Thursday, February 25, 2010

No More Tax Break for Candy, Soda, Etc. in Colorado

There will be no more state sales tax exemption on your purchase of M&Ms. Or Pepsi. Or downloaded software. Today Colorado Governor Bill Ritter signed into law bills that would end state tax exemptions on a number of items, from candy and soda (HB 1191) to direct mail materials (HB 1189). As the Denver Post reports, some of these bills will take effect as soon as Monday, March 1 (see "Ritter Signs Bill to End Tax Breaks, Help Balance Budget").

The bills are intended to balance the state's budget. A press release on Governor Ritter's web site states that, collectively, the bills should generate $15.6 million this fiscal year and $132.6 million next fiscal year for the state. On both this press release and the Post article, you can find a complete list of the nine bills that have become law and the items that would no longer be tax exempt:

  • direct mail (HB 1189)
  • industrial fuels (HB 1190
  • candy and soda (HB 1191)
  • software (HB 1192)
  • online sales by out-of-state retailers (HB 1193)
  • "non-essential" restaurant items (HB 1194)
  • agricultural compounds (HB 1195)
  • alternative-fuel vehicles (HB 1196)
  • business net-operating losses (HB 1199)
You can find the individual bills on this page of the Colorado General Assembly's web site (go to the "Select Bill Range" box at the top of the page and select "House Bills 1151-1200"). If you need additional Colorado government resources related to these bills, you can refer to our guide.

No comments:

Post a Comment