The Colorado Department of Revenue briefed the Joint Finance Committee on Jan. 23 about 2024 implementation work, rulemakings and operational priorities across its tax, motor‑vehicle, regulatory and lottery programs.

Heidi Humphreys, executive director, and Deputy Executive Director Megan Tannus led the presentation and described three major implementation efforts under way: a firearms dealer licensing program established by House Bill 24‑133, a new Natural Medicine Division created by Proposition 122 and enabling legislation (S.B. 23‑190), and continued DMV modernization projects including digital IDs and expanded kiosk use.

In‑brief: the department’s role

Humphreys said the department collects roughly $20.4 billion in state and local sales and income taxes and processed about 4 million income tax returns in 2024. The Division of Motor Vehicles (DMV) serves millions of transactions each year and has rolled out a Colorado digital ID that is available in Apple, Google and Samsung wallets; the DMV is also expanding kiosks that reduced in‑office visits by about 15% and reported a customer satisfaction rate above 97% in recent data.

Firearms dealer licensing

Tannus described the new firearms dealer permit program required by law as a multi‑phase rollout. The department proposed rules after four large working‑group sessions, completed more than 20 site visits during design and finalized training materials for dealers and employees. The department said it is implementing the program in February 2025 using a phased hiring approach that initially uses experienced staff from other divisions and brings on permanent hiring over time. The department also plans emergency rulemaking on Feb. 1 to enable the program’s earlier activities.

Natural medicine: licensing, rollout and early licensing numbers

The Natural Medicine Division began accepting applications on Dec. 31, 2024, Tannus said. The division has conducted extensive listening sessions across the state, worked with tribal governments and law‑enforcement stakeholders and held multiple rulemaking and fee‑setting meetings. As of the committee’s hearing the department reported four business applications, 11 owner applications and five in‑person appointments. Division staff began in‑person licensing appointments on the day of the hearing.

Lottery, conservation and responsible gaming

The Colorado Lottery reported another record year of revenue, Humphreys said, delivering over $196 million for outdoor recreation, conservation and schools in fiscal 2024 and continuing a multi‑year record trend. The Lottery said it achieved the World Lottery Association’s top certification for responsible gaming and has added a full‑time player health manager and a secret‑shopper program for underage checks.

Other updates

Tax division staff told the committee they processed almost 50 million sales tax filings and nearly 4 million income tax returns during the year, implemented 14 new tax credits for tax year 2024 and continue IT and accessibility work to meet AA web accessibility standards. DMV officials said the electronic vehicle title and registration program is growing — monthly e‑title transactions rose from about 7,000 in Nov. 2023 to nearly 13,800 in Nov. 2024 — and that digital ID adoption is increasing. The department also noted an ongoing audit response process and an emphasis on employee retention through onboarding and training.

What lawmakers asked and next steps

Committee members pressed the Department of Revenue on staffing and budget requests, emergency rule timing for firearms dealers, detailed vending‑machine counts for the Lottery and readiness for Real‑ID compliance for mobile digital IDs. The department said some decision items are under review by the Joint Budget Committee and that they will provide additional numbers and follow‑up materials on request.

Ending

Humphreys closed by emphasizing that the agency remains largely cash‑funded and that the department will continue rulemaking and stakeholder outreach as these significant new programs move into operational phases.