June Tax Policy Updates

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.

New and Revised Publications

• Tax Topics: Passenger Mile Tax – This new publication replaces FYI Excise 14 and provides information about the passenger mile tax administered by the Department.
• Sales & Use Tax Topics: Prefabricated Housing – This publication was revised to reflect changes made by House Bill 22-1242, House Bill 23-1301, and House Bill 24-1036. 

Rulemaking Activities

• Sales Tax on Leases – The Department held a workgroup meeting to discuss a draft rule regarding sales tax on leases. Video of the workgroup meeting is available here.
• Income Tax Rules Hearing – The Department recently held a rulemaking hearing for the following proposed income tax rules:
  • Advanced Payments of Electric Bicycle and Innovative Motor Vehicle and Truck Credits – The proposed rules implement the provisions of House Bill 23-1272 allowing qualifying taxpayers to request advanced payments of qualifying credits on a quarterly basis, provide guidance regarding the electric bicycle tax credit, and revise the existing rule for innovative motor vehicle and truck credits.
  • Partnership Adjustment Reporting – The proposed rule implements the partnership adjustment reporting requirements of House Bill 23-1277.
  • Quantum Facility Investment Credit Recapture – The proposed rule clarifies the conditions under which the Department will disallow a credit under section 39-22-567(10), C.R.S., and require recapture.