SB26-129 • 2026

Mitigate Impacts of Tax Increment Financing

Current law requires county revitalization authorities and urban renewal authorities to, in certain instances, submit impact reports that detail the potential impacts of a proposed urban renewal or co

Education Taxes

Passed Legislature

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

Sponsor: Sen. J. Marchman, Rep. A. Boesenecker
Last action: 2026-03-19
Official status: Senate Committee on Local Government & Housing Postpone Indefinitely
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on the consequences if a taxing entity files a technical rebuttal instead of certification.

Mitigating Impacts of Tax Increment Financing

This bill requires taxing entities to file a certification or technical rebuttal for impact reports related to urban renewal and county revitalization plans, and mandates annual reports on the effects of tax increment financing on education funding.

What This Bill Does

Requires taxing entities that would be subject to tax increment financing pursuant to a proposed urban renewal or county revitalization plan to file either a certification of or a technical rebuttal to an impact report within 45 days after receiving it from the authority.
If a taxing entity does not file either a certification or a technical rebuttal within the given timeframe, the impact report is presumed certified by default.
Requires legislative council staff to prepare annual reports on how tax increment financing affects state and local education funding.

Who It Names or Affects

Taxing entities such as public bodies that levy sales or property taxes.
County revitalization authorities, urban renewal authorities, and downtown development authorities.

Terms To Know

tax increment financing: A method of funding infrastructure projects by capturing the increase in tax revenue generated from new economic development within a designated area.
impact report: A document that outlines the potential effects of an urban renewal or county revitalization plan on local services and infrastructure.

Limits and Unknowns

The bill's effectiveness is contingent upon approval by voters if a referendum petition is filed.
It does not specify what happens if a taxing entity files a technical rebuttal instead of certification.

Bill History

2026-03-19 Senate
Senate Committee on Local Government & Housing Postpone Indefinitely
2026-02-25 Senate
Introduced In Senate - Assigned to Local Government & Housing

Official Summary Text

Current law requires county revitalization authorities and urban renewal authorities to, in certain instances, submit impact reports that detail the potential impacts of a proposed urban renewal or county revitalization plan on local services and infrastructure. The bill requires taxing entities that would be subject to tax increment financing pursuant to a proposed urban renewal or county revitalization plan to file either a certification of or a technical rebuttal to an impact report. If a taxing entity does not file either a certification or a technical rebuttal within 45 days after a county revitalization authority or urban renewal authority's submission of an urban renewal or county revitalization impact report, the impact report is presumed certified. The bill also requires taxing entities that would be subject to tax increment financing pursuant to a downtown development authority's proposed plan of development to file either a certification of or a technical rebuttal to a downtown development authority's impact report.
On or before October 1, 2027, and on or before October 1 of each year thereafter, the legislative council staff is required to prepare a report or issue brief on the impact of tax increment financing on the state and local shares of education funding.
(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. 26-0077.02 Caroline Martin x5902 SENATE BILL 26-129
Senate Committees House Committees
Local Government & Housing
A BILL FOR AN ACT
CONCERNING MITIGATION OF TH E IMPACTS OF TAX INCREMENT101
FINANCING ON LOCAL GOVERNMENTS , AND , IN CONNECTION102
THEREWITH, REQUIRING LOCAL CERTIFICATION OF IMPACT103
REPORTS AND A REPORT ON THE IMPACT OF TAX I NCREMENT104
FINANCING ON EDUCATION FUNDING.105
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.)
Current law requires county revitalization authorities and urban
renewal authorities to, in certain instances, submit impact reports that
SENATE SPONSORSHIP
Marchman,
HOUSE SPONSORSHIP
Boesenecker,
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.
detail the potential impacts of a proposed urban renewal or county
revitalization plan on local services and infrastructure. The bill requires
taxing entities that would be subject to tax increment financing pursuant
to a proposed urban renewal or county revitalization plan to file either a
certification of or a technical rebuttal to an impact report. If a taxing
entity does not file either a certification or a technical rebuttal within 45
days after a county revitalization authority or urban renewal authority's
submission of an urban renewal or county revitalization impact report, the
impact report is presumed certified. The bill also requires taxing entities
that would be subject to tax increment financing pursuant to a downtown
development authority's proposed plan of development to file either a
certification of or a technical rebuttal to a downtown development
authority's impact report.
On or before October 1, 2027, and on or before October 1 of each
year thereafter, the legislative council staff is required to prepare a report
or issue brief on the impact of tax increment financing on the state and
local shares of education funding.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 30-31-103, add2
(14.5) as follows:3
30-31-103. Definitions.4
As used in this article 31, unless the context otherwise requires:5
(14.5) "T AXING ENTITY " MEANS A PUBLIC BODY THAT LEVIES6
SALES OR PROPERTY TAXES AND WHOSE TAX REVENUE IS ALLOCATED AS7
PART OF A PROPOSED OR FINALIZED COUNTY REVITALIZATION PLAN8
PURSUANT TO SECTION 30-31-109 (13).9
SECTION 2. In Colorado Revised Statutes, 30-31-109, add10
(3)(d) as follows:11
30-31-109. Approval of county revitalization plans by local12
governing body - definitions.13
(3) (d) W ITHIN FORTY-FIVE DAYS OF A C OUNTY OR AUTHORITY14
SUBMITTING A COUNTY REVITALIZATION IMPACT REPORT IN CONNECTION15
WITH A COUNTY REVITALIZATION PLAN IN ACCORDANCE WITH THIS16
SB26-129-2-
SUBSECTION (3), EACH TAXING ENTITY IMPACTED BY THAT PLAN SHALL1
FILE EITHER A CERTIFICATION OF OR A TECHNICAL REBUTTAL TO THE2
COUNTY REVITALIZATION IMPACT REPORT. IF A TAXING ENTITY DOES NOT3
FILE EITHER A CERTIFICATION OR A TECHNICAL REBUTTAL , THE COUNTY4
REVITALIZATION IMPACT REPORT IS PRESUMED CERTIFIED.5
SECTION 3. In Colorado Revised Statutes, 31-25-103, add (7.3)6
as follows:7
31-25-103. Definitions.8
As used in this part 1, unless the context otherwise requires:9
(7.3) "TAXING ENTITY" MEANS A PUBLIC BODY THAT LEVIES SALES10
OR PROPERTY TAXES AND WHOSE TAX REVENUE INCREMENT IS ALLOCATED11
AS PART OF A PROPOSED OR FINALIZED URBAN RENEWAL PLAN PURSUANT12
TO SECTION 31-25-107 (9)(a).13
SECTION 4. In Colorado Revised Statutes, 31-25-107, add14
(3.5)(d) and (14) as follows:15
31-25-107. Approval of urban renewal plans by local16
governing body - definitions.17
(3.5) (d) WITHIN FORTY-FIVE DAYS OF AN AUTHORITY SUBMITTING18
AN URBAN RENEWAL IMPACT REPORT IN CONNECTION WITH AN URBAN19
RENEWAL PLAN IN ACCORDANCE WITH THIS SUBSECTION (3.5), EACH20
TAXING ENTITY IMPACTED BY THAT PLAN SHALL FILE EITHER A21
CERTIFICATION OF OR A TECHNICAL REBUTTAL TO THE URBAN RENEWAL22
IMPACT REPORT . IF A TAXING ENTITY DOES NOT FILE EITHER A23
CERTIFICATION OR A TECHNICAL REBUTTAL, THE URBAN RENEWAL IMPACT24
REPORT IS PRESUMED CERTIFIED.25
(14) O N OR BEFORE OCTOBER 1, 2027, AND ON OR BEFORE26
OCTOBER 1 OF EACH YEAR THEREAFTER, THE LEGISLATIVE COUNCIL STAFF27
SB26-129-3-
SHALL PREPARE A REPORT OR ISSUE BRIEF ON THE IMPACT OF TAX1
INCREMENT FINANCING ON THE STATE AND LOCAL SHARES OF EDUCATION2
FUNDING. THE REPORT OR ISSUE BRIEF MUST QUANTIFY THE TOTAL3
AMOUNT OF PROPERTY TAX REVENUE COLLECTED IN THE STATE IN THE4
PREVIOUS FISCAL YEAR THAT WOULD HAVE BEEN DIRECTED TO FUNDING5
EDUCATION IF NOT FOR TAX INCREMENT FINANCING.6
SECTION 5. In Colorado Revised Statutes, 31-25-807, add (5)7
as follows:8
31-25-807. Powers - duties.9
(5) W ITHIN FORTY -FIVE DAYS AFTER A BOARD OR GOVERNING10
BODY HAS SUBMITTED AN IMPACT REPORT RELATED TO TAX INCREMENT11
FINANCING, EACH TAXING ENTITY THAT IS PROPOSED TO BE INCLUDED IN12
THE TAX INCREMENT FINANCING PLAN SHALL FILE EITHER A CERTIFICATION13
OF OR A TECHNICAL REBUTTAL TO THE IMPACT REPORT . IF A TAXING14
ENTITY DOES NOT FILE EITHER A CERTIFICATION OR A TECHNICAL15
REBUTTAL, THE IMPACT REPORT IS PRESUMED CERTIFIED.16
SECTION 6. 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
SB26-129-4-