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Summit Daily: To help close budget hole, Colorado Democrats eliminate a tax benefit for small businesses

Small businesses in Colorado will no longer be able to recoup a percentage of the sales tax they collect and send to the state under a bill approved by state Democrats in the ongoing special legislative session.

For decades, businesses that report under $1 million in taxable sales per filing period have been able to recoup 4% of their tax collection, or up to $1,000 per retailer, in what is known as a “vendor fee.” Businesses are able to collect that money per filing period, which is usually monthly, meaning they can keep up to $12,000 per year in sales tax.

Several pointed to a study last year commissioned by the Colorado Chamber of Commerce that identified Colorado as the sixth most regulated state in the nation for businesses.

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