The Colorado Department of Revenue, Division of Taxation, is hosting a workgroup meeting to discuss the promulgation of a new sales tax rule regarding leases. The Department has prepared the draft rule below to aid in the process of soliciting public comments.
This workgroup meeting will take place on May 20, 2025, at 10:00 a.m. virtually and will be recorded. If you would like to participate, please register here. The Department has created a Virtual Workgroup Guide that provides additional guidance for participants. More information on how to participate in the workgroup is discussed below.
One week before the workgroup meeting, the Department will distribute an agenda for the workgroup. If you have topics you would like to discuss at the workgroup meeting, please send those suggestions to dor_taxrules@state.co.us by May 6, 2025, at 10:00 a.m. to be included in the agenda.
Draft Rules to be Discussed:
- Special Rule 47. Leases - The purpose of this rule is to provide guidance regarding sales tax on leases. The rule defines several terms; addresses the taxability of a lessor’s acquisition of property for lease; explains the tax treatment of lease payments, subleases, sale-leasebacks, maintenance contracts, and sales of previously leased property; and details lessors’ responsibilities in connection with taxable leases. The rule would replace existing Rules 39-26-102(23) and 39-26-713–1.
What is a workgroup?
A workgroup is a forum for the Department to gather information from the public for the development of new rules or for the revision of existing rules. Workgroups occur in advance of a rulemaking hearing and may or may not incorporate draft rules. The workgroup consists of individuals who have knowledge of the issues being discussed. The workgroup members will be asked to provide their input and insight, along with constructive feedback and suggestions, in an open discussion format.
How to participate?
Attend the workgroup meeting scheduled for May 20, 2025, at 10:00 a.m. If you would like to participate, please register here. People willing to share their knowledge on the workgroup topic are encouraged to attend and participate.
This workgroup meeting is being conducted virtually using the Zoom platform. Video conferencing equipment and an adequate Internet connection are recommended but not required (participation by video is optional). Connecting through the Zoom website or desktop client offers additional features even if participants choose to leave their cameras off.
Workgroup meetings are recorded and may be reviewed afterward by those who are unavailable at the scheduled meeting time. Please access the public drive to obtain access to the recording.
People wishing to attend or participate by teleconference should connect as follows:
Phone Number: 1 (669) 900-6833
Meeting ID: 839 9225 2104- Submit comments on the draft rule by 5:00 p.m. on May 20, 2025. Prior to commenting, review any existing rules, the related statutes or legislation, and the draft rule or tax topic being discussed. Then provide feedback or input on necessary changes or additions to the rule or any guidance that needs to be included in the rule. All feedback is welcome, but the most useful feedback includes specific language to be added to, removed from, or changed in the draft rule, and the statutory basis for the changes. Comments should be submitted by email to dor_taxrules@state.co.us. Written comments are encouraged even if you plan to attend the workgroup meeting.