CO HB1279

Creates a state income tax credit for businesses to reimburse personal property taxes paid in Colorado, effective for tax years 2015-2019, with the purpose of assisting small businesses in expanding operations.

Eligible taxpayers receive a credit equal to a percentage of personal property taxes paid, calculated as 100% minus the sum of their federal marginal income tax rate and Colorado state income tax rate; tax-exempt organizations under Section 501(c) of the Internal Revenue Code receive 100% credit if they have no unrelated business income.

Limits eligibility to taxpayers with $15,000 or less in personal property value for 2015, with the threshold adjusted annually for inflation in subsequent years; excludes delinquent property taxes owed for prior years.

Credits exceeding a taxpayer's income taxes due are refunded to the taxpayer; taxpayers must submit property tax statements to the Department of Revenue to claim the credit.

The entire tax credit provision is repealed effective July 1, 2022; the act takes effect August 6, 2014, subject to voter approval if a referendum petition is filed within 90 days of final adjournment.