Temporary Decrease Statutory Property Tax Revenue Limits

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0524.01 Rebecca Bayetti x4348 HOUSE BILL 26-1209
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
CONCERNING A TEMPORARY DECREASE IN THE STATUTORY LIMITS ON101
THE AMOUNT OF PROPERTY TAX REVENUE THAT A TAXING102
ENTITY IS ALLOWED TO RAISE.103
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 restricts the annual amount of property tax revenue
that a local government or a special district may collect to the amount of
property tax revenue collected in the previous year plus 5.5%, with
certain adjustments. This statutory limit does not apply to school districts
or home rule municipalities. The limit may be waived by voter approval
HOUSE SPONSORSHIP
Suckla,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
of the voters of the taxing entity (waived jurisdictions).
Current law also restricts the annual amount of property tax
revenue that a waived jurisdiction may collect to the greatest amount of
qualified property tax revenue collected by the taxing entity in a previous
property tax year increased by 5.25% multiplied by the number of
property tax years in a reassessment cycle. Similarly, the annual amount
of property tax revenue that a school district may collect is limited to the
greatest amount of the local share of statewide total program property tax
revenue collected by a school district in a previous property tax year
increased by the greater of 6% multiplied by the number of property tax
years in a reassessment cycle or the sum of the percentage by which the
general assembly annually increases the statewide base per pupil funding
for public education from kindergarten through twelfth grade and the
percentage increase in pupil enrollment for both the relevant property tax
year and the other property tax year in the same reassessment cycle. Both
of these statutory property tax revenue limits may also be waived by
voters, except that individual school districts are not able to locally waive
their individual property tax limits and, instead, must seek statewide voter
approval to waive the school district limit.
The bill temporarily reduces the operative percentage adjustments
in these 3 statutory property tax revenue limits to 4% for property tax
years beginning on or after January 1, 2027, but before January 1, 2033.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 29-1-301, amend2
(1)(a) and (1)(b); and add (1)(a.5) and (7) as follows:3
29-1-301. Levies reduced - limitation - repeal.4
(1) (a) E XCEPT AS PROVIDED IN SUBSECTION (1)(a.5) OF THIS5
SECTION, all statutory tax levies for collection in 1989 and thereafter6
when applied to the total valuation for assessment of the state, each of the7
counties, cities, and towns not chartered as home rule except as provided8
in this subsection (1), and each of the fire, sanitation, irrigation, drainage,9
conservancy, and other special districts established by law shall be so10
reduced as to prohibit the levying of a greater amount of revenue than11
was levied in the preceding year plus five and one-half percent plus the12
amount of revenue abated or refunded by the taxing entity by August 1 of13
HB26-1209-2-
the current year less the amount of revenue received by the taxing entity1
by August 1 of the current year as taxes paid on any taxable property that2
had previously been omitted from the assessment roll of any year, except3
to provide for the payment of bonds and interest thereon, for the payment4
of any contractual obligation that has been approved by a majority of the5
qualified electors of the taxing entity, for the payment of expenses6
incurred in the reappraisal of classes or subclasses ordered by or7
conducted by the state board of equalization, for the payment to the state8
of excess state equalization payments to school districts which excess is9
due to the undervaluation of taxable property, or for the payment of10
capital expenditures as provided in subsection (1.2) of this section. For11
purposes of this subsection (1), the amount of revenues received as taxes12
paid on any taxable property that had been previously omitted from the13
assessment roll shall not include the amount of such revenues received as14
taxes paid on oil and gas leaseholds and lands that had been previously15
omitted from the assessment roll due to underreporting of the selling price16
or the quantity of oil or gas sold therefrom. In computing the limit, the17
following shall be excluded: The increased valuation for assessment18
attributable to annexation or inclusion of additional land, the19
improvements thereon, and personal property connected therewith within20
the taxing entity for the preceding year; the increased valuation for21
assessment attributable to new construction and personal property22
connected therewith, as defined by the property tax administrator in23
manuals prepared pursuant to section 39-2-109 (1)(e), C.R.S., within the24
taxing entity for the preceding year; the increased valuation for25
assessment attributable to increased volume of production for the26
preceding year by a producing mine if said mine is wholly or partially27
HB26-1209-3-
within the taxing entity and if said increase in volume of production1
causes an increase in the level of services provided by the taxing entity;2
and the increased valuation for assessment attributable to previously3
legally exempt federal property which becomes taxable if such property4
causes an increase in the level of services provided by the taxing entity.5
(a.5) (I) AS APPLIED TO STATUTORY TAX LEVIES FOR COLLECTION6
IN PROPERTY TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 2027, BUT7
BEFORE JANUARY 1, 2033, THE FIVE AND ONE -HALF PERCENT GROWTH8
LIMIT ESTABLISHED IN SUBSECTION (1)(a) OF THIS SECTION IS REDUCED TO9
FOUR PERCENT FOR PURPOSES OF THE CALCULATION REQUIRED BY THIS10
SECTION.11
(II) T HIS SUBSECTION (1)(a.5) IS REPEALED, EFFECTIVE JULY 1,12
2037.13
(b) For property tax years beginning on or after January 1, 1991,14
any taxing entity may apply to the division of local government in the15
department of local affairs for authorization to exclude the following16
from the computation of the limitation set forth in paragraph (a) of this17
subsection (1) LIMITATIONS SET FORTH IN SUBSECTION (1)(a) OR (1)(a.5)18
OF THIS SECTION : All or any portion of the increased valuation for19
assessment attributable to new primary oil or gas production for the20
preceding year from any producing oil and gas leasehold or land if such21
oil and gas leasehold or land is wholly or partially within the taxing entity22
and if such new primary oil or gas production has caused or will cause an23
increase in the level of services provided by the taxing entity.24
(7) (a) NOTWITHSTANDING ANY PROVISION OF THIS PART 3 TO THE25
CONTRARY, AN INCREASED LEVY ALLOWED PURSUANT TO SECTION26
29-1-302 OR AN EXISTING VOTER AUTHORIZATION TO EXCEED OR WAIVE27
HB26-1209-4-
THE LIMITATIONS SET FORTH IN THIS SECTION APPLIES TO THE TEMPORARY1
LIMITATION SET FORTH IN SUBSECTION (1)(a.5) UNLESS OTHERWISE2
SPECIFIED IN THE QUESTION APPROVED BY THE VOTERS OR THE DIVISION3
OF LOCAL GOVERNMENT IN THE DEPARTMENT OF LOCAL AFFAIRS.4
(b) THIS SUBSECTION (7) IS REPEALED, EFFECTIVE JULY 1, 2037.5
SECTION 2. In Colorado Revised Statutes, 29-1-1703, amend6
(1.5)(c) and (4)(b)(I) as follows:7
29-1-1703. Property tax limit calculation - definitions - repeal.8
(1.5) As used in subsection (1) of this section and this subsection9
(1.5), unless the context otherwise requires:10
(c) (I) E XCEPT AS OTHERWISE PROVIDED IN SUBSECTION11
(1.5)(c)(II) OF THIS SECTION , "growth rate percentage" means five and12
twenty-five hundredths percent multiplied by the number of property tax13
years in the current reassessment cycle.14
(II) (A) F OR PROPERTY TAX YEARS BEGINNING ON OR AFTER15
JANUARY 1, 2027, BUT BEFORE JANUARY 1, 2033, "GROWTH RATE16
PERCENTAGE" MEANS FOUR PERCENT MULTIPLIED BY THE NUMBER OF17
PROPERTY TAX YEARS IN THE CURRENT REASSESSMENT CYCLE.18
(B) THIS SUBSECTION (1.5)(c)(II) IS REPEALED, EFFECTIVE JULY 1,19
2037.20
(4) As used in subsection (3) of this section and this subsection21
(4), unless the context otherwise requires:22
(b) "Growth rate percentage" means the greater of:23
(I) (A) F OR PROPERTY TAX YEARS OTHER THAN THOSE YEARS24
BEGINNING ON OR AFTER JANUARY 1, 2027, BUT BEFORE JANUARY 1, 2033,25
six percent multiplied by the number of property tax years in the current26
reassessment cycle; or27
HB26-1209-5-
(B) FOR PROPERTY TAX YEARS BEGINNING ON OR AFTER JANUARY1
1, 2027, BUT BEFORE JANUARY 1, 2033, FOUR PERCENT MULTIPLIED BY THE2
NUMBER OF PROPERTY TAX YEARS IN THE CURRENT REASSESSMENT CYCLE;3
OR 4
SECTION 3. In Colorado Revised Statutes, 29-1-1705, add (4)5
as follows:6
29-1-1705. Prior obligations not impaired - voter-approval of7
mill increases - disaster emergency spending - definitions - repeal.8
(4) (a) N OTWITHSTANDING ANY PROVISION OF THIS PART 17 TO9
THE CONTRARY , AN EXISTING VOTER AUTHORIZATION TO EXCEED OR10
WAIVE THE LIMITATIONS SET FORTH IN THIS PART 17 APPLIES TO THE11
TEMPORARY GROWTH RATE PERCENTAGES DESCRIBED IN SECTION12
29-1-1703 FOR PROPERTY TAX YEARS BEGINNING ON OR AFTER JANUARY13
1, 2027, BUT BEFORE JANUARY 1, 2033, UNLESS OTHERWISE SPECIFIED IN14
THE QUESTION APPROVED BY THE VOTERS.15
(b) THIS SUBSECTION (4) IS REPEALED, EFFECTIVE JULY 1, 2037.16
SECTION 4. Applicability. This act applies to property tax years17
commencing on or after January 1, 2027.18
SECTION 5. Safety clause. The general assembly finds,19
determines, and declares that this act is necessary for the immediate20
preservation of the public peace, health, or safety or for appropriations for21
the support and maintenance of the departments of the state and state22
institutions. 23
HB26-1209-6-