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.
Recently Published Private Letter Rulings (PLR) and General Information Letters (GIL)
- PLR-25-004 – Sales Tax on Retail Sales of Baked Goods Sold by Bakery – Baked goods that are sold packaged, cold, and without accompanying utensils by a bakery without seating are intended for home consumption and are exempt from sales tax.
Rulemaking Activities
- Income Tax Rules Hearing - The Department recently adopted the following proposed income tax rules:
- Advance Payments of Electric Bicycle and Innovative Motor Vehicle and Truck Credits – These rules implement the provisions of House Bill 23-1272 allowing qualifying taxpayers to request advance payments of qualifying credits on a quarterly basis, provide guidance regarding the electric bicycle tax credit, and revise the existing rule for innovative motor vehicle and truck credits.
- Partnership Adjustment Reporting – This rule implements the partnership adjustment reporting requirements of House Bill 23-1277.
- Quantum Facility Investment Credit Recapture – This rule clarifies the conditions under which the Department will disallow a credit under section 39-22-567(10), C.R.S., and require recapture.
- Income Tax Withholding Rules – We recently announced a rulemaking hearing for several proposed rules regarding income tax withholding on wages, gambling winnings, nonresident real estate transactions, and other payments. We also proposed a rule regarding the notice employers must provide their employees relating to certain federal and state income tax credits.