Senate Committee of Reference Report
Committee on Finance
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All text that will be removed from the bill will be indicated by strikethrough as follows:
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This is text that is removed from law. -
Text that is added to a bill will be indicated by either all capitals or bold & italic as follows:
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- This all capitals text would be added to law.
- This is bold & italic text that would be added to law.
May 7, 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 reengrossed bill, page 6, line 8, strike "that of the calculated" and
Page 1, Line 2substitute "that, to determine the allocated increment, the calculated
Page 1, Line 3increment based on in-person sales only should be inflated by twenty
Page 1, Line 4percent in order to account for sales that are unable to be captured due to
Page 1, Line 5technical limitations, but would otherwise be included in the allocated
Page 1, Line 6increment; and".
Page 1, Line 7Page 6, strike lines 9 through 11.
Page 1, Line 8Page 8, line 2, after "of" insert "state sales tax".
Page 1, Line 9Page 8, lines 2 and 3, strike "and distribution".
Page 1, Line 10Page 8, strike line 6 and substitute "commission.".
Page 1, Line 11Page 8, line 12, strike "office of" and substitute "commission pursuant
Page 1, Line 12to section 24-46-404 (3).".
Page 1, Line 13Page 8, strike lines 13 through 15.
Page 1, Line 14Page 10, after line 26 insert:
Page 1, Line 15"(l) Street trees;
Page 1, Line 16(m) Public plazas and pedestrian spaces;".
Page 1, Line 17Reletter succeeding paragraphs accordingly.
Page 1, Line 18Page 12, line 18, strike "Colorado economic development".
Page 2, Line 1Page 13 strike lines 1 and 2.
Page 2, Line 2Reletter succeeding sub-subparagraphs accordingly.
Page 2, Line 3Page 13, line 10, strike "Colorado economic development".
Page 2, Line 4Page 16, line 23, strike "determine" and substitute "estimate".
Page 2, Line 5Page 16, line 24, strike "determining" and substitute "estimating".
Page 2, Line 6Page 16, line 25, strike "contracted third party" and substitute
Page 2, Line 7"third-party analyst".
Page 2, Line 8Page 16, line 27, strike "years." and substitute "years, if available.".
Page 2, Line 9Page 17, strike lines 1 and 2 and substitute "third-party analyst shall
Page 2, Line 10deliver its estimate to the office of economic development who
Page 2, Line 11shall provide the estimate to the office of the state planning
Page 2, Line 12and budgeting and the commission for review.
Page 2, Line 13(b) The office of state planning and budgeting shall
Page 2, Line 14submit to the commission a review of the third-party analyst's
Page 2, Line 15estimate within thirty calendar days of receipt of the estimate
Page 2, Line 16from the office of economic development.
Page 2, Line 17(c) The commission shall take into account the estimate
Page 2, Line 18provided by the third-party analyst and the review provided by
Page 2, Line 19the office of state planning and budgeting and shall establish
Page 2, Line 20a baseline growth rate for use by the local government and the
Page 2, Line 21third-party analyst in the commission's application assumptions
Page 2, Line 22and by the department.".
Page 2, Line 23Reletter succeeding paragraphs accordingly.
Page 2, Line 24Page 17, line 8, strike "determination" and substitute "estimation".
Page 2, Line 25Page 17, lines 17 and 18, strike "a contracted third party pursuant
Page 2, Line 26to subsection (2)(a) of this section" and substitute "the
Page 2, Line 27commission".
Page 2, Line 28Page 17, line 20, strike "the total cumulative dollar amount" and
Page 2, Line 29substitute "their estimate of the maximum annual and total
Page 2, Line 30cumulative dollar amounts of state sales tax increment
Page 2, Line 31revenue".
Page 3, Line 1Page 18, line 16, after "application" insert "and prioritization".
Page 3, Line 2Page 18, line 17, after "section" insert "and section 24-46-404
Page 3, Line 3(3)(f)(II) respectively".
Page 3, Line 4Page 18, line 18, strike "the" and substitute "these".
Page 3, Line 5Page 18, line 20, strike "development;" and substitute "development
Page 3, Line 6including the projected real estate development, growth in
Page 3, Line 7commercial activity, tourism, increases in the residential
Page 3, Line 8population, jobs, or any other economic improvements that will
Page 3, Line 9increase state sales tax revenue that will be catalyzed,
Page 3, Line 10induced, supported, or facilitated by the proposed project in the
Page 3, Line 11proposed transit and investment area;".
Page 3, Line 12Page 18, line 22, after "after the" insert "proposed".
Page 3, Line 13Page 20, strike lines 1 and 2 and substitute:
Page 3, Line 14"(II) The maximum annual dollar amount of state sales
Page 3, Line 15tax increment revenue that can be allocated to the financing
Page 3, Line 16entity;".
Page 3, Line 17Page 20, line 3, after "of" insert "state sales tax increment".
Page 3, Line 18Page 20, strike lines 5 through 7 and substitute:
Page 3, Line 19"(IV) Whether the state sales tax increment revenue that
Page 3, Line 20exceeds the projected costs of eligible costs will be spent on
Page 3, Line 21additional eligible costs incurred in connection with the transit
Page 3, Line 22investment project.".
Page 3, Line 23Page 20, line 11, before "total" insert "annual and" and strike
Page 3, Line 24"amount" and substitute "amounts of state sales tax increment
Page 3, Line 25revenue".
Page 3, Line 26Page 20, line 23 and 24, strike "development, in collaboration with
Page 3, Line 27the department of local affairs," and substitute "development".
Page 3, Line 28Pag 20, line 27, strike "shall" and substitute "may".
Page 3, Line 29Page 21, strike lines 4 and 5 and substitute "may pay these costs from
Page 3, Line 30the general fund to the extent the general assembly has
Page 4, Line 1specifically appropriated dedicated funding which is available
Page 4, Line 2for this purpose; except that the office shall not pay these costs
Page 4, Line 3for more than two applicants in an application cycle. As part of
Page 4, Line 4creating the report, the third-party analyst must:".
Page 4, Line 5Page 21, line 6, strike "Calculate" and substitute "Estimate" and strike
Page 4, Line 6"anticipated".
Page 4, Line 7Page 21, line 8, strike "area;" and substitute "area that the financing
Page 4, Line 8entity is eligible to receive;".
Page 4, Line 9Page 21, strike line 9 and substitute:
Page 4, Line 10"(II) Estimate the maximum annual dollar amount of".
Page 4, Line 11Page 21, line 10, after "revenue" insert "in the transit investment
Page 4, Line 12area".
Page 4, Line 13Page 21, line 13, strike "the provision of" and substitute "section
Page 4, Line 1424-46-404 (3)(f)(II);
Page 4, Line 15(IV) Take into account projected economic development
Page 4, Line 16including the projected real estate development, growth in
Page 4, Line 17commercial activity, tourism, increase in the residential
Page 4, Line 18population, jobs or any other economic improvements that will
Page 4, Line 19increase state sales tax revenue that will be catalyzed,
Page 4, Line 20induced, supported, or facilitated by the proposed project in the
Page 4, Line 21proposed transit and investment area included in the
Page 4, Line 22application; and
Page 4, Line 23(V) Provide other relevant information required by the
Page 4, Line 24office of economic development or the commission.".
Page 4, Line 25Page 21 strike lines 14 and 15.
Page 4, Line 26Page 22, strike lines 10 through 13.
Page 4, Line 27Reletter succeeding paragraphs accordingly.
Page 4, Line 28Page 23, line 4, strike "application fees" and substitute "submission".
Page 4, Line 29Page 23, strike lines 5 and 6.
Page 4, Line 30Page 23, line 17, strike "pay:" and substitute "pay or partially pay:".
Page 4, Line 31
Page 5, Line 1Page 23, line 19, strike "determine" and substitute "estimate".
Page 5, Line 2Page 25, line 5, strike "are" and substitute "is".
Page 5, Line 3Page 25, strike line 6 and substitute "met and has been prioritized in
Page 5, Line 4accordance with section 24-46-403 (3)(f)(II).".
Page 5, Line 5Page 25, strike lines 16 through 18 and substitute:
Page 5, Line 6"(D) The baseline growth rate, pursuant to section
Page 5, Line 724-46-403 (2)(c);
Page 5, Line 8(E) The approved financing term;".
Page 5, Line 9Reletter succeeding sub-subparagraphs accordingly.
Page 5, Line 10Page 25, line 19, strike "dollar amount" and substitute "maximum
Page 5, Line 11dollar amount of state sales tax increment revenue".
Page 5, Line 12Page 25, line 21, strike "(3)(d)(II)" and substitute "(3)(j)(II)".
Page 5, Line 13Page 25, line 22, after "amount" insert "of state sales tax increment
Page 5, Line 14revenue".
Page 5, Line 15Page 25, line 24, strike "(3)(d)(III)" and substitute "(3)(j)(I)".
Page 5, Line 16Page 25, line 25, strike "annual dollar amount" and substitute
Page 5, Line 17"maximum annual dollar amount of state sales tax increment
Page 5, Line 18revenue".
Page 5, Line 19Page 26, line 2, after "shall" insert "attempt to" and after "the" insert
Page 5, Line 20"maximum".
Page 5, Line 21Page 26, line 3, after "the" insert "total".
Page 5, Line 22Page 26, line 5, after "to" insert "be paid to".
Page 5, Line 23Page 26, line 8, after "the" insert "maximum".
Page 5, Line 24Page 26, line 10, after "the" insert "maximum".
Page 5, Line 25Page 26, line 12, after "the" insert "total".
Page 5, Line 26Page 26, line 15, after "amount" insert "of state sales tax increment
Page 6, Line 1revenue".
Page 6, Line 2Page 26, line 18, after "amount" insert "of state sales tax increment
Page 6, Line 3revenue".
Page 6, Line 4Page 26, line 24, after "amount" insert "of state sales tax increment
Page 6, Line 5revenue".
Page 6, Line 6Page 27, line 3, after "amount" insert "of state sales tax increment
Page 6, Line 7revenue".
Page 6, Line 8Page 27, line 6, after "amount" insert "of state sales tax increment
Page 6, Line 9revenue".
Page 6, Line 10Page 27, line 12, after "amount" insert "of state sales tax increment
Page 6, Line 11revenue".
Page 6, Line 12Page 27, line 18, after "amount" insert "of state sales tax increment
Page 6, Line 13revenue".
Page 6, Line 14Page 27, line 21, after "amount" insert "of state sales tax increment
Page 6, Line 15revenue".
Page 6, Line 16Page 27, line 26, strike "application." and substitute "application such
Page 6, Line 17that the applicant can spend in total, on additional and
Page 6, Line 18estimated eligible costs, up to the total cumulative dollar
Page 6, Line 19amount of state sales tax increment revenue determined by the
Page 6, Line 20third-party analyst.".
Page 6, Line 21Page 28, after line 8 insert:
Page 6, Line 22"(II) If the commission determines more than three transit
Page 6, Line 23investment project applications in a given calendar year meet
Page 6, Line 24each of the criteria established in section 24-46-403 (4), the
Page 6, Line 25commission shall prioritize the three projects that the
Page 6, Line 26commission will approve using the following criteria:
Page 6, Line 27(A) Inclusion in or fit with local, regional, or state
Page 6, Line 28transportation plans;
Page 6, Line 29(B) Statewide geographic equity;
Page 6, Line 30(C) Scale of impact; and
Page 6, Line 31(D) The dedication of matching local, special district, or
Page 6, Line 32other nonstate provided funding for the project.".
Page 6, Line 33
Page 7, Line 1Renumber succeeding subparagraph accordingly.
Page 7, Line 2Page 28, line 14, strike "year." and substitute "year, subject to the
Page 7, Line 3prioritization of all applications received in the next year and
Page 7, Line 4all applications being reconsidered from the prior year being
Page 7, Line 5considered in a single pool.".
Page 7, Line 6Page 28, line 18, strike "set to be collected".
Page 7, Line 7Page 28, line 20, strike "entity;" and substitute "entity for the
Page 7, Line 8duration of the financing term up to the maximum annual and
Page 7, Line 9total cumulative dollar amounts of state sales tax increment
Page 7, Line 10revenue that can be dedicated to the transit investment
Page 7, Line 11project;".
Page 7, Line 12Page 28, line 25, after "revenue" insert "up to the maximum annual
Page 7, Line 13and total cumulative dollar amounts that can be dedicated to
Page 7, Line 14the transit investment project".
Page 7, Line 15Page 29, line 9, before "The" insert "For each year of the financing
Page 7, Line 16term, the amount of state sales tax increment revenue
Page 7, Line 17dedicated to a transit investment project must not exceed the
Page 7, Line 18maximum annual dollar amount specified by the commission
Page 7, Line 19pursuant to subsection (3) of this section.".
Page 7, Line 20Page 29, line 14, strike "annual and cumulative" and substitute
Page 7, Line 21"maximum annual and total cumulative dollar amounts of".
Page 7, Line 22Page 29, after line 19 insert:
Page 7, Line 23"(b) (I) After the department has remitted the maximum
Page 7, Line 24annual dollar amount of state sales tax increment revenue
Page 7, Line 25specified by the commission pursuant to subsection (3) of this
Page 7, Line 26section to the financing entity for a calendar year, the
Page 7, Line 27department shall not remit any additional state sales tax
Page 7, Line 28increment revenue from the state to the financing entity until
Page 7, Line 29the following year.".
Page 7, Line 30Page 29, line 20, strike "(b)" and substitute "(II)".
Page 7, Line 31Page 29, line 26, strike "completed. The" and insert "completed.
Page 7, Line 32(III) After the financing term specified by the commission
Page 7, Line 33pursuant to subsection (3) of this section is completed, the
Page 8, Line 1department shall not remit any additional state sales tax
Page 8, Line 2increment revenue from the state to the financing entity, even
Page 8, Line 3if the total cumulative dollar amount of state sales tax
Page 8, Line 4increment revenue specified by the commission pursuant to
Page 8, Line 5subsection (3) of this section has not been reached.
Page 8, Line 6(IV) The".
Page 8, Line 7Page 34, strike lines 26 and 27 and substitute "department shall,
Page 8, Line 8after annually retaining an".
Page 8, Line 9Page 35, line 14, strike "and" and substitute "as adjusted for".
Page 8, Line 10Page 35, line 15, strike "rate" and substitute "rate, if applicable,".
Page 8, Line 11Page 35, line 17, after "the" insert "portion of".
Page 8, Line 12Page 35, strike lines 22 and 23 and substitute:
Page 8, Line 13"(c) Third, excess state sales tax collections above the
Page 8, Line 14maximum annual dollar amount of state sales tax increment
Page 8, Line 15revenue in any given year and any cumulative excess state sales
Page 8, Line 16tax collections above the total cumulative state sales tax
Page 8, Line 17increment revenue are paid".
Page 8, Line 18Page 36, line 3, strike "may" and substitute "shall".
Page 8, Line 19Page 36, line 23, strike "State" and substitute "Except for the amount
Page 8, Line 20retained by the department pursuant to subsection (1) of this
Page 8, Line 21section, state".
Page 8, Line 22Page 49, line 22, strike "and".
Page 8, Line 23Page 49, line 26, strike "24." and substitute "24; and
Page 8, Line 24(c) Retain annually an amount of the state sales tax
Page 8, Line 25increment revenue established by the department as necessary
Page 8, Line 26to offset the department's actual direct costs and expenses
Page 8, Line 27incurred in performing the collection and disbursement
Page 8, Line 28functions established in part 4 of article 46 of this title 24.".
Page 8, Line 29Page 49, line 27, strike "All" and substitute "Except for the amount
Page 8, Line 30retained by the department pursuant to section 24-46-406 (1),
Page 8, Line 31all".
Page 8, Line 32
Page 9, Line 1Page 51, line 25, strike "department" and substitute "office".
Page 9, Line 2Page 60, after line 24 insert:
Page 9, Line 3"(13) "Transferee" means a taxpayer subject to the taxes
Page 9, Line 4imposed by this article 22 that acquires credits from a
Page 9, Line 5governmental or quasi-governmental entity pursuant to
Page 9, Line 6section 39-22-5703 (5).".
Page 9, Line 7Page 61, line 14, strike "no more than half of".
Page 9, Line 8Page 61, line 16, strike "year," and substitute "year so long as
Page 9, Line 9unallocated credits do not exceed more than half of the annual
Page 9, Line 10dollar limits specified in subsection (2)(a) of this section,".
Page 9, Line 11Page 63, line 1 strike "an individual, person, firm," and substitute "a
Page 9, Line 12transferee.".
Page 9, Line 13Page 63, strike lines 2 and 3.
Page 9, Line 14Page 63, line 21, strike "pursuant to" and substitute "if, as of the last
Page 9, Line 15day of any taxable year during the compliance period, the
Page 9, Line 16amount of the qualified basis of the governmental or
Page 9, Line 17quasi-governmental entity is less than the qualified basis of the
Page 9, Line 18governmental or quasi-governmental entity as of the last day
Page 9, Line 19of the prior taxable year.".
Page 9, Line 20Page 63, strike line 22.
Page 9, Line 21Page 63, line 24, strike "section" and substitute "subsection (5)(c)(I)
Page 9, Line 22of this section, the government or quasi-governmental entity
Page 9, Line 23shall notify the department of the identity of the transferee to
Page 9, Line 24which it transferred the credit and".
Page 9, Line 25Page 63, line 25, strike "39-22-5704,".
Page 9, Line 26Page 63, line 26, after "the" insert "same".
Page 9, Line 27Page 64, line 1, after "taxpayer" insert "of an owner" and strike
Page 9, Line 28"section" and insert "subsection (4) of this section.".
Page 9, Line 29Page 64, strike line 2.
Page 9, Line 30
Page 10, Line 1Page 65, line 14, before "taxpayer" insert "qualified".
Page 10, Line 2Page 65, line 16, before "taxpayer's" insert "qualified".
Page 10, Line 3Page 66, line 15, before "taxpayer" insert "qualified".
Page 10, Line 4Page 66, line 17, before "taxpayer." insert "qualified".
Page 10, Line 5