Colorado Enacts Exemption for Sales by Destination Management Companies

Effective July 1, 2027 (see note below), Colorado has enacted a sales and use tax exemption for the sale, storage, use, or consumption of tangible personal property, commodities, or services sold by a destination management company (DMC) if the DMC has paid Colorado sales or use tax upon acquiring the tangible personal property, commodities, or services.

“Destination management company” means a company that is primarily engaged in the business of providing or arranging for the provision of at least six destination management services in Colorado, has at least three full-time employees, and 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.

“Destination management services” means:

• Booking and managing entertainers
• Coordinating tours or recreational activities
• Organizing meeting, conference, or event registration
• Staffing meetings, conferences, transportation, or other events
• Event management
• Catering or meal coordination
• Providing shuttle system services, including vehicle staging, radio communications, signage, and routing services
• Providing airport meet-and-greet services, including the provision of airport permits, manifest management services, porterage, and passenger greeting services

Note that the exemption is effective July 1, 2027, unless a referendum petition is filed, in which case the exemption will only take effect if approved by voters in the November 2026 general election. (S.B. 128, Laws 2026)