CO HB1115

Exempts all sales and purchases of fencing material used in farm operations from Colorado sales and use tax, effective for purchases on and after January 1, 2021.

Defines "fencing material" to include barbed wire, smooth wire, strainers, tensioners, fencing staples, T posts, wire clips, treated round posts, prefabricated welded fence panels, agricultural corral-type gates, electric fencing posts, solar panels for electric fences, ribbon, rope, and braided wire.

Requires purchasers to file a declaration of entitlement with the retailer to receive the exemption.

Legislative declaration states the exemption is justified because fencing materials are a necessary input cost of crop production and animal husbandry in Colorado.

Act takes effect 90 days after final adjournment of the general assembly (August 5, 2020), or upon voter approval in November 2020 if a referendum petition is filed.