Phil Castle, The Business Times

Tony Gagliardi gives average marks to the Colorado Legislature and the results of its latest session for small businesses in the state.

“It was a C to a C-minus session,” said Gagliardi, the state director of the National Federation of Independent Business.

The small business advocacy group represents 350,000 members nationwide and about 7,000 in Colorado.

Gagliardi hailed passage of legislation raising the exemption on business personal property tax to $50,000, although he said he still holds out hope the tax eventually will be repealed. “It’s a step in the right direction.”

He said he was relieved another measure that would have expanded the definition of workplace harassment failed. “We were glad to see that bill meet it’s demise.”

At the same time, though, Gagliardi said he’s disappointed legislation was signed into law to create a state-regulated health care plan that requires private insurance companies to cut premiums by 15 percent by 2025. The legislation doesn’t address the cost of health care, he said. “It’s not an answer.”

He also panned a transportation measure he said imposes new fees and taxes, but won’t improve highways or ease congestion.

Gagliardi reviewed the session during a telephone interview with the Business Times.

He said a “big win” from the session was passage of House Bill 1312, a provision of which increases from $7,900 to $50,000 the exemption for business personal property tax. That’s the taxes businesses pay on such items as desks, computers and other movable equipment. Gagliardi said county assessors have told him it costs more to collect the tax than what’s remitted.

Gagliardi said he was hopeful the business personal property tax would be eliminated — as Colorado Gov. Jared Polis called for in his state of the state address in February. But the legislation that was enacted at least constitutes another step in that direction, Gagliardi said

Gagliardi said he considers the defeat of Senate Bill 176 another win.

Another other provisions, the bill would have expanded the definition of workplace harassment, added protections for workers facing discrimination and extended the timeline for when claims against employers could be filed.

Gagliardi said the bill defined a hostile work environment as anything that undermines a person’s sense of well-being. Moreover, the measure would have eliminated the requirement to prove a hostile behavior is pervasive or severe. Those broad definitions would have created too many opportunities for unreasonable grievances that would wasted time and resources for employers and employees, he said.

Gagliardi said he’s wary of another measure that was enacted in House Bill 1232.

The legislation requires a 15 percent reduction in health care insurance premiums in three years. Otherwise, the Colorado commissioner of insurance will set health care prices to push premiums down. Moreover, the state would create a health care plan for the individual and small group markets that would be offered by private insurers across Colorado.

Gagliardi said he’s worried the measure turns the commissioner of insurance, an appointee, into one of the most powerful officials in the state. In addition, the legislation doesn’t address what causes higher health care costs.

While rising health insurance premiums remain an issue for small business owners, annual increases have become smaller, he said. “I don’t get the calls like I used to.”

The NFIB also opposed passage of Senate Bill 260 — a measure the group dubbed the green new deal on wheels.

The bill implements a $5.4 billion,
10-year plan to construct roads and bridges, create more electric vehicle charging stations, increase mass transit and reduce air pollution. Among other provisions, the measure imposes fees on everything from gasoline and diesel to deliveries and Uber and Lyft rides. In addition, the measure requires the Colorado Department of Transportation take greenhouse gas emissions reduction goals into account when planning projects as well as earmarks funding for electric vehicles and mass transit.

“NFIB strongly opposed the bill as it was discovered the bill had very little to do with improving our highways and easing our highway congestion,” Gagliardi said.

Now that the legislative session has ended, Gagliardi said attention has shifted in part to the use of federal stimulus funds distributed in the aftermath of the COVID-19 pandemic. 

He said he’s hopeful Gov. Polis will earmark funding to backfill the Colorado unemployment insurance trust fund. The alternative could be higher premiums for small businesses to replenish a fund depleted by high unemployment during the pandemic.