3/10/04
The law that was passed last July establishing the Wholesale Food Registration fee is CRS 25-5-426. This shifted support of the Health Department from the General Fund to Cash Funding. It establishes a 2 tier fee structure. Businesses with a gross income between $0 and $50,000 must pay $175 per year to register, $245 per year for businesses over $50K.
The amendment going through the legislature right now is House Bill 04-1298. As it currently stands it would waive the fee for businesses below $10k, and modify the fee structure - $10-50k, $150; $50-150k, $175; $150k+, $300. Even with these changes this is still horrible legislation in my view. It is extremely regressive and places an unjustified burden on the smallest businesses. For the smallest businesses this will represent a 1.5% tax (or more, depending on amendments) on gross income. This means a 7-10% tax on net income, simply to register.
HB 04-1298 is sponsored by reps Madden and Young.
- Tom Theobald
