Colorado Sales Tax Exemption for Destination Management Companies

Detected March 21st, 2026

Summary

Colorado's legislature is considering SB26-128, a bill that would exempt destination management companies (DMCs) from paying sales and use tax on fees charged for their services. Currently, DMCs incur sales tax on goods and services they purchase to provide event, tour, and logistics management. The bill aims to provide tax relief to these companies operating within Colorado.

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What changed

Colorado Senate Bill SB26-128, introduced for the 2026 Regular Session, proposes to amend sales and use tax laws to create an exemption for destination management companies (DMCs). The bill specifically targets fees charged by DMCs for destination management services, which include arranging events, tours, transportation, and other logistics. As currently written, DMCs are subject to sales and use tax on the goods and services they procure to deliver these services. This proposed legislation would exempt the fees DMCs charge their clients from this taxation.

If enacted, this bill would provide a direct tax benefit to DMCs operating in Colorado, potentially increasing their profitability or allowing them to offer more competitive pricing. Compliance officers for DMCs should monitor the progress of SB26-128 through the legislative process. While no specific compliance deadline is yet established, the bill is currently under consideration, with a Senate Finance Committee hearing scheduled. If passed, the effective date will determine when the exemption takes effect.

What to do next

Monitor the legislative progress of SB26-128.
Review the final text of the bill if enacted to confirm applicability and effective date.

Source document (simplified)

SB26-128

Sales & Use Tax Destination Management Company

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Fiscal Policy & Taxes |
Concerning a sales and use taxation exemption on certain fees charged by destination management companies.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill 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 this bill as introduced.)

Prime Sponsors

Senator

Marc Snyder
Senator

Barbara Kirkmeyer
Representative

Meghan Lukens

Committees

Senate

Finance

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Status

Under Consideration

Introduced

Under Consideration

Upcoming Schedule

1 meeting

Mon

Mar 23

Senate General Orders - Second Reading of Bills

10:00 AM Senate Chamber

Related Documents & Information

| Date | Version | Documents |
| --- | --- | --- |
| 02/25/2026 | Introduced | PDF |

| Date | Version | Documents |
| --- | --- | --- |
| 03/18/2026 | PA1 | PDF |

| Date | Version | Documents |
| --- | --- | --- |
| 03/16/2026 | Initial Fiscal Note | PDF |

| Activity | Vote | Documents |
| --- | --- | --- |
| Adopt amendment L.001 (Attachment A) | The motion passed without objection. | Vote summary |
| Refer Senate Bill 26-128, as amended, to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. | The motion passed on a vote of 9-0. | Vote summary |
Hearing Summary | Committee Report: PDF
| Date | Amendment Number | Committee/ Floor Hearing | Status | Documents |
| --- | --- | --- | --- | --- |
| 03/17/2026 | L.001 | SEN Finance | Passed [*] | PDF |
* Amendments passed in committee are not incorporated into the measure unless adopted by the full House or Senate.

** The status of Second Reading amendments may be subsequently affected by the adoption of an amendment to the Committee of the Whole Report. Refer to the House or Senate Journal for additional information.

| Date | Location | Action |
| --- | --- | --- |
| 03/20/2026 | Senate | Senate Second Reading Laid Over to 03/23/2026 - No Amendments |
| 03/17/2026 | Senate | Senate Committee on Finance Refer Amended - Consent Calendar to Senate Committee of the Whole |
| 02/25/2026 | Senate | Introduced In Senate - Assigned to Finance |
Prime Sponsor

Sen. B. Kirkmeyer | Sen. M. Snyder

Rep. M. Lukens

Sponsor

(None) Co-Sponsor

(None)