C.R.S. Section 39-26-714
Vending machines

  • definitions

(1)

Intentionally left blank —Ed.

(a)

Every vendor selling individual items of personal property through vending machines shall pay a sales tax pursuant to section 39-26-106 (2)(b) on the personal property sold in excess of fifteen cents through the vending machines unless the sale is otherwise exempt under the provisions of this part 7.

(b)

To be eligible for the exemption provided for in this subsection (1), each vendor shall:

(I)

Be licensed under section 39-26-103;

(II)

Maintain a record of the identification number, ownership, location, and disposition of every vending machine used by the vendor in his or her operation as a vendor;

(III)

Within sixty days after commencing business as such vendor, submit to the department of revenue an accurate list containing the information required under subparagraph (II) of this paragraph (b) and submit such list annually thereafter on January 1, commencing in 1971;

(IV)

Make application to the department of revenue for identification numbers to be affixed to every such vending machine, in accordance with rules promulgated by the executive director of the department of revenue;

(V)

Remit a fee of ten cents per machine with the application submitted under subparagraph (IV) of this paragraph (b), to defray the expenses of the department of revenue in furnishing the identification numbers; except that the executive director of the department of revenue by rule or as otherwise provided by law may reduce the amount of the fee if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of the fee is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director by rule or as otherwise provided by law may increase the amount of the fee as provided in section 24-75-402 (4), C.R.S.

(c)

Any unregistered vending machine found being used for retail sales at any place in this state without the prescribed identification number affixed thereto may be seized without warrant by the department of revenue, its agents, or employees or by any peace officer when directed or requested by the department. At the time of seizure, written notice of seizure shall be given to the proprietor or person in charge of the business, or to the agents or employees of the proprietor or person in charge of the business, where the vending machine is seized. The department shall also give notice by first-class mail as set forth in section 39-21-105.5 to the person whose name and mailing address appear on the machine. The department shall not be required to seize and confiscate any unregistered vending machine or assess a penalty when there is reason to believe that the owner is not intentionally evading the tax imposed by this article.

(d)

In addition to any other penalty provided by law, the department of revenue is authorized to assess and collect a penalty of twenty-five dollars for each unregistered vending machine being operated in this state.

(e)

Upon proof of ownership, the department of revenue shall deliver to the owner any vending machine seized under paragraph (c) of this subsection (1) after payment of the twenty-five-dollar penalty and seizure costs, if the owner is liable therefor, and upon registration of the machine. At the expiration of sixty days after the date of notice, any unregistered vending machine and the contents therein still in the possession of the department may be sold at public sale to the highest bidder, but, prior to any such sale, ten days’ notice of the sale shall be given by first-class mail as set forth in section 39-21-105.5 to those entitled to notice under paragraph (c) of this subsection (1).

(2)

On and after January 1, 2000, all sales and purchases of food, as defined in section 39-26-102 (4.5), by or through vending machines shall be exempt from taxation under the provisions of part 1 of this article; except that, on and after May 1, 2010, sales and purchases of candy and soft drinks by or through vending machines shall be subject to state sales taxation. Absent an express provision in the contract to the contrary, any vending machine contract that references the price at which products shall be sold from a vending machine shall be interpreted to include any applicable sales tax as an addition to the referenced price.

(3)

On and after January 1, 2000, the storage, use, or consumption of food, as defined in section 39-26-102 (4.5), purchased by or through vending machines shall be exempt from taxation under the provisions of part 2 of this article; except that, on and after May 1, 2010, the storage, use, or consumption of candy and soft drinks purchased by or through vending machines shall be subject to state use taxation.

(4)

For the purposes of this section:

(a)

“Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruit, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. “Candy” shall not include any preparation containing flour and shall require no refrigeration.

(b)

“Soft drinks” means nonalcoholic beverages that contain natural or artificial sweeteners. “Soft drinks” do not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than fifty percent of vegetable or fruit juice by volume.

(5)

The department of revenue shall promulgate rules, in accordance with article 4 of title 24, C.R.S., to provide a means by which a person who sells candy or soft drinks purchased by and through vending machines may, if necessary, reasonably estimate the amount of sales taxes due on such candy and soft drinks. For any return made prior to August 1, 2010, a person who sells candy or soft drinks at retail shall not be liable for any interest or other penalty imposed as a result of an error made in connection with the elimination of the exemption from state sales tax for sales of candy and soft drinks, as defined in subsection (4) of this section, by House Bill 10-1191, enacted in 2010.

Source: Section 39-26-714 — Vending machines - definitions, 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

§ 39-26-714’s source at colorado​.gov