You are probably familiar with other types of taxes like sales tax. In 1930, Kentucky was the first state to pass a tax levied exclusively on retailers. Colorado established a general sales tax in 1935. Currently, Colorado sales tax is at 2.9 percent.
There are sources other than Income and Sales Tax that fund the budget for our state.
Types of Colorado Tax
Income Tax (Both Individual and Corporate)
Sales or Use Tax (collected from retail sales transactions including online and personal)
Excise Tax (for specific goods or services) e.g alcohol and tobacco
Severance taxes (collected from companies that extract non-renewable natural resources in the state)
Other funding resources include:
Check out the “Where Do I Go” webpage to see what happens to the revenue collected from taxes and other resources.
Taxes have been part of human history for a long time.
The earliest known tax was implemented in Mesopotamia over 4,500 years ago. In the United States the tax system has evolved dramatically throughout the nation’s history. Federal income tax was implemented on a permanent basis in 1913 by the Sixteenth Amendment although it was first collected in 1861 to help finance the Civil War.
Colorado implemented the first state income tax in 1937. It was a graduated system based on your income. The more income, the higher the tax rate. Colorado moved to a single tax rate of 5% in 1987 and later that was reduced to 4.63%. The current Colorado Constitution requires that all taxable income be at one rate, sometimes referred to as a flat tax rate.
Colorado
Income Tax Rate
Timeline
Income Tax Rate
Timeline