Bills to cut Colorado personal property taxes have been introduced almost a dozen times during the past five years -- and each time they failed. However, officials believe the idea might win approval this year.
Lawmakers acknowledge that business personal property taxes cause hardships for companies because they must be paid whether the business makes a profit or not. The difference in the 2014 proposed legislation is that rather than just allowing companies not to pay taxes on the first $25,000 of their personal property's worth, they must pay the bill upfront and then get a refund from the state.
This means that school districts and other local governments that rely heavily on property taxes would get their money and the state would foot the entire expense.
Currently, businesses with $7,000 or less of taxable furniture, fixtures and equipment can take a personal property tax exemption. The newest proposal grants the $25,000 maximum exemption to all businesses, regardless of their size.