Special Mobile Machinery (SMM) Registration Exemption (SB 21-257 and SB 23-049)

Background

In 2021, lawmakers passed legislation that allows companies to apply for a registration exempt certificate if they meet the following requirements:

1. Own more than 250 pieces of special mobile machinery; and

2. Regularly rents or leases the special mobile machinery; and

3. Who pay specific ownership tax on a monthly basis in an amount equal to 2% of the rental or lease payments for the special mobile machinery.

Companies participating in the program, also known as the SMM 2% Rental Registration Exempt Program, must:

• Apply to the Department annually via the 3PA portal 

  • • (The first application can be submitted via email if the requestor does not yet have access to the portal). 

    • DR 2192 - Registration Exempt Application

    • DR 2851 - Annual Report (Xcel version will be posted on the external website)

    • DR 2101 - Request for Web Access

• Comply with 2% monthly SOT remittance process 

  • • Administered by the Department via the 3PA portal for Registration Exempt customers only.

    • DR 2671 - Monthly Tab Report (Xcel version provided on the 3PA portal). 

• Meet specific equipment marking requirements

• Comply with compliance verification 

  • • (in-person visits and electronic spot checks)

County Motor Vehicle Offices will still process DR 2091 authorization requests for companies not enrolled in the 2% Registration Exempt Program.  

County Bookkeeping

Counties will receive funds from the Division for the 2% SOT due as a result of this program. The below table identifies which company/period contributed to this amount.

2% Registration Exempt Financial Aide

Important information regarding the DR2671 and Attestation of Sales Tax Paid

Companies are required to complete the Attestation of Sales Tax Paid portion of the DR2671. For rental agreements in which multiple pieces of equipment is rented in one invoice the following work around was implemented. Please see the image below for further details:

Current Program Participants

Expected Eligibility

Companies with over 250 or more pieces of rental equipment may participate in this program. 

Many of these companies have duplicate accounts in DRIVES. Our unit will attempt to clean up these records as participants sign up. So please check back for an updated 2% Rental Account Number next to the name of program participants. This will be the official account that should be referenced for all web uploads, financials, future registrations, etc.

If you have any questions about the program, need clarification, or have concerns about a compliance issue, please email DOR_DMV_SMMExempt@state.co.us.