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 26-001 – Sales Tax on Up-Front Lease Payments – This letter ruling addresses the state and state-administered local sales tax treatment and sourcing of up-front lease payments made as part of a motor vehicle lease. It also addresses the remittance of state and state-administered local sales taxes collected on these up-front lease payments.
New and Revised Publications
- Sales & Use Tax Topics: Auto Repairs – This new publication provides information about the application of sales and use tax to automotive repairs, as described in Special Rule 4 in 1 CCR 201-5.
- Sales & Use Tax Topics: Gasoline & Special Fuels – This new publication provides information regarding sales tax imposed on fuels and certain exemptions applicable thereto.
- Sales Tax Guide – Part 7 of the guide was revised to reflect recently adopted Rules 39-26-109, 39-21-119.5–1, and 39-21-119.5–2.
- Income Tax Topics: U.S. Government Interest – This new publication replaces FYI Income FYI Income 20.
- Special Topic: Prepaid Wireless Charges – This publication was revised to reflect changes made by House Bill 25-1154 and House Bill 26-1115. Beginning in 2026, the telecommunications relay service (TRS) charge was replaced with the telephone disability access (TDA) charge.
Rulemaking Announcements
- Retail Marijuana Tax – We recently announced a rulemaking hearing on June 30, 2026, for the repeal and repromulgation of rules in 1 CCR 201-18 to restructure the rules so the rules for the retail marijuana sales tax and retail marijuana excise tax, respectively, are consolidated into a single rule for each tax type.
- Procedure and Administration Rules – We recently announced a workgroup meeting scheduled for June 25, 2026, to discuss three draft rules regarding tax procedures and administration. These draft rules apply to all tax types and address issues relating to notices of final determination, resubmitted refund claims, appeals, and the exhaustion of administrative remedies.
- Sales Tax Location Databases – We recently announced a workgroup meeting scheduled for June 25, 2026, to discuss the repeal of an existing rule regarding the use of electronic address databases and a new draft rule regarding use of the current geographic information system database, consistent with House Bill 20-1023.