Colorado Bill SB26-129: Mitigate Tax Increment Financing Impacts

CO Legislature Bill Search

Published January 1st, 2026

Detected March 20th, 2026

Summary

Colorado bill SB26-129 proposes changes to tax increment financing (TIF) by requiring taxing entities to certify or rebut impact reports. It also mandates a report on TIF's impact on education funding, due annually starting October 1, 2027. The bill aims to mitigate TIF's effects on local governments and education.

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What changed

Colorado bill SB26-129, introduced for the 2026 Regular Session, introduces new requirements for tax increment financing (TIF) processes. It mandates that taxing entities subject to TIF plans from urban renewal or county revitalization authorities must file either a certification or a technical rebuttal to impact reports within 45 days. Failure to do so will result in the impact report being presumed certified. Additionally, the bill requires the legislative council staff to produce an annual report, starting October 1, 2027, detailing TIF's impact on state and local education funding.

This bill will require local government agencies and taxing entities to establish procedures for reviewing and responding to TIF impact reports within a strict 45-day timeframe. Compliance officers should prepare to manage this new certification or rebuttal process. Furthermore, entities involved in TIF should be aware of the ongoing reporting requirement concerning education funding impacts, which begins in late 2027.

What to do next

Establish process for reviewing and certifying/rebutting TIF impact reports within 45 days.
Monitor annual reports on TIF's impact on education funding starting October 1, 2027.

Source document (simplified)

SB26-129

Mitigate Impacts of Tax Increment Financing

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Fiscal Policy & Taxes Local Government |
Concerning mitigation of the impacts of tax increment financing on local governments, and, in connection therewith, requiring local certification of impact reports and a report on the impact of tax increment financing on education funding.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

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.)