Keeping Tabs on Tax Breaks

(Feb. 5) – A bill to extend and expand transparency on Colorado’s tax policy passed the Finance Committee today on a unanimous vote. Colorado gives away more than $2 billion annually in tax exemptions, tax credits and tax rebates on more than 200 products and services, from prescription drugs to pesticides. Currently, the Department of Revenue is required to report every other year on the cost of these various tax breaks, but the law sunsets after 2015. HB14-1018, sponsored by Rep. Millie Hamner (D-Dillon), makes the reporting requirement permanent. “When one taxpayer gets a tax break, the burden has to be picked up by the rest of us,” Rep. Hamner said. “Many tax breaks, like on groceries and mortgages, make a lot of sense. Others, not so much. But it’s hard to sort the good from the bad if the people of Colorado don’t know how much of their money is going to each of these tax breaks. This bill will change that.” Next stop for the bill is the House floor.

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