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Notice of Proposed Rulemaking – Miscellaneous Tax Rules


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The Colorado Department of Revenue, Division of Taxation, will hold a public rulemaking hearing on the tax rules listed below at 10:00 a.m. on July 10, 2025.

This hearing will be conducted virtually and will be recorded. Those interested in attending the hearing must register to participate virtually. The Department has created a Virtual Rulemaking Hearing Guide that provides additional information for participants.

You can access the proposed rules, 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.

Sales Tax Rules

  • Rule 39-26-104–2. Sourcing Retail Sales. The purpose of this amendment is to remove paragraphs (4) and (5) of the rule because the exception those paragraphs were clarifying was repealed effective October 1, 2022, pursuant to House Bill 22-1027.
  • Rule 39-26-105–1. Remittance of Sales Tax. The purpose of this amendment is to update the rule to conform to the Department’s current drafting standards and to include an additional statutory reference to paragraph (3) that was added to the statute after the previous adoption of this rule.
  • Rule 39-26-106–1. Separately Stated Tax. The purpose of this amendment is to update the rule to address how retailers that do not provide a written or electronic invoice, receipt, or other documentation must show the amount of sales taxes collected. Additionally, the amendment sets forth that retail delivery fees may not be included on the same line as sales taxes on any invoice, receipt, or other document showing the purchase price. The amendment also repeals paragraph (a) of the rule.
  • Rule 39-26-118. Sales Taxes Held in Trust. The purpose of this amendment is to repeal the rule because it is duplicative of the statute.
  • Rule 39-26-122. The purpose of this amendment is to repeal the rule because it is duplicative of the statute.
  • Rule 39-26-704–3. The purpose of this amendment is to repeal the rule because it is duplicative of the statute.
  • Rule 39-26-704–5. The purpose of this amendment is to repeal the rule because it is duplicative of the statute.
  • Rule 39-26-717–3. Incontinence Products and Diapers. The purpose of this amendment is to clarify the scope of clothing that is not eligible for the exemption.
  • Special Rule 5. Broadcasting Stations and Other Media. The purpose of this amendment is to repeal the rule because it is duplicative of basic sales tax principles that apply to all retailers and are set forth in statutes and other rules.
  • Rule 29-2-106(9). The purpose of this amendment is to repeal the rule because the corresponding statutory section mandating this form was repealed in Senate Bill 24-025.

Cigarette Tax Rule

  • Rule 39-28-116. Minimum Price for Cigarettes. The purpose of this new rule is to clarify the meaning of “all applicable taxes” that may be included in the minimum price for the purchase of cigarettes to exclude Colorado sales and use taxes.

Severance Tax Rule

  • Rule 39-29-107. Severance Tax on Oil Shale. The purpose of this amendment is to repeal the rule because the rule is obsolete due to the passage of House Bill 23-1121.

Income Tax Rules

  • Rule 39-22-104(4)(n.5). Wildfire Mitigation Measures Subtraction. The purpose of this amendment is to repeal the rule because beginning January 1, 2025, a taxpayer is unable to claim the subtraction pursuant to House Bill 24-1036.
  • Rule 39-22-504(6). Medical Savings Accounts. The purpose of this amendment is to repeal the rule because beginning January 1, 2025, an employer is unable to claim the medical savings account deduction pursuant to House Bill 24-1036.
  • Rule 39-22-504(7). Medical Savings Accounts. The purpose of this amendment is to repeal the rule because beginning January 1, 2025, an employer is unable to claim the medical savings account deduction pursuant to House Bill 24-1036.
  • 1 CCR 201-6. Aircraft Manufacturer New Employee Income Tax Credit. The purpose of this amendment is to repeal the rule because the statute has been repealed and the credit was last allowed in tax year 2022.

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:  857 5399 3246

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 July 10, 2025. Any comments submitted to the Department as part of this process are part of the public record and will be made available to the public after personal contact information is redacted. Please omit any confidential information when submitting comments to the department.

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 June 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.