Senate Bill 25-261 Preamended

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, rescinding eligibility for deferral for

• Page 1, Line 106persons who are not seniors or persons called into

• Page 1, Line 107active military service, and making an appropriation.

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.

• 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, 39-3.5-101, repeal

• Page 2, Line 3(2.5) and (3.5) as follows:

• Page 2, Line 439-3.5-101.  Definitions. As used in this article 3.5, unless the

• Page 2, Line 5context otherwise requires:

• Page 2, Line 6(2.5)  "State treasurer" includes a third-party administrator that

• Page 2, Line 7enters into a contract with the state treasurer to administer the property

• Page 2, Line 8tax deferral program created in this article 3.5 in accordance with section

• Page 2, Line 939-3.5-103.5 (2).

• Page 2, Line 10(3.5)  "Tax-growth cap" means:

• Page 2, Line 11(a)  For property tax years commencing before January 1, 2025, an

• Page 2, Line 12amount equal to the average of a person's real property taxes paid on the

• Page 2, Line 13same homestead for the two property tax years preceding the year a

• Page 3, Line 1deferral is claimed, increased by four percent; and

• Page 3, Line 2(b)  For property tax years commencing on or after January 1,

• Page 3, Line 32025, an amount equal to the average of a person's real property taxes

• Page 3, Line 4paid on the same homestead for the two property tax years preceding the

• Page 3, Line 5year a deferral is claimed.

• Page 3, Line 6SECTION 2.  In Colorado Revised Statutes, 39-3.5-102, amend

• Page 3, Line 7(1)(a), (2) introductory portion, (2)(a), and (2.5)(a); and repeal (1)(c) and

• Page 3, Line 8(2.5)(b) as follows:

• Page 3, Line 939-3.5-102.  Deferral of tax on homestead - qualifications -

• Page 3, Line 10filing of claim. (1) (a)  Subject to the provisions of this article 3.5, a

• Page 3, Line 11person who is sixty-five years of age or older or who is a person called

• Page 3, Line 12into military service on January 1 of the year in which the person files a

• Page 3, Line 13claim under this section may elect to defer the payment of real property

• Page 3, Line 14taxes. To exercise this option, the taxpayer must file a claim for deferral

• Page 3, Line 15with the state treasurer Of The County In Which The Taxpayer's

• Page 3, Line 16Homestead Is Located. The claim must be filed after January 1 and on

• Page 3, Line 17or before April 1 of each year in which the taxpayer claims the deferral.

• Page 3, Line 19(c) (I)  Subject to the provisions of this article 3.5, including the

• Page 3, Line 20limitations set forth in subsection (1)(c)(II) of this section, beginning

• Page 3, Line 21January 1, 2023, a person who is not otherwise eligible for deferral under

• Page 3, Line 22this section may elect to defer the payment of the portion of real property

• Page 3, Line 23taxes that exceed the person's tax-growth cap. To exercise this option, the

• Page 3, Line 24taxpayer must file a claim for deferral with the state treasurer. The

• Page 3, Line 25taxpayer must file the claim after January 1 and on or before April 1 of

• Page 3, Line 26each year in which the taxpayer claims the deferral.

• Page 3, Line 27(II)  In addition to any other limitations set forth in this article 3.5,

• Page 4, Line 1the minimum amount of real property taxes that may be deferred under

• Page 4, Line 2this subsection (1)(c) at one time is one hundred dollars, and the total

• Page 4, Line 3amount of real property taxes that a person may defer under this

• Page 4, Line 4subsection (1)(c) for all years shall not exceed ten thousand dollars. If a

• Page 4, Line 5taxpayer's surviving spouse elects to continue deferral under section

• Page 4, Line 639-3.5-112 (1.5)(a), the same total limit applies to the taxpayer and the

• Page 4, Line 7surviving spouse.

• Page 4, Line 8(III)  A person who previously deferred real property taxes as a

• Page 4, Line 9person called into military service but is no longer eligible for a new

• Page 4, Line 10deferral on that basis may defer additional real property taxes under this

• Page 4, Line 11subsection (1)(c).

• Page 4, Line 12(2)  When a taxpayer who is sixty-five years of age or older Or

• Page 4, Line 13who is a person called into military service or who is otherwise eligible

• Page 4, Line 14under subsection (1)(c) of this section files a valid claim for deferral

• Page 4, Line 15under subsection (1) of this section, it has the effect of:

• Page 4, Line 16(a)  Deferring the payment of the taxpayer's real property taxes or

• Page 4, Line 17in the case of a person who is otherwise eligible, a portion of the

• Page 4, Line 18taxpayer's real property taxes, for the calendar year previous to the year

• Page 4, Line 19in which the claim is filed;

• Page 4, Line 20(2.5) (a)  A person called into military service may defer only the

• Page 4, Line 21real property taxes payable in a year in which the person is a person called

• Page 4, Line 22into military service. A person who is no longer a person called into

• Page 4, Line 23military service may file a valid claim in a subsequent year to continue the

• Page 4, Line 24prior allowable deferral of taxes Payable In A Year In Which The

• Page 4, Line 25Person Was A Person Called Into Military Service.

• Page 4, Line 26(b)  A person who defers a portion of real property taxes under

• Page 4, Line 27subsection (1)(c) of this section may file a valid claim in a subsequent

• Page 5, Line 1year to continue the prior allowable deferral of taxes.

• Page 5, Line 2SECTION 3.  In Colorado Revised Statutes, 39-3.5-103, amend

• Page 5, Line 3(1)(d.5)(I)(B) and (1)(d.5)(II) as follows:

• Page 5, Line 439-3.5-103.  Property entitled to deferral. (1)  In order to qualify

• Page 5, Line 5for real property tax deferral under this article 3.5, the property shall meet

• Page 5, Line 6all of the following requirements at the time the claim is filed and so long

• Page 5, Line 7thereafter as payment is deferred:

• Page 5, Line 8(d.5) (I)  Either of the following applies to the property:

• Page 5, Line 9(B)  The owner of the property is a person called into military

• Page 5, Line 10service or a person eligible for deferral under section 39-3.5-102 (1)(c),

• Page 5, Line 11and the total value of all liens of mortgages and deeds of trust on the

• Page 5, Line 12property, excluding any mortgage or deed of trust that the holder has

• Page 5, Line 13agreed, on a form designated by the state treasurer, to subordinate to the

• Page 5, Line 14lien of the state for deferred taxes, is less than or equal to ninety percent

• Page 5, Line 15of the actual value of the property, as determined by the county assessor;

• Page 5, Line 16except that, for property tax years commencing on or after January 1,

• Page 5, Line 172023, the limitation on the total value of all liens of mortgages and deeds

• Page 5, Line 18of trust on the property set forth in this subsection (1)(d.5)(I)(B) does not

• Page 5, Line 19apply if the owner of the property is a person called into military service

• Page 5, Line 20and who has a home loan guaranteed by the veterans administration of the

• Page 5, Line 21United States.

• Page 5, Line 22(II)  For purposes of this subsection (1)(d.5), the actual value of

• Page 5, Line 23the property shall be the most recent appraisal by the county assessor as

• Page 5, Line 24of the time the claim for deferral is submitted To The County

• Page 5, Line 25Treasurer.

• Page 5, Line 26SECTION 4.  In Colorado Revised Statutes, repeal 39-3.5-103.5

• Page 5, Line 27as follows:

• Page 6, Line 139-3.5-103.5.  State treasurer - program administration - rules.

• Page 6, Line 2(1)  The state treasurer may conduct a public education campaign about

• Page 6, Line 3the property tax deferral program created in this article 3.5.

• Page 6, Line 4(2)  The state treasurer may contract with a third party to

• Page 6, Line 5administer the property tax deferral program on behalf of the state

• Page 6, Line 6treasurer.

• Page 6, Line 7(3)  The state treasurer may promulgate rules, in accordance with

• Page 6, Line 8article 4 of title 24, related to the administration of the property tax

• Page 6, Line 9deferral program.

• Page 6, Line 10SECTION 5.  In Colorado Revised Statutes, 39-3.5-104, amend

• Page 6, Line 11(1) introductory portion as follows:

• Page 6, Line 1239-3.5-104.  Claim form - contents. (1)  A taxpayer's claim for

• Page 6, Line 13deferral must be in writing on a form prescribed and supplied by the state

• Page 6, Line 14treasurer and Supplied By The County Treasurer And must:

• Page 6, Line 15SECTION 6.  In Colorado Revised Statutes, 39-3.5-105, amend

• Page 6, Line 16(1); and repeal(1.5); and add (6) as follows:

• Page 6, Line 1739-3.5-105.  Listing of tax-deferred property - tax as lien -

• Page 6, Line 18interest accrual. (1)  If eligibility for deferral of homestead property is

• Page 6, Line 19established as provided in this article 3.5, the state treasurer shall issue a

• Page 6, Line 20certificate of deferral, which includes the name of the taxpayer, the

• Page 6, Line 21description of the property, the amount of tax deferred, and the year for

• Page 6, Line 22which the deferral was granted, and record the certificate of deferral with

• Page 6, Line 23the county clerk and recorder in the county where the property is located.

• Page 6, Line 24The state treasurer shall notify the county treasurer of a property's

• Page 6, Line 25eligibility and provide the county treasurer with the certificate of deferral,

• Page 6, Line 26and the county treasurer shall:

• Page 6, Line 27(a)  Enter in the county treasurer's records a notation that the

• Page 7, Line 1property is tax-deferred;

• Page 7, Line 2(b) (I)  Retain one copy Promptly, Upon Designation Of The

• Page 7, Line 3Property As Tax Deferred, Issue A Certificate Of Deferral, On A

• Page 7, Line 4Form Prescribed By The State Treasurer, That Includes The Name

• Page 7, Line 5Of The Taxpayer, The Description Of The Property, The Amount Of

• Page 7, Line 6Tax Deferred, And The Year For Which The Deferral Was Granted.

• Page 7, Line 7The County Clerk And Recorder Shall Record The Certificate In

• Page 7, Line 8The County Records And Thereafter Send A Copy Of The

• Page 7, Line 9Certificate To The State Treasurer. The County Treasurer Shall

• Page 7, Line 10Give One Copy Of The Certificate To The Assessor And Shall Retain

• Page 7, Line 11One Copy in the county treasurer's office.

• Page 7, Line 12(II)  Promptly, upon designation of a mobile home as tax-deferred,

• Page 7, Line 13the owner of the mobile home shall surrender title to the property to the

• Page 7, Line 14state treasurer County Clerk And Recorder. The county clerk and

• Page 7, Line 15recorder shall, pursuant to the provisions of article 29 of title 38, make

• Page 7, Line 16application with the department of revenue for issuance of a new

• Page 7, Line 17certificate of title with a record of the lien of the state treasurer. This

• Page 7, Line 18procedure shall be followed for each subsequent year that the property is

• Page 7, Line 19deferred. The County Treasurer Shall Issue A Certificate Of

• Page 7, Line 20Deferral, On A Form Prescribed By The State Treasurer, That

• Page 7, Line 21Includes The Name Of The Taxpayer, The Description Of The

• Page 7, Line 22Property, The Amount Deferred, And The Tax Year For Which The

• Page 7, Line 23Deferral Was Granted, And Shall Send Such Certificate To The

• Page 7, Line 24State Treasurer. The County Treasurer Shall Give One Copy Of

• Page 7, Line 25The Certificate To The County Assessor And Shall Retain One Copy

• Page 7, Line 26In The County Treasurer's Office. Upon satisfaction of the lien, the

• Page 7, Line 27state treasurer shall release the lien from the title.

• Page 8, Line 1(1.5)  Notwithstanding any provision of law to the contrary, a

• Page 8, Line 2county clerk and recorder shall not charge a fee for recording the

• Page 8, Line 3certificate of deferral in accordance with subsection (1) of this section.

• Page 8, Line 4(6)  No Later Than January 1 Of Each Year, The State

• Page 8, Line 5Treasurer Shall Provide To Each County Treasurer A List By

• Page 8, Line 6Owner And Address Of Each Property In The Treasurer's County

• Page 8, Line 7That Is Subject To One Or More Property Tax Deferral Liens

• Page 8, Line 8Pursuant To This Article 3.5 And The Total Amount Of The Lien Or

• Page 8, Line 9Liens On The Property As Of April 30 Of The Prior Year.

• Page 8, Line 10SECTION 7.  In Colorado Revised Statutes, 39-3.5-106, repeal

• Page 8, Line 11(3) as follows:

• Page 8, Line 1239-3.5-106.  State treasurer to pay county treasurer an amount

• Page 8, Line 13equivalent to deferred taxes. (3)  If a taxpayer defers all or part of the

• Page 8, Line 14property taxes due for a property tax year and the county treasurer

• Page 8, Line 15receives a payment from, or on behalf of, the taxpayer so that the total

• Page 8, Line 16received from the state treasurer and the payer is greater than the

• Page 8, Line 17taxpayer's property taxes due, then the county treasurer shall refund the

• Page 8, Line 18excess to the payer of the taxes.

• Page 8, Line 19SECTION 8.  In Colorado Revised Statutes, 39-3.5-107, amend

• Page 8, Line 20(2) as follows:

• Page 8, Line 2139-3.5-107.  Repayment of loans - release of liens - disposition

• Page 8, Line 22of payments. (2)  A taxpayer must tender repayments of a loan for

• Page 8, Line 23deferred taxes to the state treasurer, and the state treasurer shall give the

• Page 8, Line 24taxpayer a receipt therefor. A county treasurer shall not accept a

• Page 8, Line 25repayment. If Repayment Of A Loan For Deferred Taxes Is Tendered

• Page 8, Line 26To The County Treasurer, The County Treasurer Shall Accept

• Page 8, Line 27Payment, Give The Payer A Receipt For The Payment, And Promptly

• Page 9, Line 1Transmit The Money Collected To The State Treasurer.

• Page 9, Line 2SECTION 9.  In Colorado Revised Statutes, amend 39-3.5-108

• Page 9, Line 3as follows:

• Page 9, Line 439-3.5-108.  Notice to taxpayer regarding duty to claim

• Page 9, Line 5deferral annually.As soon as practicable after January 1, the state

• Page 9, Line 6treasurer shall send a deferral At The Time The Treasurer Sends The

• Page 9, Line 7Annual Property Tax notice to any taxpayer who has claimed a deferral

• Page 9, Line 8of property taxes in the previous calendar year, The Treasurer Shall

• Page 9, Line 9Enclose A Deferral Notice. The deferral notice must be substantially

• Page 9, Line 10in the following form:

• Page 9, Line 11To: (name of taxpayer)

• Page 9, Line 12If you want to defer the collection of ad valorem property taxes on

• Page 9, Line 13your homestead for the assessment year ending on December 31, , you

• Page 9, Line 14must file a claim for deferral not later than April 1, , with (state

• Page 9, Line 15treasurer or the name of third-party administrator, if applicable) The

• Page 9, Line 16Office Of The County Treasurer. Forms for filing the claims are

• Page 9, Line 17available at (website and mailing address for state treasurer or third-party

• Page 9, Line 18administrator, if applicable) The County Treasurer's Office.

• Page 9, Line 19If you fail to file your claim for deferral on or before April 1, ,

• Page 9, Line 20your real property taxes will be due and payable in accordance with the

• Page 9, Line 21schedule set out in the Enclosed tax notice. you separately received from

• Page 9, Line 22your county treasurer.

• Page 9, Line 23If you change your permanent address at any time during the

• Page 9, Line 24assessment year ending on December 31, , you must notify the state

• Page 9, Line 25treasurer promptly County Treasurer.

• Page 9, Line 26SECTION 10.  In Colorado Revised Statutes, amend 39-3.5-109

• Page 9, Line 27as follows:

• Page 10, Line 139-3.5-109.  Failure to receive notices. Failure to receive the

• Page 10, Line 2notice provided for in this article 3.5 is not a defense in any proceeding

• Page 10, Line 3for the collection of taxes or for the foreclosure of a tax lien. Neither the

• Page 10, Line 4state treasurer nor A county treasurer is Not personally liable for failure

• Page 10, Line 5to give such notices.

• Page 10, Line 6SECTION 11.  Appropriation. For the 2025-26 state fiscal year,

• Page 10, Line 7$160,826 is appropriated to the department of treasury for use by

• Page 10, Line 8administration. This appropriation is from the general fund. To implement

• Page 10, Line 9this act, administration may use this appropriation for operating expenses.

• Page 10, Line 10SECTION 12.  Effective date. This act takes effect July 1, 2025.

• Page 10, Line 11SECTION 13.  Safety clause. The general assembly finds,

• Page 10, Line 12determines, and declares that this act is necessary for the immediate

• Page 10, Line 13preservation of the public peace, health, or safety or for appropriations for

• Page 10, Line 14the support and maintenance of the departments of the state and state

• Page 10, Line 15institutions.