Denver, Boulder, Pueblo sue state of Colorado over new tax law

A number of Colorado cities are suing the state over a brand new regulation that will maintain them from gathering gross sales and use tax on constructing supplies for public faculties.

HB22-1024 handed the legislature this yr with bipartisan assist in each chambers. Gov. Jared Polis signed it into regulation in April and it’s slated to enter impact in August. In brief, lawmakers stated they wished to maintain taxpayers from paying further on college buildings.

“Most occasions you levy a tax on your self to construct the varsity and repay the bond,” sponsor Rep. Shannon Chook, a Westminster Democrat, stated. “If there’s one other tax on that, you’re now taxing your self to repay one other tax over 25 or 30 years, and with curiosity.”

She famous {that a} gross sales tax of even only a few share factors can add thousands and thousands to initiatives. A 4% gross sales tax on $25 million price of constructing materials is an additional $1 million added to the price, for instance.

However the municipalities — Denver, Boulder, Commerce Metropolis, Pueblo and Westminster — are arguing the regulation is an unconstitutional usurpation of their proper to levy taxes.

Learn the total story from our companions at The Denver Submit.