(The Center Square) – A new report from an independent state committee recommends five tax-related bills that Colorado lawmakers should introduce during the 2022 legislative session.
The report was prepared by the Legislative Oversight Committee Concerning Tax Policy, a committee that reviews state tax policy and expenditures. Some of the work the committee performs includes analyzing taxes that local governments levy and the benefits or burdens of the state’s overall tax structure.
To prepare the report, the committee reviewed 32 tax expenditures that are monitored by the Office of the State Auditor. Some of the expenditures include mass transit spending, tax credits, and deductions for wages and salaries, among others.
One bill the committee recommended would revise a tax break for corporations that provide their employees with access to alternative modes of transportation like the light rail or rideshare credits. The new tax structure would provide a 50% refundable credit for the costs incurred from providing these benefits.
Another bill would eliminate several tax expenditures from Colorado’s insurance premium tax, income tax, sales and use tax, and liquor excise tax starting January 1, 2023. Some examples include an exemption for educational and scientific institution life insurance and an excise tax exemption for wine and spirits purchased for religious purposes.
The committee also recommended expanding the tax exemptions for alcohol brought into the state by foreign passengers to include 2.25 gallons of malt liquor or hard cider, nine liters of wine, and six liters of liquor.
The committee also recommended expanding sales and use tax exemptions in home rule jurisdictions for school capital construction projects and exemptions for farm vehicles.