An oil well in western Colorado
Cattle ranching in Jackson County
Center pivot irrigation of wheat growing in Yuma County.The Bureau of Economic Analysis estimates that the total state product in 2007 was $236 billion. Per capita personal income in 2007 was $41,192, ranking Colorado eleventh in the nation. The state's economy broadened from its mid-19th century roots in mining when irrigated agriculture developed, and by the late 19th century, raising livestock had become important. Early industry was based on the extraction and processing of minerals and agricultural products. Current agricultural products are cattle, wheat, dairy products, corn, and hay.
The federal government is also a major economic force in the state with many important federal facilities including NORAD, United States Air Force Academy and Peterson Air Force Base in Colorado Springs; NOAA and the National Institute of Standards and Technology in Boulder; U.S. Geological Survey and other government agencies at the Denver Federal Center in Lakewood; the Denver Mint, Buckley Air Force Base, and 10th Circuit Court of Appeals in Denver; and a federal Supermax Prison and other federal prisons near Cañon City. In addition to these and other federal agencies, Colorado has abundant National Forest land and four National Parks that contribute to federal ownership of 24,615,788 acres (99,617 km2) of land in Colorado, or 37% of the total area of the state. In the second half of the 20th century, the industrial and service sectors have expanded greatly. The state's economy is diversified and is notable for its concentration of scientific research and high-technology industries. Other industries include food processing, transportation equipment, machinery, chemical products, minerals such as gold and molybdenum, and tourism. Colorado also produces the largest amount of beer of any state. Denver is an important financial center.
A number of nationally known brand names have originated in Colorado factories and laboratories. From Denver came the forerunner of telecommunications giant Qwest in 1879, Samsonite luggage in 1910, Gates belts and hoses in 1911, and Russell Stover Candies in 1923. Kuner canned vegetables began in Brighton in 1864. From Golden came Coors beer in 1873, CoorsTek industrial ceramics in 1920, and Jolly Rancher candy in 1949. CF&I railroad rails, wire, nails and pipe debuted in Pueblo in 1892. The present-day Swift packed meat of Greeley evolved from Monfort of Colorado, Inc., established in 1930. Estes model rockets were launched in Penrose in 1958. Fort Collins has been the home of Woodward Governor Company's motor controllers (governors) since 1870, and Waterpik dental water jets and showerheads since 1962. Celestial Seasonings herbal teas have been made in Boulder since 1969. Rocky Mountain Chocolate Factory made its first candy in Durango in 1981.
Colorado has a flat 4.63% income tax, regardless of income level. Unlike most states, which calculate taxes based on federal adjusted gross income, Colorado taxes are based on taxable income - income after federal exemptions and federal itemized (or standard) deductions. Colorado's state sales tax is 2.9% on retail sales. When state revenues exceed state constitutional limits, full-year Colorado residents can claim a sales tax refund on their individual state income tax return. Many counties and cities charge their own rates in addition to the base state rate. There are also certain county and special district taxes that may apply.
Real estate and personal business property are taxable in Colorado. The state's senior property tax exemption was temporarily suspended by the Colorado Legislature in 2003. The tax break is scheduled to return for assessment year 2006, payable in 2007.
Philanthropy
Major philanthropic organizations based in Colorado, including the Daniels Fund, the Anschutz Family Foundation, the Gates Family Foundation, the El Pomar Foundation and the Boettcher Foundation, grant approximately $400 millioneach year from approximately $7 billion of assets.
Energy
Colorado has significant energy resources. According to the Energy Information Administration, Colorado hosts seven of the Nation’s 100 largest natural gas fields and two of its 100 largest oil fields. Conventional and unconventional natural gas output from several Colorado basins typically account for more than 5 percent of annual U.S. natural gas production. Substantial deposits of bituminous, subbituminous, and lignite coal are also found in the state. Colorado's high Rocky Mountain ridges and eastern plains offer wind power potential, and geologic activity in the mountain areas provides potential for geothermal power development. Much of the state is sunny and could produce solar power. Major rivers flowing from the Rocky Mountains offer hydroelectric power resources. Corn grown in the flat eastern part of the State offers potential resources for ethanol production. Notably, Colorado’s oil shale deposits hold an estimated 1 trillion barrels (160 km3) of oil – nearly as much oil as the entire world’s proven oil reserves. Oil production from those deposits, however, remains speculative.
Special tax districts
Some of the special tax districts are:
• The Regional Transportation District (RTD), which affects the counties of Denver, Boulder, Jefferson, and portions of Adams, Arapahoe, Broomfield, and Douglas Counties
• The Scientific and Cultural Facilities District (SCFD), a special regional tax district with physical boundaries contiguous with county boundaries of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson Counties
• Local Improvement Districts (LID) within designated areas of southeast Jefferson and Boulder counties
• Regional Transportation Districts (RTA) taxes at varying rates in Basalt, Carbondale, Glenwood Springs, Gunnison County
• Occupational Privilege Taxes (OPT or Head Tax) Denver and Aurora both levy an OPT on Employers and Employees
The federal government is also a major economic force in the state with many important federal facilities including NORAD, United States Air Force Academy and Peterson Air Force Base in Colorado Springs; NOAA and the National Institute of Standards and Technology in Boulder; U.S. Geological Survey and other government agencies at the Denver Federal Center in Lakewood; the Denver Mint, Buckley Air Force Base, and 10th Circuit Court of Appeals in Denver; and a federal Supermax Prison and other federal prisons near Cañon City. In addition to these and other federal agencies, Colorado has abundant National Forest land and four National Parks that contribute to federal ownership of 24,615,788 acres (99,617 km2) of land in Colorado, or 37% of the total area of the state. In the second half of the 20th century, the industrial and service sectors have expanded greatly. The state's economy is diversified and is notable for its concentration of scientific research and high-technology industries. Other industries include food processing, transportation equipment, machinery, chemical products, minerals such as gold and molybdenum, and tourism. Colorado also produces the largest amount of beer of any state. Denver is an important financial center.
A number of nationally known brand names have originated in Colorado factories and laboratories. From Denver came the forerunner of telecommunications giant Qwest in 1879, Samsonite luggage in 1910, Gates belts and hoses in 1911, and Russell Stover Candies in 1923. Kuner canned vegetables began in Brighton in 1864. From Golden came Coors beer in 1873, CoorsTek industrial ceramics in 1920, and Jolly Rancher candy in 1949. CF&I railroad rails, wire, nails and pipe debuted in Pueblo in 1892. The present-day Swift packed meat of Greeley evolved from Monfort of Colorado, Inc., established in 1930. Estes model rockets were launched in Penrose in 1958. Fort Collins has been the home of Woodward Governor Company's motor controllers (governors) since 1870, and Waterpik dental water jets and showerheads since 1962. Celestial Seasonings herbal teas have been made in Boulder since 1969. Rocky Mountain Chocolate Factory made its first candy in Durango in 1981.
Colorado has a flat 4.63% income tax, regardless of income level. Unlike most states, which calculate taxes based on federal adjusted gross income, Colorado taxes are based on taxable income - income after federal exemptions and federal itemized (or standard) deductions. Colorado's state sales tax is 2.9% on retail sales. When state revenues exceed state constitutional limits, full-year Colorado residents can claim a sales tax refund on their individual state income tax return. Many counties and cities charge their own rates in addition to the base state rate. There are also certain county and special district taxes that may apply.
Real estate and personal business property are taxable in Colorado. The state's senior property tax exemption was temporarily suspended by the Colorado Legislature in 2003. The tax break is scheduled to return for assessment year 2006, payable in 2007.
Philanthropy
Major philanthropic organizations based in Colorado, including the Daniels Fund, the Anschutz Family Foundation, the Gates Family Foundation, the El Pomar Foundation and the Boettcher Foundation, grant approximately $400 millioneach year from approximately $7 billion of assets.
Energy
Colorado has significant energy resources. According to the Energy Information Administration, Colorado hosts seven of the Nation’s 100 largest natural gas fields and two of its 100 largest oil fields. Conventional and unconventional natural gas output from several Colorado basins typically account for more than 5 percent of annual U.S. natural gas production. Substantial deposits of bituminous, subbituminous, and lignite coal are also found in the state. Colorado's high Rocky Mountain ridges and eastern plains offer wind power potential, and geologic activity in the mountain areas provides potential for geothermal power development. Much of the state is sunny and could produce solar power. Major rivers flowing from the Rocky Mountains offer hydroelectric power resources. Corn grown in the flat eastern part of the State offers potential resources for ethanol production. Notably, Colorado’s oil shale deposits hold an estimated 1 trillion barrels (160 km3) of oil – nearly as much oil as the entire world’s proven oil reserves. Oil production from those deposits, however, remains speculative.
Special tax districts
Some of the special tax districts are:
• The Regional Transportation District (RTD), which affects the counties of Denver, Boulder, Jefferson, and portions of Adams, Arapahoe, Broomfield, and Douglas Counties
• The Scientific and Cultural Facilities District (SCFD), a special regional tax district with physical boundaries contiguous with county boundaries of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson Counties
- It is a 0.1% retail sales and use tax (one penny on every $10).
- According to the Colorado statute, the SCFD distributes the money to local organizations on an annual basis. These organizations must provide for the enlightenment and entertainment of the public through the production, presentation, exhibition, advancement or preservation of art, music, theater, dance, zoology, botany, natural history or cultural history.
- Tier I includes regional organizations: the Denver Art Museum, the Denver Botanic Gardens, the Denver Museum of Nature and Science, the Denver Zoo, and the Denver Center for the Performing Arts. It receives 65.5%.
- Tier II currently includes 26 regional organizations. Tier II receives 21%.
- Tier III has over 280 local organizations such as small theaters, orchestras, art centers, and natural history, cultural history, and community groups. Tier III organizations apply for funding to the county cultural councils via a grant process. This tier receives 13.5%.
- An eleven-member board of directors oversees the distributions in accordance with the Colorado Revised Statutes. Seven board members are appointed by county commissioners (in Denver, the Denver City Council) and four members are appointed by the Governor of Colorado.
• Local Improvement Districts (LID) within designated areas of southeast Jefferson and Boulder counties
• Regional Transportation Districts (RTA) taxes at varying rates in Basalt, Carbondale, Glenwood Springs, Gunnison County
• Occupational Privilege Taxes (OPT or Head Tax) Denver and Aurora both levy an OPT on Employers and Employees
- If any employee performs work in the city limits and is paid over US$500.00 for that work in a single month, the Employee and Employer are both liable for the OPT regardless of where the main business office is located or headquartered.
- In Denver, the Employer is liable for US$4.00 per employee per month and the Employee is liable for US$5.75 per month.
- In Aurora, both Employer and Employees are liable for US$2.00 per month.
- It is the Employer's responsibility to with hold, remit, and file the OPT returns. If an Employer does not comply, they can be held liable for both portions of the OPT as well as penalties and interest.
