House Committee of Reference Report
Committee on Finance
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February 23, 2026
After consideration on the merits, the Committee recommends the following:
HB26-1065 be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
Page 1, Line 1Amend printed bill, page 5, after line 24 insert:
Page 1, Line 2"(2) (a) Pursuant to section 39-26-104 (3), sales delivered to a
Page 1, Line 3purchaser within a transit investment area are properly sourced to the
Page 1, Line 4transit investment area;
Page 1, Line 5(b) Due to technical limitations, the increment calculation can
Page 1, Line 6only factor in sales made in person within the TIF area, even though
Page 1, Line 7additional online and delivery sales will be induced through more housing
Page 1, Line 8availability and attractive living options due to transit access provided;
Page 1, Line 9(c) According to the United States census bureau's Quarterly
Page 1, Line 10Retail E-Commerce Sales Report, approximately fifteen percent of sales
Page 1, Line 11nationally are made online, and therefore we assume that of the calculated
Page 1, Line 12increment from in-person sales, inflating by an additional twenty percent
Page 1, Line 13were unable to be captured due to technical limitations, but would
Page 1, Line 14otherwise be included in the allocated increment; and
Page 1, Line 15(d) Therefore, it may be necessary to allow the department to
Page 1, Line 16allocate a small amount of state sales tax revenue in excess of the state
Page 1, Line 17sales tax collected on in-person sales made within each transit investment
Page 1, Line 18area. A small amount of the general fund is needed to fulfill the increment
Page 1, Line 19that would have been calculated if tracking at that level of detail were
Page 1, Line 20feasible, and is a technical adjustment, not state fiscal year spending.".
Page 1, Line 21Renumber the succeeding subsection accordingly.
Page 1, Line 22Page 5, line 25, strike "House Bill
Page 1, Line 2326-1065,".
Page 1, Line 24Page 6, line 3, strike "House Bill
Page 2, Line 126-1065.".
Page 2, Line 2Page 6, after line 3 insert:
Page 2, Line 3"(4) Given that communities across the state can use support to
Page 2, Line 4further invest in infrastructure, transit, and housing, the general assembly
Page 2, Line 5finds and declares that the new financing options created in this House
Page 2, Line 6Bill 26-1065 are available to communities throughout the state, and this
Page 2, Line 7financing option should be used in a manner that considers geographic
Page 2, Line 8diversity.
Page 2, Line 9(5) Although this House Bill 26-1065 only allows the Colorado
Page 2, Line 10economic development commission to approve six transit investment
Page 2, Line 11projects, the general assembly anticipates that these transit investment
Page 2, Line 12projects will be successful and it is the intent of the general assembly to
Page 2, Line 13later authorize the Colorado economic development commission to
Page 2, Line 14approve additional transit investment projects as state resources allow.".
Page 2, Line 15Page 6, line 18, after "(2)" insert "(a)".
Page 2, Line 16Page 6, after line 23 insert:
Page 2, Line 17"(b) After the first twelve months of collection and
Page 2, Line 18distribution pursuant to section 24-46-406 (1), and annually
Page 2, Line 19thereafter, the department shall adjust the base year revenue
Page 2, Line 20by the amount of the baseline growth rate established by the
Page 2, Line 21commission pursuant to section 24-46-404 (3)(d)(I).".
Page 2, Line 22Page 7, after line 5, insert:
Page 2, Line 23"(4) "Bond" means a bond or other contractual obligation
Page 2, Line 24and form of indebtedness for the payment of which a financing
Page 2, Line 25entity has promised to pledge state sales tax increment revenue
Page 2, Line 26or any other legally available revenues pledged at the
Page 2, Line 27discretion of the financing entity.".
Page 2, Line 28Renumber succeeding subsections accordingly.
Page 2, Line 29Page 10, line 16, after "(17)" insert "(a)".
Page 2, Line 30Page 10, line 18, strike "(a)" and substitute "(I)" and strike "taxes," and
Page 2, Line 31substitute "taxes".
Page 2, Line 32Page 10, strike line 19.
Page 2, Line 33Page 10, line 20, strike "rate,".
Page 3, Line 1Page 10, line 24, strike "(b)" and substitute "(II)" and strike "base year
Page 3, Line 2revenue," and substitute "amount calculated pursuant to
Page 3, Line 3subsection (17)(a)(I) of this section,".
Page 3, Line 4Page 10, strike line 25 and substitute "twenty percent approximates
Page 3, Line 5sales delivered from without the designated transit investment
Page 3, Line 6area that are unable to be measured and therefore not
Page 3, Line 7included".
Page 3, Line 8Page 10, after line 27 insert:
Page 3, Line 9"(b) (I) Except that, as applied for a transit investment
Page 3, Line 10area that is within a regional tourism zone established by the
Page 3, Line 11Colorado economic development commission pursuant to section
Page 3, Line 1224-46-305 (3), "state sales tax increment revenue" means an
Page 3, Line 13annual amount equal to the lesser of:
Page 3, Line 14(A) State sales tax increment revenue as determined
Page 3, Line 15pursuant to subsection (17)(a) of this section; or
Page 3, Line 16(B) The excess, if any, of the regional tourism act state
Page 3, Line 17sales tax increment revenue over the payable regional tourism
Page 3, Line 18act state sales tax increment revenue.
Page 3, Line 19(II) As used in this subsection (17)(b), unless the context
Page 3, Line 20otherwise requires:
Page 3, Line 21(A) "Colorado economic development commission" has the
Page 3, Line 22same meaning as in section 24-46-303 (2).
Page 3, Line 23(B) "Payable regional tourism act state sales tax
Page 3, Line 24increment revenue" means the amount of regional tourism act
Page 3, Line 25state sales tax increment revenue that, pursuant to section
Page 3, Line 2624-46-307 (1)(b), the department allocates and pays into a special
Page 3, Line 27fund created by a financing entity in accordance with the
Page 3, Line 28amount of regional tourism act state sales tax increment
Page 3, Line 29revenue authorized for allocation by the department to the
Page 3, Line 30financing entity by the Colorado economic development
Page 3, Line 31commission pursuant to section 24-46-305 (4).
Page 3, Line 32(C) "Regional tourism act state sales tax increment
Page 3, Line 33revenue" means the amount of "state sales tax increment
Page 3, Line 34revenue", as defined in section 24-46-303 (12), attributed to the
Page 3, Line 35portion of a regional tourism zone that is within the transit
Page 3, Line 36investment area.
Page 3, Line 37(D) "Regional tourism zone" has the meaning set forth in
Page 3, Line 38section 24-46-303 (11).".
Page 3, Line 39Page 11, strike lines 11 through 15 and substitute "area:
Page 3, Line 40(a) Shall not extend into the territorial boundaries of
Page 4, Line 1any local government, unless the local government requests
Page 4, Line 2that the transit investment area is within its boundaries at
Page 4, Line 3least in part;
Page 4, Line 4(b) May only include part of a local government's
Page 4, Line 5jurisdiction;
Page 4, Line 6(c) May include noncontiguous tracts or parcels of
Page 4, Line 7property in the same transit investment area; and
Page 4, Line 8(d) May extend beyond the relevant transit investment
Page 4, Line 9zone designated by the office of economic development pursuant
Page 4, Line 10to section 24-48.5-136, if the relevant transit investment zone
Page 4, Line 11encompasses a community that is not evenly distributed due to
Page 4, Line 12geographical constraint including mountains, water features,
Page 4, Line 13and other natural topographical features, but in so doing shall
Page 4, Line 14not extend further than three miles from a transportation
Page 4, Line 15facility as calculated by measuring the distance along a road
Page 4, Line 16or pedestrian network that is used to access the transportation
Page 4, Line 17facility.".
Page 4, Line 18Page 11, line 27, strike "a physical" and substitute "an in-person".
Page 4, Line 19Page 13, line 9, after "data" insert "used to estimate the state sales
Page 4, Line 20tax increment revenue".
Page 4, Line 21Page 13, line 22, strike "contractor" and substitute "analyst".
Page 4, Line 22Page 13, line 25, strike "four" and substitute "seven".
Page 4, Line 23Page 16, after line 21 insert:
Page 4, Line 24"(II) An annual dollar amount of revenue that can be
Page 4, Line 25allocated to the financing entity;".
Page 4, Line 26Renumber succeeding subparagraphs accordingly.
Page 4, Line 27Page 16, line 25, strike "percentage of".
Page 4, Line 28Page 17, strike lines 11 through 16 and substitute "office of economic
Page 4, Line 29development shall require a local government that submits an
Page 4, Line 30application pursuant to subsection (1) of this section to pay the
Page 4, Line 31costs for the third-party analyst chosen by the office of
Page 4, Line 32economic development pursuant to this subsection (3)(j) to
Page 4, Line 33commission the report; except that, if the office of economic
Page 4, Line 34development, in collaboration with the department of local
Page 5, Line 1affairs, determines that the payment of these costs by a local
Page 5, Line 2government would constitute an extreme negative financial
Page 5, Line 3hardship for the local government, the office of economic
Page 5, Line 4development shall pay these costs from the transit investment
Page 5, Line 5zones cash fund created in subsection (6) of this section or, if
Page 5, Line 6there is insufficient money in the transit investment zones cash
Page 5, Line 7fund, the office of economic development shall pay these costs
Page 5, Line 8from the general fund. As part of creating the report, the
Page 5, Line 9third-party analyst must:".
Page 5, Line 10Page 17, lines 21 and 22, strike "each local government that is a
Page 5, Line 11party to a multiparty application" and substitute "the financing
Page 5, Line 12entity".
Page 5, Line 13Page 21, line 19, strike "authority; and" and substitute "authority;
Page 5, Line 14"(D) The baseline growth rate, taking into account the
Page 5, Line 15baseline growth rate determined by the third-party analyst
Page 5, Line 16pursuant to section 24-46-403 (2)(a);
Page 5, Line 17(E) The dollar amount that can be annually dedicated to
Page 5, Line 18the transit investment project, as determined pursuant to
Page 5, Line 19subsection (3)(d)(II) of this section; and".
Page 5, Line 20Reletter the succeeding sub-subparagraph accordingly.
Page 5, Line 21Page 21, line 22, strike "(3)(d)(II)" and substitute "(3)(d)(III)".
Page 5, Line 22Page 21, after line 22 insert:
Page 5, Line 23"(II) In determining the annual dollar amount that can be
Page 5, Line 24dedicated to the transit investment project pursuant to
Page 5, Line 25subsection (3)(b)(I)(E) of this section, the commission shall
Page 5, Line 26consider the amount identified by the applicant pursuant to
Page 5, Line 27section 24-46-403 (3)(i)(II) and shall ensure that the annual
Page 5, Line 28dollar amount does not prevent dedicating the cumulative
Page 5, Line 29dollar amount established by the commission pursuant to this
Page 5, Line 30subsection (3)(d) to the transit investment project. After
Page 5, Line 31adopting the resolution required pursuant to this subsection
Page 5, Line 32(3)(d), the commission may adopt a subsequent resolution that
Page 5, Line 33increases the annual dollar amount that can be dedicated to
Page 5, Line 34the transit investment project, but the commission shall not
Page 5, Line 35increase the annual dollar amount by an amount that would
Page 5, Line 36result in dedicating a total dollar amount to the transit
Page 5, Line 37investment project that exceeds the cumulative dollar amount
Page 5, Line 38established by the commission pursuant to this subsection
Page 6, Line 1(3)(d).".
Page 6, Line 2Renumber the succeeding subparagraph accordingly.
Page 6, Line 3Page 24, after line 2 insert:
Page 6, Line 4"(II) The department to adjust the base year revenue by
Page 6, Line 5the amount of the baseline growth rate specified in the
Page 6, Line 6resolution approving a transit investment project;".
Page 6, Line 7Renumber succeeding subparagraphs accordingly.
Page 6, Line 8Page 25, line 25, strike "transit investment authority" and substitute
Page 6, Line 9"applicant".
Page 6, Line 10Page 26, line 5, after "agency" insert "or entity".
Page 6, Line 11Page 26, line 8, strike "transit investment authority" and substitute
Page 6, Line 12"applicant".
Page 6, Line 13Page 26, line 13, after "agency" insert "or entity".
Page 6, Line 14Page 26, line 19, strike "transit investment authority" and substitute
Page 6, Line 15"applicant".
Page 6, Line 16Page 27, strike line 1 and substitute "commission; and
Page 6, Line 17"(d) One member appointed by the transit agency or entity
Page 6, Line 18that operates the transportation facility that is the subject of
Page 6, Line 19the proposed transit investment project.".
Page 6, Line 20Page 30, line 17, strike "is".
Page 6, Line 21Page 30, strike lines 26 and 27.
Page 6, Line 22Page 31, strike lines 1 through 3 and substitute "subsection (1)(b) of
Page 6, Line 23this section, to the extent necessary to account for the amount
Page 6, Line 24set forth in section 24-46-402 (17)(a)(II), the department may
Page 6, Line 25allocate state sales tax revenue in excess of the state sales tax
Page 6, Line 26collected on in-person sales made within the transit investment
Page 6, Line 27area, which allocation is nevertheless state sales tax
Page 6, Line 28increment revenue.".
Page 6, Line 29Page 32, after line 6 insert:
Page 6, Line 30"(5) No local government shall be liable for any debt
Page 7, Line 1issuance of the financing entity, and a debt issuance of the
Page 7, Line 2financing entity shall not constitute a debt of a local
Page 7, Line 3government.".
Page 7, Line 4Renumber the succeeding subsection accordingly.
Page 7, Line 5Page 32, line 10, strike "delivery sales" and substitute "sales
Page 7, Line 6delivered from without the transit investment area".
Page 7, Line 7Page 38, line 7, after "renewal," insert "refinancing,".
Page 7, Line 8Page 38 strike lines 9 and 10 and substitute "section.".
Page 7, Line 9Page 38, line 12, strike "special".
Page 7, Line 10Page 38, line 15, strike "are" and substitute "may be".
Page 7, Line 11Page 39, line 4, strike "general obligation".
Page 7, Line 12Page 39, line 21, strike "any other law or of".
Page 7, Line 13Page 39, line 25, strike "resolution" and substitute "resolution,
Page 7, Line 14indenture, or other document pursuant to which such
Page 7, Line 15obligations are issued".
Page 7, Line 16Page 39, line 27, strike "a time" and substitute "such time as may be".
Page 7, Line 17Page 40, line 2, strike "24-46-406 (4);" and substitute "24-46-406 (4) and
Page 7, Line 18in accordance with article 57 of title 11;".
Page 7, Line 19Page 40, lines 22 and 23, strike "mortgage; except that at least one
Page 7, Line 20signature on each bond shall be a manual signature." and
Page 7, Line 21substitute "mortgage.".
Page 7, Line 22Page 41, line 8, strike "appropriate," and substitute "appropriate in
Page 7, Line 23accordance with section 24-6-402,".
Page 7, Line 24Page 41, line 13, after "officials" insert "after the authorization
Page 7, Line 25thereof, but".
Page 7, Line 26Page 42, lines 4 and 5, strike "Any suit, action, or proceeding
Page 7, Line 27involving" and substitute "No legal or equitable action brought
Page 7, Line 28with respect to".
Page 8, Line 1Page 42, line 7, strike "within thirty days of" and substitute "more
Page 8, Line 2than thirty days after".
Page 8, Line 3Page 45, line 5, strike "24-46-402 (10)." and substitute "24-46-402 (11).".
Page 8, Line 4Page 45, line 7, strike "24-46-402 (16)." and substitute "24-46-402 (17).".
Page 8, Line 5Page 45, line 9, strike "24-46-402 (19)." and substitute "24-46-402 (20).".
Page 8, Line 6Page 45, line 20, strike "department" and substitute "office".
Page 8, Line 7Page 45, line 26, strike "department's" and substitute "office's".
Page 8, Line 8Page 46, after line 2 insert:
Page 8, Line 9"(a) "Office" means the Colorado office of economic
Page 8, Line 10development created in section 24-48.5-101.".
Page 8, Line 11Reletter succeeding paragraphs accordingly.
Page 8, Line 12Page 46, line 6, strike "one and one-half" and substitute "two".
Page 8, Line 13Page 46, line 11, strike "24-46-402 (22)." and substitute "24-46-402
Page 8, Line 14(23).".
Page 8, Line 15Page 47, line 20, strike "24-46-402 (19)," and substitute "24-46-402
Page 8, Line 16(20),".
Page 8, Line 17Page 48, line 19, strike "24-46-402 (16)." and substitute "24-46-402
Page 8, Line 18(17).".
Page 8, Line 19Page 49, line 1, strike "24-46-402 (19)," and substitute "24-46-402 (20),".
Page 8, Line 20Page 50, line 1, strike "24-46-402 (16)." and substitute "24-46-402 (17).".
Page 8, Line 21Page 50, line 17, strike "24-46-402 (9)" and substitute "24-46-402 (10)".
Page 8, Line 22Page 51, line 11, strike "24-46-402 (16)." and substitute "24-46-402
Page 8, Line 23(17).".
Page 8, Line 24Page 51, strike lines 20 through 25 and substitute "title 24; and".
Page 8, Line 25Page 52, line 4, strike "administrator" and substitute "analyst".
Page 9, Line 1Strike "taxable" and substitute "income tax" on: Page 54, line 10;
Page 9, Line 2Page 55, line 23; Page 58, line 27; Page 59, line 27; Page 60, lines 4, 10,
Page 9, Line 312 and 16.
Page 9, Line 4Strike "sales made at physical sites" and substitute "in-person sales
Page 9, Line 5made" on: Page 6, lines 19 and 20, 25 and 26, and line 27 and page 7,
Page 9, Line 6line 1; Page 10, lines 20 and 26; and Page 30, lines 5, 11, 15 and 16, and
Page 9, Line 7line 24.
Page 9, Line 8Strike "third party" and substitute "third-party analyst" on: Page
Page 9, Line 913, line 17; Page 14, line 2; and Page 19, line 22.
Page 9, Line 10Strike "(3)(d)(I)(D)" and substitute "(3)(d)(I)(F)" on: Page 21, line 25;
Page 9, Line 11Page 22, line 14; and Page 23, line 2.
Page 9, Line 12Strike "(3)(d)(II)(A)" and substitute "(3)(d)(III)(A)" on Page 22, line 3
Page 9, Line 13and line 18.