Colorado Department of Revenue
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SMM Program

Special Mobile Machinery (SMM)

Definitions 

“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)
 


Items Required to Register SMM

Completed 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.)

To access the SMM Title and Registration Tool, click   State of Colorado Image


Determining the Tax Class of Any Vehicle with Mounted Equipment

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 Registration Requirements below.

 

The weight and value of all mounted PTO will be combined with the vehicle weight and value.  In all cases, the model year of the vehicle, not the power takeoff equipment, will be used to detemine the model year for taxable value.

 

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 (SMM) personal property. Or
  • The owner of the vehicle may register the vehicle as Class A, B, C or D personal property and the mounted equipment may be registered as Class F personal property.

If a vehicle and the equipment mounted on the vehicle are different model years:

  • The owner of the vehicle shall register the vehicle as Class A, B, C or D personal property.
    AND
  • The owner of the vehicle shall register the mounted equipment as Class F personal property.

State of Colorado Image

 To access the Mounted Equipment Tax Class Decision Tool click             State of Colorado Image    

To access the Mounted Equipment Tax Class Decision Exercise click        State of Colorado Image 


Registration Requirements

All SMM must  be registered with your County Motor Vehicle office : before it is operated unless it is exempt.

If a business provides their services to others, they must register all the SMM used to accomplish those services in the county where the SMM is housed. If the SMM is moved from one job site to another the SMM must be registered in the county where the SMM is based. If the SMM is used solely on property owned or leased by the SMM owner, the SMM 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. Owners should contact their County Assessor for details.

When SMM that is registered with the County Assessor is transported over the highways, a copy of Form 301 Movable Equipment Certification of Ad Valorem Taxation must be carried with the SMM.

Contractors that are fulfilling a contractual agreement for government entities are not exempt from payment of registration fees and applicable taxes.

A farm tractor that meets the definition of SMM, that is used for any purpose other than agricultural production for more than a 24-hour period at the site where it is used for nonagricultural purposes may be registered as SMM. The farm tractor shall be granted a prorated registration.

 


Additional Information

 

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. The Department of Revenue, Division of Motor Vehicle or County Clerks cannot provide information or assistance on this topic.


 



 Special Mobile Machinery (SMM) Rental Program

 

           State of Colorado Image 

  

     (Sample SMM Rental Decal)


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 ar the completion and the submission of: 

 

Helpful Links:

Tax Library

County Motor Vehicle Office

Colorado Revised Statutes: 42-1-102(33),(60),(72.2),(93.5), 42-3-103, 42-3-104(3), 42-3-106(2)(a-e), (6), 42-3-107(16), (17), 42-3-112, 42-8-104 Click on Colorado Revised Statutes for more information. Rule23. Payment of Specific Ownership Taxes on Special Mobile Equipment, Rule 42. Special Mobile Machinery Specific Ownership Tax Credit for Out-of-State Use Under Contractual Agreements