Colorado Tax Changes - January 2025
Guidance on Senior Housing Income Tax Credit
- Announcement: The Colorado Department of Revenue has clarified the qualified senior housing income tax credit.
- Eligibility Requirements:
- Must be 65 years or older by the end of 2024 (born on or before December 31, 1959).
- Must be a part-year or full-year resident of Colorado in 2024.
- Must own and live in the home as their primary residence.
- Adjusted gross income must be 75,000orless∗∗(or∗∗75,000orless∗∗(or∗∗125,000 or less if married filing jointly).
- Must not have received a senior property tax exemption, senior homestead exemption, or disabled veteran exemption for 2024.
- Credit Calculation: Eligible taxpayers can calculate the credit amount based on their adjusted gross income and filing status on the Department's website.
New Visitor Benefit Tax
- Announcement: The San Miguel Authority for Regional Transportation has imposed a 1.25% visitor benefit tax on overnight accommodations.
- Details:
- No exemptions or service fees apply.
- The tax collection begins January 1, 2025.
- Vendors must file quarterly, reporting on Form DR 1483.
Colorado Personal Income Tax—Colorado provides guidance on claiming senior housing income tax credit.
The Colorado Department of Revenue provided guidance on the qualified senior housing income tax credit, noting that many taxpayers who have been claiming the credit do not qualify. To avoid return adjustments and delays in processing, the Department has clarified the credit's parameters. Colorado seniors claiming the credit must be 65 years of age or older at the end of 2024, meaning a taxpayer or their spouse must have a birth date of December 31, 1959 or earlier, they must be part-year or full-year residents of the state of Colorado in 2024 and must own the home they live in as their primary residence, they must have an adjusted gross income for 2024 of $75,000 or less ($125,000 or less if they are married and filing jointly), and they must not have received a senior property tax exemption, senior homestead exemption, or disabled veteran exemption for the 2024 tax year. If a taxpayer meets these requirements, they are eligible for the qualified senior housing income tax credit and can refer to the Department's website to calculate the amount of credit based on their adjusted gross income and filing status. (Income Qualified Senior Housing Income Tax Credit, Colo. Dept. Rev., 01/08/2025.)
Colorado Sales and Use Tax Rates—Colorado rural transportation authority imposes new visitor benefit tax.
The San Miguel Authority for Regional Transportation, a state-designated rural transportation authority, has imposed a 1.25% visitor benefit tax on the purchase of overnight rooms and accommodations. There are no exemptions to the tax and it does not have a service fee. The new tax is effective for collection by vendors beginning January 1, 2025. The tax will be filed quarterly and should be reported on Form DR 1483. (Sales & Use Tax Rate Changes Effective January 1, 2025, Colo. Dept. Rev., 12/20/2024.)
Colorado Sales & Use Taxes—Colorado rural transportation authority imposes new visitor benefit tax.
The San Miguel Authority for Regional Transportation, a state-designated rural transportation authority, has imposed a 1.25% visitor benefit tax on the purchase of overnight rooms and accommodations. There are no exemptions to the tax and it does not have a service fee. The new tax is effective for collection by vendors beginning January 1, 2025. The tax will be filed quarterly and should be reported on Form DR 1483. (Sales & Use Tax Rate Changes Effective January 1, 2025, Colo. Dept. Rev., 12/20/2024.)
Colorado Personal Income Tax—Colorado provides guidance on claiming senior housing income tax credit.
The Colorado Department of Revenue provided guidance on the qualified senior housing income tax credit, noting that many taxpayers who have been claiming the credit do not qualify. To avoid return adjustments and delays in processing, the Department has clarified the credit's parameters. Colorado seniors claiming the credit must be 65 years of age or older at the end of 2024, meaning a taxpayer or their spouse must have a birth date of December 31, 1959 or earlier, they must be part-year or full-year residents of the state of Colorado in 2024 and must own the home they live in as their primary residence, they must have an adjusted gross income for 2024 of $75,000 or less ($125,000 or less if they are married and filing jointly), and they must not have received a senior property tax exemption, senior homestead exemption, or disabled veteran exemption for the 2024 tax year. If a taxpayer meets these requirements, they are eligible for the qualified senior housing income tax credit and can refer to the Department's website to calculate the amount of credit based on their adjusted gross income and filing status. (Income Qualified Senior Housing Income Tax Credit, Colo. Dept. Rev., 01/08/2025.)
Colorado Sales and Use Tax Rates—Colorado rural transportation authority imposes new visitor benefit tax.
The San Miguel Authority for Regional Transportation, a state-designated rural transportation authority, has imposed a 1.25% visitor benefit tax on the purchase of overnight rooms and accommodations. There are no exemptions to the tax and it does not have a service fee. The new tax is effective for collection by vendors beginning January 1, 2025. The tax will be filed quarterly and should be reported on Form DR 1483. (Sales & Use Tax Rate Changes Effective January 1, 2025, Colo. Dept. Rev., 12/20/2024.)
Colorado Sales & Use Taxes—Colorado rural transportation authority imposes new visitor benefit tax.
The San Miguel Authority for Regional Transportation, a state-designated rural transportation authority, has imposed a 1.25% visitor benefit tax on the purchase of overnight rooms and accommodations. There are no exemptions to the tax and it does not have a service fee. The new tax is effective for collection by vendors beginning January 1, 2025. The tax will be filed quarterly and should be reported on Form DR 1483. (Sales & Use Tax Rate Changes Effective January 1, 2025, Colo. Dept. Rev., 12/20/2024.)