A Bill for an Act
Page 1, Line 101Concerning the expansion of property tax exemptions for
Page 1, Line 102certain owner-occupied primary residences.
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.)
For property tax years commencing during property tax reassessment cycles (cycles) that begin on or after January 1, 2025, the bill changes the amount of the exemptions for the owner-occupied primary residence (residence) of a qualifying senior, a veteran with a disability, or the surviving spouse of a United States armed forces service member who died in the line of duty or veteran whose death resulted from a service-related injury or disease (exemptions) from 50% of the first $200,000 of actual value of the residence to 50% of an amount of actual value of the residence equal to 50% of the estimated state median home value (median home value) for the state; except that, if the median home value declines, the exemption amount continues to be calculated based on the median home value used to calculate the exemption amount for the property tax years included in the prior cycle.
The state constitution currently only allows a senior who has owned and occupied the senior's residence for 10 years, or the surviving spouse of such a senior (surviving spouse), to claim the exemption. If at the 2026 general election the voters of the state approve a referred constitutional amendment to allow a senior or a surviving spouse who has previously qualified for the exemption for 2016 or any later year for a prior residence to claim the exemption for the senior's or surviving spouse's current residence regardless of how long the senior or surviving spouse has owned and occupied that residence, the bill makes the statutory changes needed to conform to the constitutional amendment.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 39-3-203, amend (1)
Page 2, Line 3introductory portion, (1)(a), (1.5)(a) introductory portion, (1.5)(a.5), and (6)(a); and add (1.7) and (1.8) as follows:
Page 2, Line 439-3-203. Property tax exemption - qualifications - definitions.
Page 2, Line 5(1) For the property tax year commencing January 1, 2002, for property
Page 2, Line 6tax years commencing on or after January 1, 2006, but before January 1,
Page 2, Line 72009, and for property tax years commencing on or after January 1, 2012,
Page 2, Line 8but before January 1, 2025, fifty percent of the first two hundred
Page 2, Line 9thousand dollars of actual value of residential real property that as of the
Page 2, Line 10assessment date is owner-occupied and is used as the primary residence
Page 2, Line 11of the owner-occupier
shall beandPage 2, Line 12tax years commencing on or after January 1, 2003, but before January 1,
Page 2, Line 132006, and on or after January 1, 2009, but before January 1, 2012, fifty
Page 2, Line 14percent of zero dollars of actual value of
residential real property that asPage 2, Line 15
of the assessment date is owner-occupied and is used as the primaryPage 3, Line 1
residence of the owner-occupier shall bePage 3, Line 2taxation; and for property tax years commencing on or after
Page 3, Line 3January 1, 2025, an amount of the actual value of such property
Page 3, Line 4that is equal to the lesser of fifty percent of the actual value
Page 3, Line 5of such property or fifty percent of an amount equal to fifty
Page 3, Line 6percent of the estimated state median home value is exempt from taxation, if:
Page 3, Line 7(a) (I) The owner-occupier is sixty-five years of age or older as of
Page 3, Line 8the assessment date and has owned and occupied such residential real
Page 3, Line 9property as
his or herorPage 3, Line 10(II) The owner-occupier is the surviving spouse of an
Page 3, Line 11owner-occupier who previously qualified for a property tax exemption for
Page 3, Line 12the same residential real property under
subparagraph (I) of this paragraph (a); andPage 3, Line 13(III) For property tax years commencing on or after
Page 3, Line 14January 1, 2027, only, the owner-occupier had received an
Page 3, Line 15exemption pursuant to subsection (1)(a)(I) or (1)(a)(II) of this
Page 3, Line 16section or this subsection (1)(a)(III), for any property tax year
Page 3, Line 17commencing on or after January 1, 2016, for residential real
Page 3, Line 18property that the owner-occupier thereafter ceased occupying, for any period, as the owner-occupier's primary residence; and
Page 3, Line 19(1.5) (a) For property tax years commencing on or after January
Page 3, Line 201, 2007, but before January 1, 2025, fifty percent of the first two
Page 3, Line 21hundred thousand dollars of actual value of residential real property that
Page 3, Line 22as of the assessment date is owner-occupied and is used as the primary
Page 3, Line 23residence of an owner-occupier who is a qualifying veteran with a
Page 4, Line 1disability
shall bePage 4, Line 2years commencing on or after January 1, 2025, an amount of the
Page 4, Line 3actual value of such property that is equal to the lesser of
Page 4, Line 4fifty percent of the actual value of such property or fifty
Page 4, Line 5percent of an amount equal to fifty percent of the estimated state median home value is exempt from taxation, if:
Page 4, Line 6(a.5) For property tax years commencing on or after January 1,
Page 4, Line 72015, fifty percent of the first two hundred thousand dollars of actual
Page 4, Line 8value of residential real property that as of the assessment date is
Page 4, Line 9owner-occupied and is used as the primary residence of an
Page 4, Line 10owner-occupier who is the surviving spouse of a qualifying veteran with
Page 4, Line 11a disability who previously received an exemption under subsection
Page 4, Line 12(1.5)(a) of this section or who is an eligible spouse, as defined in
Page 4, Line 13section 3.5 (1.7) of article X of the state constitution, is exempt
Page 4, Line 14from taxation; and for property tax years commencing on or after
Page 4, Line 15January 1, 2025, an amount of the actual value of such property
Page 4, Line 16that is equal to the lesser of fifty percent of the actual value
Page 4, Line 17of such property or fifty percent of an amount equal to fifty
Page 4, Line 18percent of the estimated state median home value is exempt from taxation.
Page 4, Line 19(1.7) No later than March 15, 2025, and no later than
Page 4, Line 20March 15 of the first year of each property tax reassessment
Page 4, Line 21cycle thereafter, the staff of the legislative council shall
Page 4, Line 22calculate and provide to the administrator the estimated state
Page 4, Line 23median home value for the property tax years that commence during the current property tax reassessment cycle.
Page 4, Line 24(1.8) As used in this section, unless the context otherwise requires:
Page 5, Line 1(a) "Estimated state median home value" means:
Page 5, Line 2(I) For the property tax years that commence during the
Page 5, Line 3property tax reassessment cycle that begins on January 1, 2025,
Page 5, Line 4the most recent available estimate of median home value for the
Page 5, Line 5state of Colorado in the United States bureau of the census
Page 5, Line 6American community survey, adjusted for inflation or deflation
Page 5, Line 7through the fourth quarter of 2024 and rounded to the nearest one thousand dollars; and
Page 5, Line 8(II) For the property tax years that commence during
Page 5, Line 9each subsequent property tax reassessment cycle, the greater
Page 5, Line 10of the estimated state median home value for the property tax
Page 5, Line 11years that commenced during the prior property tax
Page 5, Line 12reassessment cycle or the most recent available estimate of
Page 5, Line 13median home value for the state of Colorado in the United
Page 5, Line 14States bureau of the census American community survey,
Page 5, Line 15adjusted for inflation or deflation through the fourth quarter
Page 5, Line 16of the calender year that immediately precedes the first
Page 5, Line 17property tax year of the property tax reassessment cycle and rounded to the nearest one thousand dollars.
Page 5, Line 18(b) "Inflation or deflation" means the percentage change
Page 5, Line 19in the federal housing finance agency's seasonally adjusted
Page 5, Line 20quarterly purchase-only house price index for the state of Colorado.
Page 5, Line 21(c) "Property tax reassessment cycle" means the reassessment cycle described in section 39-1-104 (10.2).
Page 5, Line 22(6) (a) Notwithstanding the ten-year occupancy requirement set
Page 6, Line 1forth in
subparagraph (I) of paragraph (a) of subsection (1)Page 6, Line 2(1)(a)(I) and (1)(a)(II) of this section, an owner-occupier who does not
Page 6, Line 3qualify for an exemption pursuant to subsection (1)(a)(III) of this
Page 6, Line 4section and who has not actually owned and occupied residential real
Page 6, Line 5property for which the owner-occupier has claimed an exemption
underPage 6, Line 6
said subsection (1)Page 6, Line 7this section for the ten years preceding the assessment date
shall bePage 6, Line 8deemed to have met the ten-year requirement and
shall bePage 6, Line 9exemption
under said subsection (1)Page 6, Line 10(I) The owner-occupier would have qualified for the exemption
Page 6, Line 11with respect to other residential real property that the owner-occupier
Page 6, Line 12owned and occupied as
his or herPage 6, Line 13residence before moving to the residential real property for which an
Page 6, Line 14exemption is claimed but for the fact that the other property was
Page 6, Line 15condemned by a governmental entity through an eminent domain proceeding; or
Page 6, Line 16(I.5) For property tax years commencing on or after January 1,
Page 6, Line 172015, the owner-occupier would have qualified for the exemption with
Page 6, Line 18respect to other residential real property that the owner-occupier owned
Page 6, Line 19and occupied as
his or herPage 6, Line 20before moving to the residential real property for which an exemption is
Page 6, Line 21claimed but for the fact that a natural disaster destroyed the former primary residence or otherwise rendered it uninhabitable; and
Page 6, Line 22(II) The owner-occupier has not owned and occupied residential
Page 6, Line 23property as
his or herPage 6, Line 24than the residential real property for which an exemption is claimed since the condemnation occurred.
Page 7, Line 1SECTION 2. Act subject to petition - effective date. (1) Except
Page 7, Line 2as otherwise provided in subsections (2) and (3) of this section, this act
Page 7, Line 3takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly.
Page 7, Line 4(2) If a referendum petition is filed pursuant to section 1 (3) of
Page 7, Line 5article V of the state constitution against this act or an item, section, or
Page 7, Line 6part of this act within the period specified in subsection (1) of this
Page 7, Line 7section, then the act, item, section, or part will not take effect unless
Page 7, Line 8approved by the people at the general election to be held in November
Page 7, Line 92026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
Page 7, Line 10(3) Section 39-3-203 (1)(a), Colorado Revised Statutes, as
Page 7, Line 11amended in section 1 of this act, takes effect only if the ballot title
Page 7, Line 12submitted to the registered electors of the state pursuant to House
Page 7, Line 13Concurrent Resolution 25-_____ is approved by the people at the next
Page 7, Line 14general election, in which case section 39-3-203 (1)(a), Colorado Revised
Page 7, Line 15Statutes, as amended in section 1 of this act, takes effect on the date of the official declaration of the vote thereon by the governor.