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Business Tax Relief
FOR IMMEDIATE RELEASE
SEN. BRUCE CAIRNS
April 11, 2003 303-866-3432
Contact: Kelley Harp 303-866-3344
COMMITTEE VOTES TO ELIMINATE BUSINESS PERSONAL PROPERTY TAX
DENVER - Businesses large and small won a huge victory this week at the state Capitol as the Senate State Affairs Committee voted in favor of eliminating the business personal property tax. The 4-3 party-line vote, with Republicans supporting the measure, came Wednesday.
Senate Bill 244 by Sen. Bruce Cairns, R-Aurora, is one of the boldest pieces of legislation this year paving the way for economic development, but at the same time it's sensitive to the current economic situation -- the tax is phased out over a 20-year period at an estimated 5 percent per year. There is no fiscal impact to the state until FY2004-05, and even then it's only a $2.1 million impact. Local governments will feel minimal impacts because of the long phase-out period.
"My bill paves the way for much-needed economic development and business growth at a time when the state is clearly in need of an economic catalyst," Cairns said. "Eliminating the business personal property tax also eliminates a major obstacle for businesses considering a move to Colorado. That means more jobs, a more diverse economy and more money in our state."
When businesses purchase equipment and capital, they pay sales taxes like any other consumer. That property, from the multi-million machinery to the table in the board room, is then taxed again every year from the business personal property tax laws in Colorado.
It is estimated that the business personal property tax costs Colorado businesses almost $600 million every year. And because less than 10 state in the country charge this type of tax, Colorado's business-friendly image becomes tarnished.
"This form of double taxation puts our state at a competitive disadvantage, and we can't afford that any longer," Cairns said. "This is an anti-business tax, and nobody benefits from it."
State Sen. Bruce Cairns represents Senate District 28 which includes South Aurora and portions of Arapahoe County. Cairns is Chairman of the Local Government Committee, Vice Chairman of the Education Committee, and serves on the State, Veterans and Military Affairs Committee and the Capitol Development Committee. His address is State Capitol, 200 East Colfax, Denver, CO 80203.