Colorado’s Senate Finance Committee on Wednesday advanced legislation with unanimous support that seeks to allow small businesses to retain more sales tax dollars.
Senate Bill 22-006 would allow retailers with total taxable sales of less than $100,000 to retain 5.3% of their state sales taxes as compensation for the costs of remitting the state vendor fee. Current state law allows these businesses to retain 4% as compensation.
The bill, sponsored by Sens. Chris Kolker, D-Centennial, and Robert Rodriguez, D-Denver, and Reps. Barbara McLachlan, D-Durango, and Marc Snyder, D-Colorado Springs, was unanimously approved by the committee and will now move to the Senate Appropriations Committee for further consideration.
“As a small business owner myself, I know that every little bit helps,” Kolker said in a statement. “This is a commonsense bill that will save business owners time and put more money in their pockets so they can continue serving their communities.”
According to the Colorado secretary of state’s quarterly economic indicators report, business owners are feeling optimistic that the state’s economy stays in recovery mode.
Over the last 12 months, Colorado has added more than 158,000 jobs back, representing an annualized job growth rate of 5.8%. The state’s unemployment rate has fallen to 4.8% over the same period.
Meanwhile, Colorado received billions of dollars in federal aid stemming from the pandemic. Lawmakers are now trying to find ways to cut taxes as the state’s coffers are already full.
“Colorado’s small businesses are the backbone of our economy, but they’ve been hit hard by the pandemic and we must do everything we can to support them,” Rodriguez said.
This article was originally posted on Senate Finance Committee unanimously advances tax relief for small businesses