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Second Regular Session
Sixty-first General Assembly
LLS NO. 980559.01 BJA
HOUSE BILL 981232
STATE OF COLORADO
BY REPRESENTATIVES S. Johnson, Epps, Gotlieb, Kaufman, Lamborn, McPherson, Musgrave, Salaz, Smith, Spradley, Tool, and T. Williams;
also SENATOR Blickensderfer.
A BILL FOR AN ACT
CONCERNING THE EXEMPTION OF PERSONAL PROPERTY ACQUIRED
AFTER A SPECIFIED DATE FROM PROPERTY TAXATION.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Exempts personal property acquired on or after February 1, 1999, by a bona fide purchaser from property taxation. Specifies that the exemption does not apply to:
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that:
(a) The health, safety, and welfare of the people of Colorado depend upon the continued encouragement, development, and expansion of opportunities for employment and investment in this state;
(b) An exemption from property tax of future purchases of personal property would further the development and expansion of opportunities for employment and investment in this state by:
(I) Removing the disincentive for businesses that are located in the state to update, modernize, and expand their operations through acquisition of new equipment; and
(II) Encouraging businesses located outside the state to relocate in Colorado;
(c) Encouraging business investment in new equipment will facilitate increased productivity of Colorado's workers, thereby increasing their standard of living and competitiveness;
(d) The exemption from property tax of future purchases of personal property will minimize fiscal impacts to local governments by not affecting personal property currently on the tax rolls; and
(e) The exemption from property tax of future purchases of personal property will stimulate economic growth in Colorado, thereby benefitting not just business owners but all citizens of Colorado.
(2) Therefore, the general assembly hereby declares that passage of an exemption from property tax of future purchases of personal property is both necessary and beneficial for the people of the state of Colorado.
SECTION 2. 393119.5, Colorado Revised Statutes, is amended to read:
393119.5. Personal property exemption. (1) For property tax years commencing on and after January 1, 1997, personal property not otherwise exempt from property tax shall be exempt from the levy and collection of property tax if the personal property would otherwise be listed on a single personal property schedule and the actual value of such personal property is two thousand five hundred dollars or less.
(2) (a) FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER JANUARY 1, 1999, PERSONAL PROPERTY ACQUIRED IN AN ARM'S LENGTH TRANSACTION ON OR AFTER FEBRUARY 1, 1999, BY A TAXPAYER WHO IS A BONA FIDE PURCHASER FOR VALUE SHALL BE EXEMPT FROM THE LEVY AND COLLECTION OF PROPERTY TAX.
(b) THE EXEMPTION IN PARAGRAPH (a) OF THIS SUBSECTION (2) SHALL NOT APPLY TO:
(I) TRANSFERS OF PERSONAL PROPERTY BETWEEN PARTIES UNDER COMMON OWNERSHIP OR CONTROL;
(II) GRATUITOUS TRANSFERS OF PERSONAL PROPERTY OR ANY OTHER TRANSFER OF PERSONAL PROPERTY FOR WHICH NO CONSIDERATION IS PAID;
(III) EXCHANGES OR TRADES OF ITEMS OF PERSONAL PROPERTY THAT ARE SUBSTANTIALLY SIMILAR IN USE OR FUNCTION AND THAT DO NOT INVOLVE A DEALER IN SUCH ITEMS; AND
(IV) ANY OTHER TRANSFER INVOLVING PERSONAL PROPERTY ORIGINALLY ACQUIRED PRIOR TO FEBRUARY 1, 1999, AND THAT IS MADE FOR THE SOLE PURPOSE OF MAKING SUCH PERSONAL PROPERTY EXEMPT FROM THE LEVY AND COLLECTION OF PROPERTY TAX.
SECTION 3. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninetyday period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.