Colorado § 31-15-903 - Legislative declaration - municipalities - new business facilities - expanded or existing business facilities - incentives - limitations - authority to exceed revenue-raising limitation.

§ 31-15-903. Legislative declaration - municipalities - new business facilities - expanded or existing business facilities - incentives - limitations - authority to exceed revenue-raising limitation.

(1) (a) The general assembly hereby finds and declares that the health, safety, and welfare of the people of this state are dependent upon the attraction of new private enterprise as well as the retention and expansion of existing private enterprise; that incentives are often necessary in order to attract private enterprise; and that providing such incentives stimulates economic development in the state and results in the creation and maintenance of new jobs.

(b) Notwithstanding any law to the contrary, any municipality may negotiate for an incentive payment or credit with any taxpayer who establishes a business facility, as defined in section 39-30-105.1 (6)(b), in the municipality. In no instance may any negotiation result in an annual incentive payment or credit that is greater than the amount of taxes levied by the municipality upon the taxable personal property located at or within the business facility and used in connection with the operation of the business facility for the current property tax year. The term of any agreement made prior to August 6, 2014, pursuant to the provisions of this subsection (1) may not exceed ten years, including the term of any original agreement being renewed. The term of any agreement made on or after August 6, 2014, pursuant to this subsection (1) may not exceed thirty-five years, which does not include the term of any prior agreement.

(1.5) (a) Notwithstanding any law to the contrary, a municipality may negotiate an incentive payment or credit for a taxpayer that has an existing business facility located in the municipality if, based on verifiable documentation, the municipality is satisfied that there is a substantial risk that the taxpayer will relocate the facility out of state.

(b) The documentation required pursuant to paragraph (a) of this subsection (1.5) must include information that the taxpayer could reasonably and efficiently relocate the facility out of state and that at least one other state is being considered for the relocation. In order to be eligible for a payment or credit under this subsection (1.5), a taxpayer must identify the specific reasons why the taxpayer is considering leaving the state.

(c) A municipality shall not give an annual incentive payment or credit under this subsection (1.5) that is greater than the amount of the taxes levied by the municipality upon the taxable personal property located at or within the existing business facility and used in connection with the operation of the existing business facility for the current property tax year. The term of an agreement made prior to August 6, 2014, pursuant to this subsection (1.5) shall not exceed ten years, and this limit includes any renewals of the original agreement. The term of an agreement made on or after August 6, 2014, pursuant to this subsection (1.5) shall not exceed thirty-five years, and this limit does not include the term of any prior agreement. A municipality shall not give an annual incentive payment or credit under this subsection (1.5), unless the governing body of the municipality approves the payment or credit at a public hearing.

(2) Notwithstanding any law to the contrary, any municipality may negotiate for an incentive payment or credit with any taxpayer who expands a facility, as defined in section 39-30-105.1 (6)(e), the expansion of which authorizes a taxpayer to claim a credit described in section 39-30-105.1, and that is located in the municipality. In no instance may any negotiation result in an annual incentive payment or credit that is greater than the amount of the taxes levied by the municipality upon the taxable personal property directly attributable to the expansion, located at or within the expanded facility, and used in connection with the operation of the expanded facility for the current property tax year. The term of any agreement made prior to August 6, 2014, pursuant to the provisions of this subsection (2) may not exceed ten years, including the term of any original agreement being renewed. The term of any agreement made on or after August 6, 2014, pursuant to this subsection (2) may not exceed thirty-five years, which does not include the term of any prior agreement.

(3) (Deleted by amendment, L. 94, p. 2834, § 4, effective January 1, 1995.)

(4) Any municipality that negotiates any agreement pursuant to the provisions of this section shall inform any county in which a new business facility would be located, or an existing or expanded business facility is located, whichever is applicable, of such negotiations.

(5) Any municipality may adjust the amount of its tax levy authorized pursuant to the provisions of section 29-1-301, C.R.S., or pursuant to a municipal home rule charter, whichever is applicable, by an additional amount which does not exceed the total amount of annual incentive payments or credits made by such municipality in accordance with any agreements negotiated pursuant to the provisions of this section or section 39-30-107.5, C.R.S.

Source: L. 90: Entire section added, p. 1455, § 2, effective April 24. L. 91: (1) amended and (5) added, p. 724, § 2, effective May 24. L. 94: (1)(b), (2), (3), and (5) amended, p. 2834, § 4, effective January 1, 1995. L. 2002: (1)(b) and (2) amended, p. 1120, § 4, effective June 3. L. 2007: (1)(b) and (2) amended, p. 350, § 5, effective August 3. L. 2012: (1)(b) and (2) amended, (HB 12-1029), ch. 61, p. 220, § 4, effective August 8. L. 2013: (1.5) added and (4) amended, (HB 13-1206), ch. 374, p. 2204, § 2, effective August 7. L. 2014: (1)(b), (1.5)(c), and (2) amended, (SB 14-183), ch. 196, p. 721, § 2, effective August 6. L. 2020: (1)(b) and (2) amended, (HB 20-1166), ch. 103, p. 395, § 3, effective April 1.

Cross references: (1) For similar provisions for school districts and counties, see §§ 22-32-110 and 30-11-123.

(2) In 2012, subsections (1)(b) and (2) were amended by the "Save Colorado Jobs Act". For the short title and the legislative declaration, see sections 1 and 2 of chapter 61, Session Laws of Colorado 2012.