‘The most hated tax in the state’ February 19, 2008Posted by jgmpk in Colorado Legislature.
That’s what the Rocky calls Colorado’s business personal property tax, in a story on a bill to abolish it making its way through the legislature:
A Golden businessman jumped through hoops to figure out his business personal property tax bill, which came to a whopping $60.45.
Joe Schneckenburger, who owns rental property, complained to Rep. Joe Rice, D-Littleton. . . .
Opponents argue they pay sales tax when they buy computers, waste baskets, refrigerators, heavy equipment and such, and then pay corporate income taxes based on their profits. They question why on top of that they annually have to pay business personal property taxes on the equipment they own.
Naturally, the forms are labyrinthine:
The business personal property tax forms are based on deterioration schedules and are so time consuming — for the owner, the county and the state — that Rice estimated 42 percent of the revenue the tax brings in goes to administering it.
He introduced House Bill 1225, which would increase the number of small businesses that are exempt from paying the tax. Currently, businesses with less than $2,500 in taxable property are exempt. Rice’s bill raises the exemption to $7,000 over three years, with regular increases after that.
Under his bill, an additional 30,600 businesses would be exempt from paying what Rice called “a silly, complicated tax that no one can make sense of.”
The bill passed the House Finance Committee today.