A vehicle rental company is defined as any person, firm, corporation or other business entity who owns vehicles that are based in Colorado for rental purposes and whose primary business is the rental of such vehicles for periods of less than 45 days including renewals to another person, firm, corporation or business entity and who may elect to pay specific ownership tax by the 2 percent rental process as prescribed in Colorado Revised Statue (CRS) 42-3-107
All Tax Class B and Tax Class C vehicles that are rented for periods of less than 45 days and are based in Colorado (Colorado license plates and address) may be qualified as motor vehicle rentals.
Rental companies must apply to their county motor vehicle office for rental vehicle authorization (Vehicle Rental Company Request Form - DR2225). Upon approval by the county clerk, the request form is sent to the registration section for assignment of the rental number.
The 2 percent rental program provides for an alternate method for rental agencies to pay specific ownership taxes. This method requires a monthly payment of the specific ownership tax at the rate of 2 percent of the rental fees. The 2 percent amount is calculated on the same amount that Colorado sales tax is paid on.
For additional information about vehicle rental companies, please contact the Adams County Division of Motor Vehicles (Brighton location) at 720.523.6010.