Section 42-3-116 - Manufacturers or dealers - fees - rules - definition - penalty(1) Upon application using the proper form and payment of the fees required by law, a manufacturer of, drive-away or tow-away transporter of, or dealer in, motor vehicles, trailers, special mobile machinery, or semitrailers operating such vehicle upon any highway, in lieu of registering each vehicle, may obtain from the department and attach to each such vehicle one number plate, as required in this article for different classes of vehicles. Such plate shall bear a distinctive number; the name of this state, which may be abbreviated; the year issued; and a distinguishing word or symbol indicating that such plate was issued to a manufacturer, drive-away or tow-away transporter, or dealer. Such plates may, during the registration period for which they were issued, be transferred from one such vehicle to another when owned and operated by or with the authority of such manufacturer or representative of such manufacturer or operated by such drive-away or tow-away transporter or dealer.(2) No manufacturer of or dealer in motor vehicles, trailers, or semitrailers shall cause or permit a vehicle owned by such person to be operated or moved upon a public highway without displaying upon such vehicle a number plate, except as otherwise authorized in this article.(3) A manufacturer of motor vehicles, trailers, or semitrailers may operate or move upon the highways any such vehicle from the factory where manufactured to a railway depot, vessel, or place of shipment or delivery, without registering the same and without an attached number plate, under a written permit first obtained from the police authorities with jurisdiction over such highways and upon displaying upon each such vehicle a placard bearing the name and address of the manufacturer authorizing or directing such movement, plainly readable from one hundred feet away during daylight.(4)(a) Any dealer in motor vehicles, trailers, or semitrailers may operate, move, or transport a vehicle owned by such dealer on the streets and highways of this state without registering such vehicle and without an attached numbered plate if there is displayed on such vehicle a depot tag issued by the department. Such tag may be purchased from the department for a fee of five dollars. Such tags shall only be used for moving authorized vehicles for purposes of testing, repairs, or transporting them from the point of delivery to the dealer's place of business and for similar legitimate business purposes; but nothing in this section shall be construed to allow the use of such tag for private purposes.(b) The executive director of the department shall promulgate rules for the use of depot tags and dealer plates, and a violation of such rules shall subject the violator to a suspension or revocation of the violator's depot tag and dealer plates after a hearing pursuant to article 4 of title 24, C.R.S.(5) A manufacturer or dealer, upon transferring a motor vehicle, trailer, or semitrailer, whether by sale, lease, or otherwise, to any person other than a manufacturer or dealer shall immediately give written notice of such transfer to the department upon the form provided by the department. Such notice shall contain the date of such transfer, the names and addresses of the transferor and transferee, and such description of the vehicle as may be required by the department.(6)(a)(I) An application for a full-use dealer plate may be submitted by a motor vehicle dealer or wholesaler who: (A) Has sold more than twenty-five motor vehicles in the twelve-month period preceding application;(B) Purchases an existing motor vehicle dealership or wholesale business that has sold more than twenty-five vehicles during the twelve-month period preceding application; or(C) Obtains a license to operate a new or used motor vehicle dealership or wholesale business with an inventory of fifty or more motor vehicles.(II) Full-use dealer plates may be used in lieu of, in the same manner as, and to the same extent as number plates issued pursuant to section 42-3-201.(b)(I) The department shall issue full-use dealer plates upon payment of the fee specified in subparagraph (II) of this paragraph (b) and upon application of a motor vehicle dealer or wholesaler accompanied by satisfactory evidence that the applicant is entitled to the plate in accordance with the criteria established in subparagraph (I) of paragraph (a) of this subsection (6).(II) The department shall establish and annually adjust the annual fee for full-use dealer plates based on the average of specific ownership taxes and registration fees paid for passenger vehicles and light-duty trucks that are seven model years old or newer and that were registered during the one-year period preceding January 1 of each year. The department shall prorate the annual fee on a monthly basis. The department shall establish and annually adjust the annual fee for full-use dealer plates for motorcycles and autocycles based on the average of specific ownership taxes and registration fees paid for motorcycles and autocycles that are seven model years old or newer and that were registered during the one-year period preceding January 1 of each year. The department shall prorate the annual fee for motorcycles and autocycles on a monthly basis.(III) Full-use dealer plates shall be valid for a period not to exceed one year.(IV) Each full-use dealer plate shall be returned to the department within ten days after the sale or closure of a motor vehicle dealership or wholesale business listed in an application submitted pursuant to subparagraph (I) of this paragraph (b).(c) Full-use dealer plates may be used only for vehicles owned and offered for sale by the dealer or wholesaler. Full-use dealer plates shall not be used on vehicles owned by dealerships or wholesalers that are commonly used by that dealer as tow trucks or vehicles commonly used by that dealer to pick up or deliver parts. At the dealer's or wholesaler's discretion, the full-use plate may be transferred from one motor vehicle to another motor vehicle. The dealer or wholesaler shall not be required to report any such transfer to the department.(d) A motor vehicle dealer or wholesaler may assign a full-use dealer plate only to the following persons: (I) Owners or co-owners of the licensed dealership or wholesale motor vehicle business;(II) An employee of the motor vehicle dealer or wholesaler;(III) To any person, including former, current, and prospective customers, in order to serve the legitimate business interest of the motor vehicle dealership or motor vehicle wholesale business; and(IV) A spouse or dependent child living in the same household as the licensed dealer or wholesaler.(e) As used in this subsection (6), "motor vehicle dealer or wholesaler" includes motor vehicle dealers, used motor vehicle dealers, and wholesalers as those terms are defined in section 44-20-102.(7)(a) A person who sells special mobile machinery in the ordinary course of business may submit an application for a demonstration plate.(b)(I) The department shall issue a demonstration plate upon payment of the fee specified in subparagraph (II) of this paragraph (b) and upon application of a motor vehicle dealer or wholesaler accompanied by satisfactory evidence that the applicant is entitled to the plate in accordance with this subsection (7).(II) The department shall establish and adjust the annual fee for a demonstration plate based on the average of specific ownership taxes and registration fees paid for items of special mobile machinery that are seven model years old or newer during the previous year.(III) A demonstration plate shall be valid for one year.(IV) The owner of a demonstration plate shall return the plate to the department within ten days after the sale or closure of the business that sells special mobile machinery in the ordinary course of business.(c) No person shall operate special mobile machinery with a demonstration plate unless the machinery is offered for sale and being demonstrated for the purposes of a sale. The owner may transfer the plate from one item of special mobile machinery to another and without reporting the transfer to the department.(d) A person who violates this subsection (7) commits a class A traffic infraction.Amended by 2022 Ch. 361, § 7, eff. 1/1/2023.Amended by 2021 Ch. 462, § 720, eff. 3/1/2022.Amended by 2018 Ch. 7, § 16, eff. 10/1/2018.Amended by 2017 Ch. 395, § 50, eff. 7/1/2017.L. 2005: Entire article amended with relocations, p. 1099, § 2, effective August 8. L. 2007: (4)(a) amended, p. 30, § 5, effective August 3. L. 2010: (7) added, (HB 10-1172), ch. 1490, p. 1490, § 7, effective October 1. L. 2011: (7)(d) amended, (HB 11-1303), ch. 1181, p. 1181, § 107, effective August 10. L. 2017: (6)(e) amended, (SB 17-240), ch. 2065, p. 2065, § 50, effective July 1. L. 2018: (6)(e) amended, (SB 18 -030), ch. 141, p. 141, § 16, effective October 1. L. 2021: (7)(d) amended, (SB 21-271), ch. 3303, p. 3303, § 720, effective 3/1/2022.This section is similar to former § 42-3-127 as it existed prior to 2005.
2022 Ch. 361, was passed without a safety clause. See Colo. Const. art. V, § 1(3). 2021 Ch. 462, was passed without a safety clause. See Colo. Const. art. V, § 1(3).