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Workgroup Meeting – Simplification of Sales and Use Tax Exemption Forms

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The Colorado Department of Revenue, Division of Taxation, is convening a workgroup meeting to discuss drafts of the following new and revised sales and use tax exemption forms, which the Division reviewed in accordance with House Bill 22-1039. This workgroup meeting will take place on June 13, 2023, at 10:00 a.m. at 1881 Pierce Street, Entrance B, Room 110, Lakewood, CO 80214. Entrance B is on the west side of the building at the northern end. The Department will also provide the option to participate via video conference for those who wish to participate remotely. If you would like to participate by video conference, please request the virtual login information. The Department has created a Virtual Workgroup Guide that provides additional guidance for participants. Additional information on how to participate in the workgroup is discussed below.
  
The agenda for the workgroup can be found here. 

The presentation slides for the HB22-1039 Sales Tax Exemption Forms Workgroup can be found here.

  • DR 5002, Declaration of Wholesale or Entity Sales Tax Exemption. The purpose of this revised form is to consolidate the information from the following forms, and to make grammatical, stylistic, and organizational changes to improve its clarity and readability. While this draft form includes both wholesale and entity exemptions, the Department is considering whether these two groups should have separate forms. Please note that the Multistate Tax Commission’s Uniform Sales & Use Tax Resale Certificate is also an option for documenting wholesale purchases.
    • DR 5002, Standard Colorado Affidavit of Exempt Sale. This is the current form that we are proposing to revise.
    • DR 0563, Sales Tax Exemption Certificate Multi - Jurisdiction. This form is proposed to be eliminated. 
    • DR 1367, Affidavit of Sales Paid by Government Credit Card. This form is proposed to be eliminated.
    • DR 1191, Sales Tax Exemption on Purchases of Machinery and Machine Tools. This form is proposed to be eliminated.
    • DR 1192, Colorado Machinery and Machine Tools State Sales Tax Exemption Declaration. This form is proposed to be eliminated.
  • Whether wholesale and entity exemptions should be combined on one form or kept on separate forms
    • DR 0563, Declaration of Wholesale Exemption. This purpose of this alternate revised form would be to provide one separate form for wholesale exemptions.
    • DR 1367, Declaration of Entity Exemption. This purpose of this alternate revised form would be to provide one separate form for entity exemptions.

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 forms or for the revision of existing rules or forms. 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?

  1. Attend the workgroup meeting scheduled for June 13, 2023, at 10:00 a.m. People willing to share their knowledge on the workgroup topic are encouraged to attend and participate. 

This workgroup meeting has the option to participate 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 by those who are unavailable at the scheduled meeting time. Email dor_taxrules@state.co.us to obtain access to the recording. 

People wishing to attend or participate by teleconference should connect as follows:

Phone Number: 1 (669) 900-6833

Meeting ID: 856 2729 2112

  1. Submit comments on the draft rules by 5:00 p.m. on June 13, 2023. 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 are able to attend the workgroup meeting.