Second Regular Session
             Sixty-seventh General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 10-0393.01 Ed DeCecco           SENATE BILL 10-086
                   SENATE SPONSORSHIP
 Scheffel, 
 
                    HOUSE SPONSORSHIP
 Priola, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 State, Veterans & Military Affairs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning a phased-in exemption for fully depreciated
            business personal property.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted.  If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            The bill exempts a percentage of all business personal property
       that is fully depreciated beginning in the 2011 property tax year.  The
       exemption percentage starts at 25% and increases every 4 years until the
       property is entirely exempt beginning with the 2023 property tax year.
            The bill also clarifies that the new exemption shall apply before an
       existing exemption, which is on a per personal property schedule basis.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  39-3-118.5, Colorado Revised Statutes, is amended
       to read:
            39-3-118.5.  Business personal property - exemptions -
       depreciation.  (1)  For property tax years commencing on and after
       January 1, 1996, business personal property shall be exempt from the levy
       and collection of property tax until such business personal property is first
       used in the business after acquisition.
            (2)  A percentage of all business personal property that is
       fully depreciated according to the manuals, appraisal
       procedures, and instructions prepared and published by the
       property tax administrator pursuant to section 39-2-109 (1) (e)
       shall be exempt from the levy and collection of property tax. 
       The percentages for each year shall be as follows:
            (a)  For the property tax year commencing on January 1,
       2011, and the next three property tax years thereafter,
       twenty-five percent;
            (b)  For the property tax year commencing on January 1,
       2015, and the next three property tax years thereafter, fifty
       percent;
            (c)  For the property tax year commencing on January 1,
       2019, and the next three property tax years thereafter,
       seventy-five percent; and
            (d)  For the property tax year commencing on January 1,
       2023, and for each property tax year thereafter, one hundred
       percent.
            (3)  The exemption created in subsection (2) of this section
       shall apply before the exemption created in section 39-3-119.5.
            SECTION 2.  Act subject to petition - effective date.  This act
       shall take effect at 12:01 a.m. on the day following the expiration of the
       ninety-day period after final adjournment of the general assembly (August
       11, 2010, if adjournment sine die is on May 12, 2010); except that, if a
       referendum petition is filed pursuant to section 1 (3) of article V of the
       state constitution against this act or an item, section, or part of this act
       within such period, then the act, item, section, or part shall not take effect
       unless approved by the people at the general election to be held in
       November 2010 and shall take effect on the date of the official
       declaration of the vote thereon by the governor.