SB 18-077

Senate Bill 18-077, which has been signed into law, exempts used cars valued at $20,000 or less from state sales tax if they have already been registered in Colorado. This means that when you buy a used car in the state that meets these criteria, you won’t have to pay state sales tax on it. However, local taxes may still apply depending on where you live. The law took effect on January 1, 2019, helping individuals and families save money when purchasing more affordable used vehicles.

Official Summary

On and after January 1, 2019, the bill exempts a motor vehicle from state sales and use tax if: A certificate of title has previously been issued in the state for the motor vehicle; and The taxable value of the motor vehicle is twenty thousand dollars or less. The exemption does not apply to any other political subdivision that levies a sales and use tax that is based on the state sales and use tax. The department of revenue is permitted to disclose information about prior state sales and use tax paid as is necessary to administer the new exemption. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) Read More

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