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SB26-009 • 2026

Charitable Organization State Sales & Use Tax

Under existing law, charitable organizations are exempt from state sales and use tax. The definition of charitable organization for purposes of state sales and use tax includes criteria that mirror th

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Sen. W. Lindstedt, Sen. M. Snyder, Rep. J. McCluskie, Rep. R. Stewart, Sen. C. Kipp, Sen. J. Amabile, Sen. J. Coleman, Sen. L. Cutter, Sen. J. Gonzales, Sen. I. Jodeh, Sen. C. Kolker, Sen. J. Marchman, Sen. D. Roberts, Sen. K. Wallace, Sen. M. Weissman, Rep. C. Clifford, Rep. M. Duran, Rep. K. Nguyen, Rep. M. Rutinel
Last action
2026-04-20
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Charitable Organization State Sales & Use Tax

Under existing law, charitable organizations are exempt from state sales and use tax.

What This Bill Does

  • Under existing law, charitable organizations are exempt from state sales and use tax.
  • The definition of charitable organization for purposes of state sales and use tax includes criteria that mirror the federal definition of a 501(c)(3) organization.
  • The act requires the department of revenue to presume that an organization that presents the department with a 501(c)(3) determination letter from the internal revenue service is a charitable organization for purposes of state sales and use tax.
  • (Note: This summary applies to this bill as enacted.)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

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

L.001

HOU Finance

Passed [*]

Plain English: SB009_L.001 HOUSE COMMITTEE OF REFERENCE AMENDMENT Committee on Finance.

  • SB009_L.001 HOUSE COMMITTEE OF REFERENCE AMENDMENT Committee on Finance.
  • SB26-009 be amended as follows: 1 Amend reengrossed bill, page 3, strike lines 2 through 6 and substitute: 2 "SECTION 2.
  • Act subject to petition - effective date.
  • This act 3 takes effect at 12:01 a.m.
L.005

Second Reading

Lost [**]

Plain English: SB009_L.005 Amendment No.

  • SB009_L.005 Amendment No.
  • ___________ SB26-009 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE DeGraaf 1 Amend reengrossed bill, page 2, strike lines 22 and 23 and substitute 2 "EVIDENCE THAT THE ORGANIZATION CURRENTLY HAS TAX EXEMPT 3 STATUS UNDER SECTION 501 (c)(3) OF THE FEDERAL "INTERNAL REVENUE 4 CODE OF 1986" QUALIFIES AS A CHARITABLE ORGANIZATION UNTIL THE 5 NEXT RENEWAL, FOR A PERIOD NOT TO EXCEED ONE CALENDAR YEAR, 6 AFTER RECEIVING THAT NOTICE.
  • THE DEPARTMENT".
  • 7 Page 2, line 25, strike "THE" and substitute "WHETHER AN ORGANIZATION 8 HAS TAX EXEMPT STATUS UNDER SECTION 501 (c)(3) OF THE FEDERAL 9 "INTERNAL REVENUE CODE OF 1986".
L.007

Second Reading

Lost [**]

Plain English: SB009_L.007 Amendment No.

  • SB009_L.007 Amendment No.
  • ___________ SB26-009 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Richardson 1 Amend reengrossed bill, page 2, line 23, strike "THE DEPARTMENT" and 2 substitute "IF THE INTERNAL REVENUE SERVICE REVOKES OR SUSPENDS AN 3 ORGANIZATION'S TAX-EXEMPT STATUS UNDER SECTION 501 (c) (3) OF THE 4 FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED, THE 5 DEPARTMENT OF REVENUE SHALL PRESUME THAT THE ORGANIZATION IS 6 NOT A "CHARITABLE ORGANIZATION" AS DEFINED IN THIS SECTION (2.5), 7 UNLESS, WITHIN NINETY DAYS OF THE INTERNAL REVENUE SERVICE 8 REVOKING OR SUSPENDING THE ORGANIZATIONS TAX-EXEMPT STATUS 9 UNDER SECTION 501 (c) (3) OF THE FEDERAL "INTERNAL REVENUE CODE 10 OF 1986", AS AMENDED, THE ORGANIZATION PROVES TO THE DEPARTMENT 11 THAT IT STILL QUALIFIES AS A CHARITABLE ORGANIZATION.".
  • 12 Page 2, strike lines 24 and 25.
  • 13 Page 3, strike line 1.
L.008

Second Reading

Lost [**]

Plain English: SB009_L.008 Amendment No.

  • SB009_L.008 Amendment No.
  • ___________ SB26-009 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Richardson 1 Amend reengrossed bill, page 3, line 1, after "STATUS." add "IF THE 2 INTERNAL REVENUE SERVICE REVOKES OR SUSPENDS AN ORGANIZATION'S 3 TAX-EXEMPT STATUS UNDER SECTION 501 (c) (3) OF THE FEDERAL 4 "INTERNAL REVENUE CODE OF 1986", AS AMENDED, THE ORGANIZATION 5 SHALL ALERT THE DEPARTMENT OF REVENUE OF THAT CHANGE WITHIN 6 THIRTY DAYS OF RECEIVING NOTICE OF THE REVOCATION OR SUSPENSION.
  • 7 WITHIN ONE HUNDRED EIGHTY DAYS OF RECEIVING THAT NOTICE, THE 8 DEPARTMENT OF REVENUE SHALL DETERMINE WHETHER THE 9 ORGANIZATION QUALIFIES AS A "CHARITABLE ORGANIZATION" FOR 10 PURPOSES OF THIS SUBSECTION (2.5).".
  • ** *** ** *** ** LLS: Pierce Lively x2059
L.009

Second Reading

Lost [**]

Plain English: SB009_L.009 Amendment No.

  • SB009_L.009 Amendment No.
  • ___________ SB26-009 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Richardson 1 Amend reengrossed bill, page 3, line 1, after "STATUS." add "IF THE 2 INTERNAL REVENUE SERVICE REVOKES OR SUSPENDS AN ORGANIZATION'S 3 TAX-EXEMPT STATUS UNDER SECTION 501 (c) (3) OF THE FEDERAL 4 "INTERNAL REVENUE CODE OF 1986", AS AMENDED, THE DEPARTMENT OF 5 REVENUE SHALL CONSIDER THAT REVOCATION OR SUSPENSION IN 6 DETERMINING WHETHER THE ORGANIZATION IS A "CHARITABLE 7 ORGANIZATION" FOR PURPOSES OF THIS SUBSECTION (2.5).".
  • ** *** ** *** ** LLS: Pierce Lively x2059
L.010

Second Reading

Passed [**]

Plain English: SB009_L.010 Amendment No.

  • SB009_L.010 Amendment No.
  • ___________ SB26-009 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Luck 1 Amend reengrossed bill, page 3, line 1, after "STATUS." add "NOTHING IN 2 THIS SUBSECTION (2.5) PREVENTS THE DEPARTMENT OF REVENUE FROM 3 REVIEWING WHETHER AN ORGANIZATION QUALIFIES AS A "CHARITABLE 4 ORGANIZATION" FOR PURPOSES OF THIS SUBSECTION (2.5).".
  • 5 ** *** ** *** ** LLS: Pierce Lively x2059

Bill History

  1. 2026-04-20 Governor

    Governor Signed

  2. 2026-04-08 Governor

    Sent to the Governor

  3. 2026-04-07 House

    Signed by the Speaker of the House

  4. 2026-04-07 Senate

    Signed by the President of the Senate

  5. 2026-04-06 Senate

    Senate Considered House Amendments - Result was to Concur - Repass

  6. 2026-04-02 House

    House Third Reading Passed - No Amendments

  7. 2026-04-01 House

    House Third Reading Laid Over Daily - No Amendments

  8. 2026-03-31 House

    House Second Reading Special Order - Passed with Amendments - Committee, Floor

  9. 2026-03-10 House

    House Second Reading Laid Over Daily - No Amendments

  10. 2026-03-05 House

    House Committee on Finance Refer Amended to House Committee of the Whole

  11. 2026-02-11 House

    Introduced In House - Assigned to Finance

  12. 2026-02-10 Senate

    Senate Third Reading Passed - No Amendments

  13. 2026-02-09 Senate

    Senate Second Reading Passed - No Amendments

  14. 2026-02-06 Senate

    Senate Second Reading Laid Over to 02/09/2026 - No Amendments

  15. 2026-02-03 Senate

    Senate Committee on Finance Refer Unamended to Senate Committee of the Whole

  16. 2026-01-14 Senate

    Introduced In Senate - Assigned to Finance

Official Summary Text

Under existing law, charitable organizations are exempt from state sales and use tax. The definition of charitable organization for purposes of state sales and use tax includes criteria that mirror the federal definition of a 501(c)(3) organization. The act requires the department of revenue to presume that an organization that presents the department with a 501(c)(3) determination letter from the internal revenue service is a charitable organization for purposes of state sales and use tax.
(Note: This summary applies to this bill as enacted.)