- “Special Mobile Machinery” means machinery that is pulled, hauled, or driven over a highway and is either; a vehicle or equipment that is not designed primarily for the transportation of persons or cargo over the public highways; or a motor vehicle that may have been originally designed for the transportation of persons or cargo over the public highways, and has been redesigned or modified by the addition of mounted equipment or machinery, and is only incidentally operated or moved over the public highways. Special mobile machinery includes vehicles commonly used in the construction, maintenance, and repair of roadways, the drilling of wells, and the digging of ditches. C.R.S. 42-1-102(93.5)
- “Mounted Equipment” means any item weighing more than five hundred pounds that is permanently mounted on a vehicle, including mounting by means such as welding or bolting the equipment to a vehicle. C.R.S. 42-1-102(60)
- “Power Takeoff Equipment (PTO)” means equipment that is attached to a motor vehicle and is powered by the motor that powers the locomotion of the motor vehicle. C.R.S. 42-1-102(72.2)
- SMM Decision Tool
Complete a SMM Vehicle Information Worksheet. This form will aid the County Clerk in determining how the SMM will be registered. (Please note that Sales Tax will be collected prior to completing the SMM registration if it has not been previously collected.)
For SMM required to be titled and registered the following documents will be required:
- Title
- MSO
- Bill of Sale
- Invoice or Statement of Fact and;
- VIN Verification and;
- Secure and Verifiable Identification
For SMM required to be registered:
- Bill of Sale
- Invoice or Statement of Fact and;
- Secure and Verifiable Identification
- SMM Title and Registration Too
In order to correctly determine the tax class of any vehicle with mounted equipment, there are several factors that must be considered.
Tax Classes Defined:
- Class A includes motor vehicles and trailers used in interstate commercial business to carry people or property
- Class B includes motor vehicles and trailers used in intrastate business to carry people or property, light trucks and recreational trucks for personal use that are not included in Class A
- Class C includes motor vehicles not included in Classes A and B (largely passenger vehicles)
- Class D includes utility, camper trailers, trailer-coaches and multi-purpose trailers
- Class F includes every item of special mobile machinery, except power takeoff equipment. If a farm tractor meets the definition of special mobile machinery, see the Registration page here.
Power Takeoff Equipment (PTO) is defined as equipment that is attached to a motor vehicle and is powered by the motor that powers the locomotion of the motor vehicle. C.R.S. 42-1-102(72.2)
PTO will no longer be registered as Tax Class F (SMM)
- The weight and value of all mounted PTO shall be combined with the vehicles weight and value when titling a vehicle.
- In all cases, the model year of the vehicle, not the PTO equipment, shall be used to determine the model year for taxable value.
The Special Mobile Machinery (SMM) 2% Rental Program is an alternative payment program allowing Colorado SMM companies who rent or lease SMM, for at least 30 days in a calendar year, to pay the Ownership Tax on 2% of the rental or lease amount rather than paying the Ownership Tax for a full year. Application must be made at the county in which the SMM is located to participate in this program.
SMM that is enrolled in the 2% Rental Program is required to be registered with the SMM registration and the SMM rental decal expiring concurrently. Evidence of the SMM registration will be with the SMM license plate or the SMM ownership decal. The SMM rental decal shall not evidence SMM registration. SMM participating in the 2% Rental Program is required to display the SMM license plate or SMM ownership decal and the SMM rental decal.
Requirements for a company to enroll in the SMM 2% Rental Program are the completion and the submission of:
- Permit to Collect Sales Tax on a Rental or Lease Basis to the Department of Revenue Sales Tax Division.
- Special Mobile Machinery (SMM) 2% Ownership Tax Authorization Request and Permit to Collect Sales Tax on a Rental or Lease Basis form to the county in which the company is located.
- Special Mobile Machinery (SMM) 2% Ownership Tax Authorization Request every year to the county office for approval for continued enrollment.
An SMM owner may elect to operate SMM under a “Pending Registration”. In order to do this the SMM owner shall apply to the Title and Registration Sections using the DR 2428 Fleet Owner Request For Participation In The Colorado Fleet Registration Program (CFRP) form. Upon approval the SMM owner may operate the SMM for one quarter using the DR 2428 as proof of pending registration. SMM owner is still required to collect 2% specific ownership tax and report and remit to the counties that the SMM is operating in under the “Pending Registration”.
- Upon registering the SMM, after operating for one quarter under a pending registration the county will collect a $7.00 pending registration fee. The fee is distributed:
- $3.60 County Retained
- $0.40 Highway Users Tax Fund
- $3.00 Newly created administration and enforcement account
Farm Tractors and Implements of Husbandry are exempt from registration and subsequently the payment of SOT.
“Farm Tractor” means every implement of husbandry designed and used primarily as a farm implement for drawing plows and mowing machines and other implements of husbandry. C.R.S. 42-1-102 (33)
"Implement of husbandry” means every vehicle that is designed, adapted, or used for agricultural purposes. It also includes equipment used solely for the application of liquid, gaseous, and dry fertilizers. C.R.S. 42-1-102 (44)
The 72-hour Rule
If a Farm Tractor/Implement of Husbandry is used for purposes other than agricultural production for more than 72 hours it may require a prorated SMM registration, you’ll need to visit your local county DMV.
Renting Farm Vehicles/Equipment from a 2% Rental Program
Farmers that rent farm equipment/SMM from a company enrolled in a 2% Rental Program, are required to pay the 2% SOT rental fees. §42-3-107(16)(c)(I).
Late Fees and Penalties - Failure to register SMM may result in:
- The assessment of a late fee
- The assessment of an administrative penalty
- Detained or impounding of SMM with the Colorado Port of Entry
- SMM equipment is eligible for Temporary Registration Permits.
Newly established businesses that own SMM should contact the Secretary of State for business requirements by calling 303-894-2200.