Last week, two important pieces of legislation were passed in Colorado that may affect small businesses. Read on to learn whether your operation will be impacted.
Proposition 116: Decrease Income Tax Rate
This proposition will decrease state income taxes from 4.63% to 4.55% for:
- Individuals
- Estates
- Trusts
- Foreign and domestic C corps that operate within Colorado
Proponents for this Prop 116 are looking forward to higher wages for workers.
Once this proposition goes into effect:
- A worker who makes $50,000 per year will pay $40 less in state taxes
- Someone who makes $125,000 per year will pay $100 less in state taxes
Critics, however, are concerned that this program will cut the state fund by $154 million that would have gone to important state departments like health care, education, and transportation. Due to COVID-19, the state fund had already been cut been billions and further cuts will only
Proposition 118: Paid Medical and Family leave Initiative
Passed by almost 58% of the vote, Prop 118 provides 12 weeks of paid family and medical leave throughout the entire state. 50% of this program is funded by employer taxes and 50% funded by employee taxes.
In the event of complications in pregnancy or childbirth, this program will allow an additional four weeks of leave, bringing it up to 16 weeks. Employers will be prohibited from taking any disciplinary or retaliatory actions against employees for requesting or taking this leave.
The benefit will be available starting on January 1, 2024.
