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LISTEN: Colorado General Assembly Eliminates Sales Tax Vendor Allowance, Making Small Business Owners Unpaid Tax Collectors

LISTEN: Colorado General Assembly Eliminates Sales Tax Vendor Allowance, Making Small Business Owners Unpaid Tax Collectors

August 28, 2025

NFIB State Director Michael Smith appears on KLZ's 'Rush to Reason' to discuss the General Assembly's special session cash grab.

In a conversation with John Rush on KLZ’s ‘Rush to Reason, ‘ NFIB State Director Michael Smith discussed the General Assembly’s recent special session and how it will affect small business owners, including their decision to raid the sales tax vendor allowance.

The sales tax vendor allowance has allowed small retailers to keep up to $1,000 per filing period as a meager way of helping offset the cost of collecting and remitting sales tax to the state.

Unfortunately, during the General Assembly’s special session, this allowance — a small line item within the state’s budget — was targeted by lawmakers and eliminated. NFIB fought to preserve the sales tax vendor allowance.

During the interview, Smith said:

“Small business owners wear many hats, as you know. But being an unpaid tax collector shouldn’t be one of them. This is a cash grab into the pockets of small businesses to fund more government spending, and we don’t think that should happen on the backs of small businesses.”

CLICK HERE to listen to the full interview.

Although the allowance was eliminated, NFIB thanks the coalition of lawmakers, including Sens. Barbara Kirkmeyer, Lisa Frizell, John Carson and Reps. Ken DeGraaf, Anthony Harstook, and Max Brooks, for their efforts to preserve the sales tax vendor allowance. NFIB will continue working with lawmakers to restore the allowance.

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