With just a day to spare in the 2009 legislative session, the Senate gave initial approval to a bill that would eliminate a tax break on capital gains in Colorado.
Democrats said House Bill 1366, sponsored by Sen. Chris Romer, D-Denver, would end a tax break that has been found illegal in other states, primarily affecting those who sell stocks.
But Republicans said the bill was effectively imposing an unconstitutional tax increase on small-business owners during a recession.
An amendment from Sen. Jim Isgar, D-Hesperus, altered the bill so that capital-gains tax would not be imposed on the sale of Colorado real estate purchased before 2010 or on any tangible property such as business machinery. Capital-gains tax would be imposed, however, on the sale of stocks and other financial assets.
The Senate gave the bill initial approval and must give it a final OK today, the last day of the session. The House also must agree to the Senate changes.
Tim Hoover: 303-954-1626 or thoover@denverpost.com
