SB 26-128

Senate Bill 26-128, which has been signed into law, exempts destination management companies (DMCs) from paying sales and use tax on fees they charge clients for organizing events, tours, transportation, and other logistics in Colorado. This means that DMCs will no longer be taxed on the fees they earn from providing these services to their clients. The bill affects businesses operating as DMCs within Colorado and aims to reduce costs for these companies by eliminating certain taxes on their service fees. Since it has been signed into law, this change is now in effect and benefits all eligible DMCs in the state.

Official Summary

The act exempts the sale, storage, use, or consumption of tangible personal property, commodities, or services sold by a destination management company from state sales and use taxation, beginning July 1, 2027. The exemption only applies if the destination management company has already paid the state the applicable sales or use tax on the property, commodities, or services upon acquisition.(Note: This summary applies to this bill as enacted.)

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