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signed at Gotham Greens

Colorado Governor signs tax cut for greenhouses

On Friday, Governor Jared Polis signed HB24B-1003, Business Personal Property Tax Exemptions, sponsored by Representatives Matt Soper and Junie Joseph and Senators Kevin Priola and Mark Baisley. The bill will help Colorado greenhouses and other agricultural businesses save more, and make certain property tax exemptions permanent, including an exemption for equipment used in greenhouses to grow food.

House Bill 24B-1003 introduces property tax relief for businesses, with a particular focus on greenhouse growers and CEA facilities. The bill expands the existing tax exemptions on agricultural equipment and machinery to include personal property used within greenhouses. This includes equipment that is either attached to the greenhouse or can be removed and is used directly in the planting, growing, or harvesting of crops. The greenhouse must be used solely for growing crops in their raw or unprocessed state, and the primary purpose must be to generate profit from the wholesale of plant-based food intended for human or livestock consumption.

This legislation provides an exemption from property taxes for agricultural equipment used in greenhouses and CEA facilities from January 1, 2023, until January 1, 2028. By exempting this equipment from property taxes, the bill aims to reduce operational costs for greenhouse growers, offering significant financial relief to businesses engaged in the cultivation of food crops. This relief is intended to support and promote agricultural businesses, particularly those focused on greenhouse production for wholesale markets.

"Colorado is proud to put food on tables across the state and around the world, and the success of our agricultural businesses and entrepreneurs is a key part of that. Today we are breaking down barriers and cutting taxes for Colorado greenhouses, helping to keep more money in the pockets of the hardworking Coloradans who help strengthen our economy. The growing indoor agriculture sector is water and land efficient and can produce crops year round, this tax cut will help attract additional investment to this key area and support our growing businesses," said Governor Polis.

Governor Polis signed HB24B-1003 at Gotham Greens, a nationwide fresh food company that works to provide fresh and sustainably sourced produce. Gotham Greens operates two large greenhouses in Aurora and Windsor. Personal property tax relief will help agricultural businesses save money on essential equipment, and support more jobs and Colorado's economy.

If a referendum is filed against the Bill, the act would be put to a vote in November 2026, delaying its implementation until after the results are officially declared by the governor.

Source: colorado.gov

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