I’m not usually one to get very involved in local or state politics, but this proposed House Bill 1192 is an exception. If you haven’t heard about it, you can read more here. Basically, it is a huge new tax on software that will affect our technology community and every company employing workers in Colorado.
There are several complexities that make it even worse – it is retroactive, it is based on employee usage of software (even if they use a software program one hour a year), and they are planning to penalize companies who do not somehow hear about this required tax through an industry association or some other means. It is so clear that basing a tax like this on the number of employees in Colorado will reduce employers’ incentives to hire/ retain people in Colorado.
Hopefully this won’t pass because it is unconstitutional under TABOR to add a new tax without voter approval, but please voice your concern by calling state officials and spread the word. I just emailed each person on the appropriations committee - it only took five minutes. You can find out more information here on who to contact…
Tuesday, January 26, 2010
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5 comments:
OMG how did this even happen?! I'm on it. Thanks Lisa!
I'm planning on calling my local rep after work today (I tweeted at him, and he passed along his cell #), but I don't want to go at it ignorantly--I can't seem to find anything but supposition and summary, do you happen to know where I could get my hands on the actual text of the bill? No one seems to want to actually quote it.
http://www.leg.state.co.us/CLICS/CLICS2010A/csl.nsf/fsbillcont3/161688CBF748BB69872576A80026BE3E?Open&file=1192_01.pdf
For what it is worth, Texas has a sales and use tax on software, it is one of the reasons services companies in Texas don't like to resell software. The law in Texas makes the services taxable as well.
I have been watching this going on and this is a good way to chase businesses away from Colorado. Have sent this to all my technology contacts to get involved.
Stephen, CSIA knows more about this bill than anyone else, but I'm not sure if they even have a copy. I sent them a request for a little more information yesterday after you posted your comment and will let you know when I hear anything. I haven't seen it though.
Jake, from what I've heard, this is even more restrictive than the few states who have such taxes. I don't know the details of the Texas tax though.
I did get a response back from one of the representatives, who basically asked me what programs I would suggest cutting since they don't have the funding.
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