SB 23-156

Senate Bill 23-156, which has been signed into law by the governor and will take effect on August 7, 2023, continues the practice of the Colorado Department of Revenue issuing private letter rulings and information letters. These documents provide guidance to taxpayers about specific tax issues. The bill also allows for extensions beyond a standard 90-day deadline if both the taxpayer and the department agree. Additionally, it allocates $53,644 from the Private Letter Ruling Fund to support these services in the upcoming fiscal year. This means that taxpayers will continue to receive detailed guidance on tax matters without interruption.

Official Summary

The act implements the recommendations of the department of regulatory agencies, as contained in the department's sunset review of the issuance of private letter rulings (rulings) and information letters (letters) by the department of revenue, as follows: Continues the issuance of rulings and letters by the department of revenue and removes the issuance of rulings and letters from the sunset review process; Allows the department of revenue to extend the 90-day deadline to issue a ruling if the taxpayer agrees to the extension; and Allows the department of revenue to issue letters and rulings for any issue related to a tax or fee administered by the department of revenue. For the 2023-24 fiscal year, the act appropriates $53,644 from the private letter ruling fund to the department of revenue for use by the taxation business group for personal services related to taxation services. APPROVED by Governor May 1, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

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