If passed, this job-killing legislation will place a new tax on any software purchased or installed in Colorado, which will have devastating impacts on job growth and our economic recovery.
The technology industry is a critical cog in Colorado’s economic wheel. There are more than 5,500 software/hardware/IT services businesses and nearly 175,000 well-paid professionals in Colorado’s software industry who provide more than $1 billion – in taxes alone to the state of Colorado. Why does Governor Ritter want to hurt that? Why do our legislators want important IT jobs to move OUT of Colorado? We were just starting to see the economy rebounding, and now we have this?!
HB 1192 will cost Colorado jobs and give us the reputation of being unfriendly to business. Why does Governor Ritter want to impact our state’s ability to recover?
Economic developers from neighboring states like Wyoming and Utah already have daily conversations with Colorado’s software companies about moving projects and jobs to their states. If HB 1192 passes, companies will start to listen. Why does Governor Ritter want to send jobs to Wyoming and Utah and more than 35 other states who will have less confusing and far less costly taxes for software companies and IT professionals.
Although this new tax will have the most devastating impact on the software industry, no business will be immune to its negative affects. Other industries that rely heavily on software – including aerospace, renewable energy, bioscience, telecommunications, financial services and tourism – will also be hurt in a major way. Why do our legislators want them to fall backwards?
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.
If passed, Colorado will be one of only 12 states with this type of tax; of the 11 other states, most have offsetting incentives to keep technology companies within their state. Colorado will have no incentives to keep and encourage new technology companies in our state.
HB 1192 will actually end up costing Colorado money. Ironically, although Governor Ritter’s budget office projects an additional $15 million per year in tax revenue thanks to this legislation, the long-term impacts would result in a net loss of revenue to the state and would greatly hinder our economic recovery.
Key Members of Colorado Appropriations Committee:
Rep. Kathleen Curry, Appropriations Committee
303.866.2945, kathleen.curry.house@state.co.us
Rep. John Kafalas, Appropriations Committee
303.866.4569, john.kefalas.house@state.co.us
Rep. Jack Pommer, Chair, Appropriations Committee
303.866.2780, jack.pommer.house@state.co.us
Rep. Joel Judd, Appropriations Committee
303.866.2925, repjoeljudd@joeljudd.com
Rep. Mark Ferrandino, Appropriations Committee
303.866.2911, mferrandino@yahoo.com
Rep. Randolph Fischer, Appropriations Committee
303.866.2917, randy.fischer.house@state.co.us
Rep. Sal Pace, Appropriations Committee
303.866.2968, sal.pace.house@state.co.us
Rep. Jim Riesberg, Appropriations Committee
303.866.2929, jim.riesberg.house@state.co.us