Signed by Governor Jared Polis

Vote Smart's Synopsis:

Vote to pass a bill that reduces property assessment rates in the 2022 and 2023 taxation years for certain subcategories of property.

Highlights:

• Defines a “tax-growth cap” as an amount equal to the average of a person’s real property taxes paid on the same homestead for the two property tax years before the deferral (Sec. 5).

• Repeals a moratorium on changing a ratio for valuation for assessment of the value of any class of property (Sec. 1).

• Requires that the valuation for assessment of all taxable property in the state be 29% of the actual value of the taxable property and that all property taxes be levied against the valuation resulting from that calculation (Sec. 2).

• Specifies that the above provision will only apply to nonresidential property classified as lodging property, which includes hotels, motels, bed and breakfasts, and property located on such properties (Sec. 2.1.6b).

• Specifies that renewable energy production property and agricultural property are to be classified as new subclasses of nonresidential property (Sec. 2.1.6b-c).

• Requires that the valuation for assessment of renewable energy and agricultural property be twenty-nine percent of the actual value of that property except for the property tax years commencing January 1, 2022, and January 1, 2023 (Sec. 2.1.8a).

• Defines all taxable real and personal property other than residential property, producing mines, or lands or leaseholds producing oil or gas as nonresidential property for purposes of valuation for assessment (Sec. 2.1.8d).

• Requires that non producing severed mineral interests be valued at twenty-nine percent of actual value in the same manner as other real property (Sec. 2.1.8.4).

• Classifies duplexes, triplexes, and other residential multi-structures as multi-family residential real property (Sec. 3).

• Classifies multi-family residential real property as a subclass of residential real property for valuation for assessment (Sec. 3).

• Specifies the ratio of valuation for assessment of multi-family residential real property is 7.15% of the property’s actual value from January 1, 2019 until the next property tax year the legislation adjusts the ratio of valuation (Sec. 3). 

• For property taxes beginning on January 1, 2022, and January 1, 2023, the ratio of valuation for assessment for multi-family residential real property is temporarily reduced to 6.8% of actual value (Sec. 4).

• Authorizes a person who is not otherwise eligible for deferral to defer the payment of the portion of real property taxes that exceed that person’s tax-growth cap (Sec. 6).

• Requires a person to file a claim for deferral with the treasurer of the county in which the taxpayer lives after January 1 and before April 1 of each year in which the taxpayer claims the deferral (Sec. 6).

• Establishes taxpayers who previously deferred real property taxes upon being called into military service who are no longer eligible for a deferral on that basis may file for deferrals under these regulations (Sec. 6).

• Specifies that, to be entitled to deferral, the property must be owned by a taxpayer called into military service or a person eligible for deferral and that the total value of all liens of mortgages and deeds of trust on the property must be less than or equal to ninety percent of the actual value of the property (Sec. 7).

• Prohibits a loan for deferred real property taxes, including accrued interest, from becoming payable if the taxpayer was called into military service or was eligible for deferral under the above provisions (Sec. 8).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that reduces property assessment rates in the 2022 and 2023 taxation years for certain subcategories of property.

Highlights:

• Defines a “tax-growth cap” as an amount equal to the average of a person’s real property taxes paid on the same homestead for the two property tax years before the deferral (Sec. 5).

• Repeals a moratorium on changing a ratio for valuation for assessment of the value of any class of property (Sec. 1).

• Requires that the valuation for assessment of all taxable property in the state be 29% of the actual value of the taxable property and that all property taxes be levied against the valuation resulting from that calculation (Sec. 2).

• Specifies that the above provision will only apply to nonresidential property classified as lodging property, which includes hotels, motels, bed and breakfasts, and property located on such properties (Sec. 2.1.6b).

• Specifies that renewable energy production property and agricultural property are to be classified as new subclasses of nonresidential property (Sec. 2.1.6b-c).

• Requires that the valuation for assessment of renewable energy and agricultural property be twenty-nine percent of the actual value of that property except for the property tax years commencing January 1, 2022, and January 1, 2023 (Sec. 2.1.8a).

• Defines all taxable real and personal property other than residential property, producing mines, or lands or leaseholds producing oil or gas as nonresidential property for purposes of valuation for assessment (Sec. 2.1.8d).

• Requires that non producing severed mineral interests be valued at twenty-nine percent of actual value in the same manner as other real property (Sec. 2.1.8.4).

• Classifies duplexes, triplexes, and other residential multi-structures as multi-family residential real property (Sec. 3).

• Classifies multi-family residential real property as a subclass of residential real property for valuation for assessment (Sec. 3).

• Specifies the ratio of valuation for assessment of multi-family residential real property is 7.15% of the property’s actual value from January 1, 2019 until the next property tax year the legislation adjusts the ratio of valuation (Sec. 3). 

• For property taxes beginning on January 1, 2022, and January 1, 2023, the ratio of valuation for assessment for multi-family residential real property is temporarily reduced to 6.8% of actual value (Sec. 4).

• Authorizes a person who is not otherwise eligible for deferral to defer the payment of the portion of real property taxes that exceed that person’s tax-growth cap (Sec. 6).

• Requires a person to file a claim for deferral with the treasurer of the county in which the taxpayer lives after January 1 and before April 1 of each year in which the taxpayer claims the deferral (Sec. 6).

• Establishes taxpayers who previously deferred real property taxes upon being called into military service who are no longer eligible for a deferral on that basis may file for deferrals under these regulations (Sec. 6).

• Specifies that, to be entitled to deferral, the property must be owned by a taxpayer called into military service or a person eligible for deferral and that the total value of all liens of mortgages and deeds of trust on the property must be less than or equal to ninety percent of the actual value of the property (Sec. 7).

• Prohibits a loan for deferred real property taxes, including accrued interest, from becoming payable if the taxpayer was called into military service or was eligible for deferral under the above provisions (Sec. 8).

Full Bill Text