State Senator Kevin Lundberg represents Colorado State Senate District 15 which includes Loveland, Berthoud, Estes Park, Red Feather Lakes,...
Pro-Jobs Bill To Rein In Taxes Dies In Committee
February
16,
2012
Today, a senate committee killed a bill that would have exempted more small businesses from the onerous personal property tax, and capped the amount Colorado’s largest employers’ pay.
Senate Bill 52, by Senator Mark Scheffel, R-Parker, was defeated by ruling Democrats in the Senate Finance Committee on a party line vote, 4-3.
“The business personal property tax is a burdensome, onerous tax that stifles job creation and growth,” said Scheffel. “Colorado’s economic recovery is dependent on entrepreneurs and business owners investing in capital and taking risks. This would have incentivized them to grow and create jobs.”
Right now, when a business buys anything – from a new piece of machinery to simple office equipment – the business not only pays taxes up front on the purchase, but every year afterward. Supporters of the measure argue that the never-ending, compounding tax suppresses business growth and discourages new hiring.
Democrat committee members argued that by limiting the tax, state government revenues could be threatened, while supporters countered that by exempting the small business community and capping the tax for other employers, Colorado would receive the economic equivalent of an adrenaline shot.
Sen. Keith King, R-Colorado Springs, who voted yes on the measure, urged support for Scheffel’s bill. “If we care about what we say in this building – jobs, jobs, jobs – then it’s time to get rid of this job-killer,” King said, just moments before Democrats voted 4-3 to keep the tax.
Senator Scheffel has made it his mission to end, limit or phase-out the Business Personal Property Tax and has carried legislation on the subject since joining the Senate in 2009.
The Personal Property Tax is based off the medieval tradition in which a royal tax collector would go door to door, into each person’s home to take a record of all their worldly possessions. The tax collector would then assess an annual personal tax based on individual possessions. While such a tax no longer applies to individuals, businesses continue to face a similar toll. The additional annual cost makes companies think twice whenever they look to hire new employees, expand to a new building, or add new machines.
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Senate Bill 52, by Senator Mark Scheffel, R-Parker, was defeated by ruling Democrats in the Senate Finance Committee on a party line vote, 4-3.
“The business personal property tax is a burdensome, onerous tax that stifles job creation and growth,” said Scheffel. “Colorado’s economic recovery is dependent on entrepreneurs and business owners investing in capital and taking risks. This would have incentivized them to grow and create jobs.”
Right now, when a business buys anything – from a new piece of machinery to simple office equipment – the business not only pays taxes up front on the purchase, but every year afterward. Supporters of the measure argue that the never-ending, compounding tax suppresses business growth and discourages new hiring.
Democrat committee members argued that by limiting the tax, state government revenues could be threatened, while supporters countered that by exempting the small business community and capping the tax for other employers, Colorado would receive the economic equivalent of an adrenaline shot.
Sen. Keith King, R-Colorado Springs, who voted yes on the measure, urged support for Scheffel’s bill. “If we care about what we say in this building – jobs, jobs, jobs – then it’s time to get rid of this job-killer,” King said, just moments before Democrats voted 4-3 to keep the tax.
Senator Scheffel has made it his mission to end, limit or phase-out the Business Personal Property Tax and has carried legislation on the subject since joining the Senate in 2009.
The Personal Property Tax is based off the medieval tradition in which a royal tax collector would go door to door, into each person’s home to take a record of all their worldly possessions. The tax collector would then assess an annual personal tax based on individual possessions. While such a tax no longer applies to individuals, businesses continue to face a similar toll. The additional annual cost makes companies think twice whenever they look to hire new employees, expand to a new building, or add new machines.
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