C.R.S. Section 39-26-734
Rebuilding from declared wildfire disaster

  • tax preference performance statement
  • legislative declaration
  • definitions
  • repeal

(1)

In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:

(a)

The general legislative purpose of the exemption allowed by this section is to provide tax relief for certain individuals;

(b)

The specific legislative purpose of the exemption allowed by this section is to provide financial relief to Coloradans recovering and rebuilding from declared wildfire disasters; and

(c)

The general assembly and the state auditor shall measure the effectiveness of the exemption allowed by this section based on the number of wildfire exemption certificates issued pursuant to subsection (5) of this section, the number and amount of all refund claims allowed pursuant to this section, and an estimate by the state auditor of the proportion of homeowners affected by declared wildfire disasters who benefitted from the exemption in the rebuilding or repairing of their homes.

(2)

As used in this section, unless the context otherwise requires:

(a)

“Building permit” means the document or documents issued by a local government to a qualified homeowner showing the estimated amount of use tax collected, if any, in connection with rebuilding or repairing the qualified homeowner’s qualified residential structure.

(b)

“Declared wildfire disaster” means a wildfire that was declared a disaster emergency by the governor pursuant to section 24-33.5-704 (4) on or after January 1, 2020, but before January 1, 2023.

(c)

“Department” means the department of revenue.

(d)

“Estimated construction and building materials cost” means the cost amount used by the local government to collect estimated use tax in connection with the issuance of a building permit. If no estimated use tax has been collected, “estimated construction and building materials cost” means half of the total contract price or total cost for rebuilding or repairing a qualified residential structure.

(e)

“Executive director” means the executive director of the department of revenue.

(f)

“Local government” means a county, city and county, or municipality.

(g)

“Qualified homeowner” means a homeowner that is rebuilding or repairing or has employed a contractor to rebuild or repair a qualified residential structure that the homeowner owned at the time of a declared wildfire disaster.

(h)

“Qualified residential structure” means a residential structure that was damaged or destroyed by a declared wildfire disaster.

(i)

“Wildfire rebuild exemption certificate” means a written certification provided by a local government to a qualified homeowner that certifies that one or more building permits specifically identified therein have been issued to the qualified homeowner for rebuilding or repairing a qualified residential structure.

(3)

Intentionally left blank —Ed.

(a)

The sale, storage, use, or consumption of construction and building materials used directly in rebuilding or repairing a qualified homeowner’s qualified residential structure is exempt from taxation under parts 1 and 2 of this article 26 as set forth in this section.

(b)

The exemption created in subsection (3)(a) of this section shall be administered solely as a refund allowed to qualified homeowners to be applied for in accordance with this section and section 39-26-703. No retailer may exempt any sale pursuant to this section.

(c)

The exemption created in subsection (3)(a) of this section applies only to the state sales and use taxes levied pursuant to this article 26. Notwithstanding any other provision of law, the exemption shall not apply to the sales or use taxes levied by any local government, including any city, town, county, special purpose district, or limited purpose governmental entity; except that this subsection (3)(c) does not apply to the regional transportation district established by article 9 of title 32 or the scientific and cultural facilities district established by article 13 of title 32.

(4)

Intentionally left blank —Ed.

(a)

A qualified homeowner may claim a refund allowed pursuant to subsection (3) of this section for each qualified residential structure for which the qualified homeowner obtains a building permit and a wildfire rebuild exemption certificate issued by a local government in accordance with subsection (5) of this section.

(b)

The amount of a refund claimed pursuant to this section shall be equal to four percent of the estimated construction and building materials cost for repairing or rebuilding the qualified residential structure that is the subject of the building permit and wildfire rebuild exemption certificate.

(c)

A qualified homeowner must submit a claim for refund on the form and in the manner prescribed by the executive director. The claim for refund must include the wildfire rebuild exemption certificate issued in accordance with subsection (5) of this section and a true and correct copy of each building permit identified in the wildfire rebuild exemption certificate.

(d)

The three-year application deadline in section 39-26-703 (2)(d) for a sales tax refund or refund of any use tax collected by a vendor does not apply to a claim for refund made pursuant to this section. A claim for refund made pursuant to this section must be filed on or before June 30, 2028.

(5)

Intentionally left blank —Ed.

(a)

The local government with jurisdiction to issue a building permit in an area affected by a declared wildfire disaster may issue a wildfire rebuild exemption certificate to a qualified homeowner. A wildfire rebuild exemption certificate must clearly identify the qualified homeowner, the contractor employed by the homeowner, if applicable, and each building permit issued by the local government to the qualified homeowner for rebuilding or repairing a qualified residential structure.

(b)

To obtain a wildfire rebuild exemption certificate, a homeowner must certify, in a form prescribed by the executive director, that:

(I)

The homeowner was the owner of each qualified residential structure to be rebuilt or repaired at the time the structure was damaged or destroyed by the declared wildfire disaster; and

(II)

The replacement cost for each qualified residential structure to be rebuilt or repaired exceeds the homeowner’s coverage under any homeowner’s insurance policy associated with the structure.

(c)

On or before September 30, 2023, and on or before September 30 of each calendar year thereafter through September 30, 2025, a local government shall provide the department with an electronic report of the number of wildfire rebuild exemption certificates issued by the local government for the preceding calendar year.

(6)

The executive director shall:

(a)

Provide a form for the wildfire rebuild exemption certificate to the proper official of the local government with jurisdiction to issue a building permit in an area after determining that the area was affected by a declared wildfire disaster;

(b)

Modify existing forms or create new forms as necessary to facilitate refund claims made pursuant to this section; and

(c)

Adopt rules for the administration and enforcement of this section.

(7)

In making a refund or allowing a credit pursuant to section 39-26-703, the department shall prioritize applications for refunds submitted pursuant to this section over refund applications submitted pursuant to other provisions of law.

(8)

This section is repealed, effective July 1, 2028.

Source: Section 39-26-734 — Rebuilding from declared wildfire disaster - tax preference performance statement - legislative declaration - definitions - repeal, 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

§ 39-26-734’s source at colorado​.gov