Colorado counties and municipalities can offer major personal property tax breaks to companies that expand or relocate following the passage of new legislation. Governor John Hickenlooper signed HB 1029 into law March 24th.
Previously, local governments could only grant exemptions up to 50% of the tax owed on items such as computers and furnishings. Proponents say the ability to raise the exemption to 100% will help businesses grow.
"It encourages investments that will lead to near and long-term economic recovery while respecting the authority of local governments," said sponsor Rep. Chris Holbert.
The past few years, Colorado lawmakers have been trying to come up with a plan to reduce business personal property taxes. HB 1029 is a far cry from an original plan to phase out the tax over a 40-year period.
This is the first business personal property tax break to be approved in Colorado since small companies with less than $7,000 of equipment were exempted from the tax in 2008.