DENVER, Colo. (KDVR) — It’s being called the biggest tax reform in Colorado in over a decade, and it’s heading to the governor’s desk.
The Tax Fairness for Coloradans package — HB21-1311 and HB21-1312 — is sponsored by Rep. Emily Sirota (D-Denver), Rep. Mike Weissman (D-Aurora), Sen. Chris Hansen (D-Denver) and Sen. Dominick Moreno (D-Commerce City).
Once signed, the two bills are said to expand tax credits for working families and small businesses and close tax loopholes.
Each of them passed with a 41-23 vote.
There are two bills that were passed by the Senate Monday night that will now await a signature from the Governor.
It would modernize Colorado’s tax code by expanding eligibility for and more than doubling the amount of the state earned income tax credit, as well as funding the Colorado Child Tax Credit.
“This is Colorado’s biggest tax reform in decades. For too long, our state tax system has been written by a handful of wealthy and powerful people and corporations, while working people and families — especially Black and Brown Coloradans — pay a higher share of their income in taxes,” said Colorado Fiscal Institute executive director Carol Hedges.
The second bill is focused on a property sales severance tax.
It’s set to increase the number of businesses that will be exempt from business personal property tax.
According to the Colorado Fiscal Institute, state analyses showed these bills would eliminate several loopholes in the state tax code that were not creating jobs, boosting the economy or making Colorado more competitive with other states or benefiting Colorado broadly.
“Closing wasteful loopholes that aren’t creating jobs or growing the economy and instead using our tax code to invest in workers and families is a huge win for Colorado,” Bell Policy Center president Scott Wasserman said.
Recent polling from Colorado-based Keating Research found more than 70% of Colorado voters support eliminating outdated tax exemptions and credits for corporations and wealthy individuals.