HB26-1048 • 2026

Back-to-School Sales Tax Holiday

Section 1 of the bill creates a time-limited state sales and use tax exemption (tax holiday) for back-to-school items. The tax holiday applies to the last weekend of July 2027 and reoccurs at approxim

Children Education Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. T. Winter, Sen. B. Pelton, Sen. J. Carson
Last action: 2026-02-26
Official status: House Committee on Finance Refer Amended to Appropriations
Effective date: Not listed

Plain English Breakdown

The bill summary text provided does not include specific details about future years after 2027.

Back-to-School Sales Tax Holiday

This bill creates a sales tax holiday for back-to-school items in Colorado, allowing parents to buy clothes, school supplies, and learning aids without state taxes during specific weekends.

What This Bill Does

Creates a time-limited exemption from state sales and use taxes on certain back-to-school items.
Applies the tax holiday to the last weekend of July in 2027, 2028, and 2029.
Limits the amount that can be exempted for each item: $100 for clothing, $50 for school supplies, and $30 for learning aids.

Who It Names or Affects

Parents and caregivers buying back-to-school items for children under 21 years old.
Retailers selling back-to-school items during the designated weekends.

Terms To Know

Back-to-School Item: An article of clothing, a school supply, or a learning aid that is purchased primarily for use by an individual who is under 21 years old.
Tax Holiday: A temporary period during which certain items are exempt from sales and use taxes.

Limits and Unknowns

The tax exemption applies only to specific weekends in July 2027, 2028, and 2029.
Local governments must choose to adopt the same tax holiday for their jurisdictions.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU Finance

Passed [*]

Plain English: The amendment changes the dates for future back-to-school sales tax holidays to include specific weekend days in July 2030 and 2031, and extends the final year of the holiday from 2033 to 2035.

Adds a new sales tax holiday period starting at 11:59 PM on July 26, 2030, and ending at 11:59 PM on July 28, 2030.
Adds another sales tax holiday period beginning at 11:59 PM on July 25, 2031, and ending at 11:59 PM on July 27, 2031.
Changes the final year of the back-to-school sales tax holiday from 2033 to 2035.

The amendment does not specify which items are eligible for the tax exemption during these new dates.

L.004

HOU Finance

Passed [*]

Plain English: The amendment adds a condition that a back-to-school sales tax exemption can only occur if the estimated revenue adjustment factor for the state's income tax year is greater than 3.75%.

Adds a new subsection to Section 1 of HB26-1048, stating that an exemption established in this section is allowed only if the estimated adjustment factor will be greater than 3.75%. This condition relates to the state's nonexempt revenue forecast and excludes certain tax credit amounts.
Modifies Colorado Revised Statutes sections 39-22-123.5 and 39-22-130 by including language that accounts for a revenue loss due to the sales and use tax exemption allowed under HB26-1048.

The amendment's technical details about revenue adjustment factors may be difficult for some readers to fully understand without additional context or explanation.
It is unclear how this condition will affect the implementation of the back-to-school sales tax holiday in practice.

Bill History

2026-02-26 House
House Committee on Finance Refer Amended to Appropriations
2026-01-14 House
Introduced In House - Assigned to Finance

Official Summary Text

Section 1
of the bill creates a time-limited state sales and use tax exemption (tax holiday) for back-to-school items. The tax holiday applies to the last weekend of July 2027 and reoccurs at approximately the same time in 2028 and 2029. A "back-to-school item" means an article of clothing, a school supply, or a learning aid that is purchased primarily for use by an individual who is under 21 years old. The exemption for each item is limited by cost as follows:
$100 for an article of clothing;
$50 for a school supply; and
$30 for a learning aid.

Section 2
permits a town, city, or county to create a tax holiday for back-to-school items that is identical to the state tax holiday.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0536.01 Sam Anderson x4218 HOUSE BILL 26-1048
House Committees Senate Committees
Finance
A BILL FOR AN ACT
CONCERNING A SALES AND USE TAX HOLI DAY FOR BACK-TO-SCHOOL101
ITEMS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Section 1 of the bill creates a time-limited state sales and use tax
exemption (tax holiday) for back-to-school items. The tax holiday applies
to the last weekend of July 2027 and reoccurs at approximately the same
time in 2028 and 2029. A "back-to-school item" means an article of
clothing, a school supply, or a learning aid that is purchased primarily for
use by an individual who is under 21 years old. The exemption for each
HOUSE SPONSORSHIP
Winter T.,
SENATE SPONSORSHIP
Pelton B., Carson
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
item is limited by cost as follows:
! $100 for an article of clothing;
! $50 for a school supply; and
! $30 for a learning aid.
Section 2 permits a town, city, or county to create a tax holiday for
back-to-school items that is identical to the state tax holiday.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 39-26-735 as2
follows:3
39-26-735. Back-to-school items - tax preference performance4
statement - rules - legislative declaration - definitions - repeal.5
(1) I N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH6
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE7
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY8
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND9
DECLARES THAT:10
(a) T HE GENERAL LEGISLATIVE PURPOSE OF THE EXEMPTION11
ALLOWED BY THIS SECTION IS TO PROVIDE TAX RELIEF TO CERTAIN12
INDIVIDUALS;13
(b) T HE SPECIFIC LEGISLATIVE PURPOSE OF THE EXEMPTION14
ALLOWED BY THIS SECTION IS TO INCREASE THE AFFORDABILITY OF15
BACK-TO-SCHOOL ITEMS AND TO REDRESS THE BURDEN THAT THE16
IMPOSITION OF SALES TAX PLACES ON MILLIONS OF PARENTS AND OTHER17
CAREGIVERS FOR YOUNG CHILDREN IN COLORADO FOR WHOM SUCH18
BACK-TO-SCHOOL ITEMS ARE ESSENTIAL; AND19
(c) TO ALLOW THE GENERAL ASSEMBLY AND THE STATE AUDITOR20
TO MEASURE THE EFFECTIVENESS OF THE EXEMPTION ALLOWED BY THIS21
SECTION, THE STATE AUDITOR, IN COLLABORATION WITH THE DEPARTMENT22
HB26-1048-2-
PURSUANT TO SUBSECTION (6) OF THIS SECTION , SHALL IDENTIFY1
AVAILABLE DATA SOURCES AND ESTIMATE THE SAVINGS THAT THE2
EXEMPTION FOR BACK -TO-SCHOOL ITEMS PROVIDES TO TAXPAYERS IN3
COLORADO FOR WHOM BACK-TO-SCHOOL ITEMS ARE ESSENTIAL DURING4
THE STATE AUDITOR 'S EVALUATION OF THE EXEMPTION PURSUANT TO5
SECTION 39-21-305.6
(2) AS USED IN THIS SECTION , UNLESS THE CONTEXT OTHERWISE7
REQUIRES:8
(a) "BACK-TO-SCHOOL ITEM" MEANS AN ARTICLE OF CLOTHING, A9
SCHOOL SUPPLY, OR A LEARNING AID THAT IS PURCHASED PRIMARILY FOR10
USE BY A MINOR.11
(b) "CLOTHING" MEANS:12
(I) A NY ARTICLE OF APPAREL INTENDED TO BE WORN ON AN13
INDIVIDUAL, EXCLUDING A CLOTHING ACCESSORY; AND14
(II) ANY FOOTWEAR, EXCLUDING SKIS, SNOWBOARDS, SWIM FINS,15
ROLLER BLADES, SKATES, AND OTHER RECREATIONAL EQUIPMENT.16
(c) "CLOTHING ACCESSORY" MEANS AN INCIDENTAL ITEM WORN17
ON AN INDIVIDUAL OR USED IN CONJUNCTION WITH CLOTHING. "CLOTHING18
ACCESSORY" INCLUDES JEWELRY , WALLETS, WATCHES, HATS, SCARVES,19
HOSIERY, TIES, BELTS, AND UMBRELLAS.20
(d) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE.21
(e) "EXECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR OF22
THE DEPARTMENT.23
(f) "LEARNING AID" MEANS A BOOK OR TOY INTENDED TO TEACH24
SKILLS TO CHILDREN, INCLUDING A SET OF STACKING OR NESTING BLOCKS,25
FLASH CARDS OR OTHER LEARNING CARDS , A MATCHING OR MEMORY26
GAME, A PUZZLE BOOK OR A SEARCH-AND-FIND BOOK, OR AN INTERACTIVE27
HB26-1048-3-
OR ELECTRONIC BOOK.1
(g) "SCHOOL SUPPLY" MEANS AN ART SUPPLY, BACKPACK, BINDER2
POCKET, BINDER, BLACKBOARD CHALK, CALCULATOR, CELLOPHANE TAPE,3
CLAY AND GLAZE , COMPASS , COMPOSITION BOOK , CRAYON SET ,4
DICTIONARY OR THESAURUS, DRY ERASE MARKER AND ERASER, FOLDER,5
GLUE AND PASTE, HIGHLIGHTER, INDEX CARD SET AND BOX, LUNCH BOX,6
MAP OR GLOBE, MARKER, NOTEBOOK AND DIVIDER, PAPER OR PAD, PENCIL7
BOX OR OTHER BOXES FOR SCHOOL SUPPLIES, PENCIL SHARPENER, PENCIL8
AND ERASER , PEN , PROTRACTOR , REFERENCE BOOK , RULER , SCISSORS ,9
TEXTBOOK, OR WORKBOOK.10
(3) (a) C OMMENCING WITH THE FORTY -EIGHT-HOUR PERIOD11
BEGINNING AT 11:59 P.M. ON JULY 23, 2027, AND ENDING AT 11:59 P.M. ON12
JULY 25, 2027, AND FOR THE FORTY-EIGHT-HOUR PERIODS BEGINNING AT13
11:59 P.M. ON JULY 28, 2028, AND ENDING AT 11:59 P.M. ON JULY 30,14
2028, AND BEGINNING AT 11:59 P.M. ON JULY 27, 2029, AND ENDING AT15
11:59 P.M. ON JULY 29, 2029, THE SALE OF BACK-TO-SCHOOL ITEMS PRICED16
LESS THAN THE LIMIT ESTABLISHED IN SUBSECTION (3)(b) OF THIS SECTION17
IS EXEMPT FROM THE SALES TAX LEVIED PURSUANT TO PART 1 OF THIS18
ARTICLE 26.19
(b) THE LIMIT FOR EACH BACK-TO-SCHOOL ITEM IS:20
(I) ONE HUNDRED DOLLARS FOR AN ARTICLE OF CLOTHING;21
(II) FIFTY DOLLARS FOR A SCHOOL SUPPLY; AND22
(III) THIRTY DOLLARS FOR A LEARNING AID.23
(4) THE STORAGE, USE, OR CONSUMPTION OF A BACK-TO-SCHOOL24
ITEM THAT IS EXEMPT AT THE TIME OF PURCHASE FROM SALES TAX25
PURSUANT TO SUBSECTION (3) OF THIS SECTION IS EXEMPT FROM THE USE26
TAX LEVIED PURSUANT TO PART 2 OF THIS ARTICLE 26.27
HB26-1048-4-
(5) THE EXECUTIVE DIRECTOR MAY:1
(a) M ODIFY EXISTING FORMS OR CREATE NEW FORMS AS2
NECESSARY TO FACILITATE THE EXEMPTION CREATED IN THIS SECTION ;3
AND4
(b) ADOPT RULES FOR THE ADMINISTRATION AND ENFORCEMENT5
OF THIS SECTION.6
(6) T HE DEPARTMENT , IN CONSULTATION WITH THE STATE7
AUDITOR, SHALL COLLECT THE INFORMATION NECESSARY FOR THE STATE8
AUDITOR TO MEASURE THE EFFECTIVENESS OF THE EXEMPTION CREATED9
IN THIS SECTION AS REQUIRED BY SUBSECTION (1)(c) OF THIS SECTION.10
(7) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2033.11
SECTION 2. In Colorado Revised Statutes, 29-2-105, amend (1)12
introductory portion, (1)(d)(I)(T), and (1)(d)(I)(U); and add (1)(d)(I)(V)13
as follows:14
29-2-105. Contents of sales tax ordinances and proposals.15
(1) The sales tax ordinance or proposal of any incorporated town,16
city, or county adopted pursuant to this article 2 shall MUST be imposed17
on the sale of tangible personal property at retail or the furnishing of18
services, as provided in subsection (1)(d) of this section. Any countywide19
or incorporated town or city sales tax ordinance or proposal shall MUST20
include the following provisions:21
(d) (I) A provision that the sale of tangible personal property and22
services taxable pursuant to this article 2 is the same as the sale of23
tangible personal property and services taxable pursuant to section24
39-26-104, except as otherwise provided in this subsection (1)(d). The25
sale of tangible personal property and services taxable pursuant to this26
article 2 is subject to the same sales tax exemptions as those specified in27
HB26-1048-5-
part 7 of article 26 of title 39; except that the sale of the following may be1
exempted from a town, city, or county sales tax only by the express2
inclusion of the exemption either at the time of adoption of the initial3
sales tax ordinance or resolution or by amendment thereto:4
(T) The exemption for sales of heat pump systems and heat pump5
water heaters set forth in section 39-26-732; and6
(U) The exemption for sales of energy storage systems set forth7
in section 39-26-733; AND8
(V) T HE EXEMPTION FOR BACK -TO-SCHOOL ITEMS SPECIFIED IN9
SECTION 39-26-735 (3), FOR THE SAME PERIODS THAT THE STATE10
EXEMPTION IS AVAILABLE.11
SECTION 3. Act subject to petition - effective date. This act12
takes effect at 12:01 a.m. on the day following the expiration of the13
ninety-day period after final adjournment of the general assembly; except14
that, if a referendum petition is filed pursuant to section 1 (3) of article V15
of the state constitution against this act or an item, section, or part of this16
act within such period, then the act, item, section, or part will not take17
effect unless approved by the people at the general election to be held in18
November 2026 and, in such case, will take effect on the date of the19
official declaration of the vote thereon by the governor.20
HB26-1048-6-