Colorado § 39-3-119.5 - Personal property - exemption - reimbursement to local governments - legislative declaration - definitions.

§ 39-3-119.5. Personal property - exemption - reimbursement to local governments - legislative declaration - definitions.

(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 less than or equal to the amount set forth in subsection (2) of this section.

(2) (a) The exemption created in subsection (1) of this section shall be up to and including the following amounts:

(I) Two thousand five hundred dollars for property tax years commencing prior to January 1, 2009;

(II) Four thousand dollars for property tax years commencing on January 1, 2009, and January 1, 2010;

(III) Five thousand five hundred dollars for property tax years commencing on January 1, 2011, and January 1, 2012;

(IV) Seven thousand dollars for property tax years commencing on January 1, 2013, and January 1, 2014;

(V) Seven thousand three hundred dollars for property tax years commencing on January 1, 2015, and January 1, 2016;

(VI) Seven thousand four hundred dollars for property tax years commencing on January 1, 2017, and January 1, 2018;

(VII) Seven thousand seven hundred dollars for property tax years commencing on January 1, 2019, and January 1, 2020;

(VIII) Fifty thousand dollars for property tax years commencing on January 1, 2021, and January 1, 2022; and

(IX) Fifty-eight thousand dollars for property tax years commencing on or after January 1, 2027.

(b) (I) (A) Beginning with the property tax year commencing on January 1, 2023, but before January 1, 2027, the amount of the exemption created in subsection (1) of this section shall be adjusted biennially to account for inflation since the amount of the exemption last changed pursuant to this subsection (2). On or before November 1, 2022, and each even-numbered year thereafter but before 2027, the administrator shall calculate the amount of the exemption for the next two-year cycle using inflation for the prior two calendar years as of the date of the calculation. The adjusted exemption shall be rounded upward to the nearest one hundred dollar increment. The administrator shall certify the amount of the exemption for the next two-year cycle and publish the amount on the website maintained by the division of property taxation in the department of local affairs.

(B) When calculating the exemption amount under subsection (2)(b)(I)(A) of this section, the administrator shall do another calculation in the same manner but starting from seven thousand nine hundred dollars instead of fifty-eight thousand dollars. This amount is the alternative exemption amount.

(C) If, under subsection (3)(f) of this section, the state treasurer notifies the administrator that not all counties have received reimbursement warrants for lost property tax revenue for the amounts specified in subsection (3)(d) of this section, then beginning with the property tax year commencing on January 1 that follows the notification, and for all property tax years thereafter but before property tax year 2027, the amount of the exemption in subsection (1) of this section is the alternative exemption amount. Thereafter, but before property tax year 2027, the alternative exemption is adjusted biennially to account for inflation in the same manner as set forth in subsection (2)(b)(I)(A) of this section, and the administrator shall certify the amount of the exemption for the next two-year cycle and publish the amount on the website maintained by the division of property taxation in the department of local affairs.

(II) As used in subsection (2)(b)(I) of this section, "inflation" means the annual percentage change in the United States department of labor, bureau of labor statistics, consumer price index for Denver-Aurora-Lakewood for all items and all urban consumers, or its applicable predecessor or successor index.

(III) This subsection (2)(b) is repealed, effective January 1, 2028.

(3) (a) (I) For the property tax year commencing on January 1, 2021, each assessor shall calculate the aggregate value of exempt business personal property within the county based on the property that is listed on schedules for the property tax year with a total value that is more than seven thousand nine hundred dollars and less than or equal to fifty thousand dollars.

(II) For the property tax year commencing on January 1, 2021, each treasurer shall calculate the total property tax revenues lost by all local governmental entities within the treasurer's county based on the exempt business personal property amount calculated in accordance with subsection (3)(a)(I) of this section.

(b) No later than February 1, 2022, and each February 1 thereafter through February 1, 2027, the administrator shall calculate the percentage increase or decrease in total valuation of business personal property in the state over the prior two property tax years. The administrator shall publish the percentage increase or decrease on the website maintained by the division of property taxation in the department of local affairs.

(c) (I) For the property tax years commencing on or after January 1, 2022, but before January 1, 2027, each assessor shall calculate an estimate of the aggregate value of exempt business personal property for the county and each local governmental entity located within the county that is equal to the applicable baseline exemption total adjusted by the growth factor for each property tax year commencing on and after January 1, 2022 but before January 1, 2027.

(II) For the property tax years commencing on or after January 1, 2022, but before January 1, 2027, each treasurer shall calculate the total property tax revenues lost by all local governmental entities within the treasurer's county based on the estimate of exempt business personal property amount calculated in accordance with subsection (3)(c)(I) of this section.

(III) As used in this subsection (3)(c), unless the context otherwise requires:

(A) "Baseline exemption total" means the aggregate value of the exempt business personal property calculated in accordance with subsection (3)(a)(I) of this section for a county or a local governmental entity located within the county as of January 1, 2021.

(B) "Growth factor" means the percentage increase or decrease that the administrator publishes for a property tax year in accordance with subsection (3)(b) of this section.

(d) No later than March 1, 2022, and each March 1 thereafter through March 1, 2027, each treasurer shall report the amount specified in subsection (3)(a)(II) or (3)(c)(II) of this section, as applicable, and the basis for the amount to the administrator, and the administrator may require a treasurer to provide additional information as necessary to evaluate the amount reported. The administrator shall confirm that the reported amount is correct or rectify the amount, if necessary. The administrator shall then forward the correct amount for each county to the state treasurer to enable the state treasurer to issue a reimbursement warrant to each treasurer in accordance with subsection (3)(e) of this section.

(e) No later than April 15, 2022, and April 15 of each year thereafter through April 15, 2027, the state treasurer shall issue a warrant to be paid upon demand from the general fund to each treasurer that is equal to the amount specified by the administrator for the county under subsection (3)(d) of this section. Each treasurer shall distribute the total amount received from the state treasurer to the local governmental entities within the treasurer's county as if the revenues had been regularly paid as property tax. When distributing the money, the treasurer shall provide each local governmental entity with a statement of the amount distributed to the local governmental entity that represents the reimbursement received under this subsection (3)(e).

(e.5) No later than April 15, 2028, and April 15 of each year thereafter, the state treasurer shall issue a warrant to be paid upon demand from the general fund to each treasurer that is equal to the amount specified by the administrator for the county under subsection (3)(d) of this section for the 2026 property tax year. Each treasurer shall distribute the total amount received from the state treasurer to the local governmental entities within the treasurer's county as if the revenues had been regularly paid as property tax. When distributing the money, the treasurer shall provide each local governmental entity with a statement of the amount distributed to the local governmental entity that represents the reimbursement received under this subsection (3)(e.5).

(f) No later than May 1, 2022, and May 1 of each year thereafter, the state treasurer shall notify the administrator whether all counties have received a reimbursement warrant for lost property tax revenue for the amounts specified in subsection (3)(d) of this section.

(g) (I) This subsection (3) does not apply if the amount of the exemption created in subsection (1) of this section is the alternative exemption amount as required by subsection (2)(b)(I)(C) of this section.

(II) This subsection (3)(g) is repealed, effective January 1, 2028.

Source: L. 96: Entire section added, p. 1847, § 1, effective August 7. L. 2008: Entire section amended, p. 947, § 1, effective August 5. L. 2018: (2)(b)(II) amended, (HB 18-1375), ch. 274, p. 1722, § 79, effective May 29. L. 2021: (2)(a)(III) and (2)(b)(I) amended and (2)(a)(V), (2)(a)(VI), (2)(a)(VII), (2)(a)(VIII), and (3) added, (HB 21-1312), ch. 299, p. 1792, § 6, effective July 1. L. 2026: (2)(a)(VII), (2)(a)(VIII), (2)(b)(I)(A), (2)(b)(I)(B), (2)(b)(I)(C), (3)(b), (3)(c)(I), (3)(c)(II), (3)(d), (3)(e), and (3)(g) amended and (2)(a)(IX), (2)(b)(III), and (3)(e.5) added, (SB 26-116), ch. 307, p. 1758, § 2, effective August 12.

Cross references: For the legislative declaration in HB 21-1312, see section 1 of chapter 75, Session Laws of Colorado 2021.

ANNOTATION

Under both the plain language and the legislative history of this section, the statutory $2,500 exemption threshold must be applied on a "per schedule" basis and not on a "per business location" basis. SecurityLink from Ameritech, Inc. v. City & County of Denver, 32 P.3d 499 (Colo. App. 2000).

Where personal property situated in multiple locations throughout the county was listed on a single personal property schedule and the total valuation of all the property listed on the schedule exceeded the $2,500 exemption threshold, neither the language of the statute nor the legislative history supports the view that the general assembly intended to exempt such property from taxation under these circumstances. SecurityLink from Ameritech, Inc. v. City & County of Denver, 32 P.3d 499 (Colo. App. 2000).

The plain language of this section does not contemplate an exemption where property located at multiple locations was encompassed in a single schedule and the total property value per schedule far exceeded $2,500. TCI Satellite Entm't, Inc. v. Bd. of Equaliz., 9 P.3d 1179 (Colo. App. 2000), aff'd, 31 P.3d 155 (Colo. 2001).

This section merely exempts a taxpayer's otherwise non-exempt personal property in a particular county if the aggregate value of such property does not exceed $2,500. Huddleston v. Bd. of Equaliz., 31 P.3d 155 (Colo. 2001).

This exemption allowed by this section must be applied on a per-schedule basis and this section contemplates that all listings of personal property owned by a single taxpayer in a single county will be treated as a single schedule. Huddleston v. Montezuma County Bd. of Equaliz., 31 P.3d 155 (Colo. 2001).