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DENVER -- Colorado Gov. Bill Ritter, Jr. has signed nine bills that eliminate or suspend the state's tax exemptions and credits. One of them, HB1191, imposes the state's 2.9% sales tax on candy and soft drinks. These previously had been tax-free, as is all food purchased for home consumption. This measure takes effect on May 1.
Under provisions of HB 1191, products that contain flour or require refrigeration are not defined as "candy," and thus remain exempt from tax.
The Denver Post reports that the measures aim to reduce the state's budget deficit, said to be $2.2 billion for the present budgetary year (ending in June), and projected as $1.3 billion in the next one. It is estimated that the new tax measures will bring in $15.6 million over the rest of the current year, and $102.3 million in fiscal 2010-'11.
