Temporary change in tax policy could provide an economic stimulus

Rep. Chris Holbert, R-Parker, proposes under House Bill 1141 to take a two-year timeout from the much-unloved business personal-property tax, a levy that lawmakers long have considered phasing out. The tax has remained in place, however, due to the reliance of local governments on the revenue the tax provides for their communities.

The business personal-property tax, is an annual tax that businesses pay on a wide range of business equipment. Holbert believes that giving businesses a breather from the tax will coax business owners to go on a spending spree while simultaneously hiring more workers—prompted by future tax savings.

“My vision is to do something in the short term that will generate more job creation while stimulating the economy,” said Holbert.

Holbert says he’s confident that the two-year time-out would produce the desired effect—economic stimulation—with businesses responding robustly.

“I want to send the message to business that if you want to expand and grow, now is the time to reinvest. If there’s more people working, our state’s a better place,” said Holbert.

The proposal, launched in the GOP-controlled House, seems to have some traction across the aisle.

Democratic Rep. Ed Casso, of Commerce City, says he’s intrigued by the concept and is inclined to support it.

“It’s a very interesting idea that merits looking at,” said Casso. “If it functions as a stimulus, bringing money back into our counties, we need to look at this. Any idea that can sustain and create jobs is worth giving serious consideration.”

The measure has been assigned to the House Finance Committee for its first hearing.

Via – Colorado News Agency