DENVER— Today, Democrats on the House State, Veterans, and Military Affairs Committee, killed, on a party-line vote, Rep. Tim Leonard’s (R-Evergreen) bill to provide tax relief to thousands of Colorado’s small business owners. House Bill 18-1036 would have increased the exemption from business personal property tax (BPPT) from $7,400 to $50,000, relieving business owners with less than $50,000 in personal property from having to file the BPPT form or paying the corresponding tax.
Business personal property includes items such as printers, computers, operational machinery, and even a home in the case of a short-term rental. Business owners in Colorado must itemize and pay tax annually on the value of that equipment.
“As a strong advocate for small business, I am disappointed that an easy regulatory change failed to pass committee,” said Leonard, who owns a franchise coffee shop. “I really hoped the progressives on this committee could have supported a change that would have relieved 44,000 small businesses from an onerous tax, especially when it had a minimal fiscal impact on government.”
House Bill 18-1036 would have alleviated approximately 65 percent of business owners in the state from not only paying that tax, but also expending time and resources to itemize the equipment subject to the BPPT.