SB 128: Sales & Use Tax Destination Management Company - Colorado

Rerevised → Final Act · 5 edits · Apr 20, 2026

MODERATE

This bill amends Colorado tax law to create a sales and use tax exemption for Destination Management Companies (DMCs) that purchase goods and services to provide event services. The legislation adds specific definitions for DMCs and their services, establishing eligibility requirements such as having at least three full-time employees and not operating venues or serving food. The exemption applies starting July 1, 2027, provided the DMC has already paid sales tax on the items they purchased.

Scope change

The bill expands the scope of tax-exempt activities by explicitly defining 'Destination Management Services' to include booking entertainers, coordinating tours, organizing event registration, staffing events, event management, catering coordination, shuttle services, and airport meet-and-greet services.

DEFINITION

Added a new definition for 'Destination Management Company' requiring the entity to be primarily engaged in providing at least six specific services, have at least three full-time employees, and not operate venues or serve food.

Added a detailed list of eight specific 'Destination Management Services' that qualify for the tax exemption, including shuttle systems and airport meet-and-greet services.

ELIGIBILITY

Established eligibility criteria for the tax exemption, requiring companies to have paid sales or use tax on the tangible personal property, commodities, or services they acquired before claiming the exemption on subsequent sales.

TIMELINE

Set the effective date of the tax exemption to begin on July 1, 2027.

REQUIREMENT

Included a legislative declaration and performance statement to measure the economic impact of the tax exemption on destination management companies.

Revised → Rerevised · 3 edits · Apr 16, 2026

MINOR

The bill text was updated from 'Revised' to 'Rerevised' status, indicating that further amendments were adopted in the Second House. Additionally, the House sponsorship list was expanded to include three new sponsors: Gonzalez R., Marshall, and McCluskie. A new line was added to indicate the bill is now at the 3rd Reading Unamended stage, dated April 16, 2026.

TECHNICAL

Added three new sponsors to the House sponsorship list: Gonzalez R., Marshall, and McCluskie.

Updated the document status header from 'Revised' to 'Rerevised' to reflect additional amendments.

Added a line indicating the bill is at the 3rd Reading Unamended stage with a specific date of April 16, 2026.

Reengrossed → Revised · 4 edits · Apr 13, 2026

MODERATE

The bill was revised to reorganize definitions and clarify the tax exemption for destination management companies. The definition of a 'destination management company' was streamlined to remove specific employee count requirements and clarify that the company cannot operate a venue or serve food. The list of exempt services was expanded and reorganized to explicitly include airport meet-and-greet services and shuttle systems. The effective date for the tax exemption was updated to July 1, 2027, and the repeal clause was removed, meaning the exemption will remain in effect indefinitely unless repealed by a future law.

Scope change

The scope of the exemption was broadened by adding specific service categories like airport services and shuttle systems, while the eligibility criteria for companies were slightly tightened by removing the explicit 'three full-time employees' requirement from the definition of a destination management company.

DEFINITION

The definition of 'destination management company' was restructured and simplified, removing the specific requirement to have at least three full-time employees and clarifying restrictions on operating venues or serving food.

The list of exempt services was reorganized and expanded to explicitly include airport meet-and-greet services (permits, porterage) and shuttle system services (staging, communications, routing).

TIMELINE

The tax exemption effective date was set to July 1, 2027, and the automatic repeal provision scheduled for December 31, 2035, was removed, making the exemption permanent.

TECHNICAL

The bill text was reorganized to move the definition of 'storage' to a new section and adjust the numbering of the statutory additions.

Engrossed → Reengrossed · 3 edits · Mar 25, 2026

MINOR

The bill's title was updated from 'Engrossed' to 'Reengrossed' to reflect that it now includes all amendments adopted in the House of Introduction. Additionally, the list of Senate co-sponsors was expanded to include six new legislators, and a placeholder note was added indicating that a specific summary for the reengrossed version will be available after the third reading.

TECHNICAL

Added six new names to the list of Senate co-sponsors.

Changed the bill status header from 'Engrossed' to 'Reengrossed' and updated the accompanying explanatory text.

Inserted a note stating that a bill summary for the reengrossed version will be available following the third reading in the House of Introduction.

Introduced → Engrossed · 3 edits · Mar 24, 2026

MINOR

The bill was amended to clarify that Destination Management Companies (DMCs) are currently charged sales and use taxes on goods and services they purchase for their services, and the new law exempts these fees. The amendment also reorganized the bill's structure to properly include the necessary tax preference performance statement and legislative declaration required by state law when creating new tax exemptions.

Scope change

The bill's scope remains focused on exempting destination management fees from sales and use tax, but the text was expanded to explicitly state the problem (current taxation) and added required legal boilerplate for tax expenditures.

ELIGIBILITY

Added text clarifying that DMCs are currently charged sales and use tax on purchases related to their services, establishing the need for the exemption.

TECHNICAL

Reordered the bill sections to place the legislative declaration and performance statement before the specific tax exemption provisions, as required by state statute.

REQUIREMENT

Included the mandatory tax preference performance statement and legislative declaration to justify the new tax expenditure.

Sales & Use Tax Destination Management Company

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