What is Personal Property?
Personal Property is generally known as portable or movable items that are used for income production. Examples would be restaurant equipment, office and business equipment, furniture in a rental unit, and any other item used to operate a business. All personal property is taxable unless it is specifically exempt by law.
Exemptions include, but are not limited to: inventories for resale, materials and supplies consumed. Agricultural equipment is exempt from property taxation if it is used on the farm or ranch for planting, growing and harvesting agricultural products or for raising or breeding livestock for the primary purpose of obtaining a monetary profit. Other personal property such as livestock, livestock products, agricultural products, and supplies are also exempt from property taxation. Except for public utility valuation, intangible personal property (a right rather than a physical object), are also exempt from property taxation in Colorado. Examples of intangible personal property are: trademarks, patents, copyrights, stocks and bonds.
How is my equipment assessed?
The County Assessor determines the actual value of personal property. By law, a Declaration Schedule MUST be filed with the Assessor annually. Personal Property with an actual value of less than $2500 will not be placed on the tax roll; however, a Declaration Schedule MUST still be filed with the Assessor. Failure to file by April 15 will result in a 15 percent or $50 fine, whichever is less. Failure to make a complete disclosure of personal property will result in an additional penalty of 25 percent of the value of the undisclosed property. Please contact the Assessor at 970-328-8640 for further information.
What if my Business Closes?
Taxes are assessed beginning January 1 for the full year. Therefore, taxes for the full tax year are due immediately upon the closing of a business. To avoid substantial penalties and the issuance of a Distraint Warrant, please notify the Treasurer’s Office before removing any equipment from the business.
Per Colorado Revised Statue 39-10-113: (1) (a) If at any time after the lien of general taxes has attached, the Treasurer believes for any reason that any taxable personal property may be removed from the county or State of Colorado or may be dissipated or distributed, so that taxes to be levied for the current year may not be collectible, he may at once proceed to collect such taxes and, if he deems necessary, may distrain, seize, and sell such personal property to enforce collection. Upon his request, the Assessor shall certify to him the valuation for assessment of such personal property for the current year. If the levy for the current year has not been fixed and made, the levy for the previous year shall be used to determine the amount of taxes due.
What if I Sell My Business?
When selling your business make sure that the personal property taxes are taken care of at closing. Please notify the Assessor’s Office with the name and address of the new owner.
For More Information
Personal Property collection, please contact the Treasurer’s Office at 970-328-8860
Personal Property valuation and Declaration Schedules, contact the Assessor’s Office at 970-328-8640
Visit the Colorado Division of Property Taxation website.