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News & Press: Colorado Technology Industry

Denver software companies urge the city to change its tax stance

Wednesday, July 02, 2014   (0 Comments)
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Denver software companies urge the city to change its tax stance
as reported in the Denver Business Journal, July 1, 2014

About three dozen software industry members on Tuesday told Denver officials that taxing software sales in the city will hurt local tech industry job growth and is already scaring away businesses.

In meeting convened by the Colorado Technology Association trade group in the wake of recent audits of Denver software companies, entrepreneurs urged City Treasurer Steve Ellington and city economist Jeff Romine to change the city’s interpretation of a 1987 code under which the city asserts nearly any software bought by Denver companies should trigger the city’s 3.62 percent sales or use tax.

"Please take off the government hat, drop the attitude of moving slowly and do something about this,” said entrepreneur Mike Boselli, saying the city needs to change quickly.

Boselli is organizing a hub for health technology startups in northern downtown Denver, and on Tuesday he had a Boulder company say it’s changing its mind about moving to Denver due to the city’s tax stance, he said. Boselli declined to name the company.

Controversy has arisen over the city’s tax stance after tech companies — particularly those that do custom web software development — that have been audited by Denver were surprised to discover that the city believes sales tax should be added even to custom web software development if the project is for clients within city limits.

It's a long-running controversy in Denver, but one taking on a higher profile given the rise of the software industry in the city... 


To view complete article, visit Denver Business Journal here.  

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