Colo. Code Regs. 39-26-704-4

Current through Register Vol. 47, No. 11, June 10, 2024

Rule 39-26-704-4 - Sales Tax Exemptions for Hotel Residents

Basis and Purpose. The bases for this rule are sections 39-21-112(1), 39-26-102(11), 39 26 104(1)(f), and 39-26-704(3), C.R.S. The purpose of this rule is to further explain the exemptions for long-term rentals of rooms and accommodations applicable to state and state-administered local sales taxes and the written agreement required for such exemptions.

(1)State Sales Tax. The state sales tax imposed pursuant to section 39-26-104(1)(f), C.R.S., does not apply to the amount charged for any room or accommodations rented to any natural person who:

(a) is a permanent resident of such room or accommodations; and

(b) enters into or has entered into a written agreement for occupancy of such room or accommodations for a period of at least thirty consecutive days.

(2)State-Administered Local Sales Taxes.

(a) Except as provided in paragraph (2)(c) of this rule, local taxes administered by the Department do not apply to the amount charged for any room or accommodations rented to any occupant, including, but not limited to, any natural person, who:

(i) is a permanent resident of such room or accommodations; and

(ii) enters into or has entered into a written agreement for occupancy of such room or accommodations for a period of at least thirty consecutive days.

(b) For the purpose of this rule, "local taxes administered by the Department" include, but are not limited to:

(i) sales taxes administered by the Department for any county, city, town, or home rule municipality pursuant to section 29-2-106, C.R.S.;

(ii) sales taxes administered by the Department for any special district pursuant to title 32, C.R.S.;

(iii) sales taxes administered by the Department for any local improvement district pursuant to section 30-20-604.5, C.R.S.;

(iv) sales taxes administered by the Department for public safety improvements pursuant to section 30-11-107.9, C.R.S.;

(v) sales taxes administered by the Department for any multijurisdictional housing authority pursuant to section 29-1-204.5(3) (f.1), C.R.S.;

(vi) sales taxes administered by the Department for any regional transportation authority pursuant to section 43-4-605, C.R.S.;

(vii) county lodging taxes administered by the Department pursuant to section 30-11-107.5, C.R.S.;

(viii) marketing and promotions taxes administered by the Department pursuant to section 29-25-112, C.R.S.

(ix) sales taxes administered by the Department for any regional library authority pursuant to section 24-90-110.7, C.R.S.;

(x) sales taxes administered by the Department for any unit of government hospital care provider pursuant to section 25-42-103, C.R.S.; and

(xi) sales taxes administered by the Department for any Republican river water conservation district pursuant to section 37-50-110, C.R.S.;

(c) A city, county, special district, or other taxing authority that imposes a tax listed in paragraph (2)(b) of this rule may, by ordinance, resolution, or amendment thereto, subject to such tax all rentals of rooms and accommodations described in paragraph (2)(a) of this rule. In such case, all rentals of rooms and accommodations, regardless of the duration of such rental, shall be subject to the tax imposed by such city, county, special district, or other taxing authority.

(3) For the purpose of section 39-26-704(3), C.R.S., and this rule, "written agreement" includes any legally enforceable written contract for the furnishing of rooms or accommodations, whether made in writing, electronically, or by any other means. Evidence of such agreement includes, but is not limited to, a hotel registration or a rent receipt. A canceled check shall not, by itself, be sufficient to substantiate a written agreement.

39-26-704-4

37 CR 18, September 25, 2014, effective 10/15/2014

38 CR 02, January 25, 2015, effective 2/14/2015

39 CR 10, May 25, 2016, effective 6/14/2016

40 CR 12, June 25, 2017, effective 7/15/2017

40 CR 23, December 10, 2017, effective 1/1/2018

41 CR 13, July 10, 2018, effective 7/30/2018

41 CR 14, July 25, 2018, effective 8/14/2018

42 CR 02, January 25, 2019, effective 12/18/2018, expires 4/17/2019.

42 CR 02, January 25, 2019, effective 12/18/2018

42 CR 06, March 25, 2019, effective 4/14/2019

43 CR 04, February 25, 2020, effective 3/16/2020

43 CR 17, September 10, 2020, effective 9/30/2020

44 CR 01, January 10, 2021, effective 1/30/2021

44 CR 07, April 10, 2021, effective 4/30/2021

44 CR 08, April 25, 2021, effective 5/15/2021

45 CR 04, February 25, 2022, effective 3/17/2022

45 CR 23, December 10, 2022, effective 12/30/2022

46 CR 08, April 25, 2023, effective 5/15/2023