Standard Procedures for Special Mobile Machinery (SMM)

Titled Special Mobile Machinery

Titling is mandatory for special mobile machinery which is constructed on a truck or trailer chassis and is designed and intended to be used over the highway. The addition of the special mobile machinery, either through manufacture or modification, will cause the final vehicle to be classified as special mobile machinery. The body style of the special mobile machinery should be that of the chassis on which it is mounted, truck (TK) or trailer (TL). This category includes complete vehicles which have been redesigned or modified by addition of equipment.

Special mobile machinery that has wheels mounted directly to the machinery (tar buckets, wood splitters, compressors, etc.) shall be titled as trailers and registered as special mobile machinery. Special mobile machinery which is primarily designed for over the highway use shall be issued titles in accordance with the standard motor vehicle procedures.

The following documents are required to establish titles for over the highway special mobile machinery:

• A DR 2698 Verification of Vehicle Identification Number; and

• MSO, Title, Invoice, Bill of Sale, or Registration if the equipment was previously registered; or

• A DR 2444 Statement of Fact with the following information:

  • Who the equipment was purchased from

  • A full description of the equipment that was purchased

  • Where the equipment was purchased

  • The purchase price and date

  • Signature of person making the statement

Note: For help in establishing the weight and taxable value for special mobile machinery, access the Motor Carrier IDS System or use the AH538 Mobile Equipment Manual. Established Colorado titles for special mobile machinery do not require a DR 2698 Verification of Vehicle Identification Number unless modifications to the motor vehicle and/ or equipment have occurred.

SMM Special Mobile Machinery Information C.R.S. 42-1-102(54) (60)

No person shall operate SMM unless the SMM is registered with the authorized agent or is exempt from registration. C.R.S. 42-3-104(3) SMM is defined as 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. SMM includes vehicles commonly used in the construction, maintenance, and repairs of roadways, the drilling of wells, and the digging of ditches. C.R.S. 42- 1-102(93.5)

Mounted Equipment is defined as 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(6)

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 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. C.R.S. 42-3-106(2)(6)(a)

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. C.R.S. 42-3-106(2)(6)(b)

Temporary registration permits may be issued to SMM. C.R.S. 42-3-203(3)(a)

Farm Tractors and Implements of Husbandry as SMM

C.R.S. 42-1-102 (93.5) “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 repairs of roadways, the drilling of wells, and the digging of ditches.

C.R.S. 42-1-102 (33) “Farm Tractor” means every implement of husbandry designed and used primarily as a farm implement for drawing plows and mowing machines and other implements of husbandry.

C.R.S. 42-1-102 (44) On and after July 1, 2000, “implement of husbandry” means every vehicle that is designed, adapted, or used for agricultural purposes. It also includes equipment used solely for the application of liquid, gaseous, and dry fertilizers. Transportation of fertilizer, in or on the equipment used for its application, shall be deemed a part of application if it is incidental to such application. It also includes hay balers, hay stacking equipment, combines, tillage and harvesting equipment, agricultural commodity handling equipment, and other heavy movable farm equipment primarily used on farms or in a livestock production facility and not on the highway. Trailers specially designed to move such equipment on highways shall, for the purposes of part 5 of article 4 of this title, be considered as component parts of such implements of husbandry.

Farm Tractors and Implements of Husbandry are exempt from registration and subsequently the payment of SOT.  Statute classifies SMM as class F personal property. § 42-3-106(2)(e). But implements of husbandry are not listed in statute under any classification, showing they are not subject to SOT. § 42-3-106.

The 72-hour Rule

In certain cases Farm Tractors may meet the definition of SMM if/when they  are used for purposes other than agricultural production for more than 72 hours. When this occurs the Farm Tractor may be registered as Class F personal property and must obtain a prorated SMM registration. 

C.R.S. 42-3-106 (2)(e) “Every item of special mobile machinery, except power takeoff equipment, that is required to be registered under this article 3 or that is covered by a registration exempt certificate issued by the department in accordance with section 42-3-107 (16)(g) is Class F personal property. If a farm tractor, meeting the definition of special mobile machinery, is used for any purpose other than agricultural production for more than a seventy-two-hour period at the site where it is used for nonagricultural purposes, it is Class F personal property, but it is granted a prorated registration under section 42-3-107 to cover the use. The authorized agent shall notify the owner of the farm tractor of the prorated registration. Storing a farm tractor at a site does not give rise to a presumption that the tractor was used for the same purposes that other equipment is used for at the site.” v. 2.14.25

In the event that you need to complete pro-rated registration for this type of situation please refer to the SMM page.

Farm Tractors may claim a sales tax exemption for Farm Equipment on a DR 0511. Follow the link to learn more about the sales tax requirement from the Department of Taxation. 

Vehicles Used for Farming Operations

The term “Farm Tractor” refers to both a vehicle definition AND a registration type. For vehicles that are not “farm tractors” which can convert to SMM if they fall within the 72 hour rule, regular vehicles can be used for farming operations.  This includes “Truck Tractor,” laden or unladen as defined in C.R.S. 42-1-102 (109 and 109.5), operating over the public highways may be registered as a Farm Vehicle, by selecting the Use type of Farm during a registration activity, and should not be confused with the Farm Tractor vehicle as defined in C.R.S. 42-1-102 (33).

C.R.S. 42-3-306(4)(a) reads in part, “Trucks and truck tractors owned by a farmer or rancher that are operated over the public highways and are only commercially used to transport to market or place of storage raw agricultural products actually produced or livestock actually raised by such farmer or rancher or to transport commodities and livestock purchased by such farmer or rancher for personal use and used in such person’s farming or ranching operations.”

C.R.S. 42-3-306(4)(e) reads, “The Department or its authorized agent shall not require a person registering a farm truck or truck tractor under this subsection (4) to demonstrate that the owner’s primary business or source of income is agriculture if the farm truck or truck tractor is used primarily for agricultural production on a farm or ranch owned or leased by the owner of the truck or truck tractor, and the land on which it is used is classified as agricultural land for the purposes of levying and collecting property tax under section 39-1-103, C.R.S.”

A customer wishing to register a vehicle as a farm vehicle must complete the DR 2159 at the time of registration. 

Renting Farm Vehicles/Equipment from a 2% Rental Program

Farmers that rent farm equipment/SMM from a company enrolled in a 2% Rental Program, will still be required to pay the 2% rental fees as SOT. 

According to §42-3-107(16)(c)(I). A participating owner “shall collect from the user the specific ownership tax in the amount equivalent to two percent of the amount of the rental or lease payment.” Given the clear statutory instruction, those who rent equipment to others should collect the 2% rental fees as SOT, regardless of how the machinery is used by the renter.

Mounted Equipment Tax Class Decision Tool

Effective October 1, 2010: C.R.S. 42-1-102 (60) “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. 42-3-106 (6)(a) If a vehicle and the equipment mounted on the vehicle are the same model year: (I) The owner of the vehicle and the mounted equipment may register both as Class F personal property; or (II) The owner of the vehicle and the mounted equipment may register the vehicle as Class A, Class B, Class C, or Class D personal property and the mounted equipment may be registered as Class F personal property.

C.R.S. 42-3-106 (6)(b) If a vehicle and the equipment mounted on the vehicle are different model years: (I) The owner of the vehicle shall register the vehicle as Class A, Class B, Class C, or Class D personal property; and (II) The owner of the vehicle shall register the mounted equipment as Class F personal property.

C.R.S. 42-1-102 (93.5) (a) “Special mobile machinery” means machinery that is pulled, hauled, or driven over a highway and is either: (I) A vehicle or equipment that is not designed primarily for the transportation of persons or cargo the public highways; or; (II) 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. (b) “Special mobile machinery” includes vehicles commonly used in the construction, maintenance, and repair of roadways, the drilling of wells, and the digging of ditches.

Effective July 1, 2010: C.R.S. 42-1-102 (72.2) “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(58) “Motor vehicle” means any self-propelled vehicle that is designed primarily for travel on the public highways and which is generally and commonly used to transport persons and property over the public highways or a low- speed electric vehicle; except that the term does not include low-power scooters, wheelchairs, or vehicles moved solely by human power.

Is the equipment ever driven on, over or across public streets or highways?

Equipment is always hauled to and from the job site.

How is the equipment designed to get to the job site?

SMM Registration Exemption: C.R.S. 42-3-104

• SMM equipment owned by the United States government or agency thereof.

• SMM equipment that is used solely on property owned or leased by the SMM owner and appears on the personal property tax schedule filed with the County Assessor.

• Tow dollies and converter gears/converter dollies are not required to be registered in Colorado.

• Equipment weighing 500 pounds or less.

SMM Fee Exemption C.R.S.  42-3-104 (2)(4)

• SMM equipment owned by the State of Colorado or any political subdivision.

• SMM equipment which is leased to the State of Colorado or any political or governmental subdivision thereof may be exempted upon proof that the equipment is used and operated in strict conformance with the terms of the lease. Exemption will apply only for the time frames stated in the lease.

• SMM equipment owned or leased by a town, city, county, or city and county.

Although registration fees are exempt, applicable material fees will be charged.

Construction contractors that are fulfilling a contractual agreement for the State of Colorado or a political subdivision project are not exempt from payment of registration fees and applicable taxes.

Decals

SMM equipment on tracks or a specifically built chassis for specialized construction jobs.

• Equipment that will receive an SMM Decal

  • Self-propelled with tracks

  • Always hauled to destination

  • Office trailer 81/2’ wide and over – oversized permit must be obtained from CDOT (Colorado Dept of Transportation)

  • SMM equipment mounted to a truck or trailer - different manufacture years

Pending Registration

An SMM owner may elect to operate SMM under a “Pending Registration”. In order to do this the SMM owner shall apply to the Title and Registration Sections using the DR 2428 Fleet Owner Request for Participation in The Colorado Fleet Registration Program (CFRP) form. Upon approval the SMM owner may operate the SMM for one quarter using the DR 2428 as proof of pending registration. SMM owner is still required to collect 2% specific ownership tax and report and remit to the counties that the SMM is operating under the “Pending Registration”.

• Upon registering the SMM, after operating for one quarter under a pending registration the county will collect a $7.00 pending registration fee. The fee is distributed:

  • $3.60 County Retained

  • $0.40 Highway Users Tax Fund

  • $3.00 Newly created administration and enforcement account

Suspense Registration

An SMM owner may elect to register SMM when insufficient ownership documents are available to title the SMM. A “Suspended Title” transaction will permit the SMM owner to register, pay taxes and fees, receive license plates and decals, and operate the SMM without titling or having to complete the pending registration.

• The SMM owner shall complete the DR 2689 Special Mobile Machinery (SMM) Vehicle and Information Worksheet and Application for Registration form for the “Suspended Title” transaction.

Note: New SMM may be registered under a suspense transaction pending completion of the verification of vehicle identification number or other required documents. The previous title will be SUS MSO.

DR 7014 – 96 Hour Travel Permit Receipt

Owners of foreign based SMM equipment stopped at a Port of Entry that do not possess the required documentation or funds to secure proration, will be allowed to proceed to the job site with a DR 7014 - 96 Hour Travel Permit Receipt.

SMM Tax Credit Voucher for Colorado Based Companies

Colorado based Special Mobile Machinery that was used out of state for a period of two to eleven months may apply for credit at time of renewal. The following are required to receive credit:

• The owner or representative must present to the Port of Entry, the contract that indicates the dates the equipment was used out of state.

• The Port of Entry will verify the time period the equipment was used out of state. The Port of Entry will issue a DR 7014 Specific Ownership Tax Credit Voucher indicating the amount of credit due the owner.

• The owner or representative will submit the DR 7014 Specific Ownership Tax Credit Voucher to their County Motor Vehicle at the time of registration.

• County agent will verify the voucher through the Integrated Data System (IDS) system.