Stakeholder Workgroup - Charitable Organization Sales Tax Rules

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The Colorado Department of Revenue, Division of Taxation, is convening a stakeholder workgroup on Monday, November 16, 2020 at 2:00 P.M. to discuss the promulgation of the following new and existing sales tax rules. This stakeholder workgroup meeting will be conducted entirely by telephone and video conference, and will be recorded. The Department has created a Virtual Rulemaking Workgroup Guide that provides additional guidance for participants. Additional information on how to participate in the workgroup is discussed below.

The Department has prepared the following draft rules to aid in the process of soliciting public comments. The Department has also distributed an agenda for the work group. If you have topics you would like to include in the agenda, please send them by email to dor_taxrules@state.co.us.

  • Rule 39-26-102(7)–1. – Purchase Price. - The purpose of this amendment is to renumber the rule to accommodate an additional rule promulgated pursuant to the same statutory section.
  • Rule 39-26-102(7)–2. – Purchase Price Involving a Donation to a Charitable Organization. - The purpose of this rule is to establish the conditions under which a portion of a payment for a sale made by a charitable organization is considered a donation and therefore excluded from the taxable purchase price.
  • Rule 39-26-718. – Charitable Organizations. - The purpose of this amendment is to conform the existing rule to legislative changes made by House Bill 19-1323, which modified the limited exemption for sales made by charitable organizations. This amendment also incorporates federal regulation 26 CFR § 1.501(c)(3)‑1, which prescribes certain definitions and requirements for charitable organizations, prescribes requirements for applications for exemption certificates, repeals parts of the rule that are duplicative with statute, and makes grammatical, stylistic, or organizational changes to improve the clarity and readability of the rule.
What is a stakeholder work group?

A stakeholder workgroup is a forum for the Department to gather information from stakeholders for the development of new rules or for the revision of existing rules. Stakeholder workgroups occur in advance of a rulemaking hearing and may or may not incorporate draft rules. The workgroup consists of individuals who have knowledge of the issues being discussed. The workgroup members will be asked to provide their input and insight, along with constructive feedback and suggestions, in an open discussion format.

How do I participate?

Apply to be a workgroup member. 

Stakeholders willing to share their knowledge on the workgroup topic are encouraged to email dor_taxrules@state.co.us with a brief description of their qualifications and interest. To keep the discussion manageable and productive, the Department may limit the size and composition of the workgroup. Workgroups are currently being conducted virtually using the Zoom platform. Video conferencing equipment, and an adequate Internet connection, are recommended but not required (participation by video is optional). Please make sure you are available during the scheduled meeting time before applying to be on the work group member.

Attend or review the workgroup meeting.

Interested stakeholders may call into or join the virtual workgroup meeting via Zoom even if they are not members of the workgroup. Each workgroup meeting will include time for public comment. Workgroup meetings are recorded, and may be reviewed afterward by those who are unavailable at the scheduled meeting time. 

Contact dor_taxrules@state.co.us for video conference information or to obtain access to the recording. Stakeholders wishing to attend or participate by teleconference should connect as follows:

Phone Number: 1 (669) 900-6833

Meeting ID: 823-8128-1709

Connecting through the Zoom website or desktop client offers additional features even if participants choose to leave their cameras off (participation by video is optional).

Submit comments on the draft rules.

All workgroup members and interested stakeholders are encouraged to submit written comments. Prior to commenting, review any existing rules, the related statutes or legislation, and the draft rule or tax topic being discussed. Then provide feedback or input on necessary changes or additions to the rules or any guidance that needs to be included in the rules. All feedback is welcome, but the most useful feedback includes specific language to be added to or removed from the draft rules, and the statutory basis for the changes. Comments should be submitted by email to dor_taxrules@state.co.us.