A Bill for an Act
Page 1, Line 101Concerning property tax exemptions for real property
Page 1, Line 102leased to public entities.
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.)
Current law grants a property tax exemption to a part of real property that is used by the state, a political subdivision, or a state-supported institution of higher education (public entity) for purposes of the public entity pursuant to a lease or rental agreement. Current law requires a public entity claiming a property tax exemption to file a copy of the lease or rental agreement with the county assessor's office.
The bill requires a metropolitan district to also file with the county assessor's office a statement (statement) describing:
- The metropolitan district's use of the leased property;
- The metropolitan district's authority to use the leased property for the metropolitan district's purposes;
- Any use of the leased property by a private person for private purposes; and
- Any disclosure filed by a member of the board of directors of the metropolitan district in accordance with certain laws that govern disclosures of conflicts of interest.
If the statement includes a disclosure that relates to the leased property and is filed by a member of the board of directors of the metropolitan district in accordance with certain laws that govern disclosures of conflicts of interest, the county assessor shall, within 30 days of receipt of the statement, submit the statement to the metropolitan district's governing body. Within 180 days of receipt of the statement, the governing body shall issue a written decision including findings of fact and a conclusion as to whether the leased property is used for a public purpose. If the governing body concludes that the leased property is not used for a public purpose, the leased property is not exempt from taxation. The decision of the governing body is not subject to appeal and does not give rise to any private right of action.
A leasehold interest in real or personal property that is owned by a private person and that has been leased to the state or a political subdivision of the state, the use and possession of which has been leased back to a private person for private purposes, is taxable to the owner.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 39-3-124, amend
Page 2, Line 3(1)(b)(I)(A) and (1)(b)(II); and add (1)(b)(I)(F), (1)(b)(I)(G), and (4) as follows:
Page 2, Line 439-3-124. Property used by state entity - installment sales or
Page 2, Line 5lease agreement - financed purchase of an asset, certificate of
Page 2, Line 6participation, or leveraged lease agreement - exemption - definitions.
Page 2, Line 7(1) (b) (I) (A) Subject to
the provisions of sub-subparagraph (B) of thisPage 2, Line 8
subparagraph (I)Page 2, Line 9as provided in subsection (1)(b)(I)(G) of this section, on and after
Page 3, Line 1January 1, 2009, the part of real property that is used by the state, a
Page 3, Line 2political subdivision, or a state-supported institution of higher education
Page 3, Line 3pursuant to the provisions of any lease or rental agreement for at least a
Page 3, Line 4one-year term, with or without an option to purchase, and pursuant to
Page 3, Line 5which the subject real property is used for purposes of the state, political
Page 3, Line 6subdivision, or institution of higher education, as applicable, shall be
Page 3, Line 7exempt from the levy and collection of property tax. If the state or any
Page 3, Line 8political subdivision or state-supported institution of higher education
Page 3, Line 9enters into a lease or rental agreement or is already in a lease or rental
Page 3, Line 10agreement on or after January 1, 2009, and is exempt from the levy and
Page 3, Line 11collection of property tax pursuant to this section, the state, political
Page 3, Line 12subdivision, or state-supported institution of higher education, as
Page 3, Line 13applicable, shall file a copy of the lease or rental agreement with the
Page 3, Line 14county assessor's office. The state or a political subdivision or institution
Page 3, Line 15of higher education shall notify the county assessor's office in the event
Page 3, Line 16that the lease or rental agreement is terminated prior to the term stated in
Page 3, Line 17such lease or rental agreement. Nothing in this
paragraph (b)shall affectPage 3, Line 18subsection (1)(b) affects property tax exemptions allowed pursuant to
Page 3, Line 19section 8-82-104, 22-32-127, 29-4-227, 30-11-104.2, 31-15-802, or 43-1-214.
C.R.S.Page 3, Line 20(F) In addition to the requirements listed in subsection
Page 3, Line 21(1)(b)(I)(A) of this section, a metropolitan district that files, or
Page 3, Line 22filed on or after January 1, 2020, a lease or rental agreement
Page 3, Line 23with the county assessor's office in support of a claim for a
Page 3, Line 24property tax exemption in accordance with subsection
Page 3, Line 25(1)(b)(I)(A) of this section shall also file with the county
Page 3, Line 26assessor's office a statement describing: The metropolitan
Page 4, Line 1district's use of the leased property; the metropolitan district's
Page 4, Line 2authority to use the leased property for the metropolitan
Page 4, Line 3district's purposes; any use of the leased property by a private
Page 4, Line 4person for private purposes; and any disclosure filed by a
Page 4, Line 5member of the board of directors of the metropolitan district in
Page 4, Line 6accordance with section 24-18-109 (3)(b), 24-18-110, 32-1-902, or 18-8-308.
Page 4, Line 7(G) If the statement described in subsection (1)(b)(I)(F) of
Page 4, Line 8this section includes a disclosure that relates to the leased
Page 4, Line 9property and is filed by a member of the board of directors of
Page 4, Line 10the metropolitan district in accordance with section 24-18-109
Page 4, Line 11(3)(b), 24-18-110, 32-1-902, or 18-8-308, the county assessor shall,
Page 4, Line 12within thirty days of receipt of the statement, submit the
Page 4, Line 13statement to the governing body that approved the
Page 4, Line 14metropolitan district's service plan. Within one hundred eighty
Page 4, Line 15days of receipt of the statement, the governing body shall issue
Page 4, Line 16a written decision including findings of fact and a conclusion as
Page 4, Line 17to whether the leased property is used for a public purpose as
Page 4, Line 18required by subsection (1)(b)(I)(A) of this section. If the
Page 4, Line 19governing body concludes that the leased property is not used
Page 4, Line 20for a public purpose as required by subsection (1)(b)(I)(A) of this
Page 4, Line 21section, the leased property is not exempt from taxation in
Page 4, Line 22accordance with subsection (1)(b)(I)(A) of this section. A decision
Page 4, Line 23of a governing body made pursuant to this section is not subject to appeal and does not give rise to any private right of action.
Page 4, Line 24(II)
For purposes of this paragraph (b)Page 4, Line 25subsection (1)(b), unless the context otherwise requires:
Page 5, Line 1(A) "Governing body" means the board of county
Page 5, Line 2commissioners or other entity that approved the metropolitan district's service plan, or its designees.
Page 5, Line 3(B) "Leased property" means a part of real property that
Page 5, Line 4is used by the state, a political subdivision, or a state-supported
Page 5, Line 5institution of higher education pursuant to the provisions of any
Page 5, Line 6lease or rental agreement for at least a one-year term, with or without an option to purchase.
Page 5, Line 7(C) "Metropolitan district" means a metropolitan district created pursuant to article 1 of title 32.
Page 5, Line 8(D) "State-supported institution of higher education" includes, but
Page 5, Line 9need not be limited to, all postsecondary institutions in the state supported
Page 5, Line 10in whole or in part by state funds, including community colleges,
Page 5, Line 11extension programs of the state-supported universities and colleges, local
Page 5, Line 12district colleges, area technical colleges, and the institutions governed by the regents of the university of Colorado.
Page 5, Line 13(4) A leasehold interest in real or personal property that
Page 5, Line 14is owned by a private person and that has been leased to the
Page 5, Line 15state or a political subdivision of the state, the use and
Page 5, Line 16possession of which has been leased back to a private person for private purposes, is taxable to the owner.
Page 5, Line 17SECTION 2. Act subject to petition - effective date. This act
Page 5, Line 18takes effect at 12:01 a.m. on the day following the expiration of the
Page 5, Line 19ninety-day period after final adjournment of the general assembly; except
Page 5, Line 20that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 5, Line 21of the state constitution against this act or an item, section, or part of this
Page 5, Line 22act within such period, then the act, item, section, or part will not take
Page 6, Line 1effect unless approved by the people at the general election to be held in
Page 6, Line 2November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.