This tax is not just a software tax on the software industry. Every person, every business, every industry will pay this NEW tax for all software used by Colorado employees – which creates a tax only for jobs in our state.
HB 1192 creates a NEW tax and is different from the other tax bills because that which is proposed to be taxed has NEVER been taxed. This new tax is a clear violation of TABOR and SHOULD require a vote of the people.
This new sales tax applied to software is not limited to the 2.9% state sales tax rate; statutory cities and counties will impose their own local sales tax with home rule cities soon to follow – resulting in a 8 – 10% tax depending upon where you live.
HB 1192 will slow venture investment in Colorado’s software and IT industry. This bill creates an environment which is less appealing for investment than other states – this new tax will drive businesses and jobs out of Colorado.
Key growth industry sectors, cornerstones of Colorado’s economy, like bioscience, aerospace, financial services, health care, and renewable energy rely heavily on software and will take the blunt of this new tax and make it more difficult to drive innovation and stay competitive in the global marketplace.
HB 1192 is a brand new tax on which Colorado taxpayers will not have an opportunity to vote – a direct violation of our state Constitution.
This new software tax is being lumped together with twelve other exemption/credit reversals in an effort by the governor’s office to rush this through legislation. The new software tax is a separate and highly problematic new tax that will have a devastating impact to Colorado’s economy.
Of the 13 tax exemptions rushed through the House Finance Committee on Thursday night, Representative called HB 1192 the most damning, in terms of the impact it will cause to jobs.
This bill is vague and poorly written – the trickle-down effect of this bill could be endless, and the loss in revenue
HB 1192 will cost Colorado jobs and give us the reputation of being unfriendly to business.
The more than 175,000 professionals in this industry earn an average of $88,000 per year – more than twice the median salary of all Colorado professionals in the state. Within that industry, employers are announcing plans to cut jobs or leave the state if this bill is passed.
This bill will raise taxes on ALL businesses in Colorado who use technology.
Your veterinarian, your favorite restaurant, your bakery, your hair salon, your telephone company, your cable company, your brewery, etc. This could stifle new job growth and cause existing/new jobs to go elsewhere.
While Governor Ritter is estimating $20.4 million revenue from this tax in the next year, we expect the revenue loss from the technology industry to far surpass that amount.
In addition to the impact this new software tax will have on the technology industry if passed, all Coloradans need to be concerned about what this bill means for our job growth and economic recovery. This bill will raise taxes on ALL businesses in Colorado who use technology; your veterinarian, your favorite restaurant, your bakery, your hair salon, your telephone company, your cable company, your brewery, etc. This could stifle new job growth and cause existing/new jobs to go elsewhere. We’re encouraging supporters to visit our web site, coloradotechnology.org, for more information on how to ACT TODAY and contact their representative to tell them why this new tax will be devastating for Colorado’s economy.
All Coloradans need to be concerned about what this bill means for our job growth and economic recovery. Renewable Energy, Aerospace, Bioscience all require software, and many Colorado companies develop and sell this critical software to run the pillars of our economy!