First Regular Session
Sixty-second General Assembly
LLS NO. 99-0015.01 Julie Pelegrin HOUSE BILL 99-1013
STATE OF COLORADO
BY REPRESENTATIVES Spradley and Stengel
FINANCE
A BILL FOR AN ACT
101 CONCERNING REDUCTION OF PROPERTY TAXES.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
For property tax years beginning on and after January 1, 2000,
exempts a portion of business personal property from the levy and
collection of property tax by school districts for payment of the local
share of total program costs and replacement of categorical program
support funds. Limits the exemption to the first $25,000 of the actual
value of personal property owned by the taxpayer in each county; except
that, for a public utility, limits the exemption to the first $25,000 of the
total actual value of personal property owned by the public utility
statewide.
Requires each school district, in determining the number of mills
it will levy for the first year in which the exemption is available, to count
the assessed valuation of personal property that is included in the
exemption. Specifies that the calculation of the state's share of total
program expenses that applies when a school district chooses to reduce
or end business personal property taxes does not apply to the exemption
created in this act.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Legislative declaration. The general assembly
3 hereby finds that the partial tax exemption created in this act for business
4 personal property and the resulting decrease in the amount of property tax
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 paid on business personal property will benefit not just business owners
2 but all citizens of the state, because reducing a business' property tax
3 liability will enable the business to invest or spend the amount of the
4 property tax reduction, thereby stimulating economic growth.
5 SECTION 2. Article 3 of title 39, Colorado Revised Statutes, is
6 amended BY THE ADDITION OF A NEW SECTION to read:
7 39-3-119.7. Personal property - exemption from school district
8 property tax. FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER
9 JANUARY 1, 2000, PERSONAL PROPERTY NOT OTHERWISE EXEMPT FROM
10 PROPERTY TAX SHALL BE EXEMPT FROM THE LEVY AND COLLECTION OF
11 PROPERTY TAX BY SCHOOL DISTRICTS FOR THE PAYMENT OF THE COSTS OF
12 THE FINANCIAL BASE OF SUPPORT FOR THE SYSTEM OF FREE PUBLIC
13 SCHOOLS IN THE STATE AS DETERMINED UNDER THE PROVISIONS OF THE
14 "PUBLIC SCHOOL FINANCE ACT OF 1994", ARTICLE 54 OF TITLE 22, C.R.S.,
15 AND FOR THE PURPOSE OF GENERATING REVENUE TO REPLACE
16 CATEGORICAL PROGRAM SUPPORT FUNDS THAT SCHOOL DISTRICTS WOULD
17 OTHERWISE BE ELIGIBLE TO RECEIVE FROM THE STATE. THE EXEMPTION
18 GRANTED PURSUANT TO THIS SECTION SHALL APPLY ONLY TO THE FIRST
19 TWENTY-FIVE THOUSAND DOLLARS OF THE ACTUAL VALUE OF THE
20 PERSONAL PROPERTY OWNED BY THE TAXPAYER IN EACH COUNTY; EXCEPT
21 THAT, FOR ANY PUBLIC UTILITY VALUED PURSUANT TO ARTICLE 4 OF THIS
22 TITLE, THE EXEMPTION SHALL APPLY TO THE FIRST TWENTY-FIVE
23 THOUSAND DOLLARS OF THE TOTAL ACTUAL VALUE OF PERSONAL
24 PROPERTY OWNED BY THE PUBLIC UTILITY STATEWIDE.
25 SECTION 3. Article 40 of title 22, Colorado Revised Statutes, is
26 amended BY THE ADDITION OF A NEW SECTION to read:
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1 22-40-102.5. Personal property - exemption.
2 NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE TO THE CONTRARY,
3 FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER JANUARY 1, 2000,
4 PERSONAL PROPERTY NOT OTHERWISE EXEMPT FROM PROPERTY TAX SHALL
5 BE EXEMPT FROM THE LEVY AND COLLECTION OF PROPERTY TAX BY
6 SCHOOL DISTRICTS FOR THE PAYMENT OF THE COSTS OF THE FINANCIAL
7 BASE OF SUPPORT FOR THE SYSTEM OF FREE PUBLIC SCHOOLS IN THE STATE
8 AS DETERMINED UNDER THE PROVISIONS OF THE "PUBLIC SCHOOL FINANCE
9 ACT OF 1994", ARTICLE 54 OF THIS TITLE, AND FOR THE PURPOSE OF
10 GENERATING REVENUE TO REPLACE CATEGORICAL PROGRAM SUPPORT
11 FUNDS THAT SCHOOL DISTRICTS WOULD OTHERWISE BE ELIGIBLE TO
12 RECEIVE FROM THE STATE. THE EXEMPTION GRANTED PURSUANT TO THIS
13 SECTION SHALL APPLY ONLY TO THE FIRST TWENTY-FIVE THOUSAND
14 DOLLARS OF THE ACTUAL VALUE OF THE PERSONAL PROPERTY OWNED BY
15 THE TAXPAYER IN EACH COUNTY; EXCEPT THAT, FOR ANY PUBLIC UTILITY
16 VALUED PURSUANT TO ARTICLE 4 OF TITLE 39, C.R.S., THE EXEMPTION
17 SHALL APPLY TO THE FIRST TWENTY-FIVE THOUSAND DOLLARS OF THE
18 TOTAL ACTUAL VALUE OF PERSONAL PROPERTY OWNED BY THE PUBLIC
19 UTILITY STATEWIDE.
20 SECTION 4. 22-54-106 (2), Colorado Revised Statutes, is
21 amended BY THE ADDITION OF A NEW PARAGRAPH to read:
22 22-54-106. Local and state shares of district total program.
23 (2) (d) IN DETERMINING THE NUMBER OF MILLS IT WILL LEVY FOR THE
24 2000-01 BUDGET YEAR, EACH SCHOOL DISTRICT SHALL BASE THE
25 DETERMINATION ON THE SCHOOL DISTRICT'S ASSESSED VALUATION FOR
26 THE 2000 PROPERTY TAX YEAR, PLUS THE ASSESSED VALUATION OF ALL
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1 PERSONAL PROPERTY THAT IS EXEMPT FROM THE LEVY AND COLLECTION
2 OF PROPERTY TAX BY THE SCHOOL DISTRICT PURSUANT TO SECTION
3 39-3-119.7, C.R.S.
4 SECTION 5. 22-54-106 (9), Colorado Revised Statutes, is
5 amended to read:
6 22-54-106. Local and state shares of district total program.
7 (9) (a) If a district reduces or ends business personal property taxes
8 through action taken pursuant to section 20 (8) (b) of article X of the state
9 constitution, the state's share of the district's total program for the budget
10 year in which such action is taken and any budget year thereafter shall be
11 the amount by which the district's total program exceeds the amount of
12 specific ownership tax revenue paid to the district and the amount of
13 property tax revenue which the district would have been entitled to
14 receive if such action had not been taken by the district.
15 (b) THE PROVISIONS OF THIS SUBSECTION (9) SHALL NOT APPLY TO
16 THE PROPERTY TAX EXEMPTION CREATED PURSUANT TO SECTION
17 39-3-119.7, C.R.S.
18 SECTION 6. Safety clause. The general assembly hereby finds,
19 determines, and declares that this act is necessary for the immediate
20 preservation of the public peace, health, and safety.