Business Tax Still Falling Short
The state’s business tax structure isn’t helping solve the state’s money trouble. When property tax reductions were passed in 2006 lawmakers knew that new tax money wouldn’t quite replace the money being lost to those property tax reductions but the thought was eventually with economic growth that would change. House Ways and Means Committee Chairman Rene Olivera says it’s clear now that it won’t. “It’s a permanent problem, not a temporary one.” The question is how do you fix it and right now there isn’t an answer. Meantime business groups say expanding the exemption from the business tax last session did help save jobs in the down economy and they are asking that those exemptions be expanded to include businesses that aren‘t profitable or just barely making it.