Frequently Asked Questions About Personal Property

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Questions:

1. What is personal property?

2. How is my equipment assessed?

3. What if my business closes?

4. What if my business is sold?

Answers to frequently asked questions about personal property:

1. Q: What is personal property?
   
   Personal property is generally portable or moveable items that are used for income production (i.e. business). Examples would be office furniture, business equipment, restaurant equipment and fixtures, 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 used on the farm or ranch to produce agricultural products and livestock products, and livestock.. 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.
   
   
2. Q: How is my equipment assessed?
   
   A: The County Assessor determines the actual value of personal property. By law, a Declaration Schedule must be filed annually with the Assessor. Failure to file by April 15th, will result in a 15% or $50.00 fee, whichever is less. Failure to make a complete disclosure of personal property will result in an additional penalty of 25% of the value of the undisclosed property. For tax year 2009 payable 2010 personal property with an actual value of less than $4000.00 will be exemption from taxation and will not be placed on the tax roll. However, a Declaration Schedule must still be filed with the Assessor. Please contact the Assessor at 303-271-8600 for further information.
   
   If no Declaration Schedule is filed, the assessor will estimate the value of the property. This is not contestable in court.
   
   
3. Q: What if my business closes?
   
   A: 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 Statute 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 collectable, he may at once proceed to collect such taxes and, if he deems necessary, may distraint, 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.
   
   
4. Q: What if my business is sold?
   
   A: Taxes are not due at the time of an ownership transfer. However, personal property taxes may be collected in advance (although not required).

Last Modified: Jun 9, 2009 08:56 AM