Senate Bill 03-244
|The Amendment to the Bill|
Sixty-fourth General Assembly
STATE OF COLORADO
LLS NO. 03-0948.01 Ed DeCecco SENATE BILL 03-244
CONCERNING AN EXEMPTION FOR ALL BUSINESS PERSONAL PROPERTY.
Establishes that all business personal property first used or acquired in a business on and after January 1, 2003, shall be exempt from the levy and collection of property tax.
Makes legislative findings and declarations.
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 - legislative declaration. (1) For property tax years commencing on and after January 1, 1996, BUT PRIOR TO JANUARY 1, 2003, 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) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT, IN LIGHT OF THE EXISTING ECONOMIC CONDITIONS IN COLORADO, MEASURES NEED TO BE TAKEN TO ENCOURAGE, PROMOTE, AND STIMULATE ECONOMIC DEVELOPMENT IN COLORADO. TO THAT END, IT IS THE INTENT OF THE GENERAL ASSEMBLY TO EXEMPT ALL BUSINESS PERSONAL PROPERTY ACQUIRED OR FIRST USED IN A BUSINESS ON AND AFTER JANUARY 1, 2003, FROM THE LEVY AND COLLECTION OF PROPERTY TAX. THE GENERAL ASSEMBLY FURTHER FINDS THAT THIS EXEMPTION WILL HAVE THE FOLLOWING BENEFICIAL EFFECTS:
(I) IF A BUSINESS IS NOT REQUIRED TO PAY YEARLY PROPERTY TAX ON ITS MACHINERY AND EQUIPMENT, THE COSTS OF DOING BUSINESS IN THE STATE WILL BE DRASTICALLY REDUCED. THE REDUCTION OF THESE COSTS WILL ENCOURAGE LARGE MANUFACTURING COMPANIES, WHICH TYPICALLY OWN A SUBSTANTIAL AMOUNT OF PERSONAL PROPERTY THAT WOULD HAVE BEEN TAXED PREVIOUSLY, TO RELOCATE THEIR OPERATIONS TO COLORADO. THIS RELOCATION WILL CREATE NEW JOBS, GENERATE SALES AND INCOME TAX REVENUE, AND OTHERWISE STIMULATE THE STATE ECONOMY.
(II) THE EXEMPTION WILL ALSO STIMULATE THE ECONOMY BY PROVIDING A STRONG INCENTIVE FOR LOCAL COMPANIES TO PURCHASE NEW EQUIPMENT AND MACHINERY, WHICH WILL NOT BE SUBJECT TO PROPERTY TAX, TO REPLACE ITS CURRENT EQUIPMENT, WHICH IS SUBJECT TO PROPERTY TAX UNLESS OTHERWISE EXEMPTED. THIS INVESTMENT IN REPLACEMENT PERSONAL PROPERTY WILL HAVE A SIGNIFICANT AND POSITIVE IMPACT ON THE ECONOMY OF THE STATE.
(b) ALL BUSINESS PERSONAL PROPERTY ACQUIRED OR FIRST USED IN A BUSINESS ON AND AFTER JANUARY 1, 2003, SHALL BE EXEMPT FROM THE LEVY AND COLLECTION OF PROPERTY TAX.
SECTION 2. 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 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.
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute.