39-22-604.5 Colorado Income Tax Withholding for Nonresident Transfers of Colorado Real Property. Basis and Purpose. The bases for this rule are sections 39-21-112(1), 39-22-604.5,

and 39-22-621, C.R.S. The purpose of this rule is to set forth the procedure and due date for reporting and remitting Colorado income tax withheld from transfers of Colorado real property by nonresident transferors and for submitting written affirmations executed pursuant to section 39-22-604.5(2)(c), C.R.S. (1) General Rules. (a) Except as otherwise provided in section 39-22-604.5(2), C.R.S., when the conditions in section 39-22-604.5(1), C.R.S., are met, a withholding agent shall: (i) withhold from the sales price of the Colorado real property interest conveyed or the net proceeds resulting from such conveyance, whichever is less, an amount of tax set forth in section 39-22- 604.5(1), C.R.S.; and (ii) report and remit such withheld tax in accordance with this rule. (b) A withholding agent that does not withhold any amount pursuant to section 39-22-604.5(2)(c), C.R.S., shall submit such written affirmation executed by the transferor in accordance with this rule. (2) Definition. As used in this rule, unless context otherwise requires, “withholding agent” means a title insurance company or its authorized agent or any attorney, bank, savings and loan association, savings bank, corporation, partnership, association, joint stock company, trust, or unincorporated organization or any combination thereof, acting separately or in concert, that provides closing and settlement services. (3) Reporting and Remittance Due Date. (a) A withholding agent of Colorado real property shall within thirty days of the closing date of the transaction: (i) report and remit the required tax withheld pursuant to section 39- 22-604.5, C.R.S., on the forms prescribed by the Department; or (ii) if no withholding is required, submit a written affirmation executed pursuant to section 39-22-604.5(2)(c), C.R.S., on the forms prescribed by the Department. (b) Saturday, Sunday, and Legal Holidays. If the due date set forth in paragraph (3) of this rule falls on a Saturday, Sunday, or legal holiday, the filing or remittance shall be deemed timely if filed or remitted on the next business day. (c) Failure to Report and Remit Timely. In addition to the penalty set forth in section 39-22-604.5(3), C.R.S., a withholding agent that is required to withhold, report, and remit any amount pursuant to section 39-22-604.5, C.R.S., and fails to do so by the due date prescribed in paragraph (3) of this rule shall also be subject to the interest and penalties set forth in section 39-22-621, C.R.S.