Colorado DOR Proposes Rule on Income Tax Withholding for Nonresident Real Property Transfers

The Colorado Department of Revenue (DOR) proposed a new rule to clarify the withholding procedure for income tax on transfers of Colorado real property by nonresident sellers. The proposed rule outlines the responsibilities of withholding agents, defines key terms, and establishes deadlines for reporting and remitting withheld taxes. [Colo. Dep’t of Revenue, Proposed Regs. 39-22-604 - 5, 08/28/25 Colo. Reg.]