The Colorado Specific Ownership Tax is an annual tax you pay when you register or renew a vehicle in the state, and it takes the place of a personal property tax on that vehicle. The amount is not a flat fee: it’s a percentage of a set taxable value, and that percentage drops each year as the vehicle ages.1Colorado DMV. Taxes and Fees2Colorado General Assembly. Specific Ownership Tax
The tax applies to passenger cars, trucks, and trailers. It does not apply to manufactured homes, which are taxed as real property instead.2Colorado General Assembly. Specific Ownership Tax
How the Amount Is Calculated
Two things drive the number: the vehicle’s taxable value, which is fixed when the vehicle is new and stays the same for its life, and the vehicle’s year of service, which is based on the model year. For a standard passenger car, the taxable value is 85% of the original Manufacturer’s Suggested Retail Price. That figure does not go down when the car depreciates or changes hands.1Colorado DMV. Taxes and Fees
Rate Schedule for Passenger Cars (Class C)
Passenger cars fall in Tax Class C. The rate applied to the taxable value each year is:1Colorado DMV. Taxes and Fees
- First year: 2.10%
- Second year: 1.50%
- Third year: 1.20%
- Fourth year: 0.90%
- Fifth through ninth years: 0.45%
- Tenth year and later: $3.00 flat
Trucks and Trailers
Trucks and property-carrying trailers fall in Class B, and the valuation depends on weight. A Class B vehicle under 16,000 pounds is valued at 75% of MSRP; one at 16,000 pounds or more generally uses the actual purchase price. Utility, camper, and multipurpose trailers fall in Class D and are valued at 85% of MSRP, similar to passenger cars.3Colorado DMV. Taxes and Fees – Section: Ownership Tax Charts
Where and When You Pay
You pay the Specific Ownership Tax to your County Clerk and Recorder’s office as part of the registration transaction, along with proof of liability insurance and, in designated areas, a valid emissions test.4Colorado General Assembly. Vehicle Titling and Registration5Colorado DMV. Registration FAQs
You get a one-month grace period after your registration expires. After that, late fees run $25 per month for most vehicles and $10 per month for trailers, capped at $100.5Colorado DMV. Registration FAQs
New residents have 90 days from establishing residency to register their vehicles and pay the tax. Bring the out-of-state title or other valid proof of ownership. The tax will be calculated using the vehicle’s current age and class.6Colorado DMV. New to Colorado7Colorado DMV. Out-of-State Titles
Exemptions
Federal, state, and local government agencies are exempt, as are organizations that already qualify for a Colorado property tax exemption.8Justia. Colorado Revised Statutes § 42-3-104
Active duty service members stationed in Colorado under military orders may be exempt if they keep legal residence in another state while domiciled here for their service.8Justia. Colorado Revised Statutes § 42-3-104
Selling or Buying a Vehicle Mid-Year
If you sell a vehicle partway through the registration year, the Specific Ownership Tax you already paid is generally not refundable under county policy. The buyer registers the vehicle in their own name and pays the tax fresh, based on the vehicle’s age and class at the time of that registration.9Larimer County. Refund Policy1Colorado DMV. Taxes and Fees