DEPARTMENT OF REVENUE Taxpayer Service Division - Tax Group TON MILE TAX AND PASSENGER MILE TAX 1 CCR 201-9 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] _________________________________________________________________________ Changes to Rules and Regulations Relating to the Colorado Ton-Mile and Passenger Mile Regulations REPEAL in their entirety Regulations 42-3-123(11)(a) through 42-3-127, at 1 C.C.R 201-9 and add the following Regulations 42-3-123(1) through 42-3-1 The statutory basis for these regulations is 42-1-204 and 39-21-112, C.R.S. 1973.

a) to update and conform regulations to statutory changes;

b) to provide further clarification and guidance to the public in the administration of gross ton and passenger-mile taxes.

REGULATION 42-3-123(1)

Repealed, 01-01-78.

REGULATION 42-3-123(2) Reserved REGULATION 42-3-123(3) Reserved REGULATION 42-3-123(4) Reserved REGULATION 42-3-123(5) Reserved REGULATION 42-3-123(6) Reserved REGULATION 42-3-123(7) Reserved REGULATION 42-3-123(8) Reserved REGULATION 42-3-123(9) Reserved REGULATION 42-3-123(10) Reserved REGULATION 42-3-123(11)(a)

Every owner of vehicles licensed on farm plates has the burden of clearly establishing his right to such plates and must establish that the equipment owned or used by him is operated within both the intent and the letter of the law. To qualify for farm plates, the operation of such vehicles on the highways of this state must be no more than a simple and normal, traditional and necessary use of the highways by the kind and character of motor vehicles commonly used by farmers as a class. In addition, other factors to be considered by the Department in determining the validity of Code of Colorado Regulations 1 any farm registration will include the relative destructive effect on the highways as compared with motor vehicles commonly used by other commercial carriers, whether the use of the highways is seasonal or continuous, and the relative amount of the burden of road taxation borne by farmers as a class as compared with that borne by other commercial carriers. Vehicles whose only commercial use is the transporting of sod or turf over the highways of this state are entitled to farm registration if they meet the criteria for farm vehicles set forth above. Any vehicle used in connection with a feed lot operation is not entitled to farm registration. REGULATION 42-3-123(11)(b) Reserved REGULATION 42-3-123(11)(c)

Any person making application for registration under subsection (11) shall certify to the licensing authority on forms prescribed and furnished by the Department of Revenue that the use of the vehicle for which the registration application is made will be in conformity with the requirements of paragraph (a) of the statute as well as the provision of the regulation promulgated thereunder. The Department of Revenue will revoke the farm plates of any vehicle or vehicles found not to be in compliance with such requirements and provisions.

REGULATION 42-3-123(11) (d) Reserved REGULATION 42-3-123(11) (e) Reserved REGULATION 42-3-123(13) Reserved REGULATION 42-3-123(13.1) Reserved REGULATION 42-3-123(14) (a) Reserved REGULATION 42-3-123(14) (b)

Empty weight is the weight of any motor vehicle or trailer or any combination thereof, including the operating parts, safety equipment, and accessories (permanently affixed to the truck) as determined by weighing on a certified scale. This would include, but not be limited to any necessary beds, platforms, tanks, or racks which have been added. This would also include at least one-half tank of fuel but not the weight of the driver. A manufacturer's list weight is generally not acceptable as the empty weight of any unit or combination. REGULATION 42-3-123(14) (c)

(I) For purposes of ton mile tax, cargo is anything in excess of empty weight. Cargo includes, but is not limited to: payload, crates, ladders, meat hooks, pallets, bracing, bedding, tools, padding, dollies, and any other items that are not permanently affixed to the unit or combination.

(II) In order to simplify the gross ton mile tax computation, especially for smaller operations, the taxpayer should obtain an average weight factor from the Department based on information submitted by the taxpayer./ The average weight factor is a combination of empty vehicle weight and average cargo weight. This combined factor is multiplied by the number of miles traveled within Colorado to arrive at the ton mile tax liability. Empty vehicle weight should also be averaged if an owner or operator has more than one vehicle or combination. Vehicles or combinations must be grouped as to class, operation, or other distinguishing features within a fleet to compute an average empty vehicle Code of Colorado Regulations 2 weight and average cargo weight. This average weight factor shall be valid for a two year period. The Department is to be notified immediately of any change in equipment or operation. A change in equipment or operation shall occur whenever a fleet increases or decreases by more than 5%, or the average cargo increases or decreases by more than 5%. REGULATION 42-3-123(15)

To qualify for exemption under (d) above, the vehicle must be equipped to hoist and tow wrecked or disabled vehicles for purposes of wrecking or repairing and must not be equipped to transport cargo.

REGULATION 42-3-123(16)

This section pertains to motor vehicles operated pursuant to a temporary certificate issued by the Public Utilities Commission. Under the authority of 40-10-104 C.R.S. 1973, the Public Utilities Commission may declare an emergency for a definite time which may be limited to specific areas and unprocessed agricultural products. Based on such a declaration the Department of Revenue may issue a temporary certificate of convenience and necessity to qualified applicants.

(a) This certificate follows the P.U.C. order by designating the unprocessed agricultural product, the names of the counties in which the emergency has been declared to exist and the limits of time for which they may be issued. Emergency declarations by the P.U.C. authorize the issuance of a temporary certificate to allow trucks, truck-tractors and trailers, or semitrailers to haul specific unprocessed agricultural commodities.

(b) Payment for temporary certificates may be made to the Department of Revenue or the Highway Patrol.

REGULATION 42-3-123(18)

Commercial passenger carriers including mass transit vehicles that are exempt when operating within a city, city and county, or incorporated town are subject to a passenger mile tax when operating outside these designated areas. Commercial passenger carriers operated by public school districts, churches, boy or girl scout troops, or similar organizations are exempt from passenger mile tax if no direct charge is made for transportation to the user of the service. REGULATION 42-3-123(19) Reserved REGULATION 42-3-123(20) Reserved REGULATION 42-3-123(21) Reserved REGULATION 42-3-123(22) Reserved REGULATION 42-3-123(23) Reserved REGULATION 42-3-124 Reserved REGULATION 42-3-125 Reserved REGULATION 42-3-131 Reserved _________________________________________________________________________ Editor’s Notes History Code of Colorado Regulations 3 Code of Colorado Regulations 4