Update on HB10-1190 Rulemaking


The Department of Revenue has issued emergency rules for the implementation of HB 1190, regarding the rule for the Energy Sales Tax (39-26-102.21 C.R.S.)  The DOR has the authority to issue the emergency rule for a 90 day term.  The Attorney General’s Office is currently reviewing the final language, which mirrors the temporary language.  The DOR expects to hear comments from the AG’s office regarding the language in the next week or two. The Department did accept the stakeholder’s suggested language and the regulation specifies that the suspension of the tax exemption does not apply to energy purchased for agricultural purposes.  The rule further defines “agricultural purposes” as the same meaning found in 39-26-102(1) C.R.S.

Current statute defines “agricultural commodity” as any agricultural, horticultural, floricultural, viticultural, and vegetable products, livestock and livestock products, wheat, hay, corn, sugar beets, timber and timber products, oats, malting barley, barley, hops, rice, milo, and other feed grains, bees and honey, poultry and poultry products, and milk and milk products, either in their natural state or as processed, including any marketable agricultural product.

Therefore, CFB believes that if producers did not have to pay sales tax on their energy use before, they should not have to now. We will continue to stay engaged as this rulemaking gets finalized.

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