The governor’s budget plan seeks $131.8 million in extra revenue by suspending or eliminating 13 tax credits or exemptions.
The changes eliminate about 6 percent of the $2 billion in exemptions and credits.
Businesses receive about 40 percent of exemptions and credits but would bear about 65 percent of the modifications sought.
“The governor was very cautious because he didn’t want to propose changes that would have a significant impact on our ability to grow out of the recession,” said state budget director Todd Saliman.
Business reaction ranged from relief that the cuts weren’t as deep as initially feared to concerns about the potential loss of jobs.
“Our focus will be making sure these kind of proposals don’t end up having a long-term negative impact,” said Kelly Brough, president and chief executive of the Denver Metro Chamber of Commerce.
“We were fearing something worse, but that is not to say we are supporting the package. We will have to see,” said Chuck Berry, president and CEO of the Colorado Association of Commerce and Industry.
Eliminating a sales-tax exemption on candy and soft drinks, worth $17.9 million next year, has vending machine operators worried. “This could be devastating,” said Lou Langdon of the Colorado Vending Council.
