Colorado repeals tax on software

DENVER – Gov. John Hickenlooper signed HB 1293 into law Tuesday afternoon, repealing a sales and use tax on computer software bought by Colorado companies.

The law goes into effect July 1, 2012.

Repealing the software tax makes companies – and especially technology companies – around the state more competitive, said Su Hawk, president of the Colorado Software & Internet Association. The tax is more than 8 percent on new software programs, the CSIA group has said in the past in information posted on its website.

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Hawk on Wednesday said she wanted to thank technology companies in Boulder County and around the state for helping to lobby state legislators to get the tax repealed.

“Clearly, Boulder is at the epicenter of so much that goes on in technology in the state,” Hawk said. “We’re so thrilled that Boulder technology people have helped us over the years.”

While Hawk said she did not know exactly how much that companies in the state have paid in software taxes, she said they have paid an estimated nearly $1 billion per year in other taxes, including personal taxes, property taxes, use taxes and sales taxes on computer hardware.

House Republican Majority Leader Amy Stephens (R-Monument) was the prime sponsor of the bill, along with Rep. Carole Murray (R-Castle Rock), Sen. Cheri Jahn (D-Wheat Ridge) and Sen. Linda Newell (D-Littleton).