Colorado provides a competitive business tax structure that rewards investment and innovation. With very low taxes at the state level, and a wide range of local tax structures, Colorado offers almost unlimited choices to meet the needs of all types of businesses. State government alone has refunded over a billion dollars to Colorado taxpayers, and enacted permanent tax cuts in the state income and sales taxes.

Colorado's 2006 Business Tax Climate Ranks #6

Colorado ranked 6^th in the nation in the Tax Foundation's State Business Tax Climate Index for 2006. The index compared the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. 

In addition to a competitive tax regime, Colorado also ranks high in terms of overall economic freedom, or the extent to which one can pursue economic activity without interference from government. In fact, the Fraser Institute ranked Colorado the freest state in the nation for businesses, in which Colorado's tax policies play a significant role.

Colorado's State/Local Tax Burden Below National Average

Over the past 16 years, Colorado's tax burden has fallen from being around the national average in 1990 to currently standing below the national average. Over this period of time, individual incomes of taxpayers have risen faster than state/local tax collections thanks largely to the unique Taxpayer's Bill of Rights amendment in the state's constitution.

According to the Tax Foundation, Colorado's state/local tax burden percentage is the 13^th lowest burden in the nation, well below the national average. Colorado taxpayers pay $4,098 per-capita for state and local taxes.

For more information, please visit: