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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 26-0692.02 Jed Franklin x5484 SENATE BILL 26-128
Senate Committees House Committees
Finance Finance
A BILL FOR AN ACT
CONCERNING A SALES AND USE TAXATION EXEMPTION ON CERTAIN101
FEES CHARGED BY DESTINATION MANAGEMENT COMPANIES.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.)
Destination management companies (DMCs) are companies that
have specialized local knowledge, expertise, and resources and provide
or arrange events, tours, transportation, and other logistics for events
(destination management services). Currently, DMCs are charged sales
and use tax on goods and services that they purchase in connection with
providing destination management services in Colorado. The bill exempts
HOUSE
Amended 2nd Reading
April 13, 2026
SENATE
3rd Reading Unamended
March 25, 2026
SENATE
Amended 2nd Reading
March 24, 2026
SENATE SPONSORSHIP
Snyder and Kirkmeyer, Bright, Catlin, Coleman, Frizell, Lindstedt, Liston, Marchman,
Mullica, Pelton B., Pelton R., Roberts, Simpson
HOUSE SPONSORSHIP
Lukens and Zokaie,
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.
a DMC from being assessed sales and use tax on fees charged by the
DMC for the provision of destination management services to clients.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, amend 39-26-701 as2
follows:3
39-26-701. Definitions.4
In addition to the definitions in section 39-26-102, as used in this5
part 7, unless the context otherwise requires:6
(1) "Storage" or "storing" means any keeping or retention of, or7
exercise of dominion or control over, tangible personal property in this8
state. "DESTINATION MANAGEMENT COMPANY" MEANS A PERSON THAT:9
(a) I S PRIMARILY ENGAGED IN THE BUSINESS OF PROVIDING OR10
ARRANGING FOR THE PROVISION OF AT LEAST SIX DESTINATION11
MANAGEMENT SERVICES IN COLORADO;12
13
(b) HAS AT LEAST THREE FULL-TIME EMPLOYEES; AND14
(c) DOES NOT PREPARE OR SERVE BEVERAGES, MEALS, OR OTHER15
FOOD PRODUCTS AND DOES NOT OWN OR OPERATE A VENUE AT WHICH16
DESTINATION MANAGEMENT SERVICES ARE PROVIDED, EITHER DIRECTLY17
OR THROUGH A FINANCIAL INTEREST IN ANOTHER PERSON.18
19
(2) "DESTINATION MANAGEMENT SERVICES" MEANS:20
(a) BOOKING AND MANAGING ENTERTAINERS; 21
(b) COORDINATING TOURS OR RECREATIONAL ACTIVITIES; 22
(c) ORGANIZING MEETING, CONFERENCE, OR EVENT REGISTRATION;23
(d) S TAFFING MEETINGS, CONFERENCES , TRANSPORTATION , OR24
OTHER EVENTS;25
128-2-
(e) EVENT MANAGEMENT;1
(f) CATERING OR MEAL COORDINATION;2
(g) PROVIDING SHUTTLE SYSTEM SERVICES, INCLUDING VEHICLE3
STAGING, RADIO COMMUNICATIONS, SIGNAGE, AND ROUTING SERVICES; OR4
(h) PROVIDING AIRPORT MEET-AND-GREET SERVICES, INCLUDING5
THE PROVISION OF AIRPORT PERMITS, MANIFEST MANAGEMENT SERVICES,6
PORTERAGE, AND PASSENGER GREETING SERVICES.7
8
(3) "STORAGE" OR "STORING" MEANS ANY KEEPING OR RETENTION9
OF, OR EXERCISE OF DOMINION OR CONTROL OVER , TANGIBLE PERSONAL10
PROPERTY IN THE STATE.11
SECTION 2. In Colorado Revised Statutes, add 39-26-735 as12
follows:13
39-26-735. Destination management fees - tax preference14
performance statement - legislative declaration.15
(1) I N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH16
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE17
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY18
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND19
DECLARES THAT:20
(a) T HE GENERAL LEGISLATIVE PURPOSE OF THE EXEMPTION21
ALLOWED BY THIS SECTION IS TO INCENTIVIZE DESTINATION MANAGEMENT22
COMPANIES TO BRING DESTINATION MANAGEMENT BUSINESS TO THE23
STATE;24
(b) T HE SPECIFIC LEGISLATIVE PURPOSE OF THE EXEMPTION25
ALLOWED BY THIS SECTION IS TO PREVENT THE IMPOSITION OF SALES AND26
USE TAX ON THE DESTINATION MANAGEMENT COMPANY 'S SUBSEQUENT27
128-3-
PROVISION OF DESTINATION MANAGEMENT SERVICES TO A CLIENT OF THE1
DESTINATION MANAGEMENT COMPANY; AND2
(c) T HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL3
MEASURE THE EFFECTIVENESS OF THE EXEMPTION ALLOWED BY THIS4
SECTION BASED ON THE STATEWIDE ECONOMIC IMPACT OF DESTINATION5
MANAGEMENT COMPANIES.6
(2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, BEGINNING7
JULY 1, 2027, THE SALE, STORAGE, USE, OR CONSUMPTION OF TANGIBLE8
PERSONAL PROPERTY, COMMODITIES, OR SERVI C E S S O L D B Y A9
DESTINATION MANAGEMENT COMPANY ARE EXEMPT FROM TAXATION10
PURSUANT TO PART 1 OR PART 2 OF THIS ARTICLE 26, IF THE DESTINATION11
MANAGEMENT COMPANY HAS PAID TO THE STATE THE APPLICABLE SALES12
OR USE TAX ON SUCH TANGIBLE PERSONAL PROPERTY, COMMODITIES, OR13
SERVICES UPON ITS ACQUISITION.14
(3) N OTWITHSTANDING SECTION 39-21-304 (4), THIS SECTION15
DOES NOT REPEAL.16
SECTION 3. Act subject to petition - effective date. This act17
takes effect at 12:01 a.m. on the day following the expiration of the18
ninety-day period after final adjournment of the general assembly (August19
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a20
referendum petition is filed pursuant to section 1 (3) of article V of the21
state constitution against this act or an item, section, or part of this act22
within such period, then the act, item, section, or part will not take effect23
unless approved by the people at the general election to be held in24
November 2026 and, in such case, will take effect on the date of the25
official declaration of the vote thereon by the governor.26
128-4-