Taxes 

A favorable tax environment for business

Colorado ranked 20th for most business-friendly taxes by the Tax Foundation's 2015 State Business Tax Climate Index.  Colorado comes in 20th for state and local tax per capita in the country.   Colorado ranks among the lowest in total state taxes and among the highest in the nation for local taxes on a per capita basis. 
 
Colorado offers businesses the choice of calculating state tax liability on the basis of a two-factor formula (revenue and property) or according to the standard three-factor formula (revenue, property, and payroll), whichever is less. The method can be changed annually.
 
Colorado also has an objective system for unitary taxation of multi-national companies. Foreign corporations, as well as corporations with 80% of their property and payroll outside the U.S., are not included in Colorado tax returns.
 
The city of Aurora and the state of Colorado eliminate and/or exempt taxes common to other cities and states by providing sales tax exemptions for specific business operations.