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News & Press: Colorado Technology Industry

Governor Ritter signed nine bills that will result into new taxes, effective Monday, March 1, 2010

Thursday, February 25, 2010   (0 Comments)
Posted by: Nikki Mill
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Yesterday Governor Ritter signed nine bills that will result into new taxes, effective Monday, March 1, 2010. 

In the announcements yesterday, HB1192 was labeled as a new law to "repeal a sales-tax regulation that imposed a sales-tax exemption on downloaded software,” but it’s actually far more complex and far-reaching than that, so CSIA will be holding a number of briefings and meetings for our members so we all can understand precisely what this new law will mean for our businesses.  In addition, because the normal procedures for new taxes have been eliminated, we also will be receiving clarification from the Department of Revenue about the exact timing when they expect businesses to concur.  And, because software companies and all companies who buy software will be required to add new administrative procedures for collecting taxes or submitting taxes, CSIA will also provide clarification directly with the Department of Revenue. 

Though we are pleased that we were able to modify HB1192 in a variety of ways to decrease the taxes, the new regulation will require new taxations for companies of all sizes, so please attend the briefings and stay tuned to CSIA information so we can be as helpful as possible for your business.

The other two bills we also will be providing clarification on are:

HB 1193,  which has been labeled as requiring sales tax on out-of-state online retail sales in the same way online sales made by retailers with physical locations in Colorado are subject to sales tax and

HB 1199, which has been labeled as temporarily limiting the amount of net operating losses companies can carry forward on their taxes.

CSIA continues to work with legislators, and just this week, Representative Carol Murray introduced HB1270  designed to codify the current tax regulation on software, and currently may additionally sunset HB1192 in three years.  With all of our efforts, our intent is to minimize the damaging effects of these new taxes on our critical industry, and to continually inform legislators about the importance of a healthy business environment (including regulation/legislative actions) for software/hardware/IT services companies and technology executives from across industries.

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