Colorado Capitol Report

Tax Council Takes Opposed Position on SB 109 and HB 1025, Neutral on HB 1024


Tax Council Takes Opposed Position on SB 109 and HB 1025, Neutral on HB 1024

The Colorado Chamber’s Tax Policy Council met today to discuss legislation in the 2020 session. The Council voted on several bills:

Senate Bill 109 – Oppose

SB 109 concerns short-term rental property taxes, redefining and reclassifying short-term rental units as nonresidential for tax purposes. The bill also increases their assessed value beginning in 2022. The Colorado Chamber’s Government Affairs Council also voted to oppose this legislation last month.

House Bill 1024 – Neutral

Beginning tax year 2021, this bill would change the current Net Operating Loss Deduction to allow taxpayers to claim the deduction for just 20 years – not the unlimited number of years that the Feds allow. The offset of 80% of taxable income still remains. The Colorado Chamber successfully worked to amend the bill to clearly state that the net operated losses incurred in income tax years commencing on or after January 1, 2021 may be carried forward for 20 years. This change provides guardrails on the bill so Department of Revenue auditors can’t deny the exemption for prior losses.

The Tax Council also discussed several other bills during the meeting including:

  • An update on HB 1022 – Sales And Use Tax Simplification Task Force
  • An update on HB 1023 – State Address Data For Sales And Use Tax Collection
  • An update on HB 1024 – Net Operating Loss Tax Exemption
  • HB 1174 – Sales Tax Statute Modifications
  • HB 1177 – Enterprise Zone Statute Fixes Of Defects
  • HB 1182 – Residents Of Bordering States Sales Tax Exemption
  • HB 1202 – Previous Taxed Income Gain Deduction C Corporation
  • HB 1205 – Pre-1987 Net Operating Loss Deduction
  • SB 099 – Thresholds For Sales Tax Collection Requirements

The majority of the discussion by the Council involved House bill 1025 – Modification to Energy Use Exemption.  The Tax Council has taken an “oppose” position to this bill based on many concerns raised by Colorado Chamber members.

This bill is scheduled for its first committee hearing on Monday, February 10th at 1:30p.m in the House Energy & Environment Committee.  For Chamber members with concerns and who are interested in testifying against this bill, please contact Loren Furman at [email protected].

For all other Tax Council and legislative questions, please contact Loren Furman at [email protected] or at 303-866-9642.

The next Tax Policy Council meeting will be held on March 6, 2020.


Manufacturing Spotlight: Eldon James & Wilmarc

Last week the Colorado Chamber caught up with Marcia Coulson, president and CEO of Eldon James Corporation and Wilmarc—manufacturers of standard and custom hose fittings including PVC-free tubing and connectors.

Established by Coulson’s parents in 1987, Denver-based Eldon James was purchased by Coulson who grew up in the family business. Today, the company manufactures PVC-free tubing, connectors and assembles that are now sold around the world. The company has a BioMed cleanroom facility that focuses on products for life sciences, bioprocess, biomedical, pharmaceutical and critical-use applications. It is one of the only tubing and connector manufacturers that can manufacture, assemble and package tubing and fitting assemblies in a single cleanroom environment.

In 2014, Coulson founded WilMarc, a manufacturing company headquartered in Fort Collins that specializes in disposable PVC-Free, Phthalate-Free products, including DEHP medical products, with a focus on anesthesia and respiratory products.

Through innovation, creativity and dedication, Coulson has developed her companies to achieve her vision of manufacturing safe plastics for the medical, beverage and automotive industries and beyond, without compromising health, safety or the environment.