COsEA members with expertise and/or concerns are encouraged to respond to requests for public comment. If you believe COsEA should be more active in providing valuable opinion please contact Legislation@cosea.org

Legislation Committee
Call to Action

Now that the elections are over, COsEA members are encouraged to contact their elected leaders to identify themselves as constituents and Enrolled Agents. As one of America’s Tax Experts we ask that you inform your legislators of your concerns and suggestions from your professional experience. See CO EAs Speak Up for a suggested introduction e-mail.

Historical Perspective from COsEA President

Sample E-mail to
Your Legislators

The Legislative Committee is urging members to introduce yourself to your newly elected or re-elected legislators as an Enrolled Agent and with any concerns you might have. A sample e-mail to be customized by you follows.

As an Enrolled Agent licensed by the United States Treasury Department to represent taxpayers in all states on matters of taxation, I write to introduce myself as a constituent who both lives and works in your district in Colorado. Everyday I help taxpayers understand both tax statutes and regulations in an effort to facilitate efficient tax administration. Should you be inclined to inquire about how any prospective tax related statutes might be received by taxpayers or tax practitioners, I am available to provide input as you see fit.

More on me can be found here (link to your website). Please feel welcome to call or write anytime – phone number here. Happy to be of assistance and appreciate any consideration.

As a member of the Colorado Society of Enrolled Agents please know that we like to be involved in the shaping and debating of tax statutes and appreciate all opportunities to be both invited to the table and treated to the same level playing field as CPA’s and tax attorneys.

Find your Colorado House and Senate District numbers by entering an address here: https://leg.colorado.gov/find-my-legislator

Once you have the district number, contact information for your Colorado law maker is here: https://leg.colorado.gov/legislators

Find your US House of Representatives District: https://www.house.gov/representatives/find-your-representative

To find other elected officials: https://www.usa.gov/elected-officials/

Notice of Proposed Rulemaking
Rules to Conform to Legislation
on January 25, 2021 at 10:00 a.m.

The Colorado Department of Revenue, Division of Taxation, will hold a public rulemaking hearing on the following income, sales, cigarette, tobacco products, and marijuana tax rules listed below on January 25, 2021 at 10:00 AM. This hearing will be conducted entirely by telephone and video conference, and will be recorded. The Department has created a Virtual Rulemaking Hearing Guide that provides additional guidance for participants.

Parties wishing to attend or participate by video conference may obtain a link for connecting by sending an email to dor_taxrules@state.co.us. Because of additional participation features provided by the video conference, we encourage participants to participate through the video conference. Participants are welcome to use a webcam to appear by video, but may also leave their video camera off.

Parties wishing to attend or participate by teleconference should connect as follows:
Phone Number: 1 (669) 900-6833
Meeting ID: 825-0205-0241

Proposed Rules:

Rule 39-22-104(3)(g). Gross Conservation Easement Addition.– The purpose of this amendment is to conform the existing rule to legislative changes made by House Bill 19-1264 and to make minor stylistic changes.
Rule 39-22-304(2)(f). Gross Conservation Easement Addition. –The purpose of this amendment is to conform the existing rule to legislative changes made by House Bill 19-1264 and to make minor stylistic changes.
Rule 39-22-522. Conservation Easement Credit. –The purpose of this amendment is to conform the existing rule to legislative changes made by House Bill 19-1264, which increased the maximum credit to $5,000,000 per donation, allowable in increments limited to $1,500,000 per year. This amendment also repeals parts of the rule that are duplicative with statute, and makes grammatical, stylistic, or organizational changes to improve the clarity and readability of the rule.
Rule 39-22-538. Rural Primary Health Care Preceptor Credit. –The purpose of the amendment is to conform the rule to statutory changes made by House Bill 19-1088 and to make other minor changes improve readability and clarity of the rule.
Rule 39-26-704–4. Sales Tax Exemptions for Hotel Residents. – The purpose of this amendment is to further explain the exemptions for long-term rentals of rooms and accommodations applicable to state and state-administered local sales taxes and the written agreement required for such exemptions.
Rule 39-26-717. Medical Material, Equipment, and Drugs. –The purpose of this amendment is to conform the existing rule to legislative changes made by Senate Bill 18-129, which reorganized section 39-26-717, C.R.S. This amendment also incorporates the statutory definition of “prescription drug” from section 12-280-103(42), C.R.S., adopts a definition of “prosthetic devices” consistent with the Streamlined Sales and Use Tax Agreement and federal regulation, repeals parts of the rule that are duplicative with statute, and makes grammatical, stylistic, or organizational changes to improve the clarity and readability of the rule.
Special Rule 2. Agricultural Products and Equipment.– The purpose of this amendment is to conform the existing rule to legislative changes made by House Bill 19-1162, which added a sales and use tax exemption for ear tags and electronic identification readers used with food animals, and House Bill 19-1329, which added sales and use tax exemptions for fertilizer and spray adjuvants used in the production of agricultural commodities. This amendment also repeals parts of the rule that are obsolete or duplicative with statute, and makes grammatical, stylistic, and organizational changes to improve the clarity and readability of the rule.
Rule 39-28-104. Wholesaler’s Service Fee.– The purpose of the amendment to this rule is to remove the requirement to file cigarette returns electronically because House Bill 20-1175 statutorily requires electronic filing of cigarette returns and payment of cigarette tax by electronic funds transfer.
Rule 39-28.5-106. Distributor’s Service Fee. – The purpose of the amendment to this rule is to remove the requirement to file tobacco products returns electronically because House Bill 20-1175 statutorily requires electronic filing of tobacco products returns and payment of tobacco products tax by electronic funds transfer.
Rule 39-28.8-101. Retail Marijuana Definitions.– The purpose of this rule is to update the rule to reflect the statutory changes made by Senate Bill 19-224, which combined the Colorado Retail Marijuana Code and Colorado Medical Marijuana Code into a singular Colorado Marijuana Code, and reorganized Title 44, Article 12 to Title 44, Article 10.

The Department will accept oral and written comments on these proposed rules. Oral comments will be accepted by video and telephone conference at the hearing. Written comments may be submitted to dor_taxrules@state.co.us in advance or in lieu of oral commentary at the hearing and will be accepted until 5:00 P.M. on January 25, 2021.

You can find the proposed rules and statements of basis and purpose at the links above. You may also find this information on the Division’s website by clicking “Formal Rulemaking Hearings” on the left side of the page.

The proposed rules will be published in the Colorado Register on December 25, 2020.

We would appreciate your feedback to help us measure and improve the success of the rulemaking program. If you participate in the rulemaking process, we invite you to complete a short survey. Follow the link, and choose the “I participated in the Rulemaking Process (Announcement, Stakeholder Meeting, or Hearing)” option.

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Past announcements retained here for reference

Request for Stakeholder Input
accepted through January 15, 2021.

Enterprise Zone Rules

The Colorado Department of Revenue, Division of Taxation, is seeking input from stakeholders regarding drafts of the enterprise zone rules listed below. The Department previously shared drafts of these rules on October 15, 2020. We have made minor revisions to a few of these drafts and more substantial additions to the draft of Rule 39-30-105.6.

Rule 39-30-104. Enterprise Zone Investment Tax Credit.– The purpose of the amendment to this rule is to update the rule regarding the application of the enterprise zone investment tax credit.
Rule 39-30-105. Enterprise Zone New Business Facility Employee Credits.– The purpose of this amendment to the rule is to repeal the rule because section 39-30-105, C.R.S. was repealed effective December 31, 2019.
Rule 39-30-105.1. Enterprise Zone Business Facility Employee Credits.– The purpose of this new rule is to clarify the calculation of enterprise zone business facility employee credits.
Rule 39-30-105.6. Credit for Rehabilitation of Vacant Buildings.– The purpose of this new rule is to clarify (1) the meaning of the term “building” for the purpose of the credit; (2) requirements for the credit related to vacancy, commercial use, and pre-certification; and (3) the application of the limitation on the amount of the credit allowed.
Rule 39-30-106. Enterprise Zone Machinery and Machine Tools Sales Tax Exemption.– The purpose of this new rule is to clarify the expansion of the definition of “manufacturing” for machinery and machine tools used exclusively in an enterprise zone to include only those activities related directly to the extraction of natural resources, including oil and gas.
Rule 39-35-104. Aircraft Manufacturer New Employee Income Tax Credit.– The purpose of the amendment to this rule is to update the rule regarding the calculation of the aircraft manufacturer new employee income tax credit.

We do not plan to convene a stakeholder work group for these rules prior to formal rulemaking unless comments indicate one is necessary. In lieu of a workgroup, we would greatly appreciate written feedback on the draft rules. Please submit comments on the draft rules by emailing your comments to dor_taxrules@state.co.us. Written comments will be accepted through January 15, 2021.

After evaluating the comments we receive, the Department will determine whether the draft rules should move forward and, if so, whether further revisions to the rules are necessary. If the Department moves forward with the proposed rules, additional comments will be accepted following a notice of proposed rulemaking. Thank you in advance for your input

Notice of Proposed Rulemaking – December 1st

Due to a filing error, the Colorado Department of Revenue, Division of Taxation, will hold a public rulemaking hearing to rehear the rules listed below at 10:00 A.M. on Tuesday, December 1, 2020. This hearing will be conducted entirely by telephone and video conference, and will be recorded. The Department has created a Virtual Rulemaking Hearing Guide that provides additional guidance for participants.

Parties wishing to attend or participate by teleconference should connect as follows:

Phone Number: 1 (669) 900-6833

Meeting ID: 896-8304-6142

Proposed Rules:

Rule 39-22-303–1. Tax Periods Subject to SB19-233.– The purpose of this rule is to clarify the tax periods to which Senate Bill 19-233 will apply.
Rule 39-22-303(11)(f). Domestic C Corporations with De Minimis or No Property and Payroll. – The purpose of this rule is to explain the manner in which the de minimis standard in section 39-22-303(11)(f), C.R.S., will be uniformly applied to taxpayers.
Rule 39-22-303(12)(c). Corporations Without Property and Payroll Factors. – The purpose of this amendment is to repeal the rule because the rule is not consistent with Senate Bill 19-233.

The proposed rules will be published in the Colorado Register on November 10, 2020.

Request for Stakeholder Input – before November 17th

Enterprise Zone Rules

The Colorado Department of Revenue, Division of Taxation, is seeking input from stakeholders regarding drafts of the enterprise zone rules listed below. The Department has prepared the following drafts to aid in the process of soliciting public comments.

Rule 39-30-104. Enterprise Zone Investment Tax Credit. –The purpose of the amendment to this rule is to update the rule regarding the application of the enterprise zone investment tax credit.
Rule 39-30-105. Enterprise Zone New Business Facility Employee Credits.– The purpose of this amendment to the rule is to repeal the rule because section 39-30-105, C.R.S. was repealed effective December 31, 2019.
Rule 39-30-105.1. Enterprise Zone Business Facility Employee Credits.– The purpose of this new rule is to clarify the calculation of enterprise zone business facility employee credits.
Rule 39-30-105.6. Credit for Rehabilitation of Vacant Buildings.– The purpose of this new rule is to detail the requirements for the credit related to vacancy, commercial use, and pre-certification.
Rule 39-30-106. Enterprise Zone Machinery and Machine Tools Sales Tax Exemption.– The purpose of this new rule is to make clear that the definition of “manufacturing” includes only those activities related directly to the extraction of natural resources, including oil and gas.
Rule 39-35-104. Aircraft Manufacturer New Employee Income Tax Credit.– The purpose of the amendment to this rule is to update the rule regarding the calculation of the aircraft manufacturer new employee income tax credit.

Colorado Department of Revenue

Stakeholder Work Group Meeting – November 16th

Charitable Organization Sales Tax Rules

The Colorado Department of Revenue, Division of Taxation, is convening a stakeholder workgroup on Monday, November 16, 2020 at 2:00 P.M. to discuss the promulgation of the following new and existing sales tax rules. This stakeholder workgroup meeting will be conducted entirely by telephone and video conference, and will be recorded. The Department has created a Virtual Rulemaking Workgroup Guide that provides additional guidance for participants. Additional information on how to participate in the workgroup is discussed below.

The Department has prepared the following draft rules to aid in the process of soliciting public comments. The Department will also distribute an agenda for the work group to those on this email notice list no later than one week before the workgroup meeting. If you have topics you would like to include in the agenda, please send them by email to dor_taxrules@state.co.us.

Rule 39-26-102(7)–1. – Purchase Price.– The purpose of this amendment is to renumber the rule to accommodate an additional rule promulgated pursuant to the same statutory section.
Rule 39-26-102(7)–2. – Purchase Price Involving a Donation to a Charitable Organization.– The purpose of this rule is to establish the conditions under which a portion of a payment for a sale made by a charitable organization is considered a donation and therefore excluded from the taxable purchase price.
Rule 39-26-718. – Charitable Organizations. –The purpose of this amendment is to conform the existing rule to legislative changes made by House Bill 19-1323, which modified the limited exemption for sales made by charitable organizations. This amendment also incorporates federal regulation 26 CFR § 1.501(c)(3)‑1, which prescribes certain definitions and requirements for charitable organizations, prescribes requirements for applications for exemption certificates, repeals parts of the rule that are duplicative with statute, and makes grammatical, stylistic, or organizational changes to improve the clarity and readability of the rule.

What is a stakeholder work group?

A stakeholder workgroup is a forum for the Department to gather information from stakeholders for the development of new rules or for the revision of existing rules. Stakeholder workgroups occur in advance of a rulemaking hearing and may or may not incorporate draft rules. The workgroup consists of individuals who have knowledge of the issues being discussed. The workgroup members will be asked to provide their input and insight, along with constructive feedback and suggestions, in an open discussion format.

How do I participate?

Apply to be a workgroup member.

Stakeholders willing to share their knowledge on the workgroup topic are encouraged to email dor_taxrules@state.co.us with a brief description of their qualifications and interest. To keep the discussion manageable and productive, the Department may limit the size and composition of the workgroup. Workgroups are currently being conducted virtually using the Zoom platform. Video conferencing equipment, and an adequate Internet connection, are recommended but not required (participation by video is optional). Please make sure you are available during the scheduled meeting time before applying to be on the work group member.

Attend or review the workgroup meeting.

Interested stakeholders may call into or join the virtual workgroup meeting via Zoom even if they are not members of the workgroup. Each workgroup meeting will include time for public comment. Workgroup meetings are recorded, and may be reviewed afterward by those who are unavailable at the scheduled meeting time.

Contact dor_taxrules@state.co.us for video conference information or to obtain access to the recording. Stakeholders wishing to attend or participate by teleconference should connect as follows:

Submit comments on the draft rules.

All workgroup members and interested stakeholders are encouraged to submit written comments. Prior to commenting, review any existing rules, the related statutes or legislation, and the draft rule or tax topic being discussed. Then provide feedback or input on necessary changes or additions to the rules or any guidance that needs to be included in the rules. All feedback is welcome, but the most useful feedback includes specific language to be added to or removed from the draft rules, and the statutory basis for the changes. Comments should be submitted by email to dor_taxrules@state.co.us.

The agenda for the workgroup lists several discussion topics identified by stakeholders and the Department. However, the workgroup may consider other issues raised by stakeholders at the workgroup meeting.

This stakeholder workgroup meeting will be conducted entirely by telephone and video conference, and will be recorded. Stakeholders wishing to be members of the workgroup are encouraged to email dor_taxrules@state.co.us with a brief description of their qualifications and interest. Interested stakeholders may also call into or join the virtual workgroup meeting via Zoom even if they are not members of the workgroup. Stakeholders wishing to attend or participate by teleconference should connect as follows:

Phone Number: 1 (669) 900-6833

Meeting ID: 823-8128-1709

We welcome and appreciate the participation of stakeholders in this rulemaking process

Notice of Proposed Rulemaking – November 4th, 2020

The Colorado Department of Revenue, Division of Taxation, will hold a public rulemaking hearing on the procedure and administration rules listed below at 10:00 A.M. on Wednesday, November 4, 2020. This hearing will be conducted entirely by telephone and video conference, and will be recorded. The Department has created a Virtual Rulemaking Hearing Guide that provides additional guidance for participants.

Parties wishing to attend or participate by teleconference should connect as follows:

Phone Number: 1 (669) 900-6833

Meeting ID: 881-6942-1093

Proposed Rules:

Rule 39-21-103-1. Request for Hearing.– The purpose of the amendment to this rule is to eliminate parts of the existing rule that are redundant with the statute and add clarifying language regarding the remaining provisions.
Rule 39-21-103-2. Assessments.– The purpose of this new rule is to define the term “assessment” as it is used in article 21 of title 39 and to clarify procedures and requirements related thereto.
Rule 39-21-104. Rejection of Claims. –The purpose of this amendment is to repeal this rule because it is duplicative of the statute.
Rule 39-21-105. Notice of Appeals. –The purpose of this amendment is to repeal this rule because it is duplicative of the statute.
Rule 39-21-105.5. Notices – First Class Mail. –The purpose of this amendment is to remove language duplicative of statute, clarify statutory requirements related to the issuance of notices, and advise taxpayers of their duty to notify the Department of changes to their mailing addresses.
Rule 39-21-107. Limitations on Assessments. –The purpose of this amendment is to repeal this rule because it is duplicative of the statute.
Rule 39-21-108. Claiming a Refund. –The purpose of this amendment is to repeal language that is duplicative of the statute and set forth the procedures for claiming a refund.
Rule 39-21-109. Interest on Amount Due.– The purpose of this amendment is to repeal this rule because it is duplicative of the statute.
Rule 39-21-109(1.5). Interest Discount. – The purpose of this new rule is clarify that a check returned to the Department of Revenue without payment does not constitute a payment sufficient to qualify for the 3% interest discount authorized by section 39-21-109(1.5), C.R.S.
Rule 39-21-113. Reports and Returns. –The purpose of this amendment is to repeal this rule because it is duplicative of the statute.
Rule 39-21-116.5. Penalties for Officers and Members. –The purpose of this new rule is to clarify the liability for the penalty imposed by section 39-21-116.5, C.R.S., and establish requirements for the administration thereof.

The proposed rules will be published in the Colorado Register on October 10, 2020.

Legislation Committee Call to Action

Historical Perspective from COsEA President

Sample E-mail to Your Legislators

Notice of Proposed Rulemaking Rules to Conform to Legislation on January 25, 2021 at 10:00 a.m.

Request for Stakeholder Input accepted through January 15, 2021.

Enterprise Zone Rules

Notice of Proposed Rulemaking – December 1st

Request for Stakeholder Input – before November 17th

Enterprise Zone Rules

Colorado Department of Revenue

Stakeholder Work Group Meeting – November 16th

Charitable Organization Sales Tax Rules

Notice of Proposed Rulemaking – November 4th, 2020

Legislation Committee
Call to Action

Sample E-mail to
Your Legislators

Notice of Proposed Rulemaking
Rules to Conform to Legislation
on January 25, 2021 at 10:00 a.m.

Request for Stakeholder Input
accepted through January 15, 2021.