Colorado Tax Changes - October 2024
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 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 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.