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DENVER, CO– Governor Polis today signed two bills into law that will allow retailers to retain the sales tax they collect and provide small businesses with the tools and funding they need to grow.
“Colorado’s bars, restaurants, food trucks and retailers have gotten a boost this year from legislation that allows them to keep the sales tax they collect, and now that will continue through the summer,” said Rep. Kyle Mullica, D-Northglenn. “This law will help keep our recovery on track by supporting the small businesses that have been hit the hardest by the pandemic as they work to get back on their feet and grow.”
HB21-1265, sponsored by Reps. Kyle Mullica and Kevin Van Winkle, R-Highlands Ranch, continues a successful sales tax assistance effort passed during the 2020 special session. It allows restaurants, bars, caterers and food service contractors (such as airline food service contractors and food concession contractors at sporting events) to deduct up to $70,000 in net taxable sales from their monthly state sales tax return for five different locations and retain the resulting sales tax revenue during the months of June, July and August 2021.
“While it’s been a tough year, there are so many small businesses and entrepreneurs who are primed to grow and take the next step with their businesses,” said Rep. Lindsey Daugherty, D-Arvada. “This new program that the governor signed into law today will help provide small-and-medium-sized employers the tools, training and funding opportunities they need to jump ahead, create jobs and enter into the next phase of their business.”
“There are so many businesses across Colorado that could grow, create jobs and help boost our economy with a little technical assistance, funding or support,” said Rep. Naquetta Ricks, D-Aurora. “With this new initiative, Colorado businesses that are ready to expand will have access to critical assistance and tools to help them thrive.”
Sponsored by Representatives Lindsey Daugherty and Naquetta Ricks, SB21-241 creates the Small Business Accelerated Growth Program, which is designed to provide small businesses on the verge of major growth with the tools and funding they need to take their small businesses to the next level. The program will support businesses with 19 employees or fewer and provide them with technical, operational, marketing and financial assistance to ensure they can grow sustainably and continue to create jobs.