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HB 1048

Back-to-School Sales Tax Holiday

2026 Regular Session

Colorado HB 1048 exempts back-to-school merchandise from sales tax during a designated holiday period to reduce household education expenses, reducing state revenue while offering tax relief.

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Bill Summary · HB 1048

Legislative bill overview

HB 1048 establishes a temporary sales tax exemption period in Colorado during which purchases of school supplies, clothing, and related back-to-school items would be exempt from state sales tax. The holiday would apply to designated merchandise within specified price ranges during a defined window before the school year begins.

Why is this important

Sales tax holidays directly affect household budgets, particularly for lower and middle-income families who spend significantly on back-to-school purchases. The policy also has state revenue implications, as it reduces tax collection during the exemption period, which must be balanced against other budget priorities.

Potential points of contention

  • Revenue impact: The state loses sales tax revenue during the holiday period; fiscal analysts must determine the cost and whether it's justified compared to other education funding mechanisms
  • Definition scope: Disagreement may arise over which items qualify (clothing price limits, specific supply categories, devices like calculators or computers) and whether the definition is too broad or narrow
  • Administrative burden: Retailers must correctly identify eligible items and track exemptions, creating compliance costs and potential confusion
  • Equity questions: Whether a sales tax exemption effectively helps families who need it most, or primarily benefits those making larger purchases

Compiled from official sources — confirm details with the bill’s official record.

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