Local Economic Improvement Act will Help Small Business
DENVER – Today, the Senate Local Government Committee approved SB-101, the Local Economic Improvement Act, sponsored by Senator Jeanne Nicholson (D-Gilpin County). This bipartisan legislation will support businesses in Local Improvement Districts by allowing districts to increase revenue, expand their boundaries, and make decisions imperative to their growth and prosperity.
Local Improvement Districts are created by county governments to allow businesses in unincorporated areas to share the cost of necessary infrastructure like electricity, sidewalks, or sewer lines. By combining resources, small business owners can afford the necessary foundation for successful business districts. Current law prevents these districts from engaging in certain activities such as using sales tax revenue to promote and market public events, including or excluding new properties, or adding noncontiguous properties. Senate Bill 101 will remove these barriers to growth and job creation.
Senator Nicholson offered the following comment on the passage of Local Economic Improvement Act, today:
"Colorado's small business owners are our job creators and our economic drivers, and as lawmakers we should be doing all we can to create an environment where they can thrive. This legislation will provide these business districts with the authority to enhance their economic development, and make important decisions to help them succeed."
There are currently 57 Local Improvement Districts in Colorado funded mostly by property assessments or sales tax revenue. Bruce Warren, member of the Niwot Local Improvement District Advisory Committee and former Chairperson of the Niwot Local Improvement District (LID) offered the following support for The Local Economic Improvement Act:
“I support this bill because it allows the Niwot LID, and others, to add properties when the property owner wants to be included. This bill would allow us to add 2 commercial properties whose businesses would then be able to collect a 1% sales tax which supports the LID and all of its activities. Niwot businesses have no other source of revenue for infrastructure improvements, marketing and promotion of the town, and promotional events. We were all impressed with Senator Nicholson’s knowledge of the subject, her willingness to sponsor the proposed legislation, and her understanding of the issues facing small town business owners. “
This bill is part of the Senate Majority’s “Colorado Works Jobs Package,” a series of bills focused on continued job creation and economic growth in the state.