SB 128

SENATE BILL 26-128
BY SENATOR(S) Snyder and Kirkmeyer, Bright, Catlin, Frizell, Lindstedt,
Liston, Marchman, Mullica, Pelton B., Pelton R., Roberts, Simpson,
Coleman;
also REPRESENTATIVE(S) Lukens and Zokaie, Gonzalez R., Marshall,
McCluskie.
CONCERNING A SALES AND USE TAXATION EXEMPTION ON CERTAIN FEES
     CHARGED BY DESTINATION MANAGEMENT COMPANIES.
Be it enacted by the General Assembly of the State of Colorado:
      SECTION 1. In Colorado Revised Statutes, amend 39-26-701 as
follows:
        39-26-701. Definitions.
        In addition to the definitions in section 39-26-102, as used in this
part 7, unless the context otherwise requires:
        (1) "Storage" or "storing" means any keeping or retention of, or
exercise of dominion or control over, tangible personal property in this
state. "DESTINATION MANAGEMENT COMPANY" MEANS A PERSON THAT:
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
      (a) IS PRIMARILY ENGAGED IN THE BUSINESS OF PROVIDING OR
ARRANGING FOR THE PROVISION OF AT LEAST SIX DESTINATION
MANAGEMENT SERVICES IN COLORADO;
      (b) HAS AT LEAST THREE FULL-TIME EMPLOYEES; AND
      (c) DOES NOT PREPARE OR SERVE BEVERAGES, MEALS, OR OTHER
FOOD PRODUCTS AND DOES NOT OWN OR OPERATE A VENUE AT WHICH
DESTINATION MANAGEMENT SERVICES ARE PROVIDED, EITHER DIRECTLY OR
THROUGH A FINANCIAL INTEREST IN ANOTHER PERSON.
      (2) "DESTINATION MANAGEMENT SERVICES" MEANS:
      (a) BOOKING AND MANAGING ENTERTAINERS;
      (b) COORDINATING TOURS OR RECREATIONAL ACTIVITIES;
      (c) ORGANIZING MEETING, CONFERENCE, OR EVENT REGISTRATION;
      (d) STAFFING MEETINGS, CONFERENCES, TRANSPORTATION, OR
OTHER EVENTS;
      (e) EVENT MANAGEMENT;
      (f) CATERING OR MEAL COORDINATION;
      (g) PROVIDING SHUTTLE SYSTEM SERVICES, INCLUDING VEHICLE
STAGING, RADIO COMMUNICATIONS, SIGNAGE, AND ROUTING SERVICES; OR
      (h) PROVIDING AIRPORT MEET-AND-GREET SERVICES, INCLUDING THE
PROVISION OF AIRPORT PERMITS, MANIFEST MANAGEMENT SERVICES,
PORTERAGE, AND PASSENGER GREETING SERVICES.
      (3) "STORAGE" OR "STORING" MEANS ANY KEEPING OR RETENTION
OF, OR EXERCISE OF DOMINION OR CONTROL OVER, TANGIBLE PERSONAL
PROPERTY IN THE STATE.
      SECTION 2. In Colorado Revised Statutes, add 39-26-735 as
follows:
PAGE 2-SENATE BILL 26-128
      39-26-735. Destination management fees - tax preference
performance statement - legislative declaration.
      (1) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES
EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX
PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND
DECLARES THAT:
      (a)   THE GENERAL LEGISLATIVE PURPOSE OF THE EXEMPTION
ALLOWED BY THIS SECTION IS TO INCENTIVIZE DESTINATION MANAGEMENT
COMPANIES TO BRING DESTINATION MANAGEMENT BUSINESS TO THE STATE;
      (b)   THE SPECIFIC LEGISLATIVE PURPOSE OF THE EXEMPTION
ALLOWED BY THIS SECTION IS TO PREVENT THE IMPOSITION OF SALES AND
USE TAX ON THE DESTINATION MANAGEMENT COMPANY'S SUBSEQUENT
PROVISION OF DESTINATION MANAGEMENT SERVICES TO A CLIENT OF THE
DESTINATION MANAGEMENT COMPANY; AND
      (c) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE EXEMPTION ALLOWED BY THIS
SECTION BASED ON THE STATEWIDE ECONOMIC IMPACT OF DESTINATION
MANAGEMENT COMPANIES.
      (2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, BEGINNING
JULY 1, 2027, THE SALE, STORAGE, USE, OR CONSUMPTION OF TANGIBLE
PERSONAL PROPERTY, COMMODITIES, OR SERVICES SOLD BY A DESTINATION
MANAGEMENT COMPANY ARE EXEMPT FROM TAXATION PURSUANT TO PART
1 OR PART 2 OF THIS ARTICLE 26, IF THE DESTINATION MANAGEMENT
COMPANY HAS PAID TO THE STATE THE APPLICABLE SALES OR USE TAX ON
SUCH TANGIBLE PERSONAL PROPERTY, COMMODITIES, OR SERVICES UPON ITS
ACQUISITION.
      (3) NOTWITHSTANDING SECTION 39-21-304 (4), THIS SECTION DOES
NOT REPEAL.
       SECTION 3. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly (August
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
PAGE 3-SENATE BILL 26-128
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within
such period, then the act, item, section, or part will not take effect unless
approved by the people at the general election to be held in November 2026
and, in such case, will take effect on the date of the official declaration of
the vote thereon by the governor.
____________________________  ____________________________
James Rashad Coleman, Sr.  Julie McCluskie
PRESIDENT OF  SPEAKER OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
____________________________  ____________________________
Esther van Mourik  Vanessa Reilly
SECRETARY OF  CHIEF CLERK OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
        APPROVED________________________________________
                           (Date and Time)
                    _________________________________________
                   Jared S. Polis
                   GOVERNOR OF THE STATE OF COLORADO
PAGE 4-SENATE BILL 26-128