Colorado Lawmakers Debate Vendor Fee Impact on Small Businesses Amid Economic Struggles

The Colorado Senate convened for its 2025 1st Extraordinary Session on August 25, focusing on the financial challenges faced by small businesses in the state. A significant discussion centered around the historical context of the vendor fee, which has remained at 4% since its increase after the Great Recession in 2009. Lawmakers reflected on how this fee was maintained during previous economic hardships, including the Great Depression and various wars, without imposing additional burdens on small businesses.

Senator Liston highlighted the struggles of local businesses in Colorado Springs, citing closures of well-known franchises and a decline in small businesses along major streets like Fillmore and Colfax Avenue. He emphasized the impact of the vendor fee on these businesses, arguing that the current economic climate is particularly tough, with many establishments shutting down.

The senator criticized the notion that recent tax cuts from HR 1 are to blame for the financial shortfall, asserting that many provisions of the bill have yet to take effect. He pointed out that the real issue lies not in revenue generation but in government spending, calling for a reassessment of the state’s budget, which stands at $44 billion.

As the session progressed, concerns were raised about a proposed bill that would only give small businesses four months to adapt to new regulations, which some lawmakers believe could further jeopardize their stability. The discussions underscored the urgent need for legislative action to support small businesses in Colorado amidst ongoing economic challenges.