Colorado Governor John Hickenlooper signed a new personal property tax break into law this month. House Bill 1279 creates a state income tax credit to reimburse businesses for personal property worth between $7,001 and $15,000. Companies with $7,000 or less are already granted an exemption from paying the tax.
Initially, the goal was to offer companies a credit to cover the taxes paid on the first $25,000 worth of business equipment. The legislation was later amended to apply to companies with $15,000 of business personal property or less.
The Colorado Fiscal Institute estimates the average tax break from the watered down legislation will be just $429 - offering only a "negligible effect" on the state's economy. However, sponsors say HB 1279 has raised the level of discussion about the need for bigger cuts to the business personal property tax in the future.