Colorado Gov. Jared Polis (D) has presented a $35.4 billion budget proposal that includes an economic stimulus package and tax relief and direct aid for restaurants, bars, and other small businesses.
Presented November 12 to the legislature's Joint Budget Committee, Polis's budget proposes three key actions to help boost Colorado’s economy: restoring funding for key government services, providing $1.3 billion in economic stimulus to invest in jobs and growth, and saving for the future to help mitigate uncertainty.
The stimulus package calls for $105 million in sales tax retention and direct grants for restaurants, bars, and other small businesses affected by COVID-19-related capacity restrictions.
The tax relief would allow approximately 8,000 restaurants and bars to "retain up to $2,000 per month in state sales tax collections for December through March,” according to the governor's November 2 budget request.
“Restaurants, bars, and other small businesses saw strong recovery over the summer, but many are still struggling due to lack of consumer confidence and the restrictions imposed as a result of the COVID-19 pandemic,” the budget request stated, adding that this recovery might fade through winter as COVID-19 caseloads rise and outdoor capacity is limited by the weather.
The stimulus package would also provide a $375 one-time payment to low- and middle-income Coloradans unemployed during the pandemic; help with housing and rental assistance; and provide sustainability payments for early education centers with limited capacity. It would also make investments in new projects that would create jobs; in broadband that would help with telehealth and education; and in behavioral health, social equity, and disease response.
Small businesses negatively affected by the Safer at Home health restrictions would also receive direct grant support during winter.
According to the presentation, there would be an approximately $105 million increase in resources for fiscal 2022 resulting from voter-approved ballot initiatives.
Coloradans voted November 3 to repeal the so-called Gallagher amendment, which will eliminate the constitutional requirement for residential property in the state to make up no more than 45 percent of the state’s property tax base. Voters also approved a tax increase on tobacco products and a measure to reduce the state’s flat income tax from 4.63 to 4.55 percent.
Polis did not respond to a request for comment by press time.