Information about the recent activities of the Office of Tax Policy is provided below. This information includes new and revised publications, rulemaking activities, and recently published letter rulings and information letters.
Recently Published Private Letter Rulings (PLR) and General Information Letters (GIL)
- PLR-26-003 – Flash Title Transfers in Payment Processing – In Model A transactions, Company briefly takes title to the transacted-for goods in order to facilitate payments from customers to online merchants. In Model B transactions, Company facilitates payments from customers to online merchants. Under the facts presented by Company, Company is not doing business in this state and is not known to the trade and public as a retailer insofar as it participates in either Model A or Model B transactions. Company is, consequently, neither a retailer making sales under section 39-26-102(10), C.R.S., nor a retailer doing business in Colorado under section 39-26-102(3), C.R.S. Therefore, Company is not liable and responsible, pursuant to section 39-26-105(1)(a)(I)(A), C.R.S., for collecting and remitting the tax imposed by section 39-26-106(1)(a)(II), C.R.S.
New and Revised Publications
- Sales & Use Tax Topics: Rooms & Accommodations – This publication was revised to reflect recently adopted Rules 39-21-119.5–10 and 39-21-119.5–11. These rules establish mandatory electronic filing and payment requirements, which phase in over time, for county lodging, visitor benefit, and local marketing district taxes.
- Sales & Use Tax Topics: Vending Machines – This new publication replaces FYI Sales 59 and provides general guidance regarding the sales tax requirements for vending machines.
- Income Tax Topics: Alternative Transportation Options Credit – This publication was revised to reflect changes made by House Bill 25-1296 and Rule 39-22-509.
- Enterprise Zone Tax Guide – This publication was revised to reflect changes made by Section 22 of House Bill 23-1272 (prohibiting taxpayers from claiming Enterprise Zone Investment Tax Credits for investments that result in an Industrial Clean Energy Investment Tax Credit or Geothermal Energy Tax Credit) and Section 17 of House Bill 25-1296 (limiting the Enterprise Zone Investment Tax Credit to $2 million and disallowing the credit for property directly used in the retail sale of gasoline or diesel fuel for use in motor vehicles or a wireless telecommunications facility). The revisions also address how changes made by H.R. 1 regarding bonus depreciation and Section 179 expensing impact the Enterprise Zone Investment Tax Credit.
- Income Tax Topics: Section 303(8)(b) Entities – This publication was revised to reflect changes made by House Bill 25B-1002 to add new “listed jurisdictions” for the purpose of combined returns.
Rulemaking Announcements
- Sales Tax on Leases – We recently announced a rulemaking hearing for a proposed rule regarding sales tax on leases. The proposed rule defines several terms; addresses the taxability of a lessor’s acquisition of property for lease; explains the tax treatment of lease payments, subleases, sale-leasebacks, maintenance contracts, and sales of previously leased property; and details lessors’ responsibilities in connection with taxable leases.
- Tobacco Products and Nicotine Products Taxes – We announced a rulemaking hearing for proposed rules regarding tobacco products and nicotine products taxes. The proposed rules define certain terms used in the statutory definitions of “manufacturer’s list price” and credit allowed for previously taxed products that are shipped or transported out of state, returned to the manufacturer, or destroyed by the distributor.
- Master Settlement Agreement – We announced a rulemaking hearing for proposed rules regarding the Master Settlement Agreement, which would repeal several rules, amend one rule, and relocate another rule with amendments.