CO HB1206

Counties, municipalities, and special districts may negotiate incentive payments or tax credits for taxpayers with existing business facilities if verifiable documentation shows substantial risk of out-of-state relocation.

Taxpayers must provide documentation that the facility could reasonably and efficiently relocate out of state and identify at least one other state being considered, plus explain specific reasons for considering relocation.

Annual incentive payments or credits cannot exceed the amount of taxes levied on taxable personal property at the existing business facility for the current property tax year, with a maximum agreement term of 10 years including renewals.

All incentive agreements require approval by the county commissioners board, municipality governing body, or special district board at a public hearing.

Local governments must notify affected municipalities, counties, and school districts of any business incentive negotiations involving new, existing, or expanded business facilities.