39-22-303.6–9 Rental, Lease, or License of Tangible Personal Property. Basis and Purpose. The bases of this rule are §§ 39-21-112, 39-22-301, 39-22-303,

and 39-22-303.6, C.R.S. The purpose of this rule is to provide guidance for determining which gross receipts from the rental, lease, or license of tangible personal property are included in a taxpayer’s receipts factor. Consistent with the General Assembly’s adoption of § 39-22-303.6, C.R.S., these rules are intended to conform the state’s income tax laws to the Multistate Tax Commission’s model statute and regulation except when those model provisions are inconsistent with Colorado statute. See 2018 Colo. Sess. Laws, ch. 369, § 1(2). In the case of a rental, lease, or license of tangible personal property, the receipts from the sale are in Colorado if and to the extent that the property is in Colorado. If property is mobile property that is located both within and without Colorado during the period of the lease or other contract, the receipts assigned to Colorado are the receipts from the contract period multiplied by a fraction, the numerator of which is the total time within Colorado during the tax period and the denominator of which is the total time during the tax period (as adjusted when necessary to reflect differences between usage during the contract period and usage during the taxable year).