The Colorado Department of Revenue, Division of Taxation, will hold a public rulemaking hearing on the income tax withholding rules listed below at 10 a.m. on October 2, 2025.
This hearing will be conducted virtually and will be recorded. The Department has created a Virtual Rulemaking Hearing Guide that provides additional information for participants.
You can access comments submitted to the Department, and other materials through the public drive. The rulemaking hearing recording will also be posted on the public drive after it is held.
Proposed Rules:
- Rule 39-22-604–1. Colorado Income Tax Withholding for Wages. The purpose of this amended rule is to renumber the rule to accommodate additional rules under section 39-22-604, C.R.S.; provide clarification regarding the requirement to withhold Colorado income taxes from overtime compensation; repeal paragraphs (3)(c)(vi) and (vii) of the rule pursuant to House Bill 23-1275 and House Bill 24-1036, respectively; correct a statutory reference in the rule; clarify requirements relating to electronic filing of W-2s with the Department; and update the rule to conform to the Department’s current drafting standards.
- Rule 39-22-604–2. Colorado Income Tax Withholding for Gambling Winnings. The purpose of this rule is to repeal the existing rule and create a new rule that establishes the withholding percentage for gambling winnings and provides guidance regarding Colorado income tax withholding requirements for payers of gambling winnings, including requirements to register with the Department, withhold Colorado income tax from gambling winnings, remit payments, file returns, and provide annual withholding information returns to both the Department and payees.
- Rule 39-22-604–3. Colorado Income Tax Withholding for Other Payments. The purpose of this new rule is to provide guidance to payers and payees for voluntary Colorado income tax withholding, including guidance regarding requirements to register with the Department, remit payments, file returns, and provide annual withholding information returns to both the Department and payees.
- Rule 39-22-604–4. Employer Notice of Certain Federal and State Tax Credits. The purpose of this new rule is to specify additional content necessary for an employer to meet the written notice requirement set forth in section 39-22-604(6)(c), C.R.S.
- Rule 39-22-604.5. Colorado Income Tax Withholding for Nonresident Transfers of Colorado Real Property. The purpose of this new rule is to set forth the procedure and due date for reporting and remitting Colorado income tax withheld from transfers of Colorado real property by nonresident transferors and for submitting written affirmations executed pursuant to section 39-22-604.5(2)(c), C.R.S.
The Department encourages the public to participate through video conference because of additional participation features it provides. Participants are welcome to use a webcam to appear by video but can also leave their video camera off. If you would like to virtually attend the rulemaking hearing, please register to participate virtually.
Parties wishing to attend or participate by teleconference should connect as follows:
Phone Number: 1 (669) 900-6833
Meeting ID: 822 5088 8849
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 Thursday, October 2, 2025. All written comments submitted will be made public.
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 September 10, 2025.
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 (written comments, workgroup meeting, or hearing)" option.