If passed by the Legislature, new threshold would be $50,000
Colorado small-business owners might see a $50,000 exemption in the Business Personal Property Tax. Thanks to House Bill 21-1312, small-business owners might finally see the light at the end of the tunnel. Since 2005, NFIB Colorado has worked to kill this albatross around the necks of small-business owners.”
The Business Personal Property Tax costs small businesses more in time and effort to determine if the tax is actually owed and then to file the necessary return. In lieu of Gov. Jared Polis keeping a promise to see the removal of the Business Personal Property Tax, Colorado small businesses will take the $50,000 exemption.
From the bill’s fiscal note, “Under current law, businesses are not required to pay tax on their personal property, if their personal property included on a single tax schedule is worth less than a certain amount. For tax years 2021 and 2022, the exemption threshold is $7,900 under current law. The bill increases the threshold amount to $50,000, adjusted every two years for inflation thereafter. The state is required to reimburse local governments for their lost revenue as a result of the increase.” The fiscal note contains additional information on what the bill fully does.
