HB21-1312 Summary

• Narrows the insurance premium tax rate reduction for home offices by requiring companies to maintain a workforce in Colorado equal to 2-2.5% of total domestic workforce (phasing in from 2022-2024) and restricts the annuities consideration exemption to qualified retirement plans only, effective 2021.

• Requires real property actual value assessments to reflect the fee simple estate value and personal property valuations to be based on property's value in use.

• Increases the per-schedule exemption for business personal property tax from $7,900 to $50,000 (starting January 1, 2021) and establishes a state reimbursement program to local governments for lost property tax revenue.

• Codifies that tangible personal property includes digital goods and specifies that sales tax applies to mainframe computer access, photocopying, and packing and crating services.

• For severance taxes, limits oil and gas deductions to direct costs actually paid by taxpayers and phases out coal tax exemptions and credits from 2021-2025, with increased revenue directed to a just transition cash fund.