Budget & Taxes (Property Tax)

This bill reaffirms the principles of Colorado's Taxpayer Bill of Rights (TABOR), a 1992 constitutional amendment that requires voter approval for tax increases, debt, and spending growth beyond inflation and population limits. It emphasizes the need for clear ballot information and transparency so voters can make informed decisions about fiscal measures. The legislation also highlights TABOR's role in limiting unfunded mandates and protecting taxpayers from excessive government spending. By restating these existing constitutional protections, the bill aims to ensure that future government actions adhere to the original intent of taxpayer consent and fiscal accountability.

If approved by the voters of the state at the 2026 general election, the concurrent resolution authorizes a county to allow an exemption from property tax imposed by the county to the owner-occupier of single-family residential real property owned outright by the owner-occupier without a mortgage.(Note: This summary applies to this concurrent resolution as introduced.)

For property tax years commencing on or after January 1, 2027, the act makes it a petty offense for a person, in connection with nonresidential property, to certify the truth and accuracy of information provided to the assessor in connection with property valuation when the information is not true and accurate as to every material matter. The act also makes it a petty offense for a person, in connection with nonresidential property, to willfully aid or assist in filing information that is fraudulent or false in connection with property valuation. The act specifies the sentencing requirements for a person convicted of a petty offense pursuant to the act and authorizes the county attorney to file and prosecute any action arising under the act in the county court of the county in which the property is located. If a court of competent jurisdiction finds that a taxpayer committed a petty offense pursuant to the act, the property owner is not entitled to penalty interest earned on any tax refund; the board of assessment appeals does not have the authority to determine whether a taxpayer has forfeited this right.     Existing law requires a 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 to the board of county commissioners to provide certain information to the board of equalization or to the board of county commissioners. The act requires the petitioner to provide information that is specific to the property at issue.      For property tax years commencing on or after January 1, 2027, the act allows a county to file a motion with the board of assessment appeals noting the county's preference that a case appealing a decision of the board of assessment appeals be heard in district court. The act allows the petitioner to elect whether the case will be heard by the board of assessment appeals or the district court.(Note: This summary applies to this bill as enacted.)

Real property or buildings used to provide dwelling accommodations that substantially benefit persons with low income (project property) that is owned, leased, or under construction by a local housing authority, or an entity that is partially or wholly owned by a local housing authority, is exempt from property taxation. Section 1 of the bill clarifies that a "senior cooperative housing project" may qualify for such property tax exemption as a "project" of a local housing authority. A "senior cooperative housing project" is defined as a multi-unit residential building or complex occupied by qualifying seniors that is owned by a cooperative or cooperative housing corporation. A "qualifying senior" is an individual who is at least 65 years old and of low income.The affordable rental housing component of property in a public-private partnership between the middle-income housing authority and one or more public or private entities or persons is exempt from property taxation. Section 2 clarifies that a "senior cooperative housing project" that otherwise meets the qualifications and is selected by the authority may qualify for such property tax exemption as an "affordable rental housing project". "Senior cooperative housing project" has the same meaning as in section 1. A "qualifying senior" also has the same meaning as in section 1 and includes an individual who is of middle income. (Note: This summary applies to this bill as introduced.)

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 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.(Note: This summary applies to this bill as introduced.)

Under current law, residential real property that is classified as qualified-senior primary residence real property is subject to a reduced valuation for assessment for property tax years beginning on or after January 1, 2025, but before January 1, 2027. The act ends the qualified-senior primary residence real property classification for property tax years beginning on or after January 1, 2027, and changes related requirements for county assessors, county treasurers, and the property tax administrator so that the classification and all related administrative and reporting requirements end on dates that align with the end of the reduced valuation for assessment.     The act changes the state property tax exemption for business personal property, commencing on and after January 1, 2027, by setting the exemption at $58,000, without an adjustment for inflation. The act also sets the reimbursement for property tax losses due to the exemption, for property tax years beginning on and after January 1, 2027, at the reimbursement amount for the 2026 property tax year.(Note: This summary applies to this bill as enacted.)

The bill gives city and county housing authorities (housing authority) the power to provide for the levy of a sales tax, sales and use tax, or property tax both within the jurisdiction of the authority, the resulting revenue of which will be directed to the housing authority, subject to the following conditions:The city or county has adopted a resolution determining that the levying of the tax will fairly distribute the costs of the housing authority's activities among the beneficiaries of the housing authority's activities and will not impose an undue burden on any particular group of people or businesses ; andA ballot question has been submitted to a vote of the registered electors of the city or county and subsequently approved by a majority of such registered electors, and the ballot question describes the purposes for which the tax will be used by the housing authority and complies with section 20 of article X of the state constitution. All new tax revenues generated are irrevocably pledged to the authority for the purposes set forth in the ballot question.     If a sales or sales and use tax is approved by the voters of a housing authority:The rate of the sales or sales and use tax must not exceed 1% on any transaction taxable by the state , excluding the sale or use of cigarettes ; andThe executive director of the department of revenue shall collect, administer, and enforce the tax, and the city or county shall pay the net incremental cost incurred by the department in the administration and collection of the tax.      The authority shall designate a liaison to coordinate with the department of revenue to implement the collection of the tax and to identify people eligible to collect the sales and use tax; and      The tax revenue must be directed to a fund of the authority.The provisions authorizing the levy of the sales or sales and use tax will only take effect if the department of revenue receives an amount of gifts, grants, and donations sufficient to pay for the department's costs in administering the tax.      If an ad valorem property tax is approved by the voters of a housing authority:The rate of the ad valorem property tax must not exceed 5 mills on each dollar of valuation for assessment of the taxable property within the authority's jurisdiction;The board of county commissioners of the county in which the housing authority is located shall levy the ad valorem property tax upon the valuation for assessment of all taxable property within the authority's jurisdiction;The officials charged with collecting ad valorem property taxes for the county in which the housing authority is located shall collect the taxes at the time and in the form and manner and with like interest and penalties as other property taxes collected within the county;The property tax revenue must be directed to a fund of the authority; andAll property tax revenue, together with interest thereon and penalties for default in payment thereof, and all costs of collecting the same shall constitute, until paid, a perpetual lien on and against the property taxed, and such lien shall be on a parity with the tax lien of other general taxes.     The bill gives county housing authorities the power to issue revenue or general obligation bonds and to pledge the authority's revenues and revenue-raising powers for the payment of such bonds.      The bill allows an urban renewal authority to enter into a shortfall guaranty contract with an urban renewal project developer (developer) specifying that, if the tax increment revenue is insufficient to pay the indebtedness incurred by the authority that is due, the developer is obligated to make a direct payment covering the full amount of the insufficiency. A shortfall guaranty contract:Constitutes a lien on the urban renewal project property the same as, and equal in priority to, a tax lien;Has priority over any mortgage, lien that is not a tax lien, or other encumbrance;Constitutes a covenant running with the land for the term of the contract; andMay be recorded against the real property upon which the urban renewal project is developed.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Beginning July 1, 2026, act requires the county treasurer to provide notice of delinquent property taxes on a mobile home written in English and Spanish, and to include a statement explaining how and where a mobile home owner may obtain language translation or interpretation services. The county treasurer is required to provide the multilingual notice by mail and by personal service to the mobile home owner at the mobile home.     The act modifies the process for collection of delinquent property taxes on a mobile home by allowing a county treasurer, at their discretion, to sell a tax lien on a mobile home, strike off a tax lien to the county, or determine the taxes to be uncollectible and recommend cancellation to the board of county commissioners. A tax lien must be sold in accordance with the provisions for tax lien sales on real property. The act extends the redemption period for mobile home owners whose property is subject to a tax lien to any time within 3 years from the date of the tax lien sale, or at any time before the execution of a certificate of ownership to the mobile home. Like a real property owner, an individual who both owns a mobile home and is a person with a legal disability at the time a certificate of ownership to the mobile home is issued is also allowed an extended redemption period of up to 9 years from the issuance of a certificate of ownership to their mobile home. If the mobile home owner has not exercised the right of redemption at least 3 years from the date of the tax lien sale, the purchaser or lawful holder of the certificate of purchase may apply for public auction of a certificate of option for treasurer's certificate of ownership to the mobile home, using the same procedures used for issuance of a treasurer's deed to real property. Any surplus resulting from the public auction that is deemed overbid proceeds must be disbursed to the persons entitled to receive them by law.     The act specifies that if a mobile home that is subject to a tax lien or stricken off to the county is located on real property that is not owned by the mobile home owner, then the underlying landowner has a right of first refusal to pay the delinquent taxes owed on the mobile home and all other fees, costs, and expenses incurred by the county treasurer in connection with the tax lien sale process and obtain a certificate of purchase for a tax lien on the mobile home; except that an owner of a mobile home park does not have a right of first refusal unless the owner is an association of mobile home owners. If an underlying landowner exercises this right, no tax lien will be sold or stricken off to the county.     When a tax lien is stricken off to the county under certain circumstances, the act allows the most recent mobile home owner to redeem the mobile home after 1 year but no later than 3 years from the date of strike off by paying the amount of delinquent taxes plus interest, fees, and costs. If a mobile home is not redeemed, and after notice to the last-known owner and any lienholder of record, the treasurer or county assessor may declare the mobile home abandoned, remove the mobile home from the county tax roll, and authorize the removal and disposal of the mobile home; except that, if an occupant of a mobile home establishes proof of ownership, the most recent mobile home owner has only a 1 year redemption period, after which the treasurer may issue the occupant a certificate of ownership for the mobile home.(Note: This summary applies to this bill as enacted.)

Current law provides an exemption for taxation on property acquired and developed for low-income housing by nonprofit housing providers, community land trusts, and nonprofit affordable homeownership developers. The bill expands the exemption to also include property intended for low-income residential rental property.(Note: This summary applies to this bill as introduced.)

The bill authorizes a county or municipality (local government), after approval by the electors of the local government, to impose an excise or a property tax, or both, on vacant residential properties within the boundaries of the local government (local taxes on vacant residential properties) ( sections 1 and 3 of the bill). A local government may use the revenues collected from either tax only for affordable, attainable, or workforce housing. A county assessor has no duty in implementing local taxes on vacant residential properties, but in an assessor's discretion, the assessor may assist by providing data and information to a local government or local housing tax authority, and may enter into an intergovernmental agreement that provides for compensation in exchange for the assessor's assistance.The bill also creates a process for the creation of a local housing tax authority (authority) by intergovernmental agreement to allow 2 or more counties, cities and counties, or municipalities to form a joint taxing authority to collectively establish, levy, collect, and enforce local taxes on vacant residential properties within the boundaries of the authority ( section 2 ).(Note: This summary applies to this bill as introduced.)