Doing Business in Broomfield

Site and building costs, wages, utilities, taxes and other factors all contribute to the cost of doing business. As indicated below, doing business in Broomfield is cost-effective.

Site and Building Costs
Real estate prices in Broomfield cover a range wide enough to accommodate any company's needs. For companies who are seeking existing space to lease, annual rates for manufacturing and R&D flex space start at $6.00 per square foot, triple net, and go up to $12 per square foot, triple net, for high-tech, R&D space. Office space can be leased for an average of $14.00 to $17.00 per square foot, triple net, for Class B with Class A space available at $20.00 to $23.00 triple net. Retail space ranges from $12.00 per square foot to $28.00 per square foot, triple net.

For companies planning to build a manufacturing facility, land prices start from under $3.00 per square foot for undeveloped sites, to $4.00-$5.00 per square foot for fully-developed sites with superior locations in high-quality, established business parks. Construction costs in the Broomfield area average $75.00 to $85.00 per square foot for a basic manufacturing building.

Wages and Salaries
As indicated below, average wage rates and salaries in the Denver-Boulder area (including Broomfield) are very competitive with those paid elsewhere in the nation.

Average Wages by Occupation for the Denver PMSA 2003

Electric and Gas Service
Electric and gas service in most of Broomfield is provided by XCEL Energy, an investor-owned utility serving most of the metro area and the State. In the northeast part of the City, electric service is provided by United Power, a consumer-owned utility.

Water and Wastewater Service
Water and sewer service is provided by the City & County of Broomfield. The City currently has a total water supply of 13,338 acre feet, with a total current demand of 9,967 acre feet. Local water treatment capacity of 33 million gallons per day exceeds peak demand by 10 million gallons per day. Sewer treatment capacity of 6.5 million gallons per day is 1.4 million gallons per day below the current peak demand.

State Corporate Income Taxes
Colorado's current corporate income tax rate is 4.63%. Colorado offers investment tax credits for investments which qualify under the former federal investment tax credit guidelines. Small businesses filing under Subchapter S of the Internal Revenue Code, and other corporations not subject to federal income tax are exempt from Colorado corporate income tax.

Individual State Income Taxes
Colorado's current individual income taxes are a flat rate of 4.63% of the federally adjusted taxable income, with some modifications. The City and County of Broomfield does not assess income taxes.

State Unemployment Insurance Taxes
Unemployment insurance taxes are based on a company's taxable wage base, which is the first $10,000 of each worker's wage. For new businesses, the tax rate is 1.04% of the wage base, or a rate equal to the average rate for the industry, whichever is greater. For more information about the unemployment insurance tax rate for a specific industry, contract the Colorado Department of Labor and Employment at (303) 839-4922.

Workers' Compensation Rates
Workers' compensation rates vary by industry. For information about the workers' compensation rate for a specific industry, contact the Colorado Compensation Insurance Authority at (303) 837-4000.

State Inventory Taxes
No inventory taxes are charged in Colorado.

Local Property Taxes
Taxes on commercial and industrial property are levied against a taxable (or "assessed") value, which is calculated as 29% of actual value. In Broomfield, the mill rate ranges from 73.523 mills to 103.145 mills depending on school district (a mill is 1/10th of 1 percent). A mill is levied on real and personal property. The following example illustrates the calculation of property taxes. A $2,500,000 facility would have a taxable or assessed value of $725,000 ($2,500,000 x .29). In Broomfield, the annual property taxes due on the facility would range from $53,304 to $74,780 depending on school district.

Local Sales and Use Taxes
Sales and use taxes levied in Broomfield is 8.25%. This tax includes 2.90% levied by the state of Colorado and 1.0% levied by the Regional Transportation District (RTD).

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