House Bill 25-1156 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the extension of the two-year reduction in the

• Page 1, Line 102valuation for assessment of qualified-senior primary

• Page 1, Line 103residence real property relative to the valuation of

• Page 1, Line 104assessment for all other residential real property so

• Page 1, Line 105that it is permanent.

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 extends an existing reduction in the valuation for assessment of qualified-senior primary residence real property (valuation reduction) that applies for only the 2025 and 2026 property tax years so that the valuation reduction is permanent. The bill also makes permanent the existing obligation of the state to annually reimburse local governments that levy property tax for the amount of property tax revenue lost due to the valuation reduction.

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

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 39-1-104.2, amend

• Page 2, Line 3(3)(s)(I) introductory portion, (3)(s)(I)(B), (3)(s)(I)(B.5), (3)(s)(I)(C), and (3)(s)(I)(D); and add (3)(s)(II.5) as follows:

• Page 2, Line 439-1-104.2.  Residential real property - valuation for

• Page 2, Line 5assessment - legislative declaration - definitions. (3) (s) (I)  For

• Page 2, Line 6property tax years commencing on or after January 1, 2025, but before

• Page 2, Line 7January 1, 2027, if there are sufficient excess state revenues, the valuation

• Page 2, Line 8for assessment for qualified-senior primary residence real property,

• Page 2, Line 9including multi-family qualified-senior primary residence real property, is:

• Page 2, Line 10(B)  For the property tax year years commencing on or after

• Page 2, Line 11January 1, 2026, if the state board of equalization determines that the

• Page 2, Line 12statewide actual value growth is less than or equal to five percent, for the

• Page 2, Line 13purpose of a levy imposed by a local governmental entity, 6.8 percent of

• Page 2, Line 14the amount equal to the actual value of the property minus either fifty

• Page 2, Line 15percent of the first two hundred thousand dollars of that actual value plus

• Page 2, Line 16the lesser of ten percent of the actual value of the property or seventy

• Page 2, Line 17thousand dollars as increased for inflation in the first year of each

• Page 2, Line 18subsequent reassessment cycle or the amount that causes the valuation for assessment of the property to be one thousand dollars;

• Page 2, Line 19(B.5)  For the property tax year years commencing on or after

• Page 2, Line 20January 1, 2026, if the state board of equalization determines that the

• Page 3, Line 1statewide actual value growth is greater than five percent, for the purpose

• Page 3, Line 2of a levy imposed by a local governmental entity, 6.7 percent of the

• Page 3, Line 3amount equal to the actual value of the property minus either fifty percent

• Page 3, Line 4of the first two hundred thousand dollars of that actual value plus the

• Page 3, Line 5lesser of ten percent of the actual value of the property or seventy

• Page 3, Line 6thousand dollars as increased for inflation in the first year of each

• Page 3, Line 7subsequent reassessment cycle or the amount that causes the valuation for assessment of the property to be one thousand dollars;

• Page 3, Line 8(C)  For the property tax years commencing on or after January

• Page 3, Line 91, 2025, and January 1, 2026, if the state board of equalization determines

• Page 3, Line 10that the statewide actual value growth is less than or equal to five percent,

• Page 3, Line 11for the purpose of a levy imposed by a school district, 7.05 percent of the

• Page 3, Line 12amount equal to the actual value of the property minus the lesser of fifty

• Page 3, Line 13percent of the first two hundred thousand dollars of that actual value or

• Page 3, Line 14the amount that causes the valuation for assessment of the property to be

• Page 3, Line 15one thousand dollars; except that the valuation for assessment for the

• Page 3, Line 16purpose of a levy imposed by a school district may be temporarily reduced for a property tax year as set forth in section 29-1-1702.5; and

• Page 3, Line 17(D)  For the property tax years commencing on or after January

• Page 3, Line 181, 2025, and January 1, 2026, if the state board of equalization determines

• Page 3, Line 19that the statewide actual value growth is greater than five percent, for the

• Page 3, Line 20purpose of a levy imposed by a school district, 6.95 percent of the amount

• Page 3, Line 21equal to the actual value of the property minus the lesser of fifty percent

• Page 3, Line 22of the first two hundred thousand dollars of that actual value or the

• Page 3, Line 23amount that causes the valuation for assessment of the property to be one

• Page 3, Line 24thousand dollars; except that the valuation for assessment for the purpose

• Page 3, Line 25of a levy imposed by a school district may be temporarily reduced for a property tax year as set forth in section 29-1-1702.5.

• Page 4, Line 1(II.5)  For reassessment cycles commencing on or after

• Page 4, Line 2January 1, 2027, the administrator shall publish the

• Page 4, Line 3inflation-increased value used to calculate the valuation for

• Page 4, Line 4assessment pursuant to subsections (3)(s)(I)(B) and (3)(s)(I)(B.5) of this section.

• Page 4, Line 5SECTION 2.  In Colorado Revised Statutes, 39-1-104.6, amend (9)(a) introductory portion, (9)(c)(I)(A), and (9)(d) as follows:

• Page 4, Line 639-1-104.6.  Qualified-senior primary residence real property

• Page 4, Line 7- valuation for assessment - reimbursement to local governments for

• Page 4, Line 8reduced valuation - temporary mechanism for refunding excess state

• Page 4, Line 9revenues - legislative declaration - definitions. (9) Reporting and

• Page 4, Line 10reimbursement of property tax revenue reductions. (a)  No later than

• Page 4, Line 11March 1, 2026, and no later than each March 1 2027 thereafter, each

• Page 4, Line 12treasurer shall forward to the administrator a report on the properties in

• Page 4, Line 13the assessor's county that were classified as qualified-senior primary

• Page 4, Line 14residence real property for the previous property tax year. The

• Page 4, Line 15administrator shall cross-check the report as specified in subsection (9)(b)

• Page 4, Line 16of this section before correcting it, if necessary, and forwarding it to the

• Page 4, Line 17state treasurer to enable the state treasurer to issue a reimbursement

• Page 4, Line 18warrant to each treasurer in accordance with subsection (9)(c) of this section. The report must include:

• Page 4, Line 19(c) (I) (A)  No later than April 15, 2026, and no later than each

• Page 4, Line 20April 15 2027 thereafter, the state treasurer shall issue a warrant to

• Page 4, Line 21each treasurer for the amount needed to fully reimburse all local

• Page 4, Line 22governmental entities within the treasurer's county for the total property

• Page 4, Line 23tax revenue lost for the prior property tax year that are payable during the

• Page 5, Line 1year in which the state treasurer issues the warrant. The reimbursement

• Page 5, Line 2must be paid from the state general fund and is not subject to the statutory

• Page 5, Line 3limitation on state general fund appropriations set forth in section 24-75-201.1.

• Page 5, Line 4(d)  In accordance with subsection (9)(b) of this section, for any

• Page 5, Line 5property tax year commencing on or after January 1, 2025, but before

• Page 5, Line 6January 1, 2027, the state treasurer shall not reimburse a treasurer for total

• Page 5, Line 7property tax revenue lost as a result of a classification of real property as

• Page 5, Line 8qualified-senior primary residence real property that was erroneously

• Page 5, Line 9granted in the treasurer's county. If, pursuant to subsection (9)(b) of this

• Page 5, Line 10section, the administrator advises the state treasurer that the state treasurer

• Page 5, Line 11has provided either too much or too little reimbursement to a treasurer for

• Page 5, Line 12classifications of real property as qualified-senior primary residence real

• Page 5, Line 13property granted in the treasurer's county for any prior property tax year

• Page 5, Line 14commencing on or after January 1, 2025, but before January 1, 2027, the

• Page 5, Line 15state treasurer shall adjust the reimbursement for the current property tax year as directed by the administrator in order to correct the error.

• Page 5, Line 16SECTION 3.  Act subject to petition - effective date. This act

• Page 5, Line 17takes effect at 12:01 a.m. on the day following the expiration of the

• Page 5, Line 18ninety-day period after final adjournment of the general assembly; except

• Page 5, Line 19that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 5, Line 20of the state constitution against this act or an item, section, or part of this

• Page 5, Line 21act within such period, then the act, item, section, or part will not take

• Page 5, Line 22effect unless approved by the people at the general election to be held in

• Page 5, Line 23November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.