Information about the recent activities of the Office of Tax Policy is provided below. This information includes new and revised publications, rulemaking activities, and recently published letter rulings and information letters.
Recently Published Private Letter Rulings (PLR) and General Information Letters (GIL)
- PLR 26-005 – Applicability of Certain Sales and Use Tax Exemptions to Tangible Personal Property Purchased and Used in Marijuana Cultivation and Manufacturing Operations – Company’s purchase and use of certain items of equipment used directly and predominantly in the production of marijuana products is exempt from Colorado sales and use tax pursuant to section 39-26-709(1)(a)(II) and (2), C.R.S. Company’s purchase and use of fertilizers on or after July 1, 2025, and of agricultural compounds on or after January 1, 2026, used in the production of an agricultural commodity are exempt from Colorado sales tax as wholesale sales pursuant to section 39-26-102(19)(e) and (19)(f.5), C.R.S. Company’s purchase and use of irrigation equipment with a per unit purchase price of $1000 and two sprayers used solely for the application of liquid fertilizer are exempt from Colorado sales and use tax pursuant to section 39-26-716(4)(e), C.R.S.
Rulemaking Announcements
- Retail Marijuana Tax – We recently announced a rulemaking hearing. The Department previously held a rulemaking hearing and adopted retail marijuana tax rules. However, due to a clerical error, the Department filed the incorrect adopted version of the permanent rules in the Secretary of State’s eDocket system. The filed version did not include the amendments made in response to comments received at the June 30, 2026, hearing.
- 2026 Miscellaneous Rules – We recently requested public input on a number of draft rules regarding various tax types, largely to amend or repeal existing rules to reflect recent legislative changes.