Colorado Office of Economic Development and International Trade

Local Government Property Tax Incentives (Business Incentive Agreements)

The Colorado Urban and Rural Enterprise Zone Act and House Bill 02-1399 enable local governments, at their discretion, to provide property tax credits or incentive payments ('Business Incentive Agreements' or 'BIA's') based on the amount of increased property taxes for qualifying new business activity in their jurisdictions. The key provisions of these laws are summarized below:

House Bill 02-1399 (formerly SB 94-182)

 

ENTERPRISE ZONES

WHAT LOCAL GOVERNMENTS:

Municipalities, Counties, Special Districts*. At local government's option. (30-11-123, 31-15-903, 32-1-1702, C.R.S.)

 

Municipalities, Counties, Special Districts*. At local government's option. (39-30-107.5, C.R.S.)


*Special districts added effective August 10, 2005. (HB 05-1048)

 

GEOGRAPHICAL RESTRICTIONS:

None (Statewide).

 

Must be within an enterprise zone.
Click here for a  map of enterprise zones.

TAXPAYER ELIGIBILITY:
Negotiated on case-by-case basis with taxpayers who establish a new business facility or expand an existing facility which qualifies as a new business facility, as defined in C.R.S. 39-22-508.2

AMOUNT OF INCENTIVE PAYMENT OR PROPERTY TAX CREDIT:

Up to 50 percent of the jurisdiction's levy on taxable personal property, used in connection with operation of the new or expanded business facility for current property tax year.

 

Up to the increment in real and personal property tax levy in current year above levy on same property in year prior to year in which enterprise zone was designated.

 

DURATION OF INCENTIVE PAYMENT OR PROPERTY TAX CREDIT:

Up to 10 years

 

Local discretion, provided state enterprise zone statute remains in effect.

 

APPROVALS AND NOTICE REQUIRED:

Local governing board/council approval. Notify any other municipality/county in which facility is located of incentive agreement.

 

Local governing board/council approval.


*Special districts may not enter into agreements unless the company also entered into an agreement with a municipality or county.

 

SCHOOL DISTRICTS:

 

The General Assembly repealed the former authority of school districts to negotiate business incentive agreements, effective May 22, 2003. Agreements in place prior to that date continue in effect. (S.B. 03-248; 22-32-110 (ff)(III) and (gg)(III), C.R.S.)