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A Guide To Business Personal Property Tax In Colorado

Posted by Eleshia Matheny on Jun 22, 2020 8:39:57 AM

A Guide To Business Personal Property Tax In Colorado

Colorado is generally considered a tax-friendly state for businesses. However, business personal property tax seems to be a bone of contention as of late, with a number of bills having been introduced in recent years attempting to ease the burden. Passed in 2017, Senate Bill 267 gave small businesses a break, reducing tax liability for companies with business personal property valued at less than $18,000. (Efforts to reduce it further at the state level, however, have failed.) And in late 2018, Jefferson County voted to eliminate its business personal property tax completely in an effort to retain existing businesses and attract new ones.

For now, companies operating in other Colorado counties will continue to pay this annual tax. If that includes your company, below are the highlights surrounding business personal property tax in Colorado that you need to know.

Filing in multiple states? Get this free chart listing the property tax deadlines of every state at a glance.

Colorado Business Personal Property Tax Due Dates

Key Dates

Explanation

1/1

Assessment date for all personal property

2/28

First installment of tax bill due

4/1

Personal property declaration schedules for centrally assessed property are due

4/15

Personal property declaration schedules for locally assessed property are due to county assessors. (Late filing penalty is $50 or 15% of taxes due, whichever is less.)

Also the deadline for filing an extension request. The fee for extension is two dollars per day for the number of days requested ($20 or $40), regardless of the number of schedules to be filed.

4/22

Deadline for filing an extension request for centrally assessed property

4/30

Tax bill due for businesses that elect to pay in full. (If the tax amount is $25 or less it must be paid in full by this date.)

6/15

Valuation notices are mailed by county assessors to property owners by this date; second installment of tax bill due

6/30

Deadline for filing a protest

6/15-7/5

Protest hearings take place

7/10

Assessors respond in writing to any personal property protest no later than this date


Business Personal Property Tax: Colorado Highlights

Property tax is one of the major sources of local tax revenue in Colorado, and is primarily administered by county assessors. (Tweet this!) Exceptions to this are airlines, pipelines, railroads, telephone companies, and renewable energy companies, all of which are centrally assessed by the Division Of Property Taxation.

Most commercial, industrial, and agricultural property have an assessment ratio of 29%; the assets of oil and gas and mining operations valuations are assessed differently.

Taxpayers owning more than $7,700 in total actual value (not cost) of personal property per county are required to complete and return the Personal Property Declaration Schedule to the assessor by no later than April 15 of each year. (The primary form is DS 056; other forms are used for oil and gas and leased/rented properties.) It’s important to note that the $7,700 refers to the value, not the cost, of property, and that value should be calculated per county, not per location. So if you have multiple locations within a county, your total asset value would need to be less than $7,700 in order to be exempt.

In addition to the above-mentioned personal property minimum filing exemption, certain other types of assets are exempt from Colorado personal property tax assessment, including:

  • Intangible personal property
  • Inventories of merchandise and materials and supplies held for sale or consumption by a business
  • Software

If your personal property tax bill is greater than $25, you may either pay it in full by April 30, or pay in two installments, the first half by the last day of February and the second half by June 15. (Bills of less than $25 must be paid in full by 4/30.)

Personal Property Tax Appeals

If you disagree with the value of your personal property as stated on your Notice of Valuation, it is your right to protest. To start the process, contact the assessor in writing and request a review. Assessors are required to respond with an official Notice of Determination, which should include justification for the decision.

If you would like to appeal the assessor’s decision, you may request an appeal hearing with the County Board of Equalization (CBOE). At this point you’ll have an opportunity to present witnesses and other evidence in support of your position.

Complete your business personal property taxes in Colorado—and other states—faster!

Whether you do business just in Colorado or in multiple states, you can benefit from property tax software that helps your team work smarter.

  • TotalPropertyTax (TPT) software makes it easy to stay on top of due dates, manages your tax data, and helps you prepare and file return forms faster (more than 500 forms in just minutes!).
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TotalPropertyTax and MetaTaskerPT are changing the game for tax practitioners. Schedule a demo of our software today to see how it works!

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Topics: Business personal property tax