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

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 a DMC from being assessed sales and use tax on fees charged by the DMC for the provision of destination management services to clients.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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