Onerous Software Tax One Step Closer to Being Repealed

DENVER— Today, Colorado’s onerous software tax took its first step to being repealed. 

House Bill 1293, sponsored by House Majority Leader Amy Stephens and State Rep. Carole Murray, repeals taxes on software use in Colorado for all Colorado businesses. 

“Some Democrats say that this tax only helps special interests, but nothing could be further from the truth,” said Murray, R-Castle Rock.  “Every company in Colorado whose employees use software are required to pay this tax.  That means less money for these companies to invest in creating new jobs.”   

House Bill 10-1192 has added administrative costs and nightmares for all employers across the state, resulting in taxes of more than eight percent, and ultimately has assessed extra costs to companies who employ people in Colorado. 

“Colorado is one of only a handful of states in the country who have a burdensome software tax,” added Stephens, R-Monument.  “Since the passage of House Bill 10-1192, many in the tech industry do not look at Colorado as a business friendly state.  By repealing this tax, we are showing that Colorado is open for business and welcomes software industries to come to our state.”     

The measure passed nine to four with support from both Republicans and Democrats. The measure will be heard next in House Appropriations. 

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