Tax code

Polis signs bill to simplify Colorado’s tax code | Colorado

(The Center Square) — Gov. Jared Polis on Thursday signed a bill that makes several changes to Colorado’s tax code.

The bill, Senate Bill 22-032, prohibits local jurisdictions from charging fees for general business licenses to retailers who already hold a standard license and requires the Department of Revenue to consult with business owners to address any “reasonable concerns” they may have regarding taxes. , according to the text of the bill.

SB22-032 was sponsored by a bipartisan coalition of Sens. Jeff Bridges, D-Greenwood Village, and Rob Woodward, R-Loveland, and Reps. Cathy Kipp, D-Fort Collins and Kevin Van Winkle, R-Highlands Ranch.

“It’s just common sense to reduce the burden on small businesses, by preventing local jurisdictions from charging fees that allow businesses that don’t have a physical presence in their jurisdiction,” Polis said at the event. signing the bill. “This bill will help people save money. This is truly a win for our state, a win for our small businesses, a win for consumers.

A coalition of small business owners and commercial organizations applauded Polis for signing the bill. Paul Archer, president of the Simplify Colorado Sales Tax group that supported the effort, said the legislation would create a “simple, fair and predictable system” without reducing overall state revenue.

The coalition said Colorado has a patchwork of more than 750 areas with different tax rates and 275 separate tax jurisdictions. This can be a heavy burden for small business owners, according to Archer.

This system is just one reason Colorado ranked 39th out of 50 states in the Tax Foundation’s Business Tax Climate Index in 2017.

“We’ve come a long way, and SB22-032 is a milestone on that journey,” Archer said.