Colorado - Economy

Economy

CNBC's list of "Top States for Business for 2010" has recognized Colorado as the third best state in the nation, falling short to only Texas and Virginia.

The Bureau of Economic Analysis estimates that the total state product in 2010 was $257.6 billion. Per capita personal income in 2010 was $51 940, ranking Colorado 11th 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 (North American Aerospace Defense Command, United States Air Force Academy, Schriever Air Force Base located approximately 10 miles (16 kilometers) east of Peterson Air Force Base, and Fort Carson, both located in Colorado Springs within El Paso County; NOAA, the National Renewable Energy Laboratory (NREL) in Golden, and the National Institute of Standards and Technology in Boulder; U.S. Geological Survey and other government agencies at the Denver Federal Center near 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, the extraction of metals such as gold (see Gold mining in Colorado), silver, and molybdenum. Colorado now also has the largest annual production 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. Holly Sugar was first milled from beets in Holly in 1905, and later moved its headquarters to Colorado Springs. 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.

As of September 2012, the state's unemployment rate is 7.9%.