What is Business Personal Property?
Business Personal Property is everything which is not included in the term "real property." Business Personal Property includes furniture, equipment, machinery, security devices, signs and personal effects not otherwise exempt by law. Personal Property is defined in § 39-1-102(11), C.R.S,
What Business Personal Property is taxable?
Business Personal Property is taxable if it is used for the production of income (that is: used in a business, organization, or rental property) at any time during the year, unless specifically exempted from taxation.
Colorado law states that January 1st is the assessment date. The owner of the property (as of January 1st) is considered the owner for that entire assessment year. If a property changes ownership during the year it is up to the buyer and seller to prorate the taxes. Neither the Assessor nor the Treasurer is involved in or responsible for this process. It is also the responsibility of the taxpayer to notify the Assessor and the Treasurer when a business changes ownership. If a business closes after the January 1st assessment date, the taxpayer is also responsible for the entire year and for notifying the Assessor and Treasurer of the closure.
How is Business Personal Property valued?
The County Assessor's duty is to value personal property for property tax purposes. The property owner files an annual Declaration Schedule with the Assessor, listing information regarding the Business Personal Property. This allows the Assessor to estimate the actual value of the property. Actual Value (Market Value) is estimated by following the guidelines and procedures set forth by the State of Colorado. For more information visit the
The Assessor multiplies the actual value of the personal property by the assessment rate of 29% to arrive at an assessed value. The assessed value is then multiplied by a tax rate (mill levy) to calculate the taxes for the property. Example:
$50,000 (Actual Value) x 29% (Assessment Rate) = $14,500 (Assessed Value)
$14,500 (Assessed Value) x .0800 (Example Mill Rate) = $1,160.00 Estimated Taxes Due
Proration of Value
Proration is not generally allowed. Business Personal Property owned on the assessment date of January 1 is taxable for that entire year, even if the status of the property changes or the property is destroyed, transferred or removed from the State during the year.
What is required by law?
Owners of Business Personal Property must declare the taxable property they own to the Assessor.
Who must file?
Owners of taxable Business Personal Property such as equipment, machinery, furniture, security devices, signs and personal effects not otherwise exempt by law, if the total actual value (market value) of the personal property is greater than $7,300.00.
Note: Market value as approximated by an appraisal, using state guidelines and procedures.
When to file:
The Assessor mails Declaration Schedules on or before January 1, and taxpayers must return them to the Assessor by April 15, 2016*. It is the responsibility of the business owner to obtain and file a Declaration Schedule, if one is not received in the mail.
$7,300.00 EXEMPTION FOR BUSINESS PERSONAL PROPERTY
Effective 1/1/2016, if the total actual value (market value) of your Business Personal Property located in Elbert County is $7,300.00 or less, you are not required to file this form.
If an owner's Business Personal Property filed in Elbert County exceeds a total value of $7,300.00, all the property is taxable including the initial $7,300.00
Also, in the event additional assets are put into use which increases the total actual value of the personal property to an amount greater than $7,300.00, the owner must again file a declaration schedule.
To avoid a possible misunderstanding regarding whether a Declaration Schedule must be filed, new businesses, first time filers, and taxpayers who are unsure as to the actual value of their personal property are urged to contact the Assessor and provide an itemized listing of their Business Personal Property.
FAILURE TO FILE PROPERTY DECLARATION SCHEDULE
Any owner of Business Personal Property who fails to file a Declaration Schedule by April 15, 2016* or by the end of the extension time requested, will be fined $50 or 15% of the taxes due, whichever is the lesser amount. In addition, if a Declaration Schedule is not received, the Assessor shall estimate a value for the property value according to the Best Information Available. Failure to make a complete disclosure of personal property will result in an additional penalty of 25% of the undisclosed property.
All Business Personal Property Declaration Schedules and enclosed forms returned to the Assessor are considered private, confidential documents by law.
*NOTE: FOR 2016 TAXES (PAYABLE IN 2017), BUSINESS PERSONAL PROPERTY DECLARATIONS WILL BE DEEMED "TIMELY" IF RECEIVED AND/OR POSTMARKED BY APRIL 15, 2016.
Division of Property Taxation Declaration Schedules
TYPES OF BUSINESS PERSONAL PROPERTY
ALL Business Personal Property used in a business, organization or rental property at any time during the year must be reported to the Assessor for Business Personal Property assessment. Following is a partial list of typical items which must be reported:
- Machinery, equipment, and other articles related to the business or a commercial or industrial operation, rather than components of fixture systems that are required for the proper operation of the improvements.
- Computer equipment (Computer software is exempt from personal property tax)
- Leasehold improvements: Certain leasehold improvements are considered personal property. (Property owners report leasehold improvements on the Declaration Schedule and the Assessor must decide whether these improvements are personal property, as opposed to real property improvements.)
- Signs: Any type of signage representing a business, organization, or property.
NOTE: Declaration Schedules must list Business Personal Property in detail. This includes reporting the deletion of previously reported items that are no longer in use.