Colo. Senate to debate phasing out business tax | SummitDaily.com

Colo. Senate to debate phasing out business tax

THE ASSOCIATED PRESS

DENVER ” A proposal to phase out an unpopular business tax is on its way to the Colorado Senate for debate.

The Senate Appropriations Committee backed the measure in a 5-4 vote on Wednesday.

Senate Bill 85 would gradually eliminate a tax on all business equipment over the next 40 years.

Companies have long complained that the tax is onerous to calculate and pay. But lawmakers have resisted eliminating it because of the millions it provides, much used for schools. The state would have to make up for the lost money.

The committee backed the bill after Republican Sen. Mark Scheffel exempted the eight counties that rely on it the most. Sedgwick County, home to two gas pipelines, is tops.

The clock on the phase-out wouldn’t start until 2011 because of the recession.