Colorado Tax Changes - October 2024
Week Of 10.21.2024
Business Tax Rates:
- 911 Charge: $2.09 per transaction in 2025.
- 988 Charge: $0.07 per transaction in 2025.
- Telecommunications Relay Service (TRS) Charge: 0.1% of sales (static rate).
Hurricane Relief:
- Tax Deadline Extension: Individuals and businesses impacted by hurricanes Helene and Milton in Florida, Alabama, Georgia, North Carolina, South Carolina, Tennessee, and Virginia have until May 1, 2025, to file various tax returns and make payments.
- Affected Taxpayers: Those with tax deadlines falling between September 23, 2024, and February 15, 2025, qualify.
- Contact: Call the tax information hotline at 303-238-SERV (7378) to request the extension.
TABOR Surplus Sales Tax Refunds:
- Refund Amounts: Eligible taxpayers will receive refunds based on their adjusted gross income in 2025.
- Income Ranges:
- Up to 53,000:∗∗∗∗53,000:∗∗∗∗177 (single) / $354 (joint)
- 53,001to53,001to105,000: 240∗∗(single)/∗∗240∗∗(single)/∗∗480 (joint)
- 105,001to105,001to166,000: 277∗∗(single)/∗∗277∗∗(single)/∗∗554 (joint)
- 166,001to166,001to233,000: 323∗∗(single)/∗∗323∗∗(single)/∗∗646 (joint)
- 233,001to233,001to302,000: 350∗∗(single)/∗∗350∗∗(single)/∗∗700 (joint)
- 302,001andup:∗∗∗∗302,001andup:∗∗∗∗565 (single) / $1,130 (joint)
- Eligibility: Full-year Colorado residents who file a 2024 Colorado Individual Income Tax Return or a 2024 Property Tax/Rent Rebate Application.
Week Of 09.30.2024
Colorado Tax Updates: Key Changes for Businesses and Individuals
Colorado has recently implemented several tax-related changes impacting businesses and individuals. Here's a summary of the key updates:
1. Corporate Income Tax: Sourcing of Sales to the U.S. Government
- The Colorado Department of Revenue has ruled that receipts from sales of products manufactured in Colorado to the U.S. government, which are purchased for delivery to U.S. government locations outside of Colorado, are not sourced to Colorado.
- This ruling clarifies that the physical location of the products at the time of inspection and acceptance, or their storage for the U.S. government after inspection and acceptance, does not determine the state to which the sales are sourced.
- The ruling is based on Colo. Rev. Stat. § 39-22-303.6(5)(a), which states that receipts from sales are not in Colorado if the products are not delivered or shipped to the U.S. government in Colorado.
2. Property Tax: Amended Rules and Regulations for Exempt Properties
- The Colorado Department of Local Affairs, Division of Property Taxation, has adopted amendments to Colo. Code Regs. 8 CCR 1304-2, Rules and Regulations for Exempt Properties, effective October 15, 2024.
- These amendments align with recent legislation regarding property tax exemptions and include changes related to:
- Community land trusts or nonprofit affordable housing homeownership developers applying for property tax exemptions.
- Increased property tax exemption filing fees.
3. Sales & Use Taxes: Increased Medical Use of Marijuana Program Application Fee
- The Colorado Department of Public Health and Environment has amended Colo. Code Regs. 5 CCR 1006-2, Regulation 7, effective October 15, 2024, to increase the application fee for the Medical Use of Marijuana Program to $52.
- This fee increase is intended to cover the direct and indirect costs of administering the program.
- Applicants who meet the criteria establishing indigence are exempt from the fee.
- The previous application fee of $29.50 will remain in effect until October 15, 2024.
For complete details, please refer to the relevant Colorado legislation and rulings:
- Colorado Private Letter Ruling No. PLR-24-003, 08/21/2024: Sourcing of Sales to the U.S. Government
- Colo. Code Regs. 8 CCR 1304-2: Rules and Regulations for Exempt Properties
- Colo. Code Regs. 5 CCR 1006-2, Regulation 7: Medical Use of Marijuana Program Application Fee
Week Of 10.21.2024
Colorado Business Tax Rates—Colorado sets 911 and 988 charge rates for 2025.
The Colorado Department of Revenue has announced the per-transaction rates for 911 and 988 charges for 2025. The 911 charge rate will be $2.09, and the 988 charge rate will be $0.07. The 911 and 988 charge rates are set on a yearly basis. The Telecommunications Relay Service (TRS) charge is static, calculated as a percentage of sales at 0.1%. (Prepaid Wireless Charge Rates for 2025, Colo. Dept. Rev., 10/24/2024.)
Colorado General Administrative Provisions—Colorado announces relief for taxpayers impacted by hurricanes Helene and Milton.
Governor Jared Polis and the Colorado Department of Revenue announced that individuals and households affected by hurricanes Helene and Milton that reside or have a business anywhere in the states of Florida, Alabama, Georgia, North Carolina, South Carolina, and parts of Tennessee and Virginia, with tax deadlines falling on or after September 23, 2024, and before February 15, 2025, have until May 1, 2025, to file various individual and business tax returns and make tax payments. Impacted individuals who had an automatic extension to file their 2023 return, due on October 15, 2024, now have until May 1, 2025, to file; this extension does not relieve the taxpayer from penalties and interest. Affected Colorado sales tax licensees who file and pay by the extension deadline of May 1, 2025, will be eligible for any vendor fee (discount) that applies. Department exemptions do not apply to home-rule jurisdictions who collect their own taxes. The Department will not automatically apply this tax deadline waiver. Affected taxpayers who reside or have a business located in the covered disaster area must call the tax information hotline at 303-238-SERV (7378) Monday through Friday from 8 a.m. to 4:30 p.m. to request the extended deadline after they receive a bill. (Department of Revenue Announces Relief for Taxpayers Affected by Hurricanes Helene and Milton, 10/22/2024.)
Colorado Personal Income Tax—Colorado announces 2024 TABOR surplus sales tax refund amounts.
The Colorado Department of Revenue has announced the amounts of the 2024 TABOR surplus sales tax refunds that eligible taxpayers will receive in 2025. Taxpayers who fall in these six adjusted gross income ranges will receive the following amounts: (1) incomes up to $53,000, $177 for a single filer and $354 for joint filers; (2) $53,001 to $105,000, $240 for a single filer and $480 for joint filers; (3) $105,001 to $166,000, $277 for a single filer and $554 for joint filers; (4) $166,001 to $233,000, $323 for a single filer and $646 for joint filers; (5) $233,001 to $302,000, $350 for a single filer and $700 for joint filers; and (6) $302,001 and up, $565 for a single filer and $1,130 for joint filers. Eligible 2024 full-year residents may claim the refund if they file a 2024 Colorado Individual Income Tax Return or a 2024 Property Tax/Rent/Heat (PTC) Rebate Application by October 15, 2025. (2024 TABOR Surplus Sales Tax Refunds, Colo. Dept. Rev., 10/17/2024; Recent TABOR Refunds, Colo. Dept. Rev., 10/17/2024.)
Colorado Public Utilities Tax—Colorado sets 911 and 988 charge rates for 2025.
The Colorado Department of Revenue has announced the per-transaction rates for 911 and 988 charges for 2025. The 911 charge rate will be $2.09, and the 988 charge rate will be $0.07. The 911 and 988 charge rates are set on a yearly basis. The Telecommunications Relay Service (TRS) charge is static, calculated as a percentage of sales at 0.1%. (Prepaid Wireless Charge Rates for 2025, Colo. Dept. Rev., 10/24/2024.)
Colorado Sales & Use Taxes—Colorado motor vehicle daily rental fee rate set for first half of 2025.
The Colorado Department of Revenue has announced that the total motor vehicle daily rental fee rate for January 2025 through June 2025 is $5.23, comprised of a $2.23 daily vehicle rental fee and a $3 congestion impact fee. The daily vehicle rental fee and congestion impact fee are the two fees that are components of the motor vehicle daily rental fee and are imposed on all motor vehicle rentals of 30 days or less, and car sharing rentals lasting 24 hours or longer. The congestion impact fee was added for January 2025 and subsequent periods by L. 2024, S184 (reported in State Tax Update, 06/17/2024). The total rate may increase in July of each year to adjust for inflation. The Department is required to publish the new rate annually by April 15 for the upcoming rate effective in July. (Motor Vehicle Daily Rental Fee, Colo. Dept. Rev., 10/23/2024.)
Week Of 09.30.2024
Colorado Corporate Income Tax—Sourcing of sales to the U.S. government of property stored in Colorado.
The Colorado Department of Revenue ruled that receipts from sales of products manufactured in Colorado to the U.S. government, which are purchased for delivery to U.S. government locations outside of Colorado, are not in Colorado. The products are inspected and accepted by the government and stored in Colorado by the seller until transported to U.S. government-designated and operated destinations outside of Colorado. Under Colo. Rev. Stat. § 39-22-303.6(5)(a), receipts from the sales are not in Colorado because the products are not delivered or shipped to the U.S. government in Colorado. Neither the physical location of the products at the time of inspection and acceptance, nor storage of the products for the U.S. government after inspection and acceptance, determine the state to which the sales are sourced. (Colorado Private Letter Ruling No. PLR-24-003, 08/21/2024.)
Colorado Property Tax—Colorado amends rules and regulations for exempt properties.
The Colorado Department of Local Affairs, Division of Property Taxation, has adopted amendments to Colo. Code Regs. 8 CCR 1304-2, Rules and Regulations for Exempt Properties, effective October 15, 2024. The rules are amended to comply with the passage of 2024 legislation relating to a community land trust or nonprofit affordable housing homeownership developer or its authorized agent applying for a property tax exemption, and the increase in property tax exemption filing fees.
Colorado Sales & Use Taxes—Colorado Medical Use of Marijuana Program application fee increased.
The Colorado Department of Public Health and Environment has amended Colo. Code Regs. 5 CCR 1006-2, Regulation 7, effective October 15, 2024, to provide that the Department will collect $52 from each applicant at the time of application to pay for the direct and indirect costs to administer the Medical Use of Marijuana Program, unless the applicant meets the criteria establishing indigence. Until October 15, 2024, the application fee is $29.50.
Week Of 10.21.2024
Colorado Business Tax Rates—Colorado sets 911 and 988 charge rates for 2025.
The Colorado Department of Revenue has announced the per-transaction rates for 911 and 988 charges for 2025. The 911 charge rate will be $2.09, and the 988 charge rate will be $0.07. The 911 and 988 charge rates are set on a yearly basis. The Telecommunications Relay Service (TRS) charge is static, calculated as a percentage of sales at 0.1%. (Prepaid Wireless Charge Rates for 2025, Colo. Dept. Rev., 10/24/2024.)
Colorado General Administrative Provisions—Colorado announces relief for taxpayers impacted by hurricanes Helene and Milton.
Governor Jared Polis and the Colorado Department of Revenue announced that individuals and households affected by hurricanes Helene and Milton that reside or have a business anywhere in the states of Florida, Alabama, Georgia, North Carolina, South Carolina, and parts of Tennessee and Virginia, with tax deadlines falling on or after September 23, 2024, and before February 15, 2025, have until May 1, 2025, to file various individual and business tax returns and make tax payments. Impacted individuals who had an automatic extension to file their 2023 return, due on October 15, 2024, now have until May 1, 2025, to file; this extension does not relieve the taxpayer from penalties and interest. Affected Colorado sales tax licensees who file and pay by the extension deadline of May 1, 2025, will be eligible for any vendor fee (discount) that applies. Department exemptions do not apply to home-rule jurisdictions who collect their own taxes. The Department will not automatically apply this tax deadline waiver. Affected taxpayers who reside or have a business located in the covered disaster area must call the tax information hotline at 303-238-SERV (7378) Monday through Friday from 8 a.m. to 4:30 p.m. to request the extended deadline after they receive a bill. (Department of Revenue Announces Relief for Taxpayers Affected by Hurricanes Helene and Milton, 10/22/2024.)
Colorado Personal Income Tax—Colorado announces 2024 TABOR surplus sales tax refund amounts.
The Colorado Department of Revenue has announced the amounts of the 2024 TABOR surplus sales tax refunds that eligible taxpayers will receive in 2025. Taxpayers who fall in these six adjusted gross income ranges will receive the following amounts: (1) incomes up to $53,000, $177 for a single filer and $354 for joint filers; (2) $53,001 to $105,000, $240 for a single filer and $480 for joint filers; (3) $105,001 to $166,000, $277 for a single filer and $554 for joint filers; (4) $166,001 to $233,000, $323 for a single filer and $646 for joint filers; (5) $233,001 to $302,000, $350 for a single filer and $700 for joint filers; and (6) $302,001 and up, $565 for a single filer and $1,130 for joint filers. Eligible 2024 full-year residents may claim the refund if they file a 2024 Colorado Individual Income Tax Return or a 2024 Property Tax/Rent/Heat (PTC) Rebate Application by October 15, 2025. (2024 TABOR Surplus Sales Tax Refunds, Colo. Dept. Rev., 10/17/2024; Recent TABOR Refunds, Colo. Dept. Rev., 10/17/2024.)
Colorado Public Utilities Tax—Colorado sets 911 and 988 charge rates for 2025.
The Colorado Department of Revenue has announced the per-transaction rates for 911 and 988 charges for 2025. The 911 charge rate will be $2.09, and the 988 charge rate will be $0.07. The 911 and 988 charge rates are set on a yearly basis. The Telecommunications Relay Service (TRS) charge is static, calculated as a percentage of sales at 0.1%. (Prepaid Wireless Charge Rates for 2025, Colo. Dept. Rev., 10/24/2024.)
Colorado Sales & Use Taxes—Colorado motor vehicle daily rental fee rate set for first half of 2025.
The Colorado Department of Revenue has announced that the total motor vehicle daily rental fee rate for January 2025 through June 2025 is $5.23, comprised of a $2.23 daily vehicle rental fee and a $3 congestion impact fee. The daily vehicle rental fee and congestion impact fee are the two fees that are components of the motor vehicle daily rental fee and are imposed on all motor vehicle rentals of 30 days or less, and car sharing rentals lasting 24 hours or longer. The congestion impact fee was added for January 2025 and subsequent periods by L. 2024, S184 (reported in State Tax Update, 06/17/2024). The total rate may increase in July of each year to adjust for inflation. The Department is required to publish the new rate annually by April 15 for the upcoming rate effective in July. (Motor Vehicle Daily Rental Fee, Colo. Dept. Rev., 10/23/2024.)
Week Of 09.30.2024
Colorado Corporate Income Tax—Sourcing of sales to the U.S. government of property stored in Colorado.
The Colorado Department of Revenue ruled that receipts from sales of products manufactured in Colorado to the U.S. government, which are purchased for delivery to U.S. government locations outside of Colorado, are not in Colorado. The products are inspected and accepted by the government and stored in Colorado by the seller until transported to U.S. government-designated and operated destinations outside of Colorado. Under Colo. Rev. Stat. § 39-22-303.6(5)(a), receipts from the sales are not in Colorado because the products are not delivered or shipped to the U.S. government in Colorado. Neither the physical location of the products at the time of inspection and acceptance, nor storage of the products for the U.S. government after inspection and acceptance, determine the state to which the sales are sourced. (Colorado Private Letter Ruling No. PLR-24-003, 08/21/2024.)
Colorado Property Tax—Colorado amends rules and regulations for exempt properties.
The Colorado Department of Local Affairs, Division of Property Taxation, has adopted amendments to Colo. Code Regs. 8 CCR 1304-2, Rules and Regulations for Exempt Properties, effective October 15, 2024. The rules are amended to comply with the passage of 2024 legislation relating to a community land trust or nonprofit affordable housing homeownership developer or its authorized agent applying for a property tax exemption, and the increase in property tax exemption filing fees.
Colorado Sales & Use Taxes—Colorado Medical Use of Marijuana Program application fee increased.
The Colorado Department of Public Health and Environment has amended Colo. Code Regs. 5 CCR 1006-2, Regulation 7, effective October 15, 2024, to provide that the Department will collect $52 from each applicant at the time of application to pay for the direct and indirect costs to administer the Medical Use of Marijuana Program, unless the applicant meets the criteria establishing indigence. Until October 15, 2024, the application fee is $29.50.