Later this month, the Colorado General Assembly will reconvene for a special session. Governor Polis has called lawmakers back to address what his office describes as a budget crisis created by recent federal tax changes. According to the Governor, those changes will leave Colorado facing a $783 million shortfall this fiscal year.
As a Chamber, we will be watching this session closely to ensure the solutions debated do not come at the expense of Colorado businesses.
What’s at Stake for Business
Among the most concerning proposals is the elimination of the vendor fee allowance—a change that would immediately strip $70 million annually from Colorado retailers. This allowance has long recognized the cost and administrative burden that businesses shoulder in collecting and remitting state taxes. Removing it is, in effect, a hidden tax increase on employers at a time when many are already navigating tight margins.
We are also watching changes to foreign-derived investment income, expansions of the state’s “tax haven” list, and adjustments to home office and insurance premium tax credits. Together, these proposals represent hundreds of millions in new burdens on Colorado businesses, particularly those competing in national and global markets.
Other Issues Demanding Attention
Health care affordability and access are also on the table, particularly in light of federal changes to Medicaid and the loss of enhanced federal premium tax credits. Without state-level intervention, insurance premiums could rise nearly 40% on the Western Slope. The Governor has asked lawmakers to consider bolstering the Health Insurance Affordability Enterprise to blunt the impact, but as structured, these measures often come with unintended business consequences.
The Chamber also raised strong concerns earlier this year over House Bill 1297, which attempted to increase health insurance premiums by 1–2% to fund a reinsurance program. We argued then—and we will argue again now—that adding costs to policies undermines affordability for both our workforce and our employers. It’s a direct hit to small businesses already struggling with rising costs. This bill is expected to be revived during the special session, and we will be engaged every step of the way.
Artificial Intelligence legislation is another topic scheduled for action. Last year’s SB24-205 imposed significant compliance costs on businesses and government alike, with an estimated $5 million
annual state fiscal impact. A bipartisan coalition now supports “repeal and replace” efforts, and we will advocate for a streamlined approach that protects consumers without stifling innovation or burdening employers.
Finally, the session will explore recalibrating the Healthy Schools Meals program to free up funding for SNAP, as federal changes shift additional costs to Colorado. While we support addressing food insecurity, we will be watching closely to ensure that funding solutions don’t disproportionately lean on business.
A Call for Balance
To the credit of state leadership, proposals on the table include not just new revenue from businesses, but also spending cuts and the use of reserves. Hiring freezes, program recalibrations, and statutory adjustments show some recognition that this must be a shared sacrifice. Still, with more than $275 million in revenue changes expected to come from business tax adjustments, we must remain vigilant.
The Grand Junction Area Chamber of Commerce will continue to work alongside our statewide partners to track every proposal and make sure the voice of business is heard. We support balanced solutions that preserve critical services for Coloradans while ensuring businesses are not unfairly targeted to fill budget gaps created in Washington.
Our position is clear: protecting business is protecting Colorado’s economy. As lawmakers gather under the dome, we’ll be there—watching, engaging, and standing guard for the employers and employees who keep our communities strong.