What tax day looks like in Colorado: A business owner, a paycheck—and what changed this year

By Jen Schumann | Rocky Mountain Voice

A mother approached a federal official after a recent event with a simple observation.

She said her daughter, who is working through nursing school, saved about $8,000 because of the no-tax-on-tips provision.

“That’s three to four months of rent,” U.S. Small Business Administration Regional Administrator Justin Everett said, recalling the conversation.

As Americans file their taxes, Everett is part of an effort to highlight what the administration is calling “Working Family Tax Cuts,” a set of federal tax changes aimed at reducing the burden on small businesses and workers.

According to White House estimates Everett cited, Colorado families could see between $4,500 and $8,100 in tax savings, with take-home pay rising higher in some cases. Everett also pointed to changes around tips, overtime and small business deductions.

So what does any of that mean for people here in Colorado?

Wheat Ridge business owner John Marriott is looking at it through a different lens—how it changed his day-to-day decisions.

Marriott owns Larson Ski and Sport, a retail ski and snowboard shop he has operated for more than four decades. His business is structured as a C corporation, which means some of the most talked-about tax changes don’t apply to him the same way they do to other businesses.

“So some of the tax changes from last year don’t really affect us that much,” Marriott said, noting that corporate tax rates were reduced during President Donald Trump’s first term and made permanent.

Still, he said, other provisions are shaping how he runs his business—especially when it comes to inventory and equipment.

In an industry where weather can make or break a season, timing matters.

“By being able to expense it all in the year we purchase it, we’re able to be more flexible and more quickly respond to whether it be the weather or the market or the competitive landscape,” he said.

That shift allows him to adjust faster, rather than sticking to a fixed replacement schedule.

“Anytime a business like mine gains flexibility and maneuverability, that’s a really powerful thing.”

Everett said he’s seen similar reactions from business owners across the region, particularly in industries that rely on equipment purchases.

In some cases, the response has been visible.

“They put bumper stickers on the equipment that said ‘100% depreciation—thanks President Trump,’” Everett said.

For the people working the floor, it shows up a little differently. Marriott employs 39 people, many of whom work directly with customers in roles that include fitting gear, performing repairs and occasionally receiving tips.

“At that level of work that they do, any and everything that results in them paying a little less taxes is just straight money into their pockets,” he said.

He hasn’t heard specific stories tying the changes to major life decisions, but he said the effect is consistent.

At those income levels, Marriott said, any tax savings tend to go right back into everyday spending.

The policy does not eliminate all taxes on tips, particularly at the state level, but Everett said the federal changes are still making a difference for some workers.

For Marriott, the effect shows up in what happens after a paycheck is spent.

“When any of us, all of us pay more taxes, that’s money that’s out of the local economy,” he said. “If that money’s in the local economy instead, it gets spent locally.”

“That dollar circulates around our local economy many times over.”

That circulation is what supports the network most people don’t see—local suppliers, service providers and the small businesses that anchor community life.

“All you gotta do is go to a chamber of commerce in any city or town anywhere, and that’s by and large small businesses,” Marriott said.

Everett said it depends a lot on where you live. In Wyoming, where there’s no state income tax, workers are more likely to notice it sooner. In Colorado, where tax policy and regulation differ, the effect can be less clear—and in some cases, less visible.

For those curious how it might play out for them, the White House has an online calculator where people can plug in their own numbers. Results vary depending on income, job type and state tax rules.

Even so, the question for business owners often comes down to what changed this year compared to the last.

For Marriott, the answer didn’t take long.

“Without a doubt,” he said. “A hundred percent.”