Business owners in Colorado are being urged to apply for a tax refund on personal property, and people with small bank accounts may also find some financial relief from the state.
Rep. Jack Taylor, R-Steamboat Springs, said about 125,000 businesses in the state qualify for a refund on business personal property.
Business owners pay taxes on initial purchases of business property such as printing equipment, office furniture and computers. Taxes are also paid each year that the property is owned by the business. Legislators this year passed a bill that creates a refund to ease the burden of the double taxation, Taylor said.
To receive the refund, business owners need to file a State Tax Refund for Businesses form DR 1311 and show proof of all personal property tax payments to the Colorado Department of Revenue.
The final submission deadline is Aug. 31, and Taylor suggests filing as soon as possible.
"We must convince business owners to file early in case there are discrepancies in completing the form and the supporting data," he said. "You won't qualify for the refund unless your filing is correct and meets the deadline."
Under the new law, business owners are eligible for a 100 percent refund on personal property tax up to $500. If you paid more than $500 in personal property tax, you get the $500, plus 13.37 percent on everything greater than that amount.
The credit keeps the state in line with constitutional rules on surplus revenues that exceed $170 million.
Also on the list of new tax relief laws is legislation establishing a state income tax exclusion for capital gains, interest and dividend income that is applicable to individuals.
In years that the TABOR surplus exceeds $220 million, House Bill 1137, sponsored by Taylor, excludes from state income tax any capital gains, interest and dividend income up to $1,200 for individuals and $2,400 for joint filers.
"We need to create incentives for saving money, and this is a start," Taylor said. "The exclusion provided by HB 1137 is designed to help the small investor or saver, particularly young people, senior citizens on fixed incomes and families saving for their children's college education."
House Bill 1137 will apply to tax returns filed in 2001.
How to file
Form DR 1311, State Tax Refund for Businesses, is available at the treasurer's office in the courthouse. It also may be obtained by calling the state revenue department at (303) 866-5617. Questions concerning the refund mechanism may be directed to the state business tax hotline at (303) 232-2416.