Sales & Use Tax Destination Management Company

Tax break for Colorado event clients

From July 1, 2027, through December 31, 2032, Colorado sales and use tax does not apply to qualifying destination management fees. This covers fees charged together or by service for services directly provided or arranged while creating and planning an event. Eligible companies must primarily provide or arrange at least six destination management services in Colorado and employ at least three full-time workers. Covered services include entertainment booking and management, tours and recreation, event registration, staffing, event management, meal coordination, shuttles, and airport meet-and-greet services. Companies cannot prepare or serve food or drinks, or own or operate the venue, including through a financial interest in another person. They also cannot claim retailer sales or use tax exemptions for these services or the goods and services supporting them. The tax break aims to bring destination management business to Colorado and avoid taxing the company's later provision of services to clients. The state auditor and legislature must measure its success using the companies' statewide economic impact. The exemption section is repealed December 31, 2035. The act's effective-date rule is 12:01 a.m. on the day after the 90th day following the 2026 legislative session's final adjournment. A referendum petition instead requires approval at the November 2026 general election, with effectiveness on the governor's official vote-declaration date.