Today, the Senate unanimously passed Assistant Senate Minority Leader Mark Scheffel’s (R-Parker) bill to expand the authority of a local government to negotiate a business incentive agreement when there is a risk that a local business will relocate out of state.
“This bill provides local governments another resource to ensure that both small and large businesses have the ability to stay and contribute to their community,” said Scheffel. “This incentive makes local governments and businesses more competitive and allows them to cut companies’ business personal property tax when that company is being lured out of state.”
Currently, local governments can enter into business incentive agreements to offset all or a portion of their business personal property tax liability. However, the law only allows local governments to offer these incentives to businesses that are expanding their facilities or building new facilities.
House Bill 1206 expands the situations in which local governments can offer incentives offered to include preventing existing businesses from moving their facilities out of state.
The bill now goes to the House for approval of Senate amendments.