character or use from raw or prepared materials;

c.

In order to be qualified as a "manufacturer" under this exemption, the business shall generally conform to a definition and classification as set forth in the Standard Industrial Classification Manual, as amended, and promulgated by the United States Office of Management and Budget. If a manufacturer is not listed in the publication, a local review of the proposed enterprise shall be conducted to determine manufacturing status under the standards of this chapter.

2.

The following items shall not be exempt hereunder:

a.

Vehicles used to move or transport raw materials, work in process or components, and/or finished goods;

b.

Machinery and equipment used to repair and/or maintain plant equipment or machinery or other material used in the manufacturing process;

c.

Machinery and equipment used in management, sales, research and development, or other nonoperational activities.

T.

Purchases of food with food stamps. For purposes of this subsection, "food" shall have the same meaning as provided in 7 USC 2012(g) as such section exists on October 1, 1987, or is thereafter amended, for purposes of the federal food stamp program as defined in 7 USC 2012(h), as amended;

U.

Purchases of food with funds provided by the special supplemental food program for women, infants and children, as provided for in 42 USC 1786. For purposes of this subsection, "food" shall have the same meaning as provided in 42 USC 1786, as such section exists on October 1, 1987, or is thereafter amended;

V.

Construction materials for installation, use or consumption on buildings which have been designated as landmarks, or are located within a designated historic district, if, at the time of application for a building permit, the applicant proves that the building has been so designated and that a certificate of appropriateness has been issued by the landmark designation commission for the improvements for which the materials will be used. The applicant shall also provide affidavits of the owner and contractor performing the construction on the building stating that the construction materials will be installed, used or consumed exclusively upon the building for which the permit has been issued. A minimum of 30 percent of the total cost of the project shall be used on the exterior of the structure, unless the commission designates a lesser amount to be used consistent with their findings under the certificate of appropriateness. No more than $25,000.00 of tax per year and no more than $12,500.00 of tax per site per year shall be exempted under this subsection;

W.

All sales of construction materials to contractors and subcontractors for use in the building, erection, alteration or repair of structures, highways, roads, streets and other public works owned and used by:

1.

The United States Government, the State of Colorado, its departments and institutions and the political subdivisions thereof in their governmental capacities only;

2.

Charitable organizations in the conduct of their regular charitable functions and activities.

X.

Occasional sales by a charitable organization. For purposes of this subsection, "occasional sales" means retail sales of tangible personal property for fundraising purposes if: (a) The sales of tangible personal property occur no more than 12 days, whether consecutive or not, during any one calendar year; (b) The funds raised by the charitable organization through these sales are retained by the organization to be used in the course of the organization's charitable purposes; and (c) The funds raised by the charitable organization through these sales do not exceed $25,000.00 during any one calendar year;

Y.

Any sale that benefits a Colorado school, if the sale is made by any of the following:

1.

A school;

2.

An association or organization of parents and school teachers;

3.

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

4.

A school class or student club, group, or organization. Nothing in this section shall be construed as creating an exemption or otherwise affecting an existing exemption, for a sale to a person or entity described in this section.

(Code 1981, § 2-4-11; Code 1993, § 4.04.090; Ord. No. O-79-17, § 2; Ord. No. O-85-64, § 1; Ord. No. O-85-109, § 2; Ord. No. O-86-71, § 1; Ord. No. O-87-15, § 1; Ord. No. O-87-51, § 1; Ord. No. O-87-75, § 1; Ord. No. O-88-29, § 1; Ord. No. O-90-20, §§ 2, 3; Ord. No. O-91-60, § 6; Ord. No. O-92-31, § 1; Ord. No. O-93-19, § 1; Ord. No. O-93-32, § 2; Ord. No. O-95-74, § 3; Ord. No. O-97-29, § 1; Ord. No. O-2000-31, § 1; Ord. No. O-2001-27, § 4; Ord. No. O-2002-69, §§ 1, 4; Ord. No. O-2008-68, § 2; Ord. No. O-2017-22, § 2, 4-25-2017)