Bill to Help Colorado Small Businesses Save Money Through Sales Tax Relief Clears Committee Hurdle

Legislation will cut red tape, help small businesses’ bottom line by allowing them to retain more of the sales tax revenue they collect

DENVER, CO – As part of the Senate Democrats' ongoing effort to support Colorado small businesses, the Senate Finance Committee today approved SB22-006, which will improve small businesses’ bottom line by allowing them to retain more of the sales tax revenue they collect.

The bill, sponsored by Senator Chris Kolker (D-Centennial) and Senator Robert Rodriguez (D-Denver), cleared the committee unanimously.

“As a small business owner myself, I know that every little bit helps,” Sen. Kolker said. “This is a commonsense bill that will save business owners time and put more money in their pockets so they can continue serving their communities.”

“Colorado’s small businesses are the backbone of our economy, but they’ve been hit hard by the pandemic and we must do everything we can to support them,” Sen. Rodriguez said. “I’m proud of this legislation which will make it easier for businesses to get by as we continue to recover and will set them up for even more success down the road, and I look forward to getting it signed into law.” 

SB22-006 increases the state vendor fee – which is the amount that small businesses can keep – in 2023 from 4.0 percent to 5.3 percent for retailers with less than $100,000 in taxable sales per filing period. This will allow small businesses to use those funds to deal with rising rents, improve wages and benefits for their employees, and keep their businesses afloat as we continue dealing with the pandemic.

The bill will now move to Senate Appropriations for further consideration. You can track SB22-006's progress HERE.