Legislation to Protect Colorado Nonprofits from Federal Threats Passes Senate Committee

SB26-009 would allow Colorado nonprofits who have had their federal tax-exempt status revoked for political reasons to maintain their exemption from state sales tax

DENVER, CO – The Senate Finance Committee today unanimously approved legislation to protect Colorado nonprofits from hostile federal actions. 

SB26-009, sponsored by Senators Marc Snyder, D-Manitou Springs, and William Lindstedt, D-Broomfield, would ensure that nonprofit organizations that have lost their federal tax-exempt status for politically motivated reasons remain exempt from state sales tax. 

“Nonprofit organizations in our state are cornerstones of their communities, supporting countless Coloradans through difficult times,” Snyder said. “Chaos in the federal government threatens to upend these organizations’ ability to serve their communities. This bill would offer much-needed stability and dependability to charitable groups across our state.”

“Political retribution from the federal government could throw essential nonprofit organizations and the Colorado families who rely on them into chaos and financial distress,” Lindstedt said. “This legislation would fulfill our state’s responsibility to offer stability to valid charitable organizations amidst federal turbulence.”

SB26-009 would ensure that valid 501(c)(3) organizations maintain their state tax exemption, even if the federal government removes their federal tax-exempt status for political reasons. It would also ensure that the state maintains its authority to deny tax exemption for organizations that have lost their federal nonprofit status for legitimate reasons. 

Over the past year, Colorado nonprofits have increasingly struggled to navigate frenzied federal actions that call into question their budgetary futures and ability to serve their communities. SB26-009 is another in a host of actions Colorado Democrats have taken to protect Coloradans’ way of life amid federal threats. 

SB26-009 now moves to the Senate floor for further consideration. Track its progress HERE.