C.R.S. Section 39-26-205
Tax constitutes lien

  • exemption from lien

(1)

The tax imposed by section 39-26-202 shall be a first and prior lien on the tangible personal property stored, used, or consumed, subject only to any valid mortgage or other liens of record on and prior to the recording of notice as required by section 39-26-118 (3), and, when such tax is collected by retailers or agents, shall be a first and prior lien on all the stock of goods or business fixtures of or used by such retailer, excepting goods sold in the ordinary course of business, which lien shall have precedence over all other liens of whatsoever kind or nature, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights have attached prior to the filing of the notice on property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer.

(2)

Upon default of payment thereof, the executive director of the department of revenue, after demand upon the person owing such tax, may bring an action in his name as executive director in attachment and seize property as authorized by this section to secure the payment of said tax, interest, and penalties. In any such proceeding, no bond shall be required of the executive director, nor shall any sheriff require from the executive director an indemnifying bond for executing the writ of attachment or levy, and no sheriff shall be liable in damages when acting in accordance with such writs. The remedies provided in this section shall be in addition to all other remedies.

(3)

Any taxpayer or person in possession shall provide a copy of any lease pertaining to the assets and property described in subsection (1) of this section to the department of revenue within ten days after seizure by the department of such assets and property. The department shall verify that such lease is bona fide and notify the owner that such lease has been received by the department. The department shall use its best efforts to notify the owner of the real or personal property which might be subject to the lien created in subsection (1) of this section. The real or personal property of an owner who has made a bona fide lease to any taxpayer described in subsection (1) of this section shall be exempt from the lien created therein if such property can reasonably be identified from the lease description or if the lessee is given an option to purchase in such lease and has not exercised such option to become the owner of the property leased. This exemption shall be effective from the date of the execution of the lease. Such exemption shall also apply if the lease is recorded with the county clerk and recorder of the county where the property is located or based or a memorandum of the lease is filed with the department of revenue on such forms as may be prescribed by said department after the execution of the lease at a cost for such filing of two dollars and fifty cents per document. Motor vehicles which are properly registered in this state, showing the lessor as owner thereof, shall be exempt from the lien created in subsection (1) of this section; except that said lien shall apply to the extent that the lessee has an earned reserve, allowance for depreciation not to exceed fair market value, or similar interest which is or may be credited to the lessee. Where the lessor and lessee are blood relatives or relatives by law or have twenty-five percent or more common ownership, a lease between such lessee and such lessor shall not be considered as bona fide for purposes of this section.

(3.5)

Any coin-operated vending machine or video or other game machine shall be exempt from the lien created in subsection (1) of this section if:

(a)

The machine is placed on the retailer’s premises under the terms of a lease or other agreement under which the retailer is given no right to become the owner of the machine;

(b)

The machine is plainly marked in a location accessible to agents of the department of revenue with information sufficient to permit identification of the owner of said property; and

(c)

The owner of the machine has filed with the department of revenue a schedule listing the machine by serial number and including thereon the owner’s full name and the address of his business and such other information as the executive director of the department of revenue may require. To protect the anonymity of owners of property, the executive director of the department of revenue may permit the marking of property covered by this subsection (3.5) to be marked using numbers or other coded identification.

(4)

Any retailer who is in possession of property under the terms of a lease, which property is exempt from the lien as provided in this section, may be required by the executive director to remit tax funds due at more frequent intervals than monthly, but no more frequently than semimonthly, or may be required to furnish security for the proper payment of taxes whenever the collection of taxes appears to be in jeopardy.

Source: Section 39-26-205 — Tax constitutes lien - exemption from lien, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-39.­pdf (accessed Oct. 20, 2023).

39‑26‑101
Short title 39‑26‑102
Definitions 39‑26‑102.5
Change of references from “Internal Revenue Code of 1954” to “Internal Revenue Code of 1986” 39‑26‑103
Licenses - fee - revocation - definition 39‑26‑103.5
Qualified purchaser - direct payment permit number - qualifications 39‑26‑104
Property and services taxed - definitions 39‑26‑105
Vendor liable for tax - definitions - repeal 39‑26‑105.2
Remittance of tax - GIS - vendor held harmless - requirements of GIS database - rules - definition 39‑26‑105.3
Remittance of tax - electronic database - vendor held harmless - repeal 39‑26‑105.4
Remittance of tax - determination of address - dealer held harmless 39‑26‑105.5
Remittance of sales taxes - electronic funds transfers 39‑26‑106
Schedule of sales tax 39‑26‑107
Rules and regulations 39‑26‑108
Tax cannot be absorbed 39‑26‑109
Reports of vendor 39‑26‑111
Credit sales 39‑26‑112
Excess tax - remittance - repeal 39‑26‑113
Collection of sales tax - motor vehicles - off-highway vehicles - exemption - process for motor vehicles sold at auction - exception - definition 39‑26‑113.5
Refund of state sales taxes for vehicles used in interstate commerce - fund 39‑26‑115
Deficiency due to negligence 39‑26‑116
Record of sales 39‑26‑117
Tax lien - exemption from lien 39‑26‑118
Recovery of taxes, penalty, and interest - repeal 39‑26‑119
License and tax additional 39‑26‑120
False or fraudulent return, statement - penalty 39‑26‑121
Penalty 39‑26‑122
Administration 39‑26‑122.5
Collection of sales tax - enhanced efficiencies - intergovernmental agreements with local governments - legislative declaration 39‑26‑123
Receipts - disposition - transfers of general fund surplus - sales tax holding fund - creation - definitions 39‑26‑124
Applicability to banks 39‑26‑125
Limitations 39‑26‑126
Legislative finding as to revenues for old age pension fund 39‑26‑127
Legislation modifying the state sales tax base - no impact on local government sales tax bases - no expansion of local authority to levy sales tax 39‑26‑128
Uniform sales and use tax base - definition 39‑26‑129
Refund for property used in rural broadband service - legislative declaration - definitions 39‑26‑201
Definitions 39‑26‑202
Authorization of tax 39‑26‑204
Periodic return - collection 39‑26‑204.5
Remittance of tax - electronic database - retailer held harmless - repeal 39‑26‑204.6
Remittance of tax - determination of address - motor vehicle dealer held harmless 39‑26‑205
Tax constitutes lien - exemption from lien 39‑26‑206
Failure to make return 39‑26‑207
Penalty interest on unpaid tax 39‑26‑208
Collection of use tax - motor vehicles 39‑26‑209
Rules and regulations 39‑26‑210
Limitations 39‑26‑211
Applicability to banks 39‑26‑212
Legislation modifying the state use tax base - no impact on local government use tax bases - no expansion of local authority to levy use tax 39‑26‑401
Definitions 39‑26‑402
Refund of state sales and use tax for biotechnology - application requirements and procedures 39‑26‑701
Definitions 39‑26‑702
Department of revenue - rules 39‑26‑703
Disputes and refunds - repeal 39‑26‑704
Miscellaneous sales tax exemptions - governmental entities - hotel residents - schools - exchange of property 39‑26‑705
Miscellaneous use tax exemptions - printers ink and newsprint - manufactured goods 39‑26‑706
Miscellaneous sales and use tax exemptions - internet access - refractory materials - precious metal bullion and coins 39‑26‑707
Food, meals, beverages, and packaging - definitions 39‑26‑708
Construction and building materials - legislative declaration - definition 39‑26‑709
Machinery and machine tools - definitions 39‑26‑710
Railroads - construction and building materials - tangible personal property - work equipment - rolling stock 39‑26‑711
Aircraft - tangible personal property 39‑26‑711.5
Aircraft - use outside state 39‑26‑711.8
Aircraft - use outside state - on-demand air carriers 39‑26‑711.9
Historic aircraft on loan for public display - definition 39‑26‑712
Trailers and trucks 39‑26‑713
Tangible personal property 39‑26‑714
Vending machines - definitions 39‑26‑715
Fuel and oil - definitions 39‑26‑716
Agriculture and livestock - special fuels - definitions 39‑26‑717
Drugs and medical and therapeutic devices - legislative declaration - definitions - repeal 39‑26‑718
Charitable organizations - association or organization of parents and teachers of public school students 39‑26‑719
Motor vehicles 39‑26‑720
Bingo equipment 39‑26‑721
Manufactured homes and tiny homes 39‑26‑723
Colorado wood products - repeal 39‑26‑724
Components used to produce energy from a renewable energy source - definitions 39‑26‑725
Sales related to a school - definitions 39‑26‑726
Medical marijuana - debilitating conditions and ability to purchase 39‑26‑727
Tribal exemption - motor vehicles - partial interest - definition - legislative declaration 39‑26‑728
Property for use in space flight - definitions 39‑26‑729
Retail sales of marijuana 39‑26‑730
Sales and use tax exemption forms - simplification - legislative declaration 39‑26‑731
Eligible decarbonizing building materials - tax preference performance statement - legislative declaration - definition - repeal 39‑26‑732
Heat pump systems - tax preference performance statement - legislative declaration - definitions - repeal 39‑26‑733
Residential energy storage systems - tax preference performance statement - legislative declaration - definition - repeal 39‑26‑734
Rebuilding from declared wildfire disaster - tax preference performance statement - legislative declaration - definitions - repeal 39‑26‑801
Legislative declaration 39‑26‑802
Sales and use tax simplification task force - creation 39‑26‑802.5
Sales and use tax simplification - request for information 39‑26‑802.7
Electronic sales and use tax simplification system - sourcing method - implementation - legislative intent - definitions 39‑26‑802.9
Retailers without physical presence or with only incidental physical presence in local taxing jurisdictions - streamlined application process and no fee for local general business license - legislative declaration - definitions 39‑26‑803
Gifts, grants, or donations 39‑26‑804
Repeal of part
Green check means up to date. Up to date

Current through Fall 2024

§ 39-26-205’s source at colorado​.gov