The Colorado Department of Revenue, Division of Taxation, is seeking public input regarding drafts of the following new and amended rules. The Department has prepared the following drafts to aid in the process of soliciting public comments.
- 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.; 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.
We do not plan to convene a workgroup meeting 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 July 10, 2025. All written comments submitted will be made public. You can access comments submitted to the Department and other materials through the public drive.
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 (written comments, workgroup meeting, or hearing)" option.