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Request for Public Input – State Income Tax Addback

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The Colorado Department of Revenue, Division of Taxation, is seeking input from the public regarding a draft of the following new income tax rule. The Department has prepared the following draft to aid in the process of soliciting public comments.

  • Rule 39-22-104(3)(d). State Income Tax Addback. - The purpose of this new rule is to explain the addition to federal taxable income required for individuals, estates, and trusts for state income taxes deducted, including the taxpayer’s share of any state income taxes deducted by a partnership or S corporation in which the taxpayer is a partner or shareholder.

We do not plan to convene a workgroup meeting for this rule prior to formal rulemaking unless comments indicate one is necessary. In lieu of a workgroup, we would greatly appreciate written feedback on the draft rule. Please submit comments on the draft rule by emailing your comments to dor_taxrules@state.co.us.  Written comments will be accepted through January 31, 2023.

After evaluating the comments we receive, the Department will determine whether the draft rule should move forward and, if so, whether further revisions to the rule are necessary. If the Department moves forward with the proposed rule, 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.