CO HB1386

Creates a sales and use tax refund for 2015 for recycling and composting facilities that submit annual reports to the Department of Public Health and Environment, allowing them to claim refunds for waste reduction or recycling equipment purchased that year by April 1, 2016.

Converts the refund to a sales and use tax exemption for calendar years 2016 and 2017 for the same facilities, requiring purchasers to file a declaration of entitlement with both the vendor and the Department of Revenue.

Defines "waste reduction or recycling equipment" as new or used machinery operated exclusively in Colorado to collect, separate, process, or treat solid waste for reuse as raw materials or products, excluding motor vehicles.

Excludes facilities engaged in waste-to-energy processes (pyrolysis, gasification, plasma arc), beneficial use of solid wastes, or industrial recycling operations from the exemption eligibility.

Allows local governments to adopt the waste reduction or recycling equipment exemption in their sales tax ordinances only through express inclusion at initial adoption or subsequent amendment, aligning treatment with manufacturing machinery exemptions.