colorado business corporation
Colorado House Republicans -
- Statehouse Republicans Call On Legislative Committee To Take Real Action on Economy
The question before the Job Creation and Economic Growth Committee is what the state can do to help bolster the economy.
The answer is clear to Republican leaders in the Legislature: stop hurting the businesses that keep money and jobs in the state.
“While this committee is meeting to discuss economic solutions, the state is taxing businesses on equipment they may have purchased years ago." said House Republican Leader Mike May, R-Parker. “Eliminating this backward policy is the first step toward stimulating economic growth in the state. By removing government barriers to business investment; we can help business owners survive, keeping jobs and money here in Colorado.”
May is referring to the state's Business Personal Property Tax.
Several Republican legislators are planning to work on a proposal to phase out Colorado’s Business Personal Property Tax, which taxes businesses yearly based on the actual value of the equipment that the company owns. The effort is being led by Rep. Kevin Lambert, R-Colorado Springs, Rep.-elect Kevin Priola, R-Henderson, Sen. Mike Kopp, R-Littleton, and Sen. Mark Scheffel, R-Parker.
“As an experienced small businessman, I know that the Business Personal Property Tax is a barrier to growth and amounts to a penalty on expanding your business,” Priola said. “That money should be used instead to help keep these business afloat and to help them make their payroll. Phasing out that tax is probably the most meaningful change we could implement to stimulate much-needed economic growth.”
Colorado currently has one of the highest business personal property tax rates in the nation. Only two states in the region, Arizona and Kansas, are higher.
Rep. David Balmer, R-Centennial, serves on the Job Creation and Economic Growth Committee.
“Any honest conversation about how to stimulate Colorado’s economy needs to include a look at the removal of the Business Personal Property Tax," said Balmer. "Government can't effectively create jobs, but it can stop costing us jobs.”
The Committee on Job Creation and Economic Growth meets tomorrow, Thursday, Dec. 4, from 9 a.m. to 3 p.m. in the Old Supreme Court Chamber of the state capitol.
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- Republican Leaders: Government Shouldn’t Jeopardize Jobs
The state should protect jobs, not jeopardize them.
That was the message from Republican leaders today as they encouraged the Colorado Oil and Gas Conservation Commission to consider jobs and the economy in making their final decision on their new rules.
“The last thing we need right now is over regulation that kills jobs,” Bradford said. “If the final version of these new oil and gas rules further restricts an industry’s ability to stay in Colorado, and to keep jobs in Colorado, they are not in the best interest of Colorado families. If these rules would have that impact, I believe the legislature has a duty to act.”
Bradford and Sen. Greg Brophy, R-Wray, said they will introduce legislation this session if the final version of the rules contains any provisions that pose a risk to jobs.
House Republican Leader Mike May, R-Parker, said he would support their efforts.
“We cannot afford to push the energy industry out of Colorado given the current state of the economy, and many fear that the proposed rules will do just that,” May said.
Many energy companies operating in Colorado are already cutting back, as a result of economic and financial pressures, as well as the regulatory uncertainty that has resulted from the state's proposed overhaul of the oil and gas rules.
Bradford said that while there was little the state could do to address the economic and financial pressures, the rules are the one area where the state can keep a bad situation from becoming worse.
Also weighing in on the proposed rules are Rep.-elect Randy Baumgardner, R-Hot Sulphur Springs, and Rep.-elect Scott Tipton, R-Cortez.
“Colorado has a great advantage in weathering the current recession through the responsible management of our natural resources,” Baumgardner said. “It’s an advantage that would be unwise to waste in these uncertain times.”
Tipton added, “Energy development has brought jobs and opportunity to many areas of our state where they were needed the most. With so much at stake, a cautious approach makes sense.”
See below for a breakdown of energy companies cutting back in Colorado.
Williams Production RMT (operating in the Piceance Basin): cutting back from 26 rigs in 2008 to approximately 20 in 2009iii
Bill Barrett Corporation (Piceance Basin): reducing rigs from five in October 2008 to two in 2009iv
Chevron (Piceance Basin near DeBeque): cancelling plans to double its rig countv
Delta Petroleum (Piceance Basin and Denver-Julesberg Basin): downscaling from four rigs to two
vi; reducing drilling capital expenditure by at least half next yearvii Marathon Oil (Piceance Basin): cutting back from four rigs in November 2008 to two in 2009viiiBerry Petroleum (Piceance Basin and Denver-Julesberg Basin): downscaling from four rigs in the Piceance Basin to one
ixAntero (Piceance Basin near Rifle and Silt): cutting back from four rigs to twox
Conoco Phillips (Piceance Basin near Parachute): downscaling from five rigs in early 2008 to one, or possibly two, in 2009xi
December 9, 2008
i
Gargi Chakrabarty, "Cuts likely for drilling in Colorado: Oil, gas firms see reductions up to 40%," Rocky Mountain News, 3 December 2008, <http://www.rockymountainnews.com/news/2008/dec/03/cuts-likely-for-drilling-in-colorado/> (accessed 5 December 2008).ii
Andy Vuong, "State’s oil and gas firms cut back," Denver Post, 25 November 2008 <http://www.denverpost.com/breakingnews/ci_11065985> (accessed 5 December 2008); Chakrabarty.iii
Dennis Webb, "More drilling cutbacks planned on Western Slope," Grand Junction Daily Sentinel, 4 December 2008 <http://www.gjsentinel.com/hp/content/news/stories/2008/12/04/120508_1a_drilling_cutbacks.html> (accessed 5 December 2008). iv