COtax_exemptionfull_exemption
Aircraft Sales and Use Tax Exemption
CO-AIRCRAFT-SUT · Colorado
Summary
Colorado state sales and use tax exemption on aircraft and aircraft parts under three sub-exemptions: (1) commercial airline aircraft used in interstate commerce (regularly scheduled flights for fee), and parts permanently affixed; (2) sales to nonresidents who remove the aircraft from CO within 120 days of sale and limit CO presence to ≤73 days/year for 3 years; (3) on-demand air carriers — aircraft used or purchased for use in interstate or intrastate commerce by an on-demand air carrier (7-year window starting 2023-01-01 per HB22-1109).
Benefit
- Percentage
- —
- Flat
- —
- Duration
- —
- Max annual
- — (taxpayer)
- Max total
- — (taxpayer)
- Carryforward
- —
Program metadata
- Distribution
- taxpayer_earned
- Claimant subject
- business
- Refund/transfer election
- none
- Program family
- —
- Effective
- —
- Sunset
- 2029-12-31
- Application deadline
- —
- Transfer discount
- —
Hard requirements (1)
- local_approval_requiredAircraft SUT exemption claimed via the appropriate CDOR form (commercial-airline affidavit, nonresident affidavit, or on-demand-air-carrier qualifying-use attestation). Self-attestation gate.
Preference / tiering rules (0)
None.
NAICS industries (0)
Any.
Geo zones (1)
- statewide — · Colorado Statewide
Tags (0)
None.
Approval requirements (1)
- requiredCO CDOR — SUT exemption form filed — File the appropriate CDOR aircraft-SUT-exemption form at point of sale.
Source
§ 39-26-711, C.R.S.; HB22-1109 (on-demand expansion); HB16-1119; HB18-1083
Last verified: 2026-04-30
CO-statewide. Three sub-exemptions modeled as benefit_tiers below. The on-demand-carrier sub-exemption (sunset 2029-12-31) is the most actively expanding piece. Nonresident exemption requires affidavit of non-residency at time of purchase + agreement to pay CO SUT if aircraft remains beyond the 120-day / 73-days-in-3-years thresholds. Commercial airline exemption applies to scheduled-route carriers (vs. on-demand).