House Bill 25-1095 Introduced

A Bill for an Act

• Page 1, Line 101Concerning requirements of a petitioner, including their

• Page 1, Line 102agent or representative, in certain property tax

• Page 1, Line 103appeals.

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.)

The bill requires that, for protests to the county assessor and at hearings for property tax appeals concerning nonresidential real property that is not agricultural property, the requested valuation that is set forth by a petitioner or a petitioner's agent or representative for that property be made in compliance with the uniform standards of professional appraisal practice.

Current law requires that any petitioner appealing either a valuation of rent-producing commercial real property to the board of assessment appeals or a denial of an abatement of taxes provide certain documentation and data regarding the property. The bill requires that, in addition to these existing requirements, the petitioner also provide full copies of all leases that are in place as of the date of valuation and any market data that the petitioner has relied on in determining the valuation that the petitioner is requesting in their appeal.

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

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 39-5-122, add (2.7) as follows:

• Page 2, Line 339-5-122.  Taxpayer's remedies to correct errors - definition.

• Page 2, Line 4(2.7)  For any protest concerning nonresidential real property

• Page 2, Line 5that is not agricultural property, the requested valuation that

• Page 2, Line 6is set forth by a protester or a protester's agent or

• Page 2, Line 7representative for that property must be made in compliance

• Page 2, Line 8with the uniform standards of professional appraisal practice.

• Page 2, Line 9As used in this subsection (2.7), "uniform standards of

• Page 2, Line 10professional appraisal practice" has the same meaning as set forth in section 12-10-602 (10).

• Page 2, Line 11SECTION 2.  In Colorado Revised Statutes, 39-8-107, amend (1) and (5)(a)(I)(C); and add (5)(a)(I)(E) and (5)(a)(I)(F) as follows:

• Page 2, Line 1239-8-107.  Hearings on appeal - definition. (1) (a) (I)  At the

• Page 2, Line 13hearing upon a petition, the assessor or the assessor's authorized

• Page 2, Line 14representative shall be present and shall produce information to support

• Page 2, Line 15the basis and amount of the assessor's valuation of the property. The

• Page 2, Line 16board shall hear and consider all testimony and examine all exhibits

• Page 2, Line 17produced or introduced by either the petitioner or the assessor, with no

• Page 3, Line 1presumption in favor of any pending valuation, and may subpoena

• Page 3, Line 2witnesses to testify. The costs of producing the petitioner's witnesses shall

• Page 3, Line 3be paid by the petitioner, and the costs of producing the assessor's witnesses shall be paid by the county.

• Page 3, Line 4(II)  At any hearing on a petition concerning

• Page 3, Line 5nonresidential real property that is not agricultural property,

• Page 3, Line 6the requested valuation that is set forth by a petitioner or a

• Page 3, Line 7petitioner's agent or representative for that property must be

• Page 3, Line 8made in compliance with the uniform standards of professional

• Page 3, Line 9appraisal practice. As used in this subsection (1)(a)(II), "uniform

• Page 3, Line 10standards of professional appraisal practice" has the same meaning as set forth in section 12-10-602 (10).

• Page 3, Line 11(b)  On the basis of the testimony produced and the exhibits

• Page 3, Line 12introduced in accordance with subsection (1)(a) of this section, the

• Page 3, Line 13board shall grant or deny the petition, in whole or in part, and shall notify

• Page 3, Line 14the petitioner and the assessor in writing. If the board denies the petition,

• Page 3, Line 15in whole or in part, such written notice shall inform the petitioner of the

• Page 3, Line 16right to appeal within the thirty-day period following the denial to the

• Page 3, Line 17district court or the board of assessment appeals pursuant to section

• Page 3, Line 1839-8-108 (1) or within the thirty-day period following the denial to submit

• Page 3, Line 19the case to arbitration pursuant to section 39-8-108.5. Such notice shall

• Page 3, Line 20state that, if the appeal is to the board of assessment appeals, the hearing

• Page 3, Line 21before the board of assessment appeals shall be the last hearing at which

• Page 3, Line 22testimony, exhibits, or any other type of evidence may be introduced by

• Page 3, Line 23either party and that, if there is an appeal to the court of appeals pursuant

• Page 3, Line 24to section 39-8-108 (2), the record from the hearing before the board of

• Page 3, Line 25assessment appeals and no new evidence shall be the basis for the court's

• Page 4, Line 1decision. The phone number and address of the board of assessment

• Page 4, Line 2appeals shall also be included on the notice. The notice shall also state,

• Page 4, Line 3in general terms, how to pursue arbitration and that, if a taxpayer submits

• Page 4, Line 4the case to arbitration, the decision reached under such process shall be

• Page 4, Line 5final and not subject to review. If a referee heard the case, the board shall,

• Page 4, Line 6at the written request of any taxpayer or any agent of such taxpayer within

• Page 4, Line 7seven working days after receipt of said request, make available to the

• Page 4, Line 8taxpayer or agent the referee's findings and recommendations. At the

• Page 4, Line 9board's election, the board may either mail, fax, or send by electronic

• Page 4, Line 10transmission such findings and recommendations to the address, phone

• Page 4, Line 11number, or electronic address supplied by said taxpayer or agent. Upon

• Page 4, Line 12receipt of such request, the board shall notify the taxpayer or agent of the

• Page 4, Line 13estimated cost of providing such findings and recommendations, payment

• Page 4, Line 14of which shall be made prior to providing such findings and

• Page 4, Line 15recommendations. Upon providing such findings and recommendations,

• Page 4, Line 16the board may include a bill for the reasonable cost above the estimated

• Page 4, Line 17cost and up to the statutory maximum which shall be due and payable upon receipt by the taxpayer or agent.

• Page 4, Line 18(5) (a) (I)  On and after August 10, 2011, in addition to any other

• Page 4, Line 19requirements under law, any petitioner appealing either a valuation of

• Page 4, Line 20rent-producing commercial real property to the board of assessment

• Page 4, Line 21appeals pursuant to section 39-8-108 (1) or a denial of an abatement of

• Page 4, Line 22taxes pursuant to section 39-10-114 shall provide to the county board of

• Page 4, Line 23equalization or to the board of county commissioners of the county in the

• Page 4, Line 24case of an abatement, and not to the board of assessment appeals, the following information, if applicable:

• Page 4, Line 25(C)  Itemized expenses for two full years including the base year for the relevant property tax year; and

• Page 5, Line 1(E)  Full copies of all leases that are in place as of the date of valuation; and

• Page 5, Line 2(F)  Any market data that the petitioner has relied on in

• Page 5, Line 3determining the valuation that the petitioner is requesting in their appeal.

• Page 5, Line 4SECTION 3.  In Colorado Revised Statutes, 39-8-108, amend (5)(d) and (5)(e); and add (5)(f) as follows:

• Page 5, Line 539-8-108.  Decision - review - opportunity to submit case to

• Page 5, Line 6arbitration - definition. (5)  In any appeal authorized by this section or by section 39-5-122, 39-5-122.7, or 39-10-114:

• Page 5, Line 7(d)  Upon request, the respondent shall make available to the

• Page 5, Line 8taxpayer two working days prior to any appeal hearing data supporting the

• Page 5, Line 9assessor's valuation. Such request shall be accompanied by data

• Page 5, Line 10supporting the taxpayer's valuation. Nothing in this paragraph (d) shall be

• Page 5, Line 11construed to prohibit subsection (5)(d) prohibits the introduction at

• Page 5, Line 12such appeal hearing of any data discovered as a result of the exchange of data required by this paragraph (d); and subsection (5)(d);

• Page 5, Line 13(e)  In using the market approach to determine the value of

• Page 5, Line 14residential real property, if the assessor has knowledge of the conversion

• Page 5, Line 15from one residential use to a different residential use, such conversion

• Page 5, Line 16shall create a rebuttable presumption that the sale of such property is not

• Page 5, Line 17a comparable sale for purposes of establishing the value of a property having a similar prior residential use; and

• Page 5, Line 18(f)  If the appeal is concerning nonresidential real

• Page 5, Line 19property that is not agricultural property, the requested

• Page 5, Line 20valuation that is set forth by a petitioner or a petitioner's agent

• Page 6, Line 1or representative for that property must be made in compliance

• Page 6, Line 2with the uniform standards of professional appraisal practice.

• Page 6, Line 3As used in this subsection (5)(f), "uniform standards of

• Page 6, Line 4professional appraisal practice" has the same meaning as set forth in section 12-10-602 (10).

• Page 6, Line 5SECTION 4.  Act subject to petition - effective date -

• Page 6, Line 6applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 6, Line 7the expiration of the ninety-day period after final adjournment of the

• Page 6, Line 8general assembly; except that, if a referendum petition is filed pursuant

• Page 6, Line 9to section 1 (3) of article V of the state constitution against this act or an

• Page 6, Line 10item, section, or part of this act within such period, then the act, item,

• Page 6, Line 11section, or part will not take effect unless approved by the people at the

• Page 6, Line 12general election to be held in November 2026 and, in such case, will take

• Page 6, Line 13effect on the date of the official declaration of the vote thereon by the governor.

• Page 6, Line 14(2)  This act applies to notices of objection and protest as set forth

• Page 6, Line 15in section 39-5-121 (1)(a)(I), C.R.S., petitions for appeals to the county

• Page 6, Line 16boards of equalization as set forth in section 39-8-106 (1), C.R.S., and

• Page 6, Line 17petitions for appeals to the state board of assessment appeals, district

• Page 6, Line 18court, or arbitration as set forth in 39-8-108 (1), C.R.S., that are received on or after the applicable effective date of this act.