The Colorado General Assembly has eliminated the sales tax vendor allowance, a measure that previously allowed small retailers to retain up to $1,000 per filing period to help offset the administrative costs of collecting and remitting sales tax. The decision was made during a recent special session of the legislature.
Michael Smith, State Director for the National Federation of Independent Business (NFIB) in Colorado, spoke about the change on KLZ’s ‘Rush to Reason’ with John Rush. Smith described how this move will affect small business owners across the state.
“Small business owners wear many hats, as you know. But being an unpaid tax collector shouldn’t be one of them. This is a cash grab into the pockets of small businesses to fund more government spending, and we don’t think that should happen on the backs of small businesses,” Smith said during the interview.
The NFIB had advocated for keeping the allowance but was unsuccessful in preventing its removal. Despite this outcome, Smith expressed appreciation for lawmakers who supported their efforts. These included Senators Barbara Kirkmeyer, Lisa Frizell, John Carson and Representatives Ken DeGraaf, Anthony Harstook, and Max Brooks.
NFIB has stated it will continue working with legislators in hopes of restoring the sales tax vendor allowance in future sessions.
