The Colorado Department of Revenue, Taxation Division, will hold a public rulemaking hearing on the following tax rules on November 30, 2021 at 10:00 a.m. 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
Proposed Rules:
Income Tax Rules:
- Rule 39-22-119. Child Care Expenses Tax Credit. – The purpose of this amendment is to repeal parts of the rule that are duplicative of statute, explain that the child care expenses tax credit must be adjusted if the federal credit on which it is based is adjusted, and to clarify the proper apportionment of the credit allowed to part-year Colorado residents.
- Rule 39-22-119.5. Low-Income Child Care Expenses Tax Credit. – The purpose of this new rule is to describe the proper apportionment of the low-income child care expenses tax credit allowed to part-year Colorado residents.
- Rule 39-22-120. TABOR Credits and Subtractions Subject to Excess Revenues. – The purpose of this amendment is to repeal this rule because its provisions are either obsolete or duplicative of statute.
- Rule 39-22-123. Earned Income Tax Credit. – The purpose of this amendment is to repeal this rule because it is obsolete. The credit in section 39-22-123, C.R.S., was available only in TABOR surplus years and only in income tax years for which a credit was not allowed under section 39-22-123.5, C.R.S. On January 1, 2016, the credit in section 39-22-123.5, C.R.S., became available every tax year and superseded the credit in section 39-22-123, C.R.S.
- Rule 39-22-123.5. Earned Income Tax Credit. – The purpose of this new rule is to clarify the availability and calculation of the earned income tax credit.
- Rule 39-22-129. Child Tax Credit. – The purpose of this new rule is to clarify that the child tax credit must be adjusted if the federal credit on which it is based is adjusted, and to describe the proper apportionment of the child tax credit allowed to part-year Colorado residents.
- Rule 39-22-627. Temporary Adjustment of Income Tax Rate. – The purpose of this amendment is to adjust the Colorado income tax rate for 2021 in accordance with section 39-22-627, C.R.S.
- Rule 39-22-2003. State Sales Tax Refund. – The purpose of this rule is to publish the amount of any state sales tax refund when there are sufficient excess state revenues under the Taxpayer’s Bill of Rights (TABOR).
Enterprise Zone Rule:
- 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.
Sales Tax Rules:
- Rule 39-26-717. Medical Material, Equipment, and Drugs. – The purpose of this amendment is to remove the requirement that a “prosthetic device” be dispensed pursuant to a prescription order.
Nicotine Products Rules:
- Rule 39-28.6-102. Manufacturer’s List Price. – The purpose of this new rule is to provide clarification on the definition of manufacturer’s list price.
- Rule 39-28.6-107. Distributor’s Service Fee. – The purpose of this new rule is to clarify conditions under which a distributor is eligible to retain a service fee from the tax they remit.
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 November 30, 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.
The proposed rules will be published in the Colorado Register on November 10, 2021.
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.