Our Colorado small-business owners will now see a $50,000 exemption in the Business Personal Property Tax, beginning tax year 2022 payable in 2023. Thanks to (passage of) House Bill 21-1312, our local small-business owners can finally see the light at the end of the tunnel. Since 2005, many of our El Paso County elected, including myself, have worked to kill this albatross around the necks of small-business owners.
I have always felt this is double taxation. Our business owners pay a sales tax on this equipment when purchasing and also pay a yearly State of Colorado Business Personal Property Tax on the very same equipment.
The Business Personal Property Tax, simply put, is a tax on furniture, fixtures, and equipment. Not only is this a costly tax for small-business owners, it also requires tremendous time and effort to determine if the tax is actually owed and then additional time and effort to file the necessary yearly Personal Property Declaration Schedule.
Under current law, businesses are not required to pay tax on their business personal property, if their personal property included on a single declaration schedule is worth less than a certain amount. For tax years 2021 and 2022, the exemption threshold was $7,900 under current law. House Bill 21-1312 increased the threshold amount to $50,000 adjusted every two years for inflation thereafter. The State is now required to reimburse local governments for their lost revenue as a result of the increase.
The passing of House Bill 21-1312 now exempts nearly 90% of all our small Mom and Pop businesses in El Paso County from the levy and taxation of the Business Personal Property Tax.
Steve Schleiker, Assessor
El Paso County
Editor's note: Letters to the editor have not been edited nor fact-checked.