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Mounted Equipment Tax Class Decision Tool Exercise Provided by the Colorado Department of Revenue Title and Registration Sections.

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Presentation on theme: "Mounted Equipment Tax Class Decision Tool Exercise Provided by the Colorado Department of Revenue Title and Registration Sections."— Presentation transcript:

1 Mounted Equipment Tax Class Decision Tool Exercise Provided by the Colorado Department of Revenue Title and Registration Sections

2 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 2 Before You Begin This short presentation is designed to allow you the opportunity to use the Mounted Equipment Tax Class Decision Tool in a self-explanatory exercise. To get the most out of this exercise, please make sure to have a copy of the Mounted Equipment Tax Class Decision Tool in front of you. Click here to get the: Mounted Equipment Tax Class Decision ToolMounted Equipment Tax Class Decision Tool

3 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 3 IntroductionIntroduction What are the tax classes for registering vehicles? CLASS A - CLASS A - Every motor vehicle, truck, laden or unladen truck tractor, trailer, and semitrailer used in the business of transporting persons or property over any public highway in this state as an interstate commercial carrier for which an application is made for apportioned registration, regardless of base jurisdiction, shall be Class A personal property. CLASS B CLASS B - Every truck, laden or unladen truck tractor, trailer, and semitrailer used for the purpose of transporting property over any public highway in this state and not included in Class A shall be Class B personal property; except that multipurpose trailers shall be Class D personal property. CLASS C CLASS C - Every motor vehicle not included in Class A or Class B shall be Class C personal property.

4 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 4 IntroductionIntroduction Tax classes continued: CLASS D CLASS D - Every utility trailer, camper trailer, multipurpose trailer, and trailer coach shall be Class D personal property. CLASS F CLASS F - Every item of special mobile machinery, except power takeoff equipment, that is required to be registered under this article is Class F personal property. If a farm tractor, meeting the definition of special mobile machinery, is used for any purpose other than agricultural production for more than a twenty-four-hour period at the site where it is used for nonagricultural purposes, it is Class F personal property, but it shall be granted a prorated registration under section to cover such use. The authorized agent shall notify the owner of the farm tractor of the prorated registration. Storing a farm tractor at a site does not give rise to a presumption that the tractor was used for the same purposes that other equipment is used for at the site. CRS (2)(a-e)

5 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 5 IntroductionIntroduction In order to correctly determine the tax class of any vehicle with mounted equipment, there are several factors that must be considered: 1. 1.Does the vehicle have permanently mounted equipment? 2. 2.Does the permanently mounted equipment weigh more than five hundred pounds? 3. 3.Is the equipment attached to a motor vehicle and powered by the motor that powers the locomotion of the motor vehicle (PTO)? 4. 4.Which type of motor vehicle is the mounted equipment attached to, or is it mounted to a non-motive vehicle such as a trailer? 5. 5.Are the vehicle and mounted equipment the same model year? 6. 6.Are the vehicle and mounted equipment different model years?

6 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 6 Power Takeoff and Mounted Equipment Let’s take a look at why these factors must be considered. In 2010, Colorado legislators passed HB concerning Special Mobile Machinery and SB concerning Mounted Equipment. Both of these bills play a key role in understanding which tax class or classes a vehicle with mounted equipment must be registered in. Mounted Equipment is 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. CRS (60) Power Takeoff Equipment (PTO) is equipment that is attached to a motor vehicle and is powered by the motor that powers the locomotion of the motor vehicle. CRS (72.2) – –Power Takeoff Equipment (on motor vehicles) can no longer be registered as Tax Class F personal property. CRS (2)(e)

7 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 7 Power Takeoff and Mounted Equipment Motor vehicle means any self-propelled vehicle that is designed primarily for travel on the public highways and that is generally and commonly used to transport persons and property over the public highways or a low-speed electric vehicle; except that the term does not include low-power scooters, wheelchairs, or vehicles moved solely by human power CRS (58) Designed primarily to travel on public highways? Generally used to carry persons or property? Designed primarily to travel on public highways? Generally used to carry persons or property?

8 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 8 Power Takeoff and Mounted Equipment Both of these vehicles have permanently mounted equipment that are powered by the engine that makes the vehicle move down the road. However, only the vehicle on the left has “Power Takeoff Equipment” as defined by statute because the equipment is mounted to a motor vehicle and therefore cannot be registered as Tax Class F personal property. CRS (2)(e) Designed primarily to travel on public highways? Generally used to carry persons or property? Designed primarily to travel on public highways? Generally used to carry persons or property?

9 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 9 Power Takeoff and Mounted Equipment The vehicle on the right also has permanently mounted equipment that is powered by the engine that makes the vehicle move down the road. However, the equipment is not considered “Power Takeoff Equipment” as defined by statute because it is not mounted to a motor vehicle. In this case, the vehicle on the right is special mobile machinery and is therefore registered as Tax Class F personal property. Designed primarily to travel on public highways? Generally used to carry persons or property? Designed primarily to travel on public highways? Generally used to carry persons or property?

10 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 10 The Model Year is Important If a vehicle and the equipment mounted on the vehicle are the same model year: – –The owner of the vehicle and the mounted equipment may register both as Class F personal property; or – –The owner of the vehicle may register the vehicle as Class A, Class B, Class C, or Class D personal property and the mounted equipment may be registered as Class F personal property. If the vehicle and the equipment mounted on the vehicle are different model years: – –The owner of the vehicle shall register the vehicle as Class A, Class B, Class C, or Class D personal property and the mounted equipment must be Class F personal property.

11 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 11 Decision Tool MOUNTED EQUIPMENT TAX CLASS DECISION TOOL Are you ready for the exercise? Make sure to have your Mounted Equipment Tax Class Decision Tool available for reference!

12 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 12 Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle:Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle: The vehicle was manufactured in 2001 Equipment was manufactured in 2001 Equipment is mounted permanently to the vehicle Equipment weighs 1200 pounds Equipment is not run by Power Take Off lbs Both the vehicle and mounted equipment can be registered together as one Tax Class F unit. OR The vehicle is Tax Class A, B, C, or D, and the mounted equipment is registered separately as Tax Class F. The model year in this example is Which Tax Class? Use your Mounted Equipment Tax Class Decision Tool to determine the correct tax class or classes now. See if you can figure it out before continuing. The criteria for each example will show up in a list here

13 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 13 Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle:Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle: The vehicle was manufactured in 2001 Equipment was manufactured in 2001 Equipment is mounted permanently to the vehicle Equipment weighs 1200 pounds Equipment is not run by Power Take Off lbs TAX CLASS F OR DR 2689 Special Mobile Machinery (SMM) Vehicle Information Worksheet

14 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 14 Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle:Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle: The vehicle was manufactured in 2001 Equipment was manufactured in 2001 Equipment is mounted permanently to the vehicle Equipment weighs 1200 pounds Equipment is not run by Power Take Off lbs TAX CLASS F TAX CLASS A, B, C, or D DR 2689 Special Mobile Machinery (SMM) Vehicle Information Worksheet

15 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 15 Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle:Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle: The motor vehicle was manufactured in 1998 Equipment was manufactured in 2008 Equipment was mounted permanently to the vehicle in 2009 Equipment weighs 1503 pounds Equipment is run by Power Take Off lbs Motor vehicles with mounted equipment powered by PTO are registered as one unit in Tax Class A, B, C, or D. The weight and value of the mounted equipment is combined with the weight and value of the vehicle and registered with the motor vehicle’s VIN and year of manufacture. The model year in this example is Which Tax Class? 1998 Use your Mounted Equipment Tax Class Decision Tool to determine the correct tax class or classes now. See if you can figure it out before continuing.

16 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 16 Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle:Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle: The motor vehicle was manufactured in 1998 Equipment was manufactured in 2008 Equipment was mounted permanently to the vehicle in 2009 Equipment weighs 1503 pounds Equipment is run by Power Take Off lbs TAX CLASS A, B, C, or D 1998

17 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 17 Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle:Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle: The motor vehicle was manufactured in 1998 Equipment was manufactured in 2008 Equipment was mounted permanently to the vehicle in 2009 Equipment weighs 1503 pounds Equipment is run by Power Take Off lbs The WEIGHT and VALUE of the motor vehicle is combined with the WEIGHT and VALUE of the PTO the WEIGHT and VALUE of the PTO The combined WEIGHT and VALUE are used to calculate Specific Ownership Tax (SOT) and Registration Fees. 1998

18 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 18 Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle:Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle: The vehicle was manufactured in 2005 Equipment was manufactured in 2001 Equipment was mounted permanently to the vehicle chassis in 2010 Equipment weighs 6985 pounds Equipment is not run by Power Take Off lbs Which Tax Class? The vehicle must be registered as either Tax Class A, B, C, or D, and the mounted equipment must be registered separately as Tax Class F. The vehicle’s model year in this example is 2005 and the equipment’s model year is Use your Mounted Equipment Tax Class Decision Tool to determine the correct tax class or classes now. See if you can figure it out before continuing.

19 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 19 Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle:Use the MOUNTED EQUIPMENT TAX CLASS DECISION TOOL to determine the correct tax class for the following vehicle: The vehicle was manufactured in 2005 Equipment was manufactured in 2001 Equipment was mounted permanently to the vehicle chassis in 2010 Equipment weighs 6985 pounds Equipment is not run by Power Take Off lbs Which Tax Class? TAX CLASS A, B, C, or D TAX CLASS F MUST BE DR 2689 Special Mobile Machinery (SMM) Vehicle Information Worksheet

20 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 20 Important Additional Information If the vehicle and or mounted equipment is to be registered in Tax Class F as Special Mobile Machinery, please click on the following link to download and then fill out the Special Mobile Machinery (SMM) Vehicle Information Worksheet before registering the vehicle at your local County Motor Vehicle Office : DR 2689 Special Mobile Machinery (SMM) Vehicle Information Worksheet If the motor vehicle with mounted equipment weighs 16,001 pounds or more, it is required to be registered as a Gross Vehicle Weight (GVW) truck. If the motor vehicle weighs more than 55,000 pounds, it is also subject to the Federal Heavy Vehicle Use Tax (HVUT). For more information on Gross Vehicle Weight trucks and Heavy Vehicle Use Tax, please click on the following link: Gross Vehicle Weight Truck and Heavy Vehicle Use Tax Information If the mounted equipment on the motor vehicle is Power Takeoff equipment as defined by statute, retitling of the vehicle may be required in certain cases. For more information, please click on the following link: Titling Vehicles in Colorado

21 Revision Date: 10/29/2010 MOUNTED EQUIPMENT TAX CLASS DECISION TOOL EXERCISE Title and Registration Sections 21 For questions or more information on determining tax classes for vehicles with mounted equipment, please contact your local County Motor Vehicle Office or click on: Your County Motor Vehicle Office If you found this decision tool exercise to be a valuable resource or have suggestions to make it better, please provide your feedback to the Title and Registration Sections Training Unit by clicking HERE!HERE!


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