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August 26, 2024 HB 24B-1003
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24B-0005
Rep. Soper; Joseph
Sen. Priola
Date:
Bill Status:
Fiscal Analyst:
August 26, 2024
House Appropriations
Louis Pino | 303-866-3556
louis.pino@coleg.gov
Bill Topic: BUSINESS PERSONAL PROPERTY TAX EXEMPTIONS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill creates a business personal property tax exemption for personal property in
greenhouses, and extends two other exemptions. It increases state and local
government expenditures and decreases local government property tax revenue.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill. Due to time constraints this analysis is
preliminary and will be updated following further review and any additional
information received.
Summary of Legislation
The bill makes the personal property tax exemptions for qualified agricultural equipment
permanent. Under current law, agricultural equipment that is used in any controlled
environmental agricultural (CEA) facility is exempt from personal property taxes through tax year
2027, while the exemption for machinery or equipment that is part of a solar energy generating
system and used for agrivoltaics is set to expire after tax year 2028.
In addition, the bill includes personal property within a greenhouse, whether attached to the
greenhouse or not, which is used solely for planting or growing crops in a raw or unprocessed
state as eligible for agricultural equipment personal property tax exemptions.
Assumptions
Beginning in property tax years 2028 and 2029, this bill will reduce the amount of property tax
revenue to local governments. As of the date of this fiscal note, the number of affected facilities
and their associated operating income is unknown. The current classifications of such facilities
may vary by county, and would likely be either “commercial” or “all other agricultural” property.
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August 26, 2024 HB 24B-1003
State Expenditures
The bill increases workload in the Department of Local Affairs, Division of Property Taxation
(DPT) and increases future year expenditures for total program funding for school finance, as
discussed below.
Division of Property Taxation (DPT). The DPT currently works with the county assessors to
update forms and procedures and provide guidance concerning administration of the business
personal property tax. Updating manuals and providing guidance to administer the exemptions
in the bill can be accomplished within existing resources.
School finance. To the extent that the bill reduces property taxes, it will reduce the local share
of school funding and require an increase in state aid payments to school districts. Data are
unavailable to estimate the magnitude of this effect. The greenhouses portion of the bill first
affect 2025 assessments and the FY 2025-26 state expenditure for school finance. Extending the
CEA facility and agrivoltaics exemptions first affects FY 2028-29 and FY 2029-30 expenditures,
respectively.
Local Government
County assessors. County assessors will be required to monitor annually the existence and use
of greenhouse facilities. Some county assessors may require additional staff to accomplish
these tasks, particularly in counties where CEA facilities already exist or are forthcoming.
Property tax revenue. As stated in the Assumptions section, this fiscal note expects a
reduction in local government property taxes. The reduction will depend on the number of
qualified greenhouses, and the amount of agricultural equipment and personal property
associated with each greenhouse.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State and Local Government Contacts
Agriculture Counties
County Assessors Property Tax Division - Local Affairs
Municipalities Special Districts
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.