SB12-052 Summary

• Increases the business personal property tax exemption from $7,000 to $14,000 for property tax years beginning January 1, 2013 and January 1, 2014, which increases future inflation-adjusted exemption amounts.

• Creates a 10-year valuation cap for state-assessed public utilities based on their 2011 operating property and plant value (or later year for new utilities), with incremental annual increases of 2% for the first five years and 1% for years six through ten.

• Property value above the valuation cap is deemed attributable to business personal property and exempt from taxation, unless the property tax administrator determines the excess is directly attributable to real property.

• Establishes legislative findings that the valuation cap method is a fair and equitable approach for exempting public utility business personal property, consistent with constitutional authority to enact cumulative uniform business personal property tax exemptions.

• Takes effect August 7, 2012, subject to voter approval through referendum petition if filed within the 90-day period following final adjournment.