A Bill for an Act
Page 1, Line 101Concerning property tax exemptions for real property
Page 1, Line 102leased to public entities.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Current law grants a property tax exemption to a part of real property that is used by the state, a political subdivision, or a state-supported institution of higher education (public entity) for purposes of the public entity pursuant to a lease or rental agreement. Current law requires a public entity claiming a property tax exemption to file a copy of the lease or rental agreement with the county assessor's office.
The bill requires a metropolitan district to also file with the county assessor's office a statement (statement) describing:
- The metropolitan district's use of the leased property;
- The metropolitan district's authority to use the leased property for the metropolitan district's purposes;
- Any use of the leased property by a private person for private purposes; and
- Any disclosure filed by a member of the board of directors of the metropolitan district in accordance with certain laws that govern disclosures of conflicts of interest.
If the statement includes a disclosure that relates to the leased property and is filed by a member of the board of directors of the metropolitan district in accordance with certain laws that govern disclosures of conflicts of interest, the county assessor shall, within 30 days of receipt of the statement, submit the statement to the metropolitan district's governing body. Within 180 days of receipt of the statement, the governing body shall issue a written decision including findings of fact and a conclusion as to whether the leased property is used for a public purpose. If the governing body concludes that the leased property is not used for a public purpose, the leased property is not exempt from taxation. The decision of the governing body is not subject to appeal and does not give rise to any private right of action.
A leasehold interest in real or personal property that is owned by a private person and that has been leased to the state or a political subdivision of the state, the use and possession of which has been leased back to a private person for private purposes, is taxable to the owner.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 39-3-124, amend
Page 2, Line 3(1)(b)(I)(A) and (1)(b)(II); and add (1)(b)(I)(F), (1)(b)(I)(G), and (4) as follows:
Page 2, Line 439-3-124. Property used by state entity - installment sales or
Page 2, Line 5lease agreement - financed purchase of an asset, certificate of
Page 2, Line 6participation, or leveraged lease agreement - exemption - definitions.
Page 2, Line 7(1) (b) (I) (A) Subject to
the provisions of sub-subparagraph (B) of thisPage 2, Line 8
subparagraph (I)Page 2, Line 9as provided in subsection (1)(b)(I)(G) of this section, on and after
Page 3, Line 1January 1, 2009, the part of real property that is used by the state, a
Page 3, Line 2political subdivision, or a state-supported institution of higher education
Page 3, Line 3pursuant to the provisions of any lease or rental agreement for at least a
Page 3, Line 4one-year term, with or without an option to purchase, and pursuant to
Page 3, Line 5which the subject real property is used for purposes of the state, political
Page 3, Line 6subdivision, or institution of higher education, as applicable, shall be
Page 3, Line 7exempt from the levy and collection of property tax. If the state or any
Page 3, Line 8political subdivision or state-supported institution of higher education
Page 3, Line 9enters into a lease or rental agreement or is already in a lease or rental
Page 3, Line 10agreement on or after January 1, 2009, and is exempt from the levy and
Page 3, Line 11collection of property tax pursuant to this section, the state, political
Page 3, Line 12subdivision, or state-supported institution of higher education, as
Page 3, Line 13applicable, shall file a copy of the lease or rental agreement with the
Page 3, Line 14county assessor's office. The state or a political subdivision or institution
Page 3, Line 15of higher education shall notify the county assessor's office in the event
Page 3, Line 16that the lease or rental agreement is terminated prior to the term stated in
Page 3, Line 17such lease or rental agreement. Nothing in this
paragraph (b)shall affectPage 3, Line 18subsection (1)(b) affects property tax exemptions allowed pursuant to
Page 3, Line 19section 8-82-104, 22-32-127, 29-4-227, 30-11-104.2, 31-15-802, or 43-1-214.
C.R.S.Page 3, Line 20(F) In addition to the requirements listed in subsection
Page 3, Line 21(1)(b)(I)(A) of this section, a metropolitan district thatis a party
Page 3, Line 22to a lease or rental agreement that was effective as of January
Page 3, Line 231, 2025 or later and was filed with the county assessor's office
Page 3, Line 24in support of a claim for a property tax exemption in accordance
Page 3, Line 25with subsection (1)(b)(I)(A) of this section shall also file with
Page 3, Line 26the county assessor's office a statement describing: The
Page 4, Line 1metropolitan district's use of the leased property; the
Page 4, Line 2metropolitan district's authority to use the leased property for
Page 4, Line 3the metropolitan district's purposes; any use of the leased
Page 4, Line 4property by a private person for private purposes; and any
Page 4, Line 5disclosure filed by a member of the board of directors of the
Page 4, Line 6metropolitan district in accordance with section 24-18-109 (3)(b), 24-18-110, 32-1-902, or 18-8-308.
Page 4, Line 7(G) If the statement described in subsection (1)(b)(I)(F) of
Page 4, Line 8this section includes a disclosure that relates to the leased
Page 4, Line 9property and is filed by a member of the board of directors of
Page 4, Line 10the metropolitan district in accordance with section 24-18-109
Page 4, Line 11(3)(b), 24-18-110, 32-1-902, or 18-8-308, the county assessor shall,
Page 4, Line 12within fourteen days of receipt of the statement, submit the
Page 4, Line 13statement to the governing body that approved the
Page 4, Line 14metropolitan district's service plan and to the metropolitan
Page 4, Line 15district. Within sixty-three days of receipt of the statement, the
Page 4, Line 16governing body shall issue a written decision including findings
Page 4, Line 17of fact and a conclusion as to whether the leased property is
Page 4, Line 18used for a public purpose as required by subsection (1)(b)(I)(A) of
Page 4, Line 19this section. If the governing body concludes that the leased
Page 4, Line 20property is not used for a public purpose as required by
Page 4, Line 21subsection (1)(b)(I)(A) of this section, the leased property is not
Page 4, Line 22exempt from taxation in accordance with subsection (1)(b)(I)(A)
Page 4, Line 23of this section, and the county assessor shall implement the
Page 4, Line 24governing body's decision. A decision of a governing body made
Page 4, Line 25pursuant to this section is not subject to appeal and does not
Page 4, Line 26give rise to any private right of action.
Page 5, Line 1(II)
For purposes of this paragraph (b)Page 5, Line 2(A) "Governing body" means the board of county
Page 5, Line 3commissioners or other entity that approved the metropolitan district's service plan, or its designees.
Page 5, Line 4(B) "Leased property" means a part of real property that
Page 5, Line 5is used by the state, a political subdivision, or a state-supported
Page 5, Line 6institution of higher education pursuant to the provisions of any
Page 5, Line 7lease or rental agreement for at least a one-year term, with or without an option to purchase.
Page 5, Line 8(C) "Metropolitan district" means a metropolitan district created pursuant to article 1 of title 32.
Page 5, Line 9(D) "State-supported institution of higher education" includes, but
Page 5, Line 10need not be limited to, all postsecondary institutions in the state supported
Page 5, Line 11in whole or in part by state funds, including community colleges,
Page 5, Line 12extension programs of the state-supported universities and colleges, local
Page 5, Line 13district colleges, area technical colleges, and the institutions governed by the regents of the university of Colorado.
Page 5, Line 14(4) A leasehold interest in real or personal property that
Page 5, Line 15is owned by a private person and that has been leased to the
Page 5, Line 16state or a political subdivision of the state, the use and
Page 5, Line 17possession of which has been leased back to a private person for private purposes, is taxable to the owner.
Page 5, Line 18SECTION 2. Act subject to petition - effective date. This act
Page 5, Line 19takes effect at 12:01 a.m. on the day following the expiration of the
Page 5, Line 20ninety-day period after final adjournment of the general assembly; except
Page 5, Line 21that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 6, Line 1of the state constitution against this act or an item, section, or part of this
Page 6, Line 2act within such period, then the act, item, section, or part will not take
Page 6, Line 3effect unless approved by the people at the general election to be held in
Page 6, Line 4November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.