Small Business Reading Room

Tuesday, May 06, 2008

Lawmakers are considering major changes in how Colorado taxes corporate income

In hopes of attracting businesses that will build facilities and employ more people, Colorado lawmakers are debating changes to corporate income tax structure in their state. That's House Bill 1380. It shifts Colorado to what's called a "single-sales factor" method of taxing multistate corporations, or those that do business in more than one state.

But if the bill passes, will all of the businesses in Colorado actually benefit?

The Colorado Fiscal Policy Institute doesn't seem to think so. Their take on the proposed change is that a small group of corporations will reap the rewards. Basically, it is a tax increase for the majority of multistate corporations.

Wow. Do business only in Colorado or else...
Maybe they should dub this the "Big Stick" bill. I was thinking of the Big Stick Diplomacy made famous by Theodore Roosevelt, but feel free to use your own imagination.

Personally, I don't see how this bill makes Colorado seem like an attractive place to bring my business; but I guess you can't blame them for trying. After all, who wouldn't want to encourage more business to come to their State to build and create jobs? Delaware certainly does. Then again, Delaware already has a business friendly environment. Plus there are a ton of resources here of resources that are available here to help you make the most of it. You can check out the Delaware Economic Development Office online to learn all about it. They provide information on everything from business financing to workforce development. While you are there, be sure to use their tax incentive calculator to see why coming to Delaware makes sense for you. There's even a whole section on locating your business in Delaware.

So what will happen to all of those multi state businesses affected by this punitive corporate income tax change in Colorado?

Maybe they should visit the State of Delaware.



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