The Colorado Department of Revenue, Division of Taxation, is hosting a workgroup meeting to discuss the promulgation of new and revised procedure and administration rules regarding administrative exhaustion requirements and sales and use tax rules setting forth when retailers are held harmless for tax underpayments resulting from the use of the geographic information system database. The Department has prepared the draft rules below to aid in the process of soliciting public comments.
This workgroup meeting will take place virtually at 10:00 a.m. on June 25, 2026, and will be recorded. The Department has created a Virtual Workgroup Guide that provides additional guidance for participants. More information on how to participate in the workgroup is discussed below.
Please see the workgroup agenda here.
Draft Rules to be Discussed:
- 39-21-103-1. Hearings. The purpose of this amendment is to clarify that a taxpayer may not appeal a notice of final determination issued by the executive director and to reorganize and update the rule to conform to the Department’s current drafting standards.
- 39-21-104. Notice of Final Determination and Resubmitted Refund Claims. The purpose of this new rule is to make explicit administrative procedure regarding notices of final determination and resubmission of refund claims for the same transaction, item, and period previously denied
- 39-21-105. Appeals and Exhaustion of Administrative Remedies. The purpose of this new rule is to detail administrative requirements regarding a taxpayer’s right to appeal a notice of final determination to the district court and ensure consistency with Colorado case law.
- 39-26-105.2. Geographic Information System Database. The purpose of this new rule is to further detail when a retailer is held harmless of any tax, charge, or fee liability to any taxing jurisdiction that otherwise would be due solely as a result of an error or omission in the GIS database data.
- 39-26-105.3. Electronic Address Databases. The purpose of this amendment is to repeal the rule because of changes made to section 39-26-105.3, C.R.S., in House Bill 20-1023 and because the Department implemented a geographic information system that is operational, supported, and available for retailers to use to determine the taxing jurisdictions in which an address resides.
The Department has created a public drive where you can access the draft rules and comments submitted to the Department. The workgroup recording will also be posted on the public drive after it is held.
What is a workgroup?
A workgroup is a forum for the Department to gather information from the public for the development of new rules or for the revision of existing rules. 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 to participate?
Attend the workgroup meeting scheduled for June 25, 2026, at 10 a.m. People willing to share their knowledge on the workgroup topic are encouraged to attend and participate.
This workgroup meeting is 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). Connecting through the Zoom website or desktop client offers additional features even if participants choose to leave their cameras off.
Workgroup meetings are recorded and may be reviewed afterward through the public drive.
People wishing to attend or participate by teleconference should connect as follows:
Phone Number: 1 (669) 900-6833
Meeting ID: 838 4124 0400- Submit comments on the draft rules by 5:00 p.m. on June 25, 2026. Prior to commenting, review any existing rules, the related statutes or legislation, and the draft rules 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, removed from, or changed in the draft rules, and the statutory basis for the changes. Comments should be submitted by email to dor_taxrules@state.co.us. Written comments are encouraged even if you plan to attend the workgroup meeting. All written comments submitted will be made public through the public drive.