Gop Submits $130 Million Cut In Business Tax

The Republican House has sent Gov. Mike Lowry a $130 million cut in the state’s main business tax. Lowry has promised to veto that cut, and if he does, the House and Democratic Senate have promised override votes.

The election-year reduction in the business and occupation tax on gross receipts passed 72-19 on Friday, following Senate passage Tuesday. Leaders of both chambers want to assure voters early that they are serious about tax relief at a time when the state has a $700 million surplus on top of its $17.6 billion budget.

The House also intends to pass $196 million in additional business and property tax cuts, while the Senate has passed about $92 million in property tax relief, which awaits House action. Lowry has proposed $79 million in business and property tax reductions, saying the state can’t afford more relief due to expected cuts in federal spending.

Lowry has five working days from the time he receives the measure to veto it, or it becomes law. The measure, SB6117, probably won’t reach his desk until mid-Monday at the earliest.