Quick note: I’m not your lawyer. I’m not giving legal advice in this post. Back in the olden days of venture capital, company boards had wide discretion in pricing company options. As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well). However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of…
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Tax
Oppose HB 1192 – The “Software Tax”
My longtime friend Marion Jenkins, CEO of IT consultant QSE Technologies wrote what I think is one of the most eloquent and well thought out rebuttals to the proposed Colorado “Software Tax” (HB 1192). With his permission I’m posting it here in its entirety. If you feel the way I do about this issue, I urge you to take a stand on this issue. I urge you to oppose HB 1192, the so-called “Software” Tax. It is bad legislation and it will add significantly to non-productive administrative and legal overhead and kill productivity within the technology sector in Colorado (including not only technology-related businesses, but virtually every business – and every consumer – who uses technology). It will also lead…
Colorado House Bill 1192 Is a BAD Idea
In times of fiscal challenge you can always count on government to come up with some pretty bad ideas to fund deficits. House Bill 1192 is a particularly egregious example of one such boneheaded idea. The bill as it is currently constructed would place a tax on all software purchased or installed in Colorado. This is a tax not just on the software industry but on every business that uses software. And it’s an incredibly stupid idea. According to the Colorado Software and Internet Association there are more than 5,500 software, hardware and IT businesses in the state and approximately 175,000 IT professionals (with a total payroll of nearly $5Bn). Across the sate there are thousands of additional businesses that…