Senate Bill 22-238 and Senate Bill 23B-001 Reporting Workbooks
Please use the following spreadsheet for reports required under State Bill 22-238 and Senate Bill 23B-001.
To use, click on the appropriate link above, then download the sheet by clicking on the "file" menu and then the "download" option to save a copy to your device. Then supply the requested information in the marked fields. Instructions can be found at the bottom of the worksheet.
If you have any questions, please contact:
- Tony Werckman: tony.werckman@state.co.us or 303-864-7767
- Lori DeCrow: lori.decrow@state.co.us or 970-248-7308
2023 Property Tax Legislation
Please refer to the Colorado General Assembly website for more information on the bill and to access bill text.
The following bills have been signed into law or are awaiting the governor’s signature. Please refer to the Colorado General Assembly website for more information on the bill and to access bill text.
- HB23-1052 Modify Property Tax Exemption for Veterans with a Disability
- HB23-1184 Low-income Housing Property Tax Exemptions
- HB23-1233 Electric Vehicle Charging and Parking Requirement
- HB23-1272 Tax Policy That Advances Decarbonization
- HB23-1284 Modifications to the Property Tax Deferral Program
- HB23-1287 County Regulations Related To Short-term Rentals
- HCR22-1002 Modification to Property Tax Exemption for Veterans with a Disability
- SB23-035 Middle-income Housing Authority Act
- SB23-036 Veterans with a Disability Property Tax Exemption Requirements
- SB23-049 Special Mobile Machinery Registration Exemption
- SB23-092 Agricultural Producers Use of Agrivoltaics
- SB23-108 Allowing Temporary Reductions in Property Tax Due
- SB23-175 Financing Of Downtown Development Authority Projects
- SB23-204 Correct Erroneous Property Tax Exemption End Date
- SB23-273 Agricultural Land in Urban Renewal Areas Vetoed
- SB23-304 Property Tax Valuation
- SB23-303 Reduce Property Taxes and Voter-approved Revenue Change
Legislative summaries are below. If you have questions, please contact Tony Werckman at tony.werckman@state.co.us or at 303-864-7767.
2023 House Bills
HB23-1052 Modify Property Tax Exemption for Veterans with a Disability
Current law allows for property tax exemptions for qualifying veterans with a one hundred percent permanent disability rating. This bill expands the tax exemption to qualifying veterans who have individual unemployability status.
This bill creates a requirement that a veteran who has an individual unemployability status be treated equivalently to a veteran who has one hundred percent permanent disability when determining eligibility for any state veterans benefit, and, in connection therewith, expanding eligibility for the property tax exemption for veterans with a disability.
This act takes effect only if approved by the voters in the next general election and then commencing property tax year January 1, 2025.
Ballot measure language can be found in House Concurrent resolution HCR23-1002.
Signed by Governor Jared Polis: April 28, 2023
Effective Date: January 1, 2025, if ballot measure in HCR23-1002 passes in Nov. 2024
Effective Property Tax Year: 2025, if ballot measure in HCR23-1002 passes in November 2024
HB23-1184 Low-income Housing Property Tax Exemptions
This bill amends and expands the exemption under section 39-3-113.5, C.R.S., for property acquired by non-profit housing providers for low-income housing. Beginning with the 2024 property tax year, such property may now qualify for exemption for up to ten years from the date the exemption is claimed, through construction until the property is sold to a qualified low-income applicant, community land trust, or non-profit housing provider. Current law limits this exemption to five years with stricter conditions. The bill also changes and expands the definition of “low-income” from 80% of area median income (AMI) to 100% of AMI for most counties, and 120% of AMI for rural resort communities.
This bill also creates a new exemption under section 39-3-127.7, C.R.S., for real property (land) owned and held by community land trusts and nonprofit affordable homeownership developers used for strictly charitable purposes. In order to qualify for this exemption, the property (land) must be split into a taxable parcel separate from the improvements on the property, and the property must be leased to the owner of the improvements as affordable housing. The community land trusts and nonprofit affordable homeownership developers shall submit a land lease for the qualifying property to the county assessor within twenty-five days of the execution of the lease.
Signed by Governor Jared Polis: May 25, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: 2024
HB23-1233 Electric Vehicle Charging and Parking Requirement
This bill adds section 39-3-138 to the Colorado Revised Statutes providing a property tax exemption for electric vehicle charging systems for tax years 2023 through 2029.
Additionally, current provisions against unreasonable restrictions for the installation and use of electric vehicle (EV) charging equipment are expanded and include language to promote the integration of EV infrastructure and use.
The bill mandates that the state electrical board promulgate rules, effective March 1, 2024, requiring compliance with the model electric ready and solar ready code. The code requires, in part, that multifamily buildings be equipped and ready for electric vehicles and that they have EV supply equipment installed.
When determining minimum parking requirements, local governments must count parking spaces served by EV charging stations as at least one standard parking space, and van-accessible spaces served by EV charging stations as at least two standard parking spaces.
Local government may not pass an ordinance or resolution prohibiting the installation of EV charging stations unless there is a safety concern.
Signed by Governor Jared Polis: May 23, 2023
Effective Date: Upon Signature
Effective Property Tax Year 2023
HB23-1272 Tax Policy That Advances Decarbonization
This bill does not impact assessor offices. Among other things, it changes the oil and gas ad valorem credit that is applied to severance tax calculations. It is included for informational purposes only.
This bill extends tax incentives for purchase of electric vehicles and creates tax incentives for industrial facilities to implement greenhouse gas emissions reduction through a temporary specific ownership tax rate reduction on a portion of the sale of electric medium- and heavy-duty trucks, and through credits for improvements associated with geothermal energy projects and retail sales of electric bicycles. To fund the tax incentives, revenue attributable to the decrease of the severance tax credit for oil and gas production will be deposited in the Decarbonization Tax Credits Administration Cash Fund created in section 24-38.5-120(2). In addition, on or before July 1, 2025, the State Treasurer will credit a portion of the increased revenues to reimburse all of the administrative costs incurred by respective cash funds utilized to implement the tax incentives.
For taxable year beginning on or after January 1, 2024, but before January 1, 2026, the calculation of the ad valorem credit against the state severance tax on oil and gas production is 76.56% of the gross income attributed to the well for the current tax year, multiplied by the total mill levy of the well’s location certified in December of the previous calendar year. For taxable year beginning on or after January 1, 2026, but before January 1, 2027, the calculation of the ad valorem credit against the state severance tax on oil and gas production changes from 76.56% to 65.625% of the gross income attributed to the well for the current tax year, multiplied by the total mill levy of the well’s location certified in December of the previous calendar year. For taxable years beginning on, or after, January 1, 2027, the tax credit will return to 76.56% of the gross income attributed to the well for the current taxable year, multiplied by the total mill levy of the well’s location certified in December of the previous calendar year.
In addition, this bill expands the scope of the implementation plan to include recommendations for long-term restructuring of the credit and extends the deadline to submit the plan to the JBC to January 15, 2025.
Signed by Governor Jared Polis: May 11, 2023
Effective Date: August 6, 2023
Effective Property Tax Year 2024
HB23-1284 Modifications to the Property Tax Deferral Program
Current law allows a person who is at least 65 years old or a person called into military service, or other qualifying residential property owners to defer the payment of a portion of real property taxes. On or after January 1, 2023, the deferral program is extended to income producing properties for taxpayers who are at least 65 years of age, or the surviving spouse, or a person called into military service, or the surviving spouse. In addition, this bill removes the 90 percent loan to value requirement for owners of property that are called into military service and have a home loan guaranteed by the Veterans Administration of the United States.
Signed by Governor Jared Polis: June 2, 2023
Effective Date: August 6, 2023
Effective Property Tax Year 2023
HB23-1287 County Regulations Related to Short-term Rentals
This bill modifies the regulatory authority of a board of county commissioners by clarifying that its authority applies to lodging units that are available for short-term rentals, which are rentals for less than 30 days, and by excluding a hotel unit from the scope of the authority. The bill also changes "internet hospitality service" to "vacation rental service" (service), and provides separate authority for a board of county commissioners to regulate a service.
While assessors have no responsibility stemming from this bill, we have included this information as you may receive questions concerning the board of county commissioner’s authority in this regard.
Signed by Governor Jared Polis: June 6, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: 2023
House Concurrent Resolution
HCR23-1002 Modification to Property Tax Exemption for Veterans with a Disability
This resolution adds a ballot measure to the 2024 election that, if it passes, will amend the state constitution and expand eligibility for the Veterans with a Disability Property Tax Exemption program. Current eligibility requires that a veteran has a one hundred percent disability rating. This expansion would allow veterans with individual unemployability status, as determined by the United States Department of Veteran’s Affairs, to apply to the program.
Signed by Legislature: May 22, 2023
Effective Date: Ballot question for November 5, 2024
Effective Property Tax Year: 2024 ballot question and 2025 implementation of resolution (if passed by voters)
Senate Bills
SB23-035 Middle-income Housing Authority Act
In 2022 the general assembly adopted the middle-income housing authority act, section 29-4-1101, et seq, C.R.S., which created the Middle Income Housing Authority. This bill redefines “affordable rental housing project” to include property owned and operated through public-private partnerships with the authority. It adds a provision that such project’s ownership may be by a public-private partnership and defines a public-private partnership. This bill expands the board of directors from fourteen to sixteen, allowing the general assembly to appoint two board members. Any affordable rental housing project owned, or co-owned, by the authority is exempt from property taxation and the authority is exempt from paying any use or sales tax. This bill clarifies that property that is not part of the affordable rental housing component in a public-private partnership shall be subject to all taxation and assessments.
This bill adds two notification requirements. First, within two weeks of acquiring an affordable housing project, the authority shall provide notice of the acquisition, or of a public-private partnership agreement, to the assessor. The notice must include the property address, parcel number, and the date of acquisition or the date on which the authority entered into a public-private partnership and the affordable rental housing component of the property became tax exempt. The authority shall also provide the assessor a copy of the contract or agreement for the public-private partnership.
The authority is also required to submit, on or before January 15 each year, a comprehensive list of all affordable rental housing projects that are tax exempt to each county assessor in the county in which the affordable rental housing projects are located. This list shall include the property addresses, parcel numbers, and the dates of acquisition or the dates on which the authority entered into a public-private partnership and the affordable rental housing component of the property became tax exempt.
Signed by Governor Jared Polis: June 5, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: 2023
SB23-036 Veterans with a Disability Property Tax Exemption Requirements
This bill changes the method with which veterans apply to the Veterans with a Disability Property Tax Exemption program. Currently, eligible veterans apply to the Colorado Department of Military and Veteran’s Affairs who, in turn, verify the disability status of the applicant. Beginning January 1, 2024, eligible veterans will apply to their county assessor’s office. The Colorado Department of Military and Veteran’s Affairs will create a set of guidelines that will allow the county assessors to determine eligibility based on the veteran’s application and their proof of qualifying veteran with a disability status paperwork.
Signed by Governor Jared Polis: June 5, 2023
Effective Date: August 6, 2024
Effective Property Tax Year: 2024
SB23-049 Special Mobile Machinery Registration Exemption
This bill updates the current registration exemption program, administered through the Department of Revenue, for special mobile machinery (SMM) items. Previously this program required a minimum of 1000 pieces of SMM in order for the owner to qualify for the registration exemption program. This bill lowers the minimum requirement to 250 pieces of SMM.
While assessors have no responsibility stemming from this bill, we have included this information as you may receive questions concerning the program.
Signed by Governor Jared Polis: June 5, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: 2023
SB23-092 Agricultural Producers Use of Agrivoltaics
The bill adds the terms “agrivoltaics” and “floatovoltaics” to the definition of “solar energy facility” for property tax purposes.
Agrivoltaics refers to the integration of solar energy generation facilities with agricultural activities. The main impact on county assessors is to exempt personal property (machinery or equipment) that is used as part of a solar energy generating system that incorporates agrivoltaics.
Signed by Governor Jared Polis: May 18, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: The exemption is for property tax years 2024-2029
SB23-108 Allowing Temporary Reductions in Property Tax Due
The bill allows any local government to provide temporary property tax relief through temporary property tax credits or mill levy reductions and later eliminate the credits or restore the mill levy. A temporary reduction in property taxes for relief must be annually certified by the local government on its certification to the board of county commissioners. The bill does not grant school districts the authority to reduce their total program mills below their statutorily defined floor.
Signed by Governor Jared Polis: June 5, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: 2023
SB23-175 Financing of Downtown Development Authority Projects
Current law allows a voter approved downtown development authority to use Tax Increment Financing to generate capital to finance projects for thirty years with an option for one twenty-year extension. This bill creates an option for additional twenty- year extensions for property tax revenue beyond the fifty years with a separate ordinance each additional twenty-year period. With this extension, the governing board must increase in size to a minimum of nine and maximum of thirteen members, and must add a representative from the school district board of education and a representative from the board of county commissioners. This bill also allows the board to incur loans or indebtedness with an intergovernmental agreement adopted by the governing body.
All other aspects of the additional twenty-year extensions follows the first twenty-year extension. Fifty percent of the incremental revenue is allocated to a special fund of the municipality that created the authority and the other fifty percent of the incremental revenue is proportionally allocated to the governmental entities that levy property taxes within the boundaries of the authority, unless the municipality and a governmental entity reach an alternative agreement. No later than August 1 of each calendar year, the governing body shall certify to the county assessor an itemized list of the property tax distribution percentages attributable to the special fund of the municipality. When certifying values to the taxing entities, the assessor shall certify only the percentage of increment value attributable to the special fund as certified by the governing body.
Signed by Governor Jared Polis: June 5, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: 2023
SB23-204 Correct Erroneous Property Tax Exemption End Date
HB22-1301 provides a property tax exemption for agricultural equipment used within a Controlled Environment Agricultural Facility. The exemption was intended to sunset after a period of five years, but a defect in the wording resulted in a six year exemption. Senate Bill 23-204 corrects the date reference of the bill from January 2nd, 2028 to January 1st, 2028, to maintain the intended five year exemption period of 2023-2027 by the Senate.
Signed by Governor Jared Polis: May 12, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: 2024
SB23-273 Agricultural Land in Urban Renewal Areas
This bill was vetoed.
In 2010, HB10-1107 amended Urban Renewal law, section 31-25-107(1)(c) C.R.S., to restrict the inclusion of ag land in UR areas unless the inclusion met one of five exceptions.
SB23-273 modifies the fifth exception, subsection (1)(c)(II)(E), to prohibit ag land that is located in an existing UR area to be automatically eligible (“grandfathered”) for inclusion into a new UR area. The amendment is subtle; the last phrase in restriction (E) prohibits the grandfathered eligibility.
This bill modifies section31-25-107 C.R.S. (1)(c) (II) (E) which now states “Notwithstanding any other provision of this part 1, an area that has been designated as an urban renewal area shall not contain any agricultural land unless:
…(E) The agricultural land is included in an existing urban renewal plan that was originally approved to include, or that was substantially modified pursuant to subsection (7) of this section to include, the agricultural land prior to June 1, 2010, and the agricultural land remains in the existing urban renewal plan.”
Vetoed by Governor Jared Polis: 05/23/2023
Effective Date: Not Applicable
Effective Property Tax Year: Not Applicable
SB23-304 Property Tax Valuation
This bill amends section 39-1-103 C.R.S., requiring an assessor, when establishing actual value, to consider: (I) current use; (II) existing zoning and other governmental land use or environmental regulations and restrictions; (III) multi-year leases or other contractual agreements affecting the use of or income from the property; (IV) easements and reservations of record; and, (V) covenants, conditions, and restrictions of record.
Section 39-5-122.7(4) C.R.S., is added requiring counties with populations greater than 300,000 to use the alternative protest procedure during biennial reappraisal years beginning January 1, 2024.
This bill modifies section 39-8-107(3) C.R.S., requiring assessors to provide a taxpayer any requested data, including the primary method and rates used, to determine the actual value the property within 3 working days of a written request for CBOE hearings. Any confidential data must be presented in manner that the source cannot be identified.
Signed by Governor Jared Polis: May 24, 2023
Effective Date: August 6, 2023
Effective Property Tax Year: 2024
SB23-303 Reduce Property Taxes And Voter-approved Revenue Change
This bill sends a ballot issue, Proposition HH, to the voters in the November 2023 election. It asks voters to approve a measure to retain and spend state surplus that will be used to backfill some of the lost revenue to local governments that is a result of the property tax changes in the bill. If the voters do not approve the ballot measure these property tax changes will not take effect.
2023 Changes
Early Reporting
Early reporting is required on or before September 15, 2023. The county treasurer is required to report the following estimates to the Property Tax Administrator (PTA) for each local governmental entity:
- Total property tax revenue reduction for property tax year 2023 based on:
- Reductions from SB22-238
- The combination of reductions from SB22-238 and SB23-303, as if proposition HH is approved by voters.
- The increase in assessed value from the property tax year 2022 to the property tax year 2023, based on:
- Reductions from SB22-238
- The combination of reductions from SB22-238 and SB23-303, as if proposition HH is approved by voters.
<<This section of the bill goes into effect upon the Governor’s signature.>>
Working Group
This bill requires the Administrator to convene a group to make recommendations about streamlining the designation of primary residential real property. The working group will have representatives from assessor and county offices, from different sizes of counties, along with real estate professional representatives. A report from the working group will be presented on or before January 1, 2024, if the ballot issue passes, to the senate local government and housing committee and the house of representatives transportation, housing and local government committee.
<<This section of the bill goes into effect upon the Governor’s signature. The report is not submitted unless HH is approved by the voters.>>
Calendar Changes
Since this bill affects rates and actual value adjustments for 2023, thereby affecting the certification to local governments, the deadlines for several required reporting dates have been delayed.
- Final certification of values for all local governments is delayed from December 10th, 2023 to December 29th, 2023. The DPT recommends notifying your local governments on this delay. It is also recommended that final certification be sent as soon as possible.
- For all local governments, including school districts, the reporting for certification of levies is delayed from December 15th, 2023 to January 5th, 2024.
- Certification of levies by the board of county commissioners is delayed from December 22nd, 2023 to January 12th, 2024.
- Delivery of the tax warrant is delayed from January 10th, 2024 to January 19th, 2024.
- The Treasurer shall mail the tax statement as soon as possible after January 19th, 2024.
Reporting
Starting on March 1, 2024, and each March 1 for the next 9 years, treasurers shall report to the PTA:
- The property tax reduction for each eligible local governmental entity as a result of the changes in both SB22-238 and SB23-303. Note that SB22-238 will only affect the 2023 and 2024 property tax years.
- The mill levy to be used is the 2022 property tax year mill levy, excluding mills levied for payment of bonds and other contractual obligations.
- The local governmental entity must also be eligible to receive backfill.
- The difference in assessed value of real property for their county and each eligible local government entity compared with the 2022 property tax year.
- Additional information as necessary.
Backfill Calculation
Treasurers will calculate each local government entity’s property tax reduction for 2023 using the following information:
- 2023 Actual Value
- 2023 Value Adjustments
- 2023 Assessment Rates
- 2022 Assessment Rates
- 2022 Modified Mill Levies - excludes mills levied for payment of bonds and other contractual obligations
Treasurers will use the following steps to calculate the reduction amount for tax year 2023.
Step 1
2023 Actual Value * 2022 Assessment Rates = 22/23 Assessed Value
22/23 Assessed Value * 2022 Modified Mill Levies = 22/23 Tax Revenue
Step 2
(2023 Actual Value – 2023 Value Adjustments) * 2023 Assessment Rates = 23 Assessed Value
23 Assessed Value * 2022 Modified Mill Levies = 23 Tax Revenue Modified
Step 3
22/23 Tax Revenue – 23 Tax Revenue Modified = 100% BACKFILL
If the entity is not eligible for 100% backfill, then the amount will be reduced appropriately.
The 2022 Modified Mill Levy is applied in both calculation to determine the impact of 22- 238 & 23-303s’ value adjustments and assessment rate changes. This ensures the difference between tax revenue is due to these bills’ influence.
Treasurers will use the following steps to calculate the reduction amount for tax year 2024.
Step 1
2024 Actual Value * 2022 Assessment Rates = 22/24 Assessed Value
22/24 Assessed Value * 2022 Modified Mill Levies = 22/24 Tax Revenue
Step 2
(2024 Actual Value – 2024 Value Adjustments) * 2024 Assessment Rates = 24 Assessed Value
24 Assessed Value * 2022 Modified Mill Levies = 24 Tax Revenue Modified
Step 3
22/24 Tax Revenue – 24 Tax Revenue Modified = 100% Backfill
If Proposition HH is not approved by the voters, treasurers will not calculate or report anything for property tax year 2024. If Proposition HH is approved, subsequent tax year calculations will follow the formula substituting the new tax year for 2024.
Starting in 2024, and each of the nine years after that, the treasurer must report to the PTA the difference in assessed value of real property, for each county and eligible local government entity, for that tax year as compared to the 2022 assessed value of real property. The treasurer is required to report the difference, however the assessor is required to calculate the difference.
Backfill Eligibility for Local Governmental Entities
Clarified in the bill, for purposes of backfill calculations, city and county governments will be considered Counties.
<<This section of the bill goes into effect upon the Governor’s signature.>>
Eligible local governmental entities receive backfill based on:
- Counties with a population <= 300,000, the backfill for each eligible local governmental entity will be:
- 100% of the total property tax revenue reduction if the increase in assessed value of real property is less than 10% compared to the 2022 assessed value of real property.
- 90% of the total property tax revenue reduction if the increase in assessed value of real property is 10% or greater compared to the 2022 assessed value of real property
- Counties with a population > 300,000, the backfill for each eligible local government will be:
- 100% of the total property tax revenue reduction for each municipality or select special district if the increase in assessed value of real property is less than 10% compared to the 2022 assessed value of real property.
- 90% of the total property tax revenue reduction for each municipality or select special district if the increase in assessed value of real property is 10% or more compared to the 2022 assessed value of real property.
- 65% of the total property tax revenue reduction for all local governmental entities besides a municipality or a select special district.
- The select special districts are: fire districts, health service districts, water districts, sanitation districts, and library districts.
For property tax years commencing on and after January 1, 2024, a local governmental entity is ineligible for backfill if:
- The entity has an increase of 20% > in assessed value of real property from the property tax year 2022.
Or - The entity is in a county with population > 300,000 and was ineligible to receive backfill a prior year because number 1 applied.
- All ineligible entities in a county with a population <= 300,000 will have their eligibility evaluated every property tax year.
- If the ineligible entity is a fire district, health service district, or ambulance district, they will receive a 50% reimbursement.
Revenue Limitations
Starting in property tax year 2023, the bill restricts a local government’s property tax revenue by allowing it to increase by no more than inflation over the revenue from the previous property tax year.
A local government may temporarily reduce their mill levy to accommodate the revenue restriction.
A local government may also approve an increase in this revenue limitation by notifying the public of their intent to approve a mill levy that will increase the revenue beyond inflation, hold a public hearing which allows the public to present oral testimony, and then adopt a resolution or ordinance to approve a mill levy that exceeds the revenue limit.
This revenue limitation will not apply if the local government has held an election before, on, or after November 7, 2023 approving revenue from a mill levy without limitations as to rate or amount.
New Classifications
The bill creates 3 new classifications.
- Renewable Energy Agricultural Land.
- A subclass of agricultural properties, this subclass will be created in 2024, with an assessment rate of 21.9%. This is land that is currently classified as agricultural land, has a renewable energy facility built upon it, and is still being used for agricultural purposes. Only the land that is attributable to, or used in conjunction with, the facility will receive the 21.9% assessment rate, and be valued under the dry-graze waste-land category.
- Primary Residence Real Property.
- This is a residential classification where an individual owns and occupies the residence as their primary residence.
- An individual can only have 1 primary residence.
- This will become active in 2025.
- Applications for a property to be classified as a primary residence real property must be completed no later than March 15th of the first property tax year for which the classification is sought.
- Late applications may be filed no later than July 15th. An applicant may not contest the denial of a late application.
- This includes property that is currently qualified for the senior exemption. The owner-occupier must still apply for this additional primary residence designation.
- The advantage of applying for these classifications is to receive a $40,000 actual value reduction each year.
- Qualified-senior Primary Residence & Multi-family Qualified-senior Primary Residence Real Property.
- These are residential classifications where an individual owns and occupies the residence as their primary residence and the individual of the property previously qualified for the senior homestead exemption for a different property and does not qualify for the senior homestead exemption in the current property tax year.
- This essentially makes the senior exemption portable, though through a different mechanism.
- An individual can only have 1 primary residence.
- These will become active in 2025.
- Applications for a property to be classified as a primary residence real property must be completed no later than March 15th of the first property tax year for which the classification is sought.
- Late applications may be filed no later than July 15th. An applicant may not contest the denial of a late application.
- The advantage to apply for these classifications is to receive a $140,000 actual value reduction each year.
The working group, convened under this bill, will determine the best method to designate and administer these new designations.
New Assessment Rates & Actual Value Reductions
Residential
The following table shows the new assessment rates contained in the bill. The two new designations that have been created in statute, Primary Residence Real Property and Qualified-Senior Primary Residence Real Property, will have new assessment rates starting in 2025. This includes Multi-family Qualified-Senior Primary Residence Real Property.
table here
Non-residential
The non-residential assessment rates and reductions are below. Please note that there are not any changes for the classifications of Producing Mines or Oil & Gas properties. There is one new subclass for this group of properties. Renewable Energy Ag Land has been created in statute and will have a new assessment rate starting in 2024.
table
*For 2031 and 2032, assessment rates are reduced if the average growth in assessed real property value, among the 32 counties with the least amount of growth in assessed real property value between 2030 and 2031, is greater than or equal to 3.7%.
All assessors are required to provide an estimate of assessed real property value, based on their 2031 Notices of Value, to the PTA no later than May 5, 2031. The PTA will calculate the average increase, as compared to the 2030 abstract of assessment reports, and publish the appropriate rates for 2031 and 2032 on the Division of Property Taxation (DPT) website no later than July 1, 2031.
The rates for all non-residential classes will go back to 29% in 2033.
Signed by Governor Jared Polis: May 24, 2023
Effective Date: Partially upon signature and a ballot question for November 7, 2023
Effective Property Tax Years 2023 – 2032 (temporary changes)