HB 22-1406

House Bill 22-1406, now signed into law, provides temporary tax relief to certain businesses in Colorado that were impacted by the pandemic. This includes restaurants, bars, caterers, mobile food services, and hotel-operated dining establishments. For July, August, and September of 2022, these qualifying businesses can deduct up to $70,000 per month from their state sales tax liability, which helps them recover from financial hardships caused by the pandemic. Since the bill has been signed into law, these businesses are now eligible for this deduction starting in July 2022.

Official Summary

The act renews for July 2022, August 2022, and September 2022, after a 10-month hiatus, a temporary deduction from state net taxable sales for qualifying retailers in the alcoholic beverages drinking places industry, the catering industry, the food service contractors industry, the mobile food services industry, the restaurant and other eating places industry and for retailers operating a hotel-operated restaurant, bar, or catering service in the state. The temporary deduction from state taxable sales for qualifying retailers is equal to the lesser of state net taxable sales or $70,000 for each month for which a deduction is allowed. (Note: This summary applies to this bill as enacted.)

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