CO SB124

Expands the definition of "manufacturing" in Colorado tax code to include processing of recovered materials, making equipment used for this purpose eligible for sales tax exemption.

Defines "recovered materials" as materials separated, diverted, or removed from the waste stream for remanufacturing, reuse, or recycling.

Exempts machinery and machine tools (over $500) used in recovered materials processing by businesses listed in the Department of Public Health and Environment inventory from state and local sales taxes.

Allows local jurisdictions to opt into the recovered materials equipment exemption only through express inclusion in their sales tax ordinances, either at initial adoption or by amendment.

Effective date for all covered sales is July 1, 2016.