What is the tax and how does it affect corporations?

A – What is the tax %? B – Is this on ANY size corporation, even a Sub S (personal and small usually) or corporation that grosses or nets over a certain amount. C – Does the League of Women Voters have a position on this? D – Local districts would decide on teacher salaries still?

A:
A – What is the tax %? 
 
Income tax. The measure creates an exception to the current law requirement that any new income tax law change require taxable net income to be taxed at a single rate. Specifically, the measure allows multiple tax rates to apply to individuals, trusts, estates, and corporations if the tax increase is approved by voters for the funding of P-12 public education. The measure then increases state personal income tax rates on federal taxable income by the following graduated rates, beginning in tax year 2019: 
  • 0.37 percent for income between $150,000 and $200,000; 
  • 1.37 percent for income between $200,000 and $300,000; 
  • 2.37 percent for income between $300,000 and $500,000; and 
  • 3.62 percent for income above $500,000.
B – Is this on ANY size corporation, even a Sub S (personal and small usually) or corporation that grosses or nets over a certain amount. 
 
The measure also increases the state corporate income tax rate for domestic C corporations and foreign C corporations doing business in Colorado by 1.37 percent beginning in tax year 2019. All revenue from this individual and corporate income tax increase is deposited in the Quality Public Education Fund and may be retained and spent without further voter approval.
 
S Corps are not impacted by the corporate tax.
 
C – Does the League of Women Voters have a position on this? 
 
Yes, the League of Women Voters has endorsed. All endorsing organizations are listed here.
 
D – Local districts would decide on teacher salaries still?
 
Yes, that is accurate.

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