Colorado found that out recently when it offered to refund a portion of the personal property tax assessed on businesses by counties. Twenty percent of the $100 million budgeted for the rebate went unclaimed.
Officials say the modest response is due in part to the short time limit--two months--set by the legislature for submitting application forms. In addition, 1999 was the first year that the rebate was offered and, despite efforts to publicize the program, many businesses may not have gotten the word.
The form (one page, front and back) was not onerous to complete, but some taxpayers must have decided that it simply wasn't worth the trouble. Of the approximately 51,300 businesses that applied for the refund, many were larger organizations that qualified for sizable payments. The rebate totaled the first $500 of business personal property tax plus 13.3 percent of the amount over $500. Refunds averaged $250 but went as high as $600,000.
Those that missed out will get another chance next year. The rebate will continue each year as long as the state runs a budget surplus, and surpluses are forecast for the next several years.
Next time around, officials expect a better response, especially if a bill to automate the refund process is approved. Under the proposed legislation, the counties, which assess and collect the tax, would supply the state with tax data on business taxpayers; then the state would issue refunds without any input from taxpayers. The challenge will be to get 63 counties to submit the necessary information on time.
