Signed in to law on June 3, 2026, Colorado House Bill 1289 makes numerous tax modifications in the state. Among these items is the repeal the sales and use tax exemption for property used in space flight beginning January 1, 2027, with reinstatement of the exemption beginning January 1, 2030. Additionally, the legislation prohibits local use tax from applying to construction materials for rail carriers meeting qualifying criteria.
More information may be found here.
CO Repeals Exemption for Space Flight Property & Limits Tax on Rail Construction Materials
Bradley Feimer
June 24, 2026
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Author
Bradley Feimer
Bradley Feimer is a Senior Regulatory Counsel at Sovos. Brad focuses on domestic sales tax, fees, and Colorado local taxation. Brad is a member of the Massachusetts Bar and the Institute for Professionals in Taxation (IPT). He has a B.A. in English from The Ohio State University and a J.D. from Suffolk University Law School.
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