House Panel Gives Initial OK To Erase Software Tax

DENVER (AP) - A Colorado House committee has given initial approval to repealing a software tax as part of a deal struck by Republicans and Democrats for the 2011 state budget.

Republican House Leader Rep. Amy Stephens says the tax on software that is downloaded online has made Colorado an unappealing place for businesses because it's so confusing to implement. The tax was passed last year.

The committee approved Stephens' proposal to undo the tax Tuesday on a 9-4 vote and sent it to another committee for consideration before it goes to the full House. Democrats opposing the bill say it will take money away from education funding.

Getting rid of the tax was one of the compromises lawmakers reached as they tried to come up with deal for this year's budget.

(Copyright 2011 by The Associated Press.  All Rights Reserved.)