CO EAs Speak Up

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

Colorado Department of Revenue

Notice of Proposed Rulemaking

The Colorado Department of Revenue, Division of Taxation, will hold a public rulemaking hearing on the rules listed below at 10:00 A.M. on Wednesday, September 30, 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 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:  940 6422 5013

Proposed Rules:

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 the close of the hearing on September 30, 2020.

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 September 10, 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.

Colorado Department of Revenue Request
for
Stakeholder Input

Income Tax Rules

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

  • 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.

Sales Tax Rules

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

  • 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 exempted ear tags and electronic identification readers for food animals, and House Bill 19-1329, which defined sales of fertilizer and spray adjuvants as wholesale sales if they are 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 39-26-102(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.
  • 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.

Due to the ongoing public health emergency, the Department does not plan to convene a stakeholder workgroup prior to formal rulemaking. In lieu of a workgroup, we would greatly appreciate written feedback on the proposed rules. Please submit comments on the draft rules by emailing your comments to dor_taxrules@state.co.usWritten comments will be accepted through September 25, 2020.

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.