Personal Property Tax
Personal Property is generally known as everything which is not real property, typically portable or movable items. Personal Property includes furniture, equipment, machinery, security devices, signs, and any other item used to operate a business. All personal property is taxable unless it is specifically exempt by law.
Exemptions include, but are not limited to: inventories for resale, materials and supplies consumed, agricultural equipment used on the farm or ranch to produce agricultural products, ag and livestock products, and livestock. Except for public utility valuation, intangible personal property, (a right rather than a physical object), are also exempt from property taxation in Colorado. Examples of intangible personal property are: trademarks, patents, copyrights, stocks, and bonds.
The Colorado Personal Property tax is a levy on Business Personal Property used in a business or organization. The procedure for applying this tax is similar to that used for real property: the Assessor estimates a value for the property and consolidates the levies; the Treasurer then mails a tax bill to the property owner.
What if my Business Closes?
Taxes are assessed beginning January 1 for the full year. Therefore, taxes for the full tax year are due immediately upon the closing of a business. To avoid substantial penalties and the issuance of a Distraint Warrant, please notify the Treasurer’s Office before removing any equipment from the business.
Per Colorado Revised Statue 39-10-113: (1) (a) If at any time after the lien of general taxes has attached, the Treasurer believes for any reason that any taxable personal property may be removed from the county or State of Colorado or may be dissipated or distributed, so that taxes to be levied for the current year may not be collectible, he may at once proceed to collect such taxes and, if he deems necessary, may distrain, seize, and sell such personal property to enforce collection. Upon his request, the Assessor shall certify to him the valuation for assessment of such personal property for the current year. If the levy for the current year has not been fixed and made, the levy for the previous year shall be used to determine the amount of taxes due.
What if I Sell My Business?
When selling your business make sure that the personal property taxes are taken care of at closing. Please notify the Assessor’s Office with the name and address of the new owner.