H.B. 1004, signed by Democratic Gov. Jared Polis on Monday, will allow food retailers to deduct from state net taxable sales the lesser of their sales or $70,000 and keep the sales tax collected. The deduction would apply to restaurants, drinking places and food trucks, according to the bill. Polis first raised the idea of sales tax relief in November in his budget for fiscal year 2022.
The bill is expected to reduce state general fund revenues by $39.3 million to $52.8 million for the 2020-2021 fiscal year, according to a Senate fiscal note. It was introduced by primary sponsor Rep. Alex Valdez, D-Denver.
H.B. 1004 passed in the Senate 35-0 and in the House 63-0 with two excused on Dec. 2. The House concurred in Senate amendments that added vintners' restaurants to the list of qualified alcoholic beverage establishments and a declaration stating that the measure is intended to provide relief to specific industries that have been especially hurt by the pandemic and public health measures.
--Additional reporting by Abraham Gross and Jaqueline McCool. Editing by Vincent Sherry.
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