Senate Bill 25-261 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the administration of the property tax deferral

• Page 1, Line 102program, and, in connection therewith, reversing the

• Page 1, Line 1032022 shift of administrative responsibilities for the

• Page 1, Line 104program from county treasurers to the state

• Page 1, Line 105treasurer and limiting the applicability of the 2022

• Page 1, Line 106expansion of program eligibility to taxpayers whose

• Page 1, Line 107homesteads are in counties that opt in to that

• Page 1, Line 108expansion.

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/.)

Joint Budget Committee. The state has a property tax deferral program (program) under which the state makes a secured loan to a qualified taxpayer to pay property taxes owed for the taxpayer's homestead. The program was available only to seniors and persons called into active military service until 2021, when the general assembly expanded the program to also allow an otherwise nonqualifying taxpayer whose property tax had increased by at least a specified percentage (new qualified taxpayer) to participate. In 2022, the general assembly shifted much of the responsibility for the administration of the program from the county treasurers to the state treasurer.

The bill reverses the 2022 shift of administrative responsibilities for the program so that county treasurers will generally have the same responsibilities for administering the program as they did prior to 2022. The bill also specifies that a new qualified taxpayer may only claim deferral of property taxes levied for a property tax year commencing on or after January 1, 2025, if the board of county commissioners of the county in which the taxpayer's homestead is located has, after receiving input from the county treasurer of that county, adopted a resolution requiring the county treasurer to accept applications for such deferral claims.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 39-3.5-101, repeal (2.5) as follows:

• Page 2, Line 339-3.5-101.  Definitions. As used in this article 3.5, unless the context otherwise requires:

• Page 2, Line 4(2.5)  "State treasurer" includes a third-party administrator that

• Page 2, Line 5enters into a contract with the state treasurer to administer the property

• Page 2, Line 6tax deferral program created in this article 3.5 in accordance with section 39-3.5-103.5 (2).

• Page 2, Line 7SECTION 2.  In Colorado Revised Statutes, 39-3.5-102, amend (1)(a), (1)(c)(I), and (1)(c)(III); and add (1)(c)(V) as follows:

• Page 2, Line 839-3.5-102.  Deferral of tax on homestead - qualifications -

• Page 2, Line 9filing of claim. (1) (a)  Subject to the provisions of this article 3.5, a

• Page 3, Line 1person who is sixty-five years of age or older or who is a person called

• Page 3, Line 2into military service on January 1 of the year in which the person files a

• Page 3, Line 3claim under this section may elect to defer the payment of real property

• Page 3, Line 4taxes. To exercise this option, the taxpayer must file a claim for deferral

• Page 3, Line 5with the state treasurer of the county in which the taxpayer's

• Page 3, Line 6homestead is located. The claim must be filed after January 1 and on or before April 1 of each year in which the taxpayer claims the deferral.

• Page 3, Line 7(c) (I)  Subject to the provisions of this article 3.5, including the

• Page 3, Line 8limitations set forth in subsection (1)(c)(II) subsections (1)(c)(II) and

• Page 3, Line 9(1)(c)(V) of this section, beginning January 1, 2023, a person who is not

• Page 3, Line 10otherwise eligible for deferral under this section may elect to defer the

• Page 3, Line 11payment of the portion of real property taxes that exceed the person's

• Page 3, Line 12tax-growth cap. To exercise this option, the taxpayer must file a claim for

• Page 3, Line 13deferral with the state county treasurer. The taxpayer must file the claim

• Page 3, Line 14after January 1 and on or before April 1 of each year in which the taxpayer claims the deferral.

• Page 3, Line 15(III)  Subject to the limitation set forth in subsection

• Page 3, Line 16(1)(c)(V) of this section, a person who previously deferred real property

• Page 3, Line 17taxes as a person called into military service but is no longer eligible for

• Page 3, Line 18a new deferral on that basis may defer additional real property taxes under this subsection (1)(c).

• Page 3, Line 19(V)  A taxpayer may only claim deferral of property taxes

• Page 3, Line 20levied for a property tax year commencing on or after January

• Page 3, Line 211, 2025, under subsection (1)(c)(I) or (1)(c)(III) of this section if

• Page 3, Line 22the board of county commissioners of the county in which the

• Page 3, Line 23taxpayer's homestead is located has, after receiving input from

• Page 3, Line 24the county treasurer of that county, adopted a resolution

• Page 4, Line 1requiring the county treasurer to accept applications for such deferral claims.

• Page 4, Line 2SECTION 3.  In Colorado Revised Statutes, 39-3.5-103, amend (1)(d.5)(II) as follows:

• Page 4, Line 339-3.5-103.  Property entitled to deferral. (1)  In order to qualify

• Page 4, Line 4for real property tax deferral under this article 3.5, the property shall meet

• Page 4, Line 5all of the following requirements at the time the claim is filed and so long thereafter as payment is deferred:

• Page 4, Line 6(d.5) (II)  For purposes of this subsection (1)(d.5), the actual value

• Page 4, Line 7of the property shall be the most recent appraisal by the county assessor

• Page 4, Line 8as of the time the claim for deferral is submitted to the county treasurer.

• Page 4, Line 9SECTION 4.  In Colorado Revised Statutes, repeal 39-3.5-103.5 as follows:

• Page 4, Line 1039-3.5-103.5.  State treasurer - program administration - rules.

• Page 4, Line 11(1)  The state treasurer may conduct a public education campaign about the property tax deferral program created in this article 3.5.

• Page 4, Line 12(2)  The state treasurer may contract with a third party to

• Page 4, Line 13administer the property tax deferral program on behalf of the state treasurer.

• Page 4, Line 14(3)  The state treasurer may promulgate rules, in accordance with

• Page 4, Line 15article 4 of title 24, related to the administration of the property tax deferral program.

• Page 4, Line 16SECTION 5.  In Colorado Revised Statutes, 39-3.5-104, amend (1) introductory portion as follows:

• Page 4, Line 1739-3.5-104.  Claim form - contents. (1)  A taxpayer's claim for

• Page 4, Line 18deferral must be in writing on a form prescribed and supplied by the state treasurer and supplied by the county treasurer and must:

• Page 5, Line 1SECTION 6.  In Colorado Revised Statutes, 39-3.5-105, amend (1); and repeal (1.5) as follows:

• Page 5, Line 239-3.5-105.  Listing of tax-deferred property - tax as lien -

• Page 5, Line 3interest accrual. (1)  If eligibility for deferral of homestead property is

• Page 5, Line 4established as provided in this article 3.5, the state treasurer shall issue a

• Page 5, Line 5certificate of deferral, which includes the name of the taxpayer, the

• Page 5, Line 6description of the property, the amount of tax deferred, and the year for

• Page 5, Line 7which the deferral was granted, and record the certificate of deferral with

• Page 5, Line 8the county clerk and recorder in the county where the property is located.

• Page 5, Line 9The state treasurer shall notify the county treasurer of a property's

• Page 5, Line 10eligibility and provide the county treasurer with the certificate of deferral, and the county treasurer shall:

• Page 5, Line 11(a)  Enter in the county treasurer's records a notation that the property is tax-deferred;

• Page 5, Line 12(b) (I)  Retain one copy Promptly, upon designation of the

• Page 5, Line 13property as tax-deferred, issue a certificate of deferral, which

• Page 5, Line 14shall include the name of the taxpayer, the description of the

• Page 5, Line 15property, the amount of tax deferred, and the year for which

• Page 5, Line 16the deferral was granted. The county clerk and recorder shall

• Page 5, Line 17record the certificate in the county records and thereafter

• Page 5, Line 18send a copy of the certificate to the state treasurer. The county

• Page 5, Line 19treasurer shall give one copy of the certificate to the assessor and shall retain one copy in the county treasurer's office.

• Page 5, Line 20(II)  Promptly, upon designation of a mobile home as tax-deferred,

• Page 5, Line 21the owner of the mobile home shall surrender title to the property to the

• Page 5, Line 22state treasurer county clerk and recorder. The county clerk and

• Page 6, Line 1recorder shall, pursuant to the provisions of article 29 of title 38, make

• Page 6, Line 2application with the department of revenue for issuance of a new

• Page 6, Line 3certificate of title with a record of the lien of the state treasurer. This

• Page 6, Line 4procedure shall be followed for each subsequent year that the property is

• Page 6, Line 5deferred. The county treasurer shall issue a certificate of

• Page 6, Line 6deferral, which shall include the name of the taxpayer, the

• Page 6, Line 7description of the property, the amount deferred, and the tax

• Page 6, Line 8year for which the deferral was granted, and shall send such

• Page 6, Line 9certificate to the state treasurer. The county treasurer shall

• Page 6, Line 10give one copy of the certificate to the county assessor and shall

• Page 6, Line 11retain one copy in the county treasurer's office. Upon satisfaction of the lien, the state treasurer shall release the lien from the title.

• Page 6, Line 12(1.5)  Notwithstanding any provision of law to the contrary, a

• Page 6, Line 13county clerk and recorder shall not charge a fee for recording the certificate of deferral in accordance with subsection (1) of this section.

• Page 6, Line 14SECTION 7.  In Colorado Revised Statutes, 39-3.5-106, repeal (3) as follows:

• Page 6, Line 1539-3.5-106.  State treasurer to pay county treasurer an amount

• Page 6, Line 16equivalent to deferred taxes. (3)  If a taxpayer defers all or part of the

• Page 6, Line 17property taxes due for a property tax year and the county treasurer

• Page 6, Line 18receives a payment from, or on behalf of, the taxpayer so that the total

• Page 6, Line 19received from the state treasurer and the payer is greater than the

• Page 6, Line 20taxpayer's property taxes due, then the county treasurer shall refund the excess to the payer of the taxes.

• Page 6, Line 21SECTION 8.  In Colorado Revised Statutes, 39-3.5-107, amend (2) as follows:

• Page 6, Line 2239-3.5-107.  Repayment of loans - release of liens - disposition

• Page 7, Line 1of payments. (2)  A taxpayer must tender repayments of a loan for

• Page 7, Line 2deferred taxes to the state treasurer, and the state treasurer shall give the

• Page 7, Line 3taxpayer a receipt therefor. A county treasurer shall not accept a

• Page 7, Line 4repayment. If repayment of a loan for deferred taxes is tendered

• Page 7, Line 5to the county treasurer, the county treasurer shall accept

• Page 7, Line 6payment, give the payer a receipt for the payment, and promptly transmit the money collected to the state treasurer.

• Page 7, Line 7SECTION 9.  In Colorado Revised Statutes, amend 39-3.5-108 as follows:

• Page 7, Line 839-3.5-108.  Notice to taxpayer regarding duty to claim

• Page 7, Line 9deferral annually.As soon as practicable after January 1, the state

• Page 7, Line 10treasurer shall send a deferral At the time the treasurer sends the

• Page 7, Line 11annual property tax notice to any taxpayer who has claimed a deferral

• Page 7, Line 12of property taxes in the previous calendar year, the treasurer shall

• Page 7, Line 13enclose a deferral notice. The deferral notice must be substantially in the following form:

• Page 7, Line 14To: (name of taxpayer)

• Page 7, Line 15If you want to defer the collection of ad valorem property taxes on

• Page 7, Line 16your homestead for the assessment year ending on December 31, , you

• Page 7, Line 17must file a claim for deferral not later than April 1, , with (state

• Page 7, Line 18treasurer or the name of third-party administrator, if applicable) the

• Page 7, Line 19office of the county treasurer. Forms for filing the claims are

• Page 7, Line 20available at (website and mailing address for state treasurer or third-party administrator, if applicable) the county treasurer's office.

• Page 7, Line 21If you fail to file your claim for deferral on or before April 1, ,

• Page 7, Line 22your real property taxes will be due and payable in accordance with the

• Page 7, Line 23schedule set out in the enclosed tax notice. you separately received from your county treasurer.

• Page 8, Line 1If you change your permanent address at any time during the

• Page 8, Line 2assessment year ending on December 31, , you must notify the state treasurer promptly county assessor.

• Page 8, Line 3SECTION 10.  In Colorado Revised Statutes, amend 39-3.5-109 as follows:

• Page 8, Line 439-3.5-109.  Failure to receive notices. Failure to receive the

• Page 8, Line 5notice provided for in this article 3.5 is not a defense in any proceeding

• Page 8, Line 6for the collection of taxes or for the foreclosure of a tax lien. Neither the

• Page 8, Line 7state treasurer nor A county treasurer is not personally liable for failure to give such notices.

• Page 8, Line 8SECTION 11.  Effective date. This act takes effect July 1, 2025.

• Page 8, Line 9SECTION 12.  Safety clause. The general assembly finds,

• Page 8, Line 10determines, and declares that this act is necessary for the immediate

• Page 8, Line 11preservation of the public peace, health, or safety or for appropriations for

• Page 8, Line 12the support and maintenance of the departments of the state and state institutions.