Bill > SB128

This bill exempts destination management companies (DMCs), which are businesses that specialize in local knowledge and resources to arrange events, tours, transportation, and other logistics for clients, from paying sales and use tax on the fees they charge for providing these destination management services. The bill defines a DMC as a person primarily engaged in providing at least six specific destination management services in Colorado, employing at least three full-time individuals, and not involved in preparing or serving food or operating a venue. Destination management services are broadly defined to include activities like booking entertainers, coordinating tours, organizing event registration, staffing events, event management, catering coordination, shuttle services, and airport meet-and-greet services. The exemption applies starting July 1, 2027, and is intended to incentivize DMCs to bring business to Colorado, with the effectiveness of this tax preference to be measured by the statewide economic impact of these companies.

Budget and Finance

https://leg.colorado.gov/bills/SB26-128