DENVER • A bill to phase out a tax on the property used to do business in Colorado apparently died Monday in the state Senate.

The business personal property tax is collected each year on all manner of business equipment, from laptops to forklifts. SB085, sponsored by Sen. Mark Scheffel, R-Parker, sought to phase out the tax over 40 years, beginning in 2011. Supporters of the bill said it would make Colorado more attractive to businesses.But critics said that unless some substitute revenue was found, phasing out the tax would hurt local governments.

 The nonpartisan Legislative Council estimated the phaseout would reduce state revenue by $2.2 million in its first year and $350 million a year by the time the phaseout was complete.

To secure initial Senate approval, Scheffel agreed to an amendment that would create an interim committee of legislators to assess the impact of the tax changes.

Because the Legislative Council estimated that the creation of another interim committee would cost the state $31,508 in staff and per diem expenses in the next fiscal year, the Senate majority leader, Brandon Shaffer of Longmont, moved that it be sent back to the Appropriations Committee for reconsideration.

Scheffel offered to amend the bill to replace the interim committee with a task force, made up of volunteers and at no cost to the state.

But the bill was sent back to appropriations on a 28-7 vote, opposed by only a half-dozen Republicans and the Senate president, Peter Groff, D-Denver. 

Scheffel said the move would probably kill the bill for this session, but he added that he plans to reintroduce it next year.—Contact the writer at 476-1654.