Commercial property owners in Colorado may receive a much-needed personal property tax break in the form of a one-year exemption offered by local governments. On Tuesday, April 13, 2021, Senate Bill 21-130 was approved by Colorado House members in efforts to assist businesses that have experienced reductions in income and occupancy.
State Bill 130 will not require local governments to offer the exemption. Many school districts will not be expected to participate. However, many House members feel this is a step in the right direction for overall tax reform on business personal property taxes in Colorado. The controversial tax currently applies to equipment that is used in a business and continues for the life of the equipment, well after it’s been purchased and its value declines.
The determination of the exemption will be decided upon by each taxing jurisdiction. We recommend our clients send letters to each of the taxing jurisdictions to request they honor this potential exemption up to the maximum 100%.
This development comes on the heels of House Bill 21-1083, which removes the restriction on increasing property valuations during the appeal process. This bill will most likely result in fewer appeals filed, as taxpayers face the risk of valuation increases as a result of an appeal.
Ryan’s Colorado property tax experts are available to discuss the best way to proceed with these new laws and assist in navigating through the tax minimization process for recovering in the post-pandemic economy.
TECHNICAL INFORMATION CONTACT:
Matt Poling
Principal
Ryan
720.524.0022
matt.poling@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.