Economy of Colorado
Encyclopedia
The economy of the US state of Colorado
according to The Bureau of Economic Analysis gross state product estimates for 2008 was $ 248.6 billion.. The Colorado economy ranked 20th largest in the United States in 2008. Per capita personal income in 2003 was $34,561, putting Colorado 8th 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 product
s, corn
, and hay
.
The federal government
is a major economic force.
The North American Aerospace Defense Command
(NORAD) and United States Air Force Academy
are based in Colorado Springs; National Oceanic and Atmospheric Administration
(NOAA) and the National Institute of Standards and Technology
in Boulder
; United States Geological Survey
and other government agencies at the Denver Federal Center
in Lakewood
; the Denver Mint
and United States Court of Appeals for the Tenth Circuit
in Denver; and the ADX Florence
"supermax" prison and other federal prisons near Cañon City
.
There is also a significant amount of federal lands
in the state, including 11 National Forests
and four National Parks. There are also numerous private companies that have operations in Colorado that deal with the governmental agencies in 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, minerals such as gold and molybdenum
, and tourism. Denver is an important financial center.
The Colorado income tax
rate is a flat 4.63 percent of federal taxable income regardless of income level. Colorado's state sales tax
is 2.9 percent on retail sales. Full-year Colorado residents can claim an excess 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. The most common special district taxes are:
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.
), and Denver is fast becoming the strategic location for federal, high-tech, educational, commercial, financial, cultural, tourist, storage, and distribution services to the Rocky Mountain States
. The city is also home to several large corporations in the central United States. The economic diversity at the city, state, regional, national, federal, and international level allows the state of Colorado to weather economic cycles soundly.
has more federal workers than any other metropolitan area except for the Washington D.C. metropolitan area. Along with the plethora of federal agencies come many companies based on US defense and space projects. Lockheed-Martin and Ball Aerospace & Technologies Corp. are examples. Being the capital of the state of Colorado
also gives many state jobs to Denver.
Denver's position near the mineral-rich Rocky Mountains
, encouraged mining and energy companies to spring up in the area. In the early days of the city, gold and silver booms and busts played a large role in the economic success of the city. In the 1970s and early '80s, the energy crisis in America created an energy boom in Denver captured in the soap opera Dynasty
. During this time, Denver was built up considerably, with many new downtown skyscrapers built during this time. Eventually the oil prices dropped from $34 a barrel in 1981 to $9 a barrel in 1986, and the Denver economy dropped with it, leaving almost 15,000 oil industry workers in the area unemployed (including mayor John Hickenlooper
, a former geologist), and the highest office vacancy rate in the nation (30%). Energy and mining are still important in Denver's economy today, with companies such as Newmont Mining
, Patina Oil and Gas, and Western Gas Resources
.
Denver's west-central geographic location in the Mountain Time Zone (UTC −7) also benefits the telecommunications industry by allowing communication with both North American coasts, South America, Europe, and Asia in the same business day. Denver's location on the 105th meridian west
at over 1 mile in elevation also enables it to be the largest city in the U.S. to offer a 'one-bounce' real-time satellite uplink to six continents in the same business day. Qwest Communications, EchoStar, Starz-Encore, and Comcast
are just a few of the telecommunications companies with operations in the Denver area. These and other high-tech companies had a boom in Denver in the mid to late 1990s, but the technology bust in the new millennium caused Denver to lose many of those technology jobs. Recently the Denver area has started making a comeback, with the October 2005 unemployment at 4.7% the lowest since September 2001. Denver government and industry leaders are attempting to diversify the Denver economy so that it is less susceptible to boom and bust cycles.
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
according to The Bureau of Economic Analysis gross state product estimates for 2008 was $ 248.6 billion.. The Colorado economy ranked 20th largest in the United States in 2008. Per capita personal income in 2003 was $34,561, putting Colorado 8th 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 product
Dairy product
Dairy products are generally defined as foods produced from cow's or domestic buffalo's milk. They are usually high-energy-yielding food products. A production plant for such processing is called a dairy or a dairy factory. Raw milk for processing comes mainly from cows, and, to a lesser extent,...
s, corn
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, and hay
Hay
Hay is grass, legumes or other herbaceous plants that have been cut, dried, and stored for use as animal fodder, particularly for grazing livestock such as cattle, horses, goats, and sheep. Hay is also fed to pets such as rabbits and guinea pigs...
.
Federal influence
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
is a major economic force.
The North American Aerospace Defense Command
North American Aerospace Defense Command
North American Aerospace Defense Command is a joint organization of Canada and the United States that provides aerospace warning, air sovereignty, and defense for the two countries. Headquarters NORAD is located at Peterson AFB, Colorado Springs, Colorado...
(NORAD) and United States Air Force Academy
United States Air Force Academy
The United States Air Force Academy is an accredited college for the undergraduate education of officer candidates for the United States Air Force. Its campus is located immediately north of Colorado Springs in El Paso County, Colorado, United States...
are based in Colorado Springs; National Oceanic and Atmospheric Administration
National Oceanic and Atmospheric Administration
The National Oceanic and Atmospheric Administration , pronounced , like "noah", is a scientific agency within the United States Department of Commerce focused on the conditions of the oceans and the atmosphere...
(NOAA) and the National Institute of Standards and Technology
National Institute of Standards and Technology
The National Institute of Standards and Technology , known between 1901 and 1988 as the National Bureau of Standards , is a measurement standards laboratory, otherwise known as a National Metrological Institute , which is a non-regulatory agency of the United States Department of Commerce...
in Boulder
Boulder, Colorado
Boulder is the county seat and most populous city of Boulder County and the 11th most populous city in the U.S. state of Colorado. Boulder is located at the base of the foothills of the Rocky Mountains at an elevation of...
; United States Geological Survey
United States Geological Survey
The United States Geological Survey is a scientific agency of the United States government. The scientists of the USGS study the landscape of the United States, its natural resources, and the natural hazards that threaten it. The organization has four major science disciplines, concerning biology,...
and other government agencies at the Denver Federal Center
Denver Federal Center
Denver Federal Center is located in Lakewood, Colorado and is the home to about 6,200 employees for many Federal government of the United States agencies. The Denver Federal Center encompasses an area of about and has 90 buildings comprising over of office, warehouse, lab and special use space...
in Lakewood
Lakewood, Colorado
Lakewood is a Home Rule Municipality that is the most populous city in Jefferson County, Colorado, United States. Lakewood is the fifth most populous city in the State of Colorado and the 172nd most populous city in the United States. The United States Census Bureau estimates that in April 1, 2010...
; the Denver Mint
Denver Mint
The Denver Mint is a branch of the United States Mint that struck its first coins on February 1, 1906. The mint is still operating and producing coins for circulation, as well as mint sets and commemorative coins. Coins produced at the Denver Mint bear a D mint mark...
and United States Court of Appeals for the Tenth Circuit
United States Court of Appeals for the Tenth Circuit
The United States Court of Appeals for the Tenth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* District of Colorado* District of Kansas...
in Denver; and the ADX Florence
ADX Florence
The United States Penitentiary Administrative Maximum Facility is a supermax prison for men that is located in unincorporated Fremont County, Colorado, United States, south of Florence. It is unofficially known as ADX Florence, Florence ADMAX, Supermax, or The Alcatraz of the Rockies...
"supermax" prison and other federal prisons near Cañon City
Cañon City, Colorado
The City of Cañon City is a Home Rule Municipality that is the county seat and the most populous city of Fremont County, State of Colorado. The United States Census Bureau estimated that the city population was 16,000 in 2005. Cañon City is noted for being the location of nine state and four ...
.
There is also a significant amount of federal lands
Federal lands
Federal lands are lands in the United States for which ownership is claimed by the U.S. federal government.-Primary federal land holders:*Bureau of Land Management*United States Forest Service*United States Fish and Wildlife Service*National Park Service...
in the state, including 11 National Forests
United States National Forest
National Forest is a classification of federal lands in the United States.National Forests are largely forest and woodland areas owned by the federal government and managed by the United States Forest Service, part of the United States Department of Agriculture. Land management of these areas...
and four National Parks. There are also numerous private companies that have operations in Colorado that deal with the governmental agencies in 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
Food processing
Food processing is the set of methods and techniques used to transform raw ingredients into food or to transform food into other forms for consumption by humans or animals either in the home or by the food processing industry...
, transportation equipment, machinery, chemical products, minerals such as gold and molybdenum
Molybdenum
Molybdenum , is a Group 6 chemical element with the symbol Mo and atomic number 42. The name is from Neo-Latin Molybdaenum, from Ancient Greek , meaning lead, itself proposed as a loanword from Anatolian Luvian and Lydian languages, since its ores were confused with lead ores...
, and tourism. Denver is an important financial center.
State taxes
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
rate is a flat 4.63 percent of federal taxable income regardless of income level. Colorado's state sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
is 2.9 percent on retail sales. Full-year Colorado residents can claim an excess 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. The most common special district taxes are:
- Regional Transportation District (RTD), which affects the counties of Denver, Boulder, Jefferson and portions of Adams, Arapahoe, Broomfield and Douglas
- Cultural Facilities District (CD)
- Football Stadium District (FD or FTBL), approved by the voters to pay for and help build the Denver BroncosDenver BroncosThe Denver Broncos are a professional American football team based in Denver, Colorado. They are currently members of the West Division of the American Football Conference in the National Football League...
’ stadium - Local Improvement District (LID) within designated areas of southeast Jefferson and Boulder counties
- Regional Transportation District (RTA) taxes at varying rates in Basalt, Carbondale, Glenwood Springs, Gunnison County
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.
Denver's economy
Given a 250 mile radius around the city, Denver is aeronautically equidistant between the global city of Los Angeles and the midwest metropolis of Chicago. Simultaneously, Denver is aeronautically equidistant between high-tech Seattle and jazzy New Orleans. Consequently, Denver's economy (Denver is the Rocky Mountain region's preeminent city), is based largely on its geographic position. Denver is the prominent city within 600 miles (the closest city of comparable size is Phoenix, ArizonaPhoenix, Arizona
Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populated city in the United States. Phoenix is home to 1,445,632 people according to the official 2010 U.S. Census Bureau data...
), and Denver is fast becoming the strategic location for federal, high-tech, educational, commercial, financial, cultural, tourist, storage, and distribution services to the Rocky Mountain States
Mountain States
thumb|300px|Regional definitions vary from source to source. The states shown in dark red are always included, while the striped states are usually considered part of the same region called the Mountain States....
. The city is also home to several large corporations in the central United States. The economic diversity at the city, state, regional, national, federal, and international level allows the state of Colorado to weather economic cycles soundly.
Geography and trade
Geography also allows Denver to have a considerable government presence, with many federal agencies based or having offices in the Denver area. In fact, the Denver-Aurora Metropolitan AreaDenver-Aurora Metropolitan Area
The Denver-Aurora-Broomfield, CO Metropolitan Statistical Area is a United States Census Bureau defined Metropolitan Statistical Area in the State of Colorado that includes the City and County of Denver and nine suburban counties. The Census Bureau estimates that the population was 2,357,404 on...
has more federal workers than any other metropolitan area except for the Washington D.C. metropolitan area. Along with the plethora of federal agencies come many companies based on US defense and space projects. Lockheed-Martin and Ball Aerospace & Technologies Corp. are examples. Being the capital of the state of Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
also gives many state jobs to Denver.
Denver's position near the mineral-rich Rocky Mountains
Rocky Mountains
The Rocky Mountains are a major mountain range in western North America. The Rocky Mountains stretch more than from the northernmost part of British Columbia, in western Canada, to New Mexico, in the southwestern United States...
, encouraged mining and energy companies to spring up in the area. In the early days of the city, gold and silver booms and busts played a large role in the economic success of the city. In the 1970s and early '80s, the energy crisis in America created an energy boom in Denver captured in the soap opera Dynasty
Dynasty (TV series)
Dynasty is an American prime time television soap opera that aired on ABC from January 12, 1981 to May 11, 1989. It was created by Richard & Esther Shapiro and produced by Aaron Spelling, and revolved around the Carringtons, a wealthy oil family living in Denver, Colorado...
. During this time, Denver was built up considerably, with many new downtown skyscrapers built during this time. Eventually the oil prices dropped from $34 a barrel in 1981 to $9 a barrel in 1986, and the Denver economy dropped with it, leaving almost 15,000 oil industry workers in the area unemployed (including mayor John Hickenlooper
John Hickenlooper
John Wright Hickenlooper is an American politician and current Governor of Colorado. A Democrat, he was previously the Mayor of Denver, Colorado from 2003 to 2011.-Early life, education and career:...
, a former geologist), and the highest office vacancy rate in the nation (30%). Energy and mining are still important in Denver's economy today, with companies such as Newmont Mining
Newmont Mining
Newmont Mining Corporation , based in Denver, Colorado, USA, is one of the world's largest producers of gold, with active mines in Nevada, Indonesia, Australia, New Zealand, Ghana and Peru. Holdings include Santa Fe Gold, Battle Mountain Gold, Normandy Mining, Franco-Nevada Corp and Fronteer Gold...
, Patina Oil and Gas, and Western Gas Resources
Western Gas Resources
Western Gas Resources is a Fortune 1000 company based in Denver, Colorado and founded in 1971. Western is an independent natural gas explorer, producer, gatherer, processor, transporter and energy marketer....
.
Denver's west-central geographic location in the Mountain Time Zone (UTC −7) also benefits the telecommunications industry by allowing communication with both North American coasts, South America, Europe, and Asia in the same business day. Denver's location on the 105th meridian west
105th meridian west
The meridian 105° west of Greenwich is a line of longitude that extends from the North Pole across the Arctic Ocean, North America, the Pacific Ocean, the Southern Ocean, and Antarctica to the South Pole....
at over 1 mile in elevation also enables it to be the largest city in the U.S. to offer a 'one-bounce' real-time satellite uplink to six continents in the same business day. Qwest Communications, EchoStar, Starz-Encore, and Comcast
Comcast
Comcast Corporation is the largest cable operator, home Internet service provider, and fourth largest home telephone service provider in the United States, providing cable television, broadband Internet, and telephone service to both residential and commercial customers in 39 states and the...
are just a few of the telecommunications companies with operations in the Denver area. These and other high-tech companies had a boom in Denver in the mid to late 1990s, but the technology bust in the new millennium caused Denver to lose many of those technology jobs. Recently the Denver area has started making a comeback, with the October 2005 unemployment at 4.7% the lowest since September 2001. Denver government and industry leaders are attempting to diversify the Denver economy so that it is less susceptible to boom and bust cycles.
Agriculture
Colorado ranchers and farmers receive average payments per year totaling $316 million from the federal government including wheat subsidies averaging $79 million a year, corn subsidies averaging $78 million a year, total conservation-reserve acreage payments of $75 million, livestock and dairy subsidies of $10 million, and disaster payments totaling $47 million.See also
- Colorado Companies
- List of companies with Denver area operations