Colorado Amendment R – The end to another backward tax

When it costs more to collect a tax than the money collected, it may be time to eliminate that tax, says Amendment R, a measure referred to the November statewide ballot by the legislature.

Amendment R asks voters to let counties not collect taxes on portions of federally owned property that is leased by individuals or businesses. Currently, the tax is assessed on those individuals or businesses leasing federal lands under a provision in the tax code called possessory interest tax. It is paid to counties based on the taxable value of the portion of the property that is being utilized by the lessees.

Federal lands are often leased by farmers and ranchers for grazing purposes; they typically pay less than $6,000 a year to use the land resulting in a tax that is far below the county’s administrative fees, says Rep. Randy Baumgardner, R-Hot Sulphur Springs, the sponsor of House Concurrent Resolution 1005, the legislation that placed the issue on the ballot. – More -