House Bill 25-1199 Introduced

A Bill for an Act

• Page 1, Line 101Concerning an alternate real property tax payment option

• Page 1, Line 102for certain taxpayers.

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.)

Under current law, property taxes must be paid either in full on or before April 30 or in 2 equal installments, the first due on or before the last day of February and the second due on or before June 15. For property tax payments made for property tax years commencing on or after January 1, 2025, the bill creates a 4-installment-payment option for taxpayers that owe real property taxes in an amount greater than $25 on residential real property or real property that is listed by the assessor under any improved commercial subclass codes and that do not have such taxes paid out of an escrow account by a mortgage company (allowed taxpayers).

Under the 4-installment-payment option, allowed taxpayers may pay their real property taxes owed on residential real property or real property that is listed by the assessor under any improved commercial subclass codes in 4 equal installments, the first due on or before the last day of February, the second due on or before April 30, the third due on or before July 15, and the fourth due on or before September 15. An allowed taxpayer must pay at least half of their real property taxes owed on or before April 30 to be permitted to make installment payments pursuant to the 4-installment-payment option in that year, however, an allowed taxpayer can pay in full the real property taxes owed at any time after April 30 and up to the day before the date of the sale of a tax lien on the allowed taxpayer's property, including delinquent interest, if any. County treasurers are required to provide information about the 4-installment-payment option with tax statements.

An allowed taxpayer that does not pay the third installment of real property taxes owed on or before July 15 owes delinquent interest on the unpaid third installment at a rate of 1% per month that the installment is unpaid accruing from July 16, and if an allowed taxpayer does not pay the fourth installment of real property taxes owed on or before September 15, the allowed taxpayer owes delinquent interest on the unpaid fourth installment at a rate of 1% per month that the installment is unpaid accruing from September 16.

Current law requires the county treasurer to provide notice to taxpayers that have unpaid property taxes that, if remaining unpaid, may be subject to a tax lien sale by no later than September 1. Under the bill, allowable taxpayers paying pursuant to the 4-installment-payment option have until September 15 to make their fourth installment payment of real property taxes. Accordingly, the bill extends the September 1 notice deadline to October 15.

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

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 39-10-102, amend (1)(b)(I) as follows:

• Page 2, Line 339-10-102.  When taxes payable. (1) (b) (I)  Except as otherwise

• Page 2, Line 4provided in article 1.5 of this title title 39, all property taxes shall

• Page 2, Line 5become due and payable on January 1 of the year following that the

• Page 3, Line 1year in which they are levied and, except as otherwise provided in

• Page 3, Line 2section 39-10-104.5 (3.5)(c), shall become delinquent on June 16 of said the year in which they are due and payable.

• Page 3, Line 3SECTION 2.  In Colorado Revised Statutes, 39-10-103, add (1)(e) as follows:

• Page 3, Line 439-10-103.  Tax statement - repeal. (1) (e)  The treasurer

• Page 3, Line 5shall include with the statement information about the

• Page 3, Line 6four-installment-payment option provided for in section

• Page 3, Line 739-10-104.5 (3.5), including which taxpayers are allowed taxpayers, as defined in section 39-10-104.5 (1.5)(a).

• Page 3, Line 8SECTION 3.  In Colorado Revised Statutes, 39-10-104.5, amend (2), (3)(a)(I), and (6); and add (1.5) and (3.5) as follows:

• Page 3, Line 939-10-104.5.  Payment dates - optional payment dates - failure

• Page 3, Line 10to pay - delinquency - definitions - repeal. (1.5)  As used in this section, unless the context otherwise requires:

• Page 3, Line 11(a)  "Allowed taxpayer" means a person that owes

• Page 3, Line 12property taxes on applicable property and that does not have

• Page 3, Line 13money held in escrow for the payment of ad valorem taxes

• Page 3, Line 14under any deed of trust, mortgage, or other agreement encumbering or pertaining to the applicable property.

• Page 3, Line 15(b)  "Applicable property" means taxable property that is

• Page 3, Line 16either residential real property or real property that is listed by the assessor under any improved commercial subclass codes.

• Page 3, Line 17(c)  "Four-installment-payment option" means the option

• Page 3, Line 18for allowed taxpayers to pay real property taxes that are due

• Page 3, Line 19on applicable property in four equal installments as set forth

• Page 3, Line 20in subsection (3.5)(a) of this section.

• Page 4, Line 1(d)  "Two-installment-payment option" means the option

• Page 4, Line 2for taxpayers to pay property taxes in two equal installments as set forth in subsection (2) of this section.

• Page 4, Line 3(2)  Except as provided in subsections (3.5), (6), and (7) of this

• Page 4, Line 4section, at the option of the taxpayer, property taxes may be paid in full

• Page 4, Line 5or in two equal installments, the first such installment to be paid on or

• Page 4, Line 6before the last day of February and the second installment to be paid no later than the fifteenth day of June June 15.

• Page 4, Line 7(3) (a) (I)  If the first installment for the two-installment-

• Page 4, Line 8payment option is not paid on or before the last day of February, then

• Page 4, Line 9delinquent interest on the first installment shall accrue accrues at the

• Page 4, Line 10rate of one percent per month from the first day of March March 1 until

• Page 4, Line 11the date of payment; except that, if payment of the first installment is

• Page 4, Line 12made after the last day of February but not later than thirty days after the

• Page 4, Line 13mailing by the treasurer of the tax statement, or true and actual

• Page 4, Line 14notification of an electronic statement, pursuant to section 39-10-103

• Page 4, Line 15(1)(a), no such delinquent interest shall accrue accrues. If the second

• Page 4, Line 16installment for the two-installment-payment option is not paid by

• Page 4, Line 17the fifteenth day of June June 15, delinquent interest on the second

• Page 4, Line 18installment shall accrue accrues at the rate of one percent per month

• Page 4, Line 19from the sixteenth day of June June 16 until the date of payment. For the

• Page 4, Line 20two-installment-payment option, interest on the first installment

• Page 4, Line 21shall continue continues to accrue at the same time that interest is

• Page 4, Line 22accruing on the unpaid portion of the second installment. The taxpayer

• Page 4, Line 23shall continue to have has the option of paying delinquent property taxes

• Page 4, Line 24in two equal installments for the two- installment-payment option

• Page 4, Line 25until one day prior to the sale of the tax lien on such property pursuant to article 11 of this title 39.

• Page 5, Line 1(3.5) (a)  Subject to subsection (3.5)(b) of this section, for

• Page 5, Line 2property tax payments made for property tax years commencing

• Page 5, Line 3on or after January 1, 2025, an allowed taxpayer has the option

• Page 5, Line 4to pay real property taxes due on the allowed taxpayer's applicable property in four equal installments as follows:

• Page 5, Line 5(I)  The first installment to be paid on or before the last day of February;

• Page 5, Line 6(II)  The second installment to be paid on or before April 30;

• Page 5, Line 7(III)  The third installment to be paid on or before July 15; and

• Page 5, Line 8(IV)  The fourth installment to be paid on or before September 15.

• Page 5, Line 9(b) (I) (A)  An allowed taxpayer that has not paid an

• Page 5, Line 10amount equal to at least half of the real property taxes due on

• Page 5, Line 11the allowed taxpayer's applicable property on or before April

• Page 5, Line 1230 is prohibited from making installment payments pursuant to the four-installment-payment option in that year.

• Page 5, Line 13(B)  An allowed taxpayer that has paid an amount equal

• Page 5, Line 14to at least half of the real property taxes due on the allowed

• Page 5, Line 15taxpayer's applicable property on or before April 30 is presumed

• Page 5, Line 16to be making installment payments pursuant to the

• Page 5, Line 17four-installment-payment option and delinquent interest, if

• Page 5, Line 18applicable, is calculated in accordance with subsection (3.5)(c) of this section.

• Page 5, Line 19(II)  An allowed taxpayer that is making installment

• Page 6, Line 1payments pursuant to the four-installment-payment option and

• Page 6, Line 2that after April 30 does not pay an installment of real property

• Page 6, Line 3taxes due on an applicable property in accordance with

• Page 6, Line 4subsection (3.5)(a)(III) or (3.5)(a)(IV) of this section continues to

• Page 6, Line 5have the option of paying delinquent property taxes, including

• Page 6, Line 6delinquent interest calculated in accordance with subsection

• Page 6, Line 7(3.5)(c) of this section, in two equal installments until one day

• Page 6, Line 8prior to the sale of the tax lien on the applicable property pursuant to article 11 of this title 39.

• Page 6, Line 9(III)  At any time after April 30 and before the day of the

• Page 6, Line 10sale of the tax lien on the applicable property pursuant to

• Page 6, Line 11article 11 of this title 39, an allowed taxpayer that is making

• Page 6, Line 12installment payments pursuant to the

• Page 6, Line 13four-installment-payment option may pay in full the real

• Page 6, Line 14property taxes due on the applicable property, including any

• Page 6, Line 15delinquent interest, if applicable, calculated in accordance with subsection (3.5)(c) of this section.

• Page 6, Line 16(c) (I) (A)  If an allowed taxpayer making installment

• Page 6, Line 17payments pursuant to the four-installment-payment option does

• Page 6, Line 18not pay the third installment of the real property taxes due on

• Page 6, Line 19the applicable property in accordance with subsection

• Page 6, Line 20(3.5)(a)(III) of this section, the taxes due for the third installment are delinquent on July 16.

• Page 6, Line 21(B)  On or after July 16, an allowed taxpayer making

• Page 6, Line 22installment payments pursuant to the

• Page 6, Line 23four-installment-payment option that has not paid the third

• Page 6, Line 24installment of the real property taxes due on the applicable

• Page 7, Line 1property in accordance with subsection (3.5)(a)(III) of this

• Page 7, Line 2section owes delinquent interest on the unpaid installment,

• Page 7, Line 3which is calculated at a rate of one percent for each month

• Page 7, Line 4that the allowed taxpayer does not pay the installment on or after July 15.

• Page 7, Line 5(II) (A)  If an allowed taxpayer making installment

• Page 7, Line 6payments pursuant to the four-installment-payment option does

• Page 7, Line 7not pay the fourth installment of the real property taxes due

• Page 7, Line 8on the applicable property in accordance with subsection

• Page 7, Line 9(3.5)(a)(IV) of this section, the taxes due for the fourth installment are delinquent on September 16.

• Page 7, Line 10(B)  On or after September 16, an allowed taxpayer making

• Page 7, Line 11installment payments pursuant to the

• Page 7, Line 12four-installment-payment option that has not paid the fourth

• Page 7, Line 13installment of the real property taxes due on the applicable

• Page 7, Line 14property in accordance with subsection (3.5)(a)(IV) of this

• Page 7, Line 15section owes delinquent interest on the unpaid installment,

• Page 7, Line 16which is calculated at a rate of one percent for each month

• Page 7, Line 17that the allowed taxpayer does not pay the installment on or after September 15.

• Page 7, Line 18(6)  There shall be No installment payment of property taxes

• Page 7, Line 19totaling may total less than twenty-five dollars under either the two-

• Page 7, Line 20installment-payment option or the four-installment-payment

• Page 7, Line 21option, and property taxes that total less than twenty-five

• Page 7, Line 22dollars must be paid in full no later than the last day of April April 30.

• Page 7, Line 23If such taxes are not paid prior to the last day of April April 30,

• Page 7, Line 24delinquent interest on the amount thereof shall accrue accrues at the rate

• Page 8, Line 1of one percent per month from the first day of May May 1 until the date of payment.

• Page 8, Line 2SECTION 4.  In Colorado Revised Statutes, amend 39-11-101 as follows:

• Page 8, Line 339-11-101.  Notice to delinquent owner. The treasurer shall make

• Page 8, Line 4a list of all lands and town lots the tax liens on which are subject to sale,

• Page 8, Line 5describing such land and town lots as the same are described on the tax

• Page 8, Line 6roll. Except as otherwise provided in section 39-2-117 (1)(a), no later

• Page 8, Line 7than September 1 October 15 of each year, the treasurer shall send a

• Page 8, Line 8notice by mail, at the person's last-known address, to each person by

• Page 8, Line 9whom taxes for the previous year are known to be due and unpaid. The

• Page 8, Line 10notice shall indicate the amount of the person's delinquency and state that

• Page 8, Line 11if the amount of the delinquency is not paid by the date specified in the

• Page 8, Line 12notice, which shall not be less than fifteen days from the date of mailing

• Page 8, Line 13of the notice, the treasurer will advertise and sell a tax lien on the person's

• Page 8, Line 14property on the date specified in the notice at public auction for the

• Page 8, Line 15delinquent taxes, interest, and applicable fees. If such list is not made

• Page 8, Line 16until after September 1, the sale held thereunder shall not be void by

• Page 8, Line 17reason thereof The failure of the treasurer to make the list

• Page 8, Line 18required by this section by no later than October 15 does not void the sale of a listed tax lien.

• Page 8, Line 19SECTION 5.  Act subject to petition - effective date. (1)  Except

• Page 8, Line 20as otherwise provided in subsection (2) of this section, this act takes

• Page 8, Line 21effect at 12:01 a.m. on the day following the expiration of the ninety-day

• Page 8, Line 22period after final adjournment of the general assembly; except that, if a

• Page 8, Line 23referendum petition is filed pursuant to section 1 (3) of article V of the

• Page 8, Line 24state constitution against this act or an item, section, or part of this act

• Page 9, Line 1within such period, then the act, item, section, or part will not take effect

• Page 9, Line 2unless approved by the people at the general election to be held in

• Page 9, Line 3November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

• Page 9, Line 4(2)  Section 4 of this act takes effect January 1, 2026.