As the Colorado Rockies prepare for Opening Day, the Colorado General Assembly is entering  the home stretch of the annual 120-day season.  With just five weeks to go, the pace of the game under the dome is heating up and surprises are almost guaranteed.  

The COCPA advocacy team has been working tirelessly this session to advocate for our profession and has already delivered wins for the accounting profession. We continue to keep our eye on the ball for legislation that could impact CPAs across the state. 

Defending CPAs' Pricing Practices 

HB 25-1090: Protections Against Deceptive Pricing Practices was introduced in the House and aims to protect consumers by requiring the maximum total price of all amounts a person may pay for a good, service, or property be disclosed upfront when offering, displaying, or advertising pricing information. While COCPA fully supported the bill’s intent, we raised concerns about its unintended impact on professional services like those provided by CPAs, whose pricing often depends on hourly or variable models.  

Thanks to testimony from COCPA CEO Alicia Gelinas in the House Judiciary Committee, and effective collaboration by the COCPA advocacy team with the sponsors of the bill, Representatives Emily Sirota and Naquetta Ricks, the bill was amended to include critical protections for service providers.  The amendment allows persons offering services where the total price cannot reasonably be known at the time of the offer to comply by disclosing that prices may vary, along with an explanation of pricing factors and mandatory fees.  The bill passed both House and Senate chambers and is now awaiting final consideration of Senate amendments in the House before heading to the Governor.

Ensuring CPA Relevance in Climate Disclosures

HB 25-1119: Require Disclosures of Climate Emissions, modeled after similar California legislation passed in 2024, was also introduced in the House and considered by the Energy & Environment Committee. This bill proposed mandatory public greenhouse gas emissions disclosures for companies operating in Colorado with over $1 billion in annual revenue. While COCPA did not take a position on the policy itself, we actively engaged to ensure any requirements could be implemented effectively and aligned with existing professional standards.

We successfully advocated for replacing the term “independent verification” with “independent third-party assurance,” offering a critical distinction to align with existing auditing and assurance standards.  This key amendment was adopted in committee, recognizing the CPA profession’s relevance in bringing credibility and reliability to climate-related disclosures.

Although the bill ultimately failed in committee, inclusion of amended language lays important groundwork for future proposals and reinforces the value CPAs bring to emerging areas like climate reporting and related assurance services.

Advancing Sales & Use Tax Simplification

The COCPA actively supported two bills aimed at easing sales and use tax compliance across Colorado, championed by ongoing efforts of the Sales and Use Tax Simplification Task Force. 

SB 25-018: Online Search of Sales & Use Tax was introduced early in the session and would direct the Department of Revenue to permit searches of sales and use tax licenses by name and identification number.  SB25-018 has already passed out of the Senate Finance Committee and is currently awaiting consideration by the Senate Appropriations Committee.  With the clock ticking, its fate may come down to fiscal prioritization.

SB 25-046: Local Government Tax Audit Confidentiality Standards was signed into law by the Governor on March 20, 2025, and establishes uniform confidentiality standards to safeguard taxpayer information collected during sales and use tax audits. The bill has this function with the goal in mind of protecting businesses from overly excessive investigations across multiple jurisdictions. The bill was a complete bipartisan effort, with support from legislators on both sides of the aisle, marking a meaningful win in the broader push to simplify Colorado’s sales and use tax system.  

While challenges remain, together, these bills mark continued progress toward a more consistent and efficient tax environment for Colorado businesses and the CPAs who support them.

Examining Adjustments to Tax Expenditures 

With budget pressure mounting, legislators are reexamining the effectiveness of Colorado’s tax credits and deductions.  Two bills,  SB25-026: Adjusting Certain Tax Expenditures and HB 25-1296: Tax Expenditure Adjustment, propose adjustments to more than 20 tax expenditures based on recommendations from the Legislative Oversight Committee Concerning Tax Policy and their review of the State Auditor’s evaluation of Tax Expenditures, which is required at least once every 5 years.  The proposed changes include:

• Income Tax: Repeal credits (e.g., unsalable alcohol, AMT, business property), extend others (e.g., childcare, energy storage, lawn equipment), modify credits (e.g. historic preservation and enterprise zones), and notable replace the Senior Property Tax, Rent, and Heat Rebate (PTC) with a new Senior tax credit.
• Fuel & Excise Tax:  Reduce fuel loss allowance, repeal special fuel bad debt relief, and clarify certain exemptions.
• Sales & Use Tax: Tax downloaded software and certain telecom services while exempting certain wholesale agricultural compounds
• Insurance Business Taxes: Raise workforce thresholds for eligibility of tax benefits and tighten reporting requirements.

On March 31, 2025, the COCPA registered in opposition to HB 25-1296: Tax Expenditure Adjustment with two major concerns: (1) the overwhelming volume of minor tax changes and their potential strain on an already burdened Department of Revenue in the bill’s implementation and (2) The proposal to tax downloaded software, which would represent a new taxable item, complicate the sales and use tax system, and may carry underestimated fiscal consequence.

COCPA will continue to monitor the bill and we encourage members to provide feedback if they foresee specific impacts.

What’s Next at the Capitol?

As the session continues, a primary focus for legislators will be finalizing the annual budget. This year Colorado is facing a significant budget deficit, leading many elected officials to consider creative strategies and make difficult decisions on spending.

The legislature adjourns on Wednesday, May 7, and the COCPA Advocacy team will continue to closely monitor and engage on legislation that could impact the profession. 

Stay Engaged

• To stay informed about the bills monitored by the COCPA during the legislative session, visit the COCPA’s Bill Tracker on the COCPA advocacy page.  
• Share your thoughts on proposed legislation or issues of importance to you online via the “Which Issues Matter to You” form on the COCPA Advocacy Website.
• Support advocacy efforts to build productive legislative relationships and promote a collaborative advocacy landscape by donating to the CPA-Political Action Committee.

Together, we will continue to ensure the voice of the CPA profession is heard at the Capitol