Certain items used for agriculture are exempt from Arvada sales and use taxes. See Arvada Municipal Code Chapter 98 - Taxation.
Farm equipment
Qualifying farm machinery and parts are exempt from Arvada sales and use taxes. The exemption for qualifying farm equipment applies.
Qualifying Farm Equipment includes:
- farm tractors and implements of husbandry
- irrigation equipment
- baling materials
- shipping materials purchased by a farm operation
- dairy equipment
Qualifying equipment is exempt when used in a for-profit farm operation that produces:
- livestock
- milk
- honey
- poultry and eggs
- agricultural, winegrowing, fruit, and vegetable products
Non-Qualifying Equipment
The following equipment does not qualify for the exemption:
- Trucks of one ton manufactured rated capacity or less
- Lawn and garden tillers
- Mowers and renovators
Required Documentation
The lessor or seller of exempt farm equipment must obtain and retain a complete signed form DR 0511, Affidavit for Colorado Sales Tax Exemption for Farm Equipment, in which the lessee, renter, or purchaser affirms that the equipment will be stored, used, or consumed primarily and directly in a farm operation.
Livestock and Related Exemptions
Livestock are exempt from Arvada sales and use taxes, as are certain items related to such animals.
Livestock
For Arvada sales and use tax purposes, livestock include the following animals, regardless of use:
- cattle
- sheep
- ostrich
- horses
- lambs
- llama
- mules
- poultry
- alpaca
- burros
- swine
- goats
Tax-exempt livestock also includes:
- domesticated elk or deer raised on a farm or ranch licensed as an alternative livestock farm by the Board of Stock Inspection Commissioners (Brand Board)
- any other animal raised primarily for food, fiber, or hide production
Household pets are not considered livestock for sales and use tax purposes.
Other Exemptions Related to Livestock
The following items are also exempt from Arvada sales and use taxes:
- feed for livestock
Agricultural Compounds
Compounds used in caring for livestock are exempt from Arvada sales and use taxes.
The exemption applies specifically to:
- insecticides
- fungicides
- growth-regulating chemicals
- enhancing compounds
- vaccines
- hormones
- drugs used to prevent or treat disease or injury in livestock
- animal pharmaceuticals approved by the Food and Drug Administration
Fertilizer and spray adjuvants
Fertilizer and sprays are exempt from taxes when used in agricultural production. They are not exempt when used after harvest or after they are ready for market.
Exemptions are allowed for products in their natural state or as processed. This includes, but is not limited to:
- wheat
- hay
- corn
- millet
- oats
- hops
- rice
- milo
- bees and honey
- poultry and poultry products
- milk and milk products
- timber and timber products
- sugar beets
- barley
- malting barley
- any other feed grain
The exemptions are not allowed when used to produce marijuana products.
Fertilizer
Fertilizers with chemical or organic forms of the following are eligible for exemption:
- nitrogen (N)
- phosphorus (P2O5)
- potassium (K2O)
- calcium (Ca)
- magnesium (Mg)
- sulfur (S)
- boron (B)
- copper (Cu)
- iron (Fe)
- manganese (Mn)
- molybdenum (Mo)
- zinc (Zn)
- other secondary and micronutrients
The sales tax exemption for fertilizer does not apply to:
- specialty fertilizer distributed for nonfarm use (home gardens, lawns, flowers, etc.)
- any other product not labeled as a fertilizer under the requirements established by the Colorado Commissioner of Agriculture
For more information about fertilizer product classifications, visit the Colorado Department of Agriculture website.
Spray Adjuvants
Exempt spray adjuvants are products used to increase the effectiveness of a pesticide used for livestock or farming.
Pesticides are not exempt from Arvada sales and use tax.
*This information is a summary in layman's terms of the relevant Arvada tax law for this subject, industry, or business segment. It is not intended for legal purposes to be substituted for the full text of the Arvada tax code. However, the tax guide shall be used in conjunction with the Arvada tax code (chapter 98) in determining tax liability.