CO HB1240

Provides a sales and use tax exemption for construction and building materials used to repair or rebuild residential structures damaged or destroyed by wildfires declared as disasters between January 1, 2020 and January 1, 2023.

Exemption is administered as a refund equal to 4 percent of estimated construction and building materials costs, claimed by qualified homeowners who obtain a building permit and wildfire rebuild exemption certificate from their local government.

Applies only to state sales and use taxes, not to local government taxes, except that the Regional Transportation District and Scientific and Cultural Facilities District are exempt from this exclusion.

Refund claims must be filed on or before June 30, 2028, and homeowners must certify they owned the structure at the time of damage and that replacement costs exceed insurance coverage.

Appropriates $72,267 to the Department of Revenue for administration (0.9 FTE and operating expenses) and repeals the exemption effective July 1, 2028.