Ritter’s plan promising for luring new business to the state
Gov. Bill Ritter’s plan to cut taxes and reduce red tape could be just the jumpstart needed to ensure Colorado remains in a competitive business environment.
Ritter correctly noted last week that it was time for state government to work with businesses.
His plan includes a proposal to raise the business personal property tax exemption from $2,500 to $7,000 – a move that would cut taxes for an estimated 30,400 businesses in the state. Colorado has confusing tax policy with the Gallagher Amendment, which places a heavier tax burden on businesses; the Taxpayers’ Bill of Rights, or TABOR, which limits government growth but also prevents investment in the infrastructure upon which the economy is dependent; and the business personal property tax, which is a bureaucratic nightmare for smaller companies.
Ritter still faces problems associated with TABOR and Gallagher, but he is correct to start with the business personal property tax to build trust within the business community as well as reduce the compliance burden.
Additionally, the governor is proposing that research funds be created for bioscience and clean energy at a cost of $3.5 million each. The recommendation is in line with Ritter’s bid to make Colorado a leading force in the country, if not the world, in the research and development of clean energy.
While these recommendations could lure new business to the state, they appear most valuable in retaining existing companies by removing barriers to expansion and job growth.