First Regular Session
              Sixty-eighth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 11-0358.01 Ed DeCecco           SENATE BILL 11-026
                   SENATE SPONSORSHIP
 Scheffel, 
 
                    HOUSE SPONSORSHIP
 Holbert, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning a property tax exemption for business personal
            property first used in a business in a future property
            tax year.
       
       
                           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 from property tax a percentage of all business
       personal property first used in a business in future property tax years.  The
       exemption percentage for business personal property first used in the
       2013 property tax year is 25%, and the percentage is increased by 25%
       every 2 years thereafter until all of the property first used is exempt from
       taxation.  The exemption for the business personal property shall be the
       same for all years thereafter that the property is subject to property
       taxation.
            The exemption is applied prior to determining whether the per
       schedule business personal property tax exemption also applies.  The bill
       also specifies how the exemption applies to a state-assessed public utility.
       
       
       
       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 - exemption.  (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)  For each property tax year commencing on or after
       January 1, 2013, a percentage of all business personal property
       first used in a business during such year is exempt from the levy
       and collection of property tax.  The percentages for each year
       shall be as follows:
            (I)  Twenty-five percent for property tax years
       commencing on January 1, 2013, and January 1, 2014;
            (II)  Fifty percent for property tax years commencing on
       January 1, 2015, and January 1, 2016;
            (III)  Seventy-five percent for property tax years
       commencing on January 1, 2017, and January 1, 2018; and
            (IV)   One hundred percent for property tax years
       commencing on and after January 1, 2019.
            (b)  The percentage of the exemption identified in
       paragraph (a) of this subsection (2), which applies to the tax year
       in which the business personal property is first used in a business,
       is to be used for all years that the property is thereafter
       subject to the levy and collection of property tax.
            (c)  The value of the business personal property after the
       exemption is applied is the actual value for the purpose of
       determining whether the property also qualifies for an
       exemption pursuant to section 39-3-119.5.
            SECTION 2.  39-4-102 (3), Colorado Revised Statutes, is
       amended BY THE ADDITION OF A NEW PARAGRAPH to read:
            39-4-102.  Valuation of public utilities.  (3) (e)  Business
       personal property owned by a public utility is exempt from the
       levy and collection of property tax pursuant to section
       39-3-118.5 (2).  The value of the exemption is removed from the
       system market value and is determined by applying the market
       to book ratio to the net of the historical cost less depreciation
       of the business personal property.
            SECTION 3.  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
       10, 2011, if adjournment sine die is on May 11, 2011); 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 2012 and shall take effect on the date of the official
       declaration of the vote thereon by the governor.