Topic No. 73
Special mobile machinery (SMM), a.k.a. special mobile equipment (SME), are of a design commonly used in the construction business. These vehicles, self-propelled or otherwise, are not generally designed to transport persons or cargo over public highways.
Motor vehicles redesigned or modified with the attachment of special equipment or machinery weighing over 500 pounds, which becomes essential to the operation of the vehicle in accomplishing the purpose for which such vehicle is being used, are also classified as SMM.
SMM requires a special State of
Examples of equipment which may qualify for the SMM plate include:
Air compressors, generators, welders, asphalt plant units, acoustic mixers, power brooms, towed tankers, tar pots, sweepers, concrete mixers, batchers and pavers, conveyors, crawler shovels, crawler backhoes, crawler cranes, truck cranes, hydraulic cranes, bottom dump and rear dump trailers, motor graders, loaders, straddle carriers, flood lighting units, roller/compactors, forklifts, motor scrapers, bulldozers, tractors, backhoes, trailers (storage, tool or office) and mobile hydraulic hammers/crawlers.
All SMM purchased by a
SMM which has been used prior to
being brought into
Note: The DRMC provides for a proportional use tax for construction equipment (including special SMM) located within Denver for a period of thirty (30) consecutive days or less, providing the taxpayer has complied with the equipment declaration procedures provided for in DRMC Section 53-106.2.
PERSONAL PROPERTY TAX (ALSO KNOW AS SMM AND SME TAX)
If equipment qualifying as SMM will be used solely on property owned or leased by the owner of the equipment, such as a warehouse forklift, the equipment need not be licensed. In these instances, the SMM is included in the taxpayer's personal property tax schedule and personal property tax is due.
For licensed SMM, a "specific ownership tax" is collected upon annual registration of the equipment, in lieu of personal property tax. The SMM is required to be registered in the county at the business address where the SMM is primarily operated, maintained, and stored. For registration purposes, business addresses do not include construction job sites.
Businesses engaged in renting SMM are allowed to register the SMM without paying the specific ownership tax. (The specific ownership tax is sometimes referred to as the "SMM Tax" or "SME Tax.") However, when SMM is rented, the rental vendor is required to collect SMM Tax or SME Tax at the rate of 2% of the rental charge. The 2% charged is not included in the taxable rental price for sales/use tax purposes.
Note: SMM towed on public
1. Cindy's Construction
Company brings a used grader into
Construction Company owes $362 of
2. Jerry's Construction Company
rents a power broom from Randy Rents, a rental equipment vendor located in
* DRMC Section 53-25(1). Imposition of tax.
* DRMC Section 53-96(1). Imposition of tax.
* DRMC Section 53-106.2. Application to certain construction equipment.
* Rules Regarding The Assessment And Collection Of Sales And Use Tax On Sales And Use Of Tangible Personal Property Acquired By Construction Companies
THE ABOVE INFORMATION IS A SUMMARY IN LAYMAN'S TERMS OF