- June 24, 2021
- Posted by: Stratford Team
- Category: Business
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The legislation is expected to deliver nearly $150 million in annual revenue by changing how various businesses pay taxes.
The largest sum will come from insurance companies. It will now be more difficult for them to claim a tax deduction that rewards companies with offices in Colorado, which the sponsors say has done little to encourage job growth. They’ll also lose a rule that allowed them to pay lower taxes on the sale of certain financial products, compared to other institutions.
Colorado will adopt a new method to calculate the taxes owed by companies that do business in multiple states. By embracing the “Finnigan method,” the state expects to collect nearly $10 million in extra revenue per year.
The legislation also will result in higher tax bills for large retailers and oil and gas companies. Additionally, the new law says that cloud computer access should be taxed. and it attempts to crack down on off-shore tax…