A bill goes into effect today that will help restaurants in Colorado. Restaurants can retain sales tax revenue collected instead of remitting it to the state. It’s designed to save nearly 9,000 restaurants and retailers nearly $40 million this summer by allowing them to deduct up to $70,000 from their net taxable sales.
Rep. Dylan Roberts, D-Avon, introduced the bill.
“As a restaurant owner and employer myself, any ability for us to retain more of the money we earn is incredibly valuable,” said Scott Engelman, a restaurant owner in Routt County and immediate past president of the Colorado Restaurant Association. “I will be able to use this extra revenue for employee needs and to help offset some of the rising costs during these peak summer months. I thank the state legislature for passing this bill to provide restaurants across the state some much-needed support.”
Here is the press release.
Roberts’ bill to save local restaurants money takes effect today
AVON, CO – A bill introduced and passed by Representative Dylan Roberts during this year’s legislative session to allow restaurants to retain sales tax revenue collected instead of remitting it to the state takes effect today, July 1st.
HB22-1406 was passed with bipartisan support in the legislature and signed into law by Governor Polis on June 3rd. The law will save nearly 9,000 restaurants and retailers nearly $40 million this summer by allowing them to deduct up to $70,000 from their net taxable sales, saving those businesses around $2,000 per location in sales tax collections in July, August and September of this year – often the busiest period of the year for most Colorado eateries.
“Today is a great day for Colorado restaurants and small businesses – the cornerstones of all Colorado communities. After hearing from and working with many local restaurants in Eagle County, Routt County, and across the Western Slope, I introduced this bill to give them some crucial relief and help them save some money. We know that restaurants in our region are such important employers and economic drivers and these savings will allow each restaurant to keep more of the money they earn and use it to address rising costs, hire or retain employees, or expand their business,” said Rep. Dylan Roberts, D-Avon. “With all that restaurants went through during the pandemic and now with what they face with global inflation, workforce shortages, and supply chain challenges, this support is so valuable. This tax relief will allow restaurants to keep more of the money they make and offset some of the cost increases they are experiencing.”
“As a restaurant owner and employer myself, any ability for us to retain more of the money we earn is incredibly valuable,” said Scott Engelman, a restaurant owner in Routt County and immediate past president of the Colorado Restaurant Association. “I will be able to use this extra revenue for employee needs and to help offset some of the rising costs during these peak summer months. I thank the state legislature for passing this bill to provide restaurants across the state some much-needed support.”
All eligible restaurants can claim the deduction on their regular tax filings to the state where they will be given the option for this deduction. Eligible entities are restaurants (except multi-state chains), bars, food trucks, catering companies, and hotels that serve food. Businesses that have questions should reach out to the Colorado Department of Revenue at https://tax.colorado.gov/sales-tax-relief or contact the Office of State Representative Dylan Roberts at (303) 866-2923 for assistance.