Colorado Code § 39-26-710

Railroads - construction and building materials - tangible personal property - work equipment - rolling stock
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(1) The following shall be exempt from taxation
under the provisions of part 1 of this article:
(a) The sale of construction and building materials to a common carrier by rail operating
in interstate or foreign commerce for use by the common carrier in construction and maintenance
of its railroad tracks; however, any actual use of such construction and building materials shall,
at the time of the actual use, be subject to the tax imposed by part 2 of this article and any use tax
imposed pursuant to article 2 of title 29, C.R.S.;
(b) The sale of tangible personal property that is to be affixed or attached as a
component part of a locomotive, a freight car, railroad work equipment, or other railroad rolling
stock; and
(c) The sale of locomotives, freight cars, railroad work equipment, and other railroad
rolling stock used or purchased for use in interstate commerce by a railroad company.
(2) The following shall be exempt from taxation under the provisions of part 2 of this
article:
(a) The storage, use, or consumption of any tangible personal property that is to be
affixed or attached as a component part of a locomotive, a freight car, railroad work equipment,
or other railroad rolling stock; and
(b) The storage, use, or consumption of locomotives, freight cars, railroad work
equipment, and other railroad rolling stock used or purchased for use in interstate commerce by a
railroad company.

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