By Marissa Ventrelli | Colorado Politics
A proposal that seeks to exempt toddler and baby products from the state sales tax narrowly passed its committee first hurdle on Monday.
House Bill 1027 proposes to exempt toddler and baby products, such as cribs, swings, clothes, and strollers, from the state sales tax of 2.9%. It would also create two two-week tax holidays for back to school products, including backpacks, school supplies, and computers, under a certain amount.
Supporters said the measure would provide relief to parents, while opponents expressed skepticism it would materially offer relief.
A fiscal note said parents could save $980 each year from the tax exemption, which would decrease state revenue by $8 million annually. Meanwhile, the tax holiday would apply to, among other things, clothing and school bags for up to $100 per item and computers and accessories for up to $1,500 per item. The tax holiday would reduce state revenue by $9 million in 2025.