SMM Program
Special Mobile Machinery (SMM)
Mobile Machinery or Self-Propelled Construction Equipment commonly referred to as Special Mobile Machinery (SMM) is defined by Colorado Revised Statute (C.R.S.) 42-1-102(54) as meaning those vehicles, self-propelled or otherwise, which are not designed primarily for the transportation of persons or cargo over the public highways, and those motor vehicles which may have originally been designed for the transportation of person or cargo over the public highways, and those motor vehicles which may have originally been designed for the transportation of persons or cargo but which have been redesigned or modified by the mounting thereon of special equipment or machinery, and which may be only incidentally operated or moved over the public highways. This definition includes but is not limited to wheeled vehicles commonly used in the construction, maintenance, and repair of roadways, the drilling of wells, and the digging of ditches.
Mounted Equipment is further defined by C.R.S. 42-1-102(60) as meaning any item of tangible personal property weighing more than five hundred pounds which is rigidly mounted on or attached to a vehicle subsequent to its manufacture and which, when so mounted on or attached to a vehicle, becomes an integral part thereof essential to the operation of such vehicle in carrying out and accomplishing the purpose for which such vehicle is being used.
Registration:
- If the SMM is used solely on property owned or leased by the SMM owner, the equipment must be registered on the personal property tax schedule filed with the County Assessor or the County Motor Vehicle Office in the county where the SMM is based.
- If a business provides their services to others, they must register all the SMM equipment used to accomplish those services in the county where the SMM is based.
- If the SMM is moved from one job site to another, whether pulled, hauled, or driven, the SMM must be registered in the county where the SMM is based.
An SMM Vehicle Information Worksheet should be completed and presented to the County Motor Vehicle Office along with a bill of sale or invoice to ensure proper and timely registration. Secure and Verifiable Identification is required on all vehicle and SMM registrations in Colorado.
Failure to register SMM may result in the assessment of an administrative penalty of five hundred dollars or double the amount of specific ownership tax, whichever is greater as well as any other applicable penalty pursuant to 42-3-107(17)(e)(II). Additionally, SMM not properly registered may be detained and impounded pursuant to 42-8-104(2) C.R.S.
Additional information may be obtained at your County Motor Vehicle Office.
Special Mobile Machinery (SMM) Rental Program
The Special Mobile Machinery (SMM) 2% Rental Program is an alternative payment program allowing Colorado SMM Equipment companies who rent or lease SMM Equipment, 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. This program must be applied for in the county in which the equipment is located.
Rental: A period of at least 30 days in a calendar year in which the owner of a piece on mobile machinery or self propelled construction equipment rents that equipment to a customer for payment.
Lease: A period of more than 30 consecutive days in which the owner of a piece of mobile machinery or self propelled construction equipment leases that equipment to a customer for payment.
To participate in the SMM 2% Rental Program the equipment company must:
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Submit a completed DR 0440 Permit to Collect Sales Tax on a Rental or Lease Basis to the Department of Revenue Sales Tax Division for approval.
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Complete the SMM 2% Ownership Tax Authorization Request and submit it along with form DR440 to the county in which the equipment company is located. The county will either approve or reject the application. The SMM 2% Ownership Tax Authorization Request must be remitted every year to the county office for approval.
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