Agricultural Producers

Certain items used for agriculture are exempt from Arvada sales and use taxes. View the 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

Qualifying Farm Equipment includes:

  • Baling materials
  • Dairy equipment
  • Farm tractors and implements of husbandry
  • Irrigation equipment
  • Shipping materials purchased by a farm operation

Qualifying equipment is exempt when used in a for-profit farm operation that produces:

  • Agricultural, winegrowing, fruit, and vegetable products
  • Honey
  • Livestock
  • Milk
  • Poultry and eggs

Non-Qualifying Equipment

The following equipment does not qualify for the exemption:

  • Lawn and garden tillers
  • Mowers and renovators
  • Trucks of one-ton manufactured rated capacity or less

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 (PDF), 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 & Related Exemptions

Livestock is exempt from Arvada sales and uses taxes, as are certain items related to such animals.

Livestock

For Arvada sales and use tax purposes, livestock includes the following animals, regardless of use:

  • Alpaca
  • Burros
  • Cattle
  • Goats
  • Horses
  • Lambs
  • Llama
  • Mules
  • Ostrich
  • Poultry
  • Sheep
  • Swine

Tax-exempt livestock also includes:

  • Any other animal raised primarily for food, fiber, or hide production
  • 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)

Household pets are not considered livestock for sale 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:

  • Animal pharmaceuticals approved by the Food and Drug Administration
  • Drugs used to prevent or treat disease or injury in livestock
  • Enhancing compounds
  • Fungicides
  • Growth-regulating chemicals
  • Hormones
  • Insecticides
  • Vaccines

Fertilizer & Spray Adjuvants

Fertilizers 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:

  • Any other feed grain
  • Barley
  • Bees and honey
  • Corn
  • Hay
  • Hops
  • Malting barley
  • Milk and milk products
  • Millet
  • Milo
  • Oats
  • Poultry and poultry products
  • Rice
  • Sugar beets
  • Timber and timber products
  • Wheat

The exemptions are not allowed when used to produce marijuana products.

Fertilizer

Fertilizers with chemical or organic forms of the following are eligible for the exemption:

  • Boron (B)
  • Calcium (Ca)
  • Copper (Cu)
  • Iron (Fe)
  • Magnesium (Mg)
  • Manganese (Mn)
  • Molybdenum (Mo)
  • Nitrogen (N)
  • Other secondary and micronutrients
  • Phosphorus (P2O5)
  • Potassium (K2O)
  • Sulfur (S)
  • Zinc (Zn)

The sales tax exemption for fertilizer does not apply to:

  • Any other product not labeled as a fertilizer under the requirements established by the Colorado Commissioner of Agriculture
  • Specialty fertilizer distributed for nonfarm use (home gardens, lawns, flowers, etc.)

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.

Note: 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.