HOUSE 3rd Reading Unamended April 18, 2011 HOUSE Amended 2nd Reading April 6, 2011First Regular Session Sixty-eighth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 11-0522.01 Ed DeCecco HOUSE BILL 11-1141 HOUSE SPONSORSHIP Holbert, McNulty, Scott, Acree, Balmer, Barker, Baumgardner, Beezley, Bradford, Brown, Conti, Coram, DelGrosso, Gardner B., Joshi, Kerr J., Liston, Looper, Massey, McKinley, Murray, Nikkel, Priola, Ramirez, Sonnenberg, Stephens, Summers, Szabo, Waller SENATE SPONSORSHIP Scheffel, Harvey, Cadman, Grantham, King K., King S., Kopp, Lambert, Lundberg, Mitchell, Renfroe House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT Concerning an economic stimulus through a property tax exemption for 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 business personal property that is purchased at any time from January 1, 2012, through December 31, 2013, from the levy and collection of property tax. 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) Business personal property that is purchased at any time from January 1, 2012, through December 31, 2013, shall be exempt from the levy and collection of property tax so long as the property is used by the taxpayer who purchased the property. The exemption shall not apply to business personal property that is sold and repurchased by the same taxpayer. (b) Notwithstanding any provision of paragraph (a) of this subsection (2) to the contrary, the exemption set forth in said paragraph (a) shall not apply to locally assessed business personal property with respect to a local government that has negotiated an incentive payment or credit with a taxpayer pursuant to the authority set forth in section 30-11-123, 31-15-903, 32-1-1702, or 39-30-107.5, C.R.S., unless the governing body of the local government expressly adopts the exemption. (2.5) The exemption set forth in subsection (2) of this section shall not apply to business personal property that is sold and leased-back by the same taxpayer. 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. No appropriation. The general assembly has determined that this act can be implemented within existing appropriations, and therefore no separate appropriation of state moneys is necessary to carry out the purposes of this act. SECTION 4. Appropriation for FY 2013-14. In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of education, for the fiscal year beginning July 1, 2013, the sum of thirty-seven million five hundred thousand dollars ($37,500,000), or so much thereof as may be necessary, to finance the decrease in the local share of the total program for kindergarten through twelfth grade public school education. SECTION 5. Appropriation for FY 2014-15. In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of education, for the fiscal year beginning July 1, 2014, the sum of seventy-six million three hundred thousand dollars ($76,300,000), or so much thereof as may be necessary, to finance the decrease in the local share of the total program for kindergarten through twelfth grade public school education. SECTION 6. 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.