House Bill 22-1039 Summary

• Department of Revenue must examine and simplify sales and use tax exemption forms by July 1, 2023, including consolidating or eliminating forms where feasible without impairing proper administration of exemptions.

• Exemption forms for construction materials, machinery, aircraft, trailers/trucks, farm equipment, and Colorado wood products may be consolidated or eliminated at the Department's discretion under the new simplification authority.

• Forms affected include certificates of exemption for contractors, declarations of entitlement for machinery purchases, affidavits for aircraft and vehicle purchases for out-of-state use, and farm equipment certifications.

• Department retains authority to verify eligibility for exemptions and maintain proper tax administration while reducing compliance burdens on taxpayers claiming exemptions.

• Act takes effect 90 days after final adjournment of the general assembly, unless subject to a referendum petition, in which case it requires voter approval at the November 2022 general election.