C.R.S. § 39-26-735: Destination management fees - tax preference performance statement - legislative declaration.

(1) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:

(a) The general legislative purpose of the exemption allowed by this section is to incentivize destination management companies to bring destination management business to the state;

(b) The specific legislative purpose of the exemption allowed by this section is to prevent the imposition of sales and use tax on the destination management company's subsequent provision of destination management services to a client of the destination management company; and

(c) The general assembly and the state auditor shall measure the effectiveness of the exemption allowed by this section based on the statewide economic impact of destination management companies.

(2) Notwithstanding any other provision of law, beginning July 1, 2027, the sale, storage, use, or consumption of tangible personal property, commodities, or services sold by a destination management company are exempt from taxation pursuant to part 1 or part 2 of this article 26, if the destination management company has paid to the state the applicable sales or use tax on such tangible personal property, commodities, or services upon its acquisition.

(3) Notwithstanding section 39-21-304 (4), this section does not repeal.