Senate Committee of Reference Report

Committee on Finance

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April 14, 2026

After consideration on the merits, the Committee recommends the following:

SB26-116     be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:

Page 1, Line 1Amend printed bill, strike everything below the enacting clause and

Page 1, Line 2substitute:

Page 1, Line 3"SECTION 1.  In Colorado Revised Statutes, 39-1-104.6, amend

Page 1, Line 4(2)(a), (3)(a), (5)(c), (6)(a), (8)(a), (8)(b)(I), (8)(c), and (8)(d) as follows:

Page 1, Line 539-1-104.6.  Qualified-senior primary residence real property

Page 1, Line 6- valuation for assessment - reimbursement to local governments for

Page 1, Line 7reduced valuation - temporary mechanism for refunding excess state

Page 1, Line 8revenues - legislative declaration - definitions.

Page 1, Line 9(2)  Classification.

Page 1, Line 10(a)  For property tax years commencing on or after January 1,

Page 1, Line 112025, but before January 1, 2027, residential real property that as of

Page 1, Line 12the assessment date is used as the primary residence of an owner-occupier

Page 1, Line 13is classified as qualified-senior primary residence real property, which is

Page 1, Line 14a subclass of residential real property, if:

Page 1, Line 15(3)  Applications.

Page 1, Line 16(a)  For a property to be classified as qualified-senior primary

Page 1, Line 17residence real property, an individual must file with the assessor a

Page 1, Line 18completed application no later than July 15 of the first property tax year

Page 1, Line 19for which the classification is sought, through July 15, 2026. An

Page 1, Line 20application returned by mail is deemed filed on the date it is postmarked.

Page 1, Line 21(5)  Confidentiality.

Page 1, Line 22(c)  In accordance with section 25-2-103 (4.7), the administrator

Page 1, Line 23shall annually provide to the state registrar of vital statistics of the

Page 1, Line 24department of public health and environment a list, by name and social

Page 1, Line 25security number, of every individual who had property classified as

Page 1, Line 26qualified-senior primary residence real property for the immediately

Page 1, Line 27preceding year so that the registrar can provide to the administrator a list

Page 2, Line 1of all the individuals on the list who have died. No later than April 1,

Page 2, Line 22026, and April 1 of each year thereafter no later than April 1, 2027,

Page 2, Line 3the administrator shall forward to the assessor of each county the name

Page 2, Line 4and social security number of each deceased individual who had

Page 2, Line 5residential real property located within the county that was so classified

Page 2, Line 6for the immediately preceding year so that the assessor can change the

Page 2, Line 7classification of the property, if necessary.

Page 2, Line 8(6)  Notice.

Page 2, Line 9(a)  As soon as practicable after January 1, 2025, and after January

Page 2, Line 101 of each year thereafter January 1, 2026, each county treasurer shall, at

Page 2, Line 11the treasurer's discretion, mail or electronically send to each person whose

Page 2, Line 12name appears on the tax list and warrant as an owner of residential real

Page 2, Line 13property notice of the qualified-senior primary residence real property

Page 2, Line 14classification. The treasurer shall mail or electronically send the notice

Page 2, Line 15each year on or before the date on which the treasurer mails the property

Page 2, Line 16tax statement for the previous property tax year pursuant to section

Page 2, Line 1739-10-103. The administrator shall prescribe the form of the notice, which

Page 2, Line 18must include a statement of the eligibility criteria for the primary

Page 2, Line 19residence real property and qualified-senior primary residence real

Page 2, Line 20property classifications and instructions for obtaining a related

Page 2, Line 21application.

Page 2, Line 22(8)  Reporting to administrator.

Page 2, Line 23(a)  No later than September 10, 2025, and September 10 of each

Page 2, Line 24year thereafter no later than September 10, 2026, each assessor shall

Page 2, Line 25forward to the administrator a report on the residential real property in the

Page 2, Line 26assessor's county that qualifies for classification as qualified-senior

Page 2, Line 27primary residence real property for the current property tax year. For each

Page 2, Line 28unit of residential real property, the report must include:

Page 2, Line 29(b) (I)  The administrator shall examine the reports sent by each

Page 2, Line 30assessor pursuant to subsection (8)(a) of this section to ensure that no

Page 2, Line 31applicant has applied for a qualified-senior primary residence real

Page 2, Line 32property classification without meeting all legal requirements for

Page 2, Line 33obtaining the classification. No later than November 1, 2025, and

Page 2, Line 34November 1 of each year thereafter no later than November 1, 2026,

Page 2, Line 35if the administrator determines that an applicant has applied for more than

Page 2, Line 36one property to be classified as qualified-senior primary residence real

Page 2, Line 37property, the administrator shall provide written notice to the applicant

Page 2, Line 38that the applicant has applied for more than one such classification and

Page 2, Line 39is therefore not entitled to the classification for any property. If the

Page 2, Line 40administrator determines that the applicant and the applicant's spouse

Page 2, Line 41have applied for separate properties to be classified as qualified-senior

Page 2, Line 42primary residence real property, that the classification was applied for in

Page 2, Line 43violation of subsection (4) of this section, that the applicant has claimed

Page 3, Line 1the classification for residential real property that the applicant does not

Page 3, Line 2own and occupy as the applicant's primary residence as required by

Page 3, Line 3subsection (2)(a) of this section, or that the applicant is otherwise

Page 3, Line 4ineligible for the classification, the administrator shall provide written

Page 3, Line 5notice to an applicant that the applicant is ineligible and the reason for the

Page 3, Line 6ineligibility. The notice must also include a statement specifying the

Page 3, Line 7deadline and procedures for protesting the denial of the classification or

Page 3, Line 8classifications claimed.

Page 3, Line 9(c)  No later than December 1, 2025, and each December 1

Page 3, Line 10thereafter no later than December 1, 2026, and after examining the

Page 3, Line 11reports sent by each assessor, denying applications for classification of

Page 3, Line 12property as qualified-senior primary residence real property, and deciding

Page 3, Line 13protests in accordance with subsection (8)(b) of this section, the

Page 3, Line 14administrator shall provide written notice to the assessor of each county

Page 3, Line 15in which an application has been denied because the applicant was

Page 3, Line 16ineligible that includes the identity of each denied applicant and the

Page 3, Line 17reason for each denial.

Page 3, Line 18(d)  No later than January 10, 2026, and each January 10 thereafter

Page 3, Line 19no later than January 10, 2027, each assessor shall forward to the

Page 3, Line 20administrator a partial copy of the tax warrant for the assessor's county

Page 3, Line 21that includes only property for which the assessor has granted an

Page 3, Line 22application for classification as qualified-senior primary residence real

Page 3, Line 23property. The administrator shall examine the tax warrants to ensure that

Page 3, Line 24no additional classifications of property as qualified-senior primary

Page 3, Line 25residence real property have been allowed since the administrator

Page 3, Line 26examined the reports previously received from the assessors and that each

Page 3, Line 27assessor has removed from the tax warrant all such classifications that the

Page 3, Line 28administrator previously denied. No later than January 17, 2026, and no

Page 3, Line 29later than each January 17 thereafter January 17, 2027, the administrator

Page 3, Line 30shall notify each assessor and each treasurer of any such classifications

Page 3, Line 31to be removed from the tax warrant.

Page 3, Line 32SECTION 2.  In Colorado Revised Statutes, 39-3-119.5, amend

Page 3, Line 33(2)(a)(VII), (2)(a)(VIII), (2)(b)(I)(A), (2)(b)(I)(B), (2)(b)(I)(C), (3)(a)(I);

Page 3, Line 34and add (2)(a)(IX) and (2)(b)(III) as follows:

Page 3, Line 3539-3-119.5.  Personal property - exemption - reimbursement to

Page 3, Line 36local governments - legislative declaration - definitions.

Page 3, Line 37(2) (a)  The exemption created in subsection (1) of this section

Page 3, Line 38shall be up to and including the following amounts:

Page 3, Line 39(VII)  Seven thousand seven hundred dollars for property tax years

Page 3, Line 40commencing on January 1, 2019, and January 1, 2020; and

Page 3, Line 41(VIII)  Fifty thousand dollars for property tax years commencing

Page 3, Line 42on January 1, 2021, and January 1, 2022; and

Page 3, Line 43(IX)  Fifty-eight thousand dollars for property tax years

Page 4, Line 1commencing on or after January 1, 2027.

Page 4, Line 2(b) (I) (A)  Beginning with the property tax year commencing on

Page 4, Line 3January 1, 2023, but before January 1, 2027, the amount of the

Page 4, Line 4exemption created in subsection (1) of this section shall be adjusted

Page 4, Line 5biennially to account for inflation since the amount of the exemption last

Page 4, Line 6changed pursuant to this subsection (2). On or before November 1, 2022,

Page 4, Line 7and each even-numbered year thereafter but before 2027, the

Page 4, Line 8administrator shall calculate the amount of the exemption for the next

Page 4, Line 9two-year cycle using inflation for the prior two calendar years as of the

Page 4, Line 10date of the calculation. The adjusted exemption shall be rounded upward

Page 4, Line 11to the nearest one hundred dollar increment. The administrator shall

Page 4, Line 12certify the amount of the exemption for the next two-year cycle and

Page 4, Line 13publish the amount on the website maintained by the division of property

Page 4, Line 14taxation in the department of local affairs.

Page 4, Line 15(B)  When calculating the exemption amount under subsection

Page 4, Line 16(2)(b)(I)(A) of this section, the administrator shall do another calculation

Page 4, Line 17in the same manner but starting from seven thousand nine hundred dollars

Page 4, Line 18instead of fifty fifty-eight thousand dollars. This amount is the

Page 4, Line 19alternative exemption amount.

Page 4, Line 20(C)  If, under subsection (3)(f) of this section, the state treasurer

Page 4, Line 21notifies the administrator that not all counties have received

Page 4, Line 22reimbursement warrants for lost property tax revenue for the amounts

Page 4, Line 23specified in subsection (3)(d) of this section, then beginning with the

Page 4, Line 24property tax year commencing on January 1 that follows the notification,

Page 4, Line 25and for all property tax years thereafter but before property tax year

Page 4, Line 262027, the amount of the exemption in subsection (1) of this section is the

Page 4, Line 27alternative exemption amount. Thereafter, but before property tax

Page 4, Line 28year 2027, the alternative exemption is adjusted biennially to account for

Page 4, Line 29inflation in the same manner as set forth in subsection (2)(b)(I)(A) of this

Page 4, Line 30section, and the administrator shall certify the amount of the exemption

Page 4, Line 31for the next two-year cycle and publish the amount on the website

Page 4, Line 32maintained by the division of property taxation in the department of local

Page 4, Line 33affairs.

Page 4, Line 34(III)  This subsection (2)(b) is repealed, effective January 1,

Page 4, Line 352028.

Page 4, Line 36(3) (a) (I)  For the each property tax year commencing on or

Page 4, Line 37after January 1, 2021, but before January 1, 2027, each assessor shall

Page 4, Line 38calculate the aggregate value of exempt business personal property within

Page 4, Line 39the county based on the property that is listed on schedules for the

Page 4, Line 40property tax year with a total value that is more than seven thousand nine

Page 4, Line 41hundred dollars and less than or equal to fifty fifty-eight thousand

Page 4, Line 42dollars.

Page 4, Line 43SECTION 3.  Act subject to petition - effective date. This act

Page 5, Line 1takes effect at 12:01 a.m. on the day following the expiration of the

Page 5, Line 2ninety-day period after final adjournment of the general assembly (August

Page 5, Line 312, 2026, if adjournment sine die is on May 13, 2026); except that, if a

Page 5, Line 4referendum petition is filed pursuant to section 1 (3) of article V of the

Page 5, Line 5state constitution against this act or an item, section, or part of this act

Page 5, Line 6within such period, then the act, item, section, or part will not take effect

Page 5, Line 7unless approved by the people at the general election to be held in

Page 5, Line 8November 2026 and, in such case, will take effect on the date of the

Page 5, Line 9official declaration of the vote thereon by the governor.".

Page 5, Line 10Page 1, strike lines 102 through 105 and substitute "therewith,

Page 5, Line 11modifying the qualified-senior primary residence benefit

Page 5, Line 12and".