CO HB1020

Restricts the state sales tax exemption for long-term lodging (30+ days) to apply only to individual natural persons who have a written lease agreement, eliminating the exemption when multiple occupants share a room paid for by a single payer but none individually stay 30+ days.

Changes the exemption requirement from "occupant" to "natural person" to clarify that only individuals entering into residential lease agreements qualify, not arrangements where a single payer covers multiple temporary occupants.

Allows local governments and political subdivisions that levy sales or use taxes based on the state tax to opt out of the exemption effective January 1, 2021, unless they expressly adopted the exemption in their initial tax ordinance or subsequent amendments.

Aims to simplify tax administration and reduce confusion and administrative burden by repealing a tax expenditure that has remained largely unchanged since 1959 and no longer meets its original purpose of providing equal tax treatment for residential leases.

Takes effect 90 days after final adjournment of the general assembly (August 5, 2020) unless subject to referendum petition, and applies to sales taxes levied on or after January 1, 2021.