The Colorado Department of Revenue, Division of Taxation, is seeking input from stakeholders regarding a draft 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 9A. Apportionment of Income for Electricity Producers. - The purpose of this new rule is to prescribe the inclusion of certain receipts of electricity producers from hedging transactions in the receipts factor.
- Rule 39-22-303.6–1. Apportionment and Allocation Definitions. The purpose of this amended rule is to add language to the rule that explains that hedging transactions are excluded from receipts except as provided in Special Rule 9A.
- Rule 39-22-303.6–7. Sales Other Than Sales of Tangible Personal Property in Colorado. The purpose of this amended rule is to add language to the rule that explains that hedging transactions are excluded from receipts except as provided in Special Rule 9A.
The Department is also seeking input from stakeholders regarding the repeal of the following apportionment rules within 1 CCR 201-3 because the rules applied to tax years prior to January 1, 2009. You can click on the links below to review both the rules the Department is proposing to repeal and the rules within 1 CCR 201-3 that the Department expects to retain.
- Regulation IV. Colorado Multi-state Compact Tax Regulation – Applicability.
- Regulation IV.1.(a). Business and Nonbusiness Income Defined.
- Regulation IV.1.(b).
- Regulation IV.1.(c). Business and Nonbusiness Income: Application of Definitions.
- Regulation IV.1.(d). Proration of Deductions.
- Regulation IV.2.(a). Definitions.
- Regulation IV.2.(b)(1). Application of Article IV: Apportionment.
- Regulation IV.2.(b)(2). Application of Article IV: Combined Report.
- Regulation IV.2.(b)(3). Application of Article IV: Allocation.
- Regulation IV.2.(c). Consistency and Uniformity in Reporting.
- Regulation IV.3.(a). Taxable in Another State.
- Regulation IV.3.(b). Taxable in Another State: When a Corporation is “Subject to” a Tax under Article IV.3.(1).
- Regulation IV.3.(c). Taxable in Another State: When a State Has Jurisdiction to Subject a Taxpayer to a Net Income Tax.
- Regulation IV.9. Apportionment Formula.
- Regulation IV.15.(a). Sales Factor.
- Regulation IV.15.(b). Sales Factor: Denominator.
- Regulation IV.15.(c). Sales Factor: Numerator.
- Regulation IV.16.(a). Sales Factor: Sales of Tangible Personal Property in this State.
- Regulation IV.16.(b). Sales Factor: Sales of Tangible Personal Property to United States Government in this State.
- Regulation IV.17. Sales Factor: Sales Other than Sales of Tangible Personal Property in this State.
- Regulation IV.18.(c). Special Rules: Sales Factor
We do not plan to convene a stakeholder workgroup for these rules prior to formal rulemaking unless comments indicate one is necessary. In lieu of a workgroup, we would greatly appreciate written feedback on the draft rules. Please submit comments on the draft rules by emailing your comments to dor_taxrules@state.co.us. Written comments will be accepted through September 17, 2021.
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.
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.