Senate Committee of Reference Report
Committee on Appropriations
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May 11, 2026
After consideration on the merits, the Committee recommends the following:
HB26-1223 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:
Page 1, Line 1Amend reengrossed bill, page 10, line 2, strike "2026," and substitute
Page 1, Line 2"2027,".
Page 1, Line 3Amend the Senate Finance Committee Report, dated May 7, 2026, page
Page 1, Line 41, line 13, after "2026," insert "but before July 1, 2046,".
Page 1, Line 5Page 2 of the report, strike lines 11 through 13 and substitute:
Page 1, Line 6"SECTION 5. In Colorado Revised Statutes, 39-26-105, amend
Page 1, Line 7(1.3)(a)(III)(C), (1.3)(a)(V)(B), (1.3)(a)(V)(C), (1.3)(b)(I), (1.3)(c),
Page 1, Line 8(1.3)(c.5), and (1.3)(f.7); and add (1.3)(a)(V)(D), (1.3)(a)(V)(E), and
Page 1, Line 9(1.3)(b)(III) as follows:".
Page 1, Line 10Page 2 of the report, after line 16 insert:
Page 1, Line 11"(III) (C) "Qualifying retailer" means, for the specified sales tax
Page 1, Line 12period periods in subsection (1.3)(a)(V)(C) subsections (1.3)(a)(V)(C),
Page 1, Line 13(1.3)(a)(V)(D), and (1.3)(a)(V)(E) of this section, a retailer doing
Page 1, Line 14business in the state that timely files sales tax returns as required under
Page 1, Line 15subsection (1)(b) of this section and section 39-26-109 and that operates
Page 1, Line 16in the alcoholic beverages drinking places industry, the catering industry,
Page 1, Line 17the food services contractor industry, the restaurant and other eating
Page 1, Line 18places industry, or the mobile food services industry, or that operates a
Page 1, Line 19hotel-operated restaurant, bar, or catering service.".
Page 1, Line 20Page 2 of the report, after line 42 insert:
Page 1, Line 21"(b) (I) A qualifying retailer in the alcoholic beverages drinking
Page 2, Line 1places industry, in the restaurant and other eating places industry, in the
Page 2, Line 2food services contractor industry, or operating a hotel-operated
Page 2, Line 3restaurant, bar, or catering service may deduct from state net taxable sales
Page 2, Line 4the lesser of state net taxable sales or, except as provided in
Page 2, Line 5subsection (1)(b)(III) of this section, seventy thousand dollars and
Page 2, Line 6retain the resulting sales tax collected for each month specified in
Page 2, Line 7subsection (1.3)(a)(V) of this section.
Page 2, Line 8(III) For each month specified in subsections (1.3)(a)(V)(D)
Page 2, Line 9and (1.3)(a)(V)(E) of this section, the maximum deduction
Page 2, Line 10allowed pursuant to subsection (1.3)(b)(I) of this section is
Page 2, Line 11fourteen thousand dollars.".
Page 2, Line 12Page 2 of the report, line 43, after "(c)" insert "(I)".
Page 2, Line 13Page 3 of the report, line 2, strike "seventy thousand dollars fourteen
Page 2, Line 14thousand dollars" and substitute "except as otherwise provided
Page 2, Line 15in subsection (1)(c)(II) of this section, seventy thousand dollars".
Page 2, Line 16Page 3 of the report, after line 6 insert:
Page 2, Line 17"(II) For each month specified in subsections (1.3)(a)(V)(D)
Page 2, Line 18and (1.3)(a)(V)(E) of this section, the maximum deduction
Page 2, Line 19allowed pursuant to subsection (1.3)(c)(I) of this section is
Page 2, Line 20fourteen thousand dollars.".
Page 2, Line 21Page 3 of the report, line 7, after "(c.5)" insert "(I)".
Page 2, Line 22Page 3 of the report, line 9, strike "seventy thousand dollars fourteen
Page 2, Line 23thousand dollars" and substitute "except as provided in
Page 2, Line 24subsection (1)(c.5)(II) of this section, seventy thousand dollars".
Page 2, Line 25Page 3 of the report, after line 11, insert:
Page 2, Line 26"(II) For each month specified in subsections (1.3)(a)(V)(D)
Page 2, Line 27and (1.3)(a)(V)(E) of this section, the maximum deduction
Page 2, Line 28allowed pursuant to subsection (1.3)(c.5)(I) of this section is
Page 2, Line 29fourteen thousand dollars.".
Page 2, Line 30Page 3 of the report, lines 12 and 13, strike "available and without
Page 2, Line 31changing the sales tax return form," and substitute "available, and
Page 2, Line 32without changing the sales tax return form,".
Page 2, Line 33Page 4 of the report, line 19, after "2026," insert "but before July 1,
Page 3, Line 12046,".
Page 3, Line 2Page 15 of the bill, strike lines 14 through 27.
Page 3, Line 3Strike page 16 of the bill.
Page 3, Line 4Page 17 of the bill, strike lines 1 through 11. and substitute:
Page 3, Line 5"SECTION 10. Appropriation. (1) For the 2026-27 state fiscal
Page 3, Line 6year, $48,326 is appropriated to the department of revenue. This
Page 3, Line 7appropriation is from the general fund. To implement this act, the
Page 3, Line 8department may use this appropriation as follows:
Page 3, Line 9(a) $10,086 to the executive director's office for personal services
Page 3, Line 10related to administration and support;
Page 3, Line 11(b) $13,821 to the taxation business group for personal services
Page 3, Line 12related to taxation services; and
Page 3, Line 13(c) $24,419 for tax administration IT system (GenTax) support.".
Page 3, Line 14Renumber succeeding sections accordingly.
Page 3, Line 15Strike "December" and substitute "June" on: Page 9 of the bill, line 27;
Page 3, Line 16and Page 10 of the bill, lines 1, 2, and 3.
Page 3, Line 17Page 1 of the bill, line 101, strike "expenditures." and substitute
Page 3, Line 18"expenditures, and, in connection therewith, making an
Page 3, Line 19appropriation.".