Tax Policy Updates - August 2025
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.
New and Revised Publications
- Income Tax Topics: Electric Bicycle Credit – This publication was revised to provide additional information relating to quarterly electronic reports; to explain that sales tax is imposed on the full purchase price, without reduction for the amount of the required discount; and to further clarify guidance provided on various issues discussed in the publication.
Recently Published Private Letter Rulings (PLR) and General Information Letters (GIL)
- PLR 25-001 – Prefabricated housing – The purchases of materials and components from suppliers for incorporation into prefabricated housing modules are exempt from state and state-administered local sales and use tax. Sales of the prefabricated housing modules in Colorado on and after January 1, 2025, qualify for the full exemption from state sales tax provided under section 39-26-721(3)(b), C.R.S., as amended by House Bill 24-1036. Exemptions from state-administered local taxes will vary. These sales are sourced to the location where the prefabricated housing modules are received. The conveyance of the completed home to its ultimate owner is not subject to state and state-administered local sales tax.
- PLR 25-002 – Firearm and Ammunition Excise Tax Liability for Marketplace Facilitators – Company, as a marketplace facilitator, is not a vendor responsible for remitting the Colorado Firearms and Ammunition Excise Tax on sales of firearms, firearm precursor parts, or ammunition.
- PLR 25-003 – Application of Prepaid Wireless Charges – The unlimited voice minutes in Company’s prepaid wireless service plans do not meet the definition of “prepaid wireless telecommunications service” in section 29-11-101(21), C.R.S., and therefore are not subject to the prepaid wireless charges.