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May 6, 2022 HB 22-1416
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated May 4, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-1059
Rep. Esgar; Neville
Sen. Kolker; Rankin
Date:
Bill Status:
Fiscal Analyst:
May 6, 2022
Senate Introduction
Greg Sobetski | 303-866-4105
Greg.Sobetski@state.co.us
Bill Topic: PROPERTY TAX ADMINISTRATIVE PROCEDURES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill makes changes to procedures for property tax assessment appeals and
amendments to property tax materials, and requires that certain information be
included on notices of valuation. It increases state revenue, increases state and local
government expenditures, and minimally decreases local government revenue,
beginning in FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill requires and includes an appropriation of $2,000 to the
Department of Local Affairs.
Fiscal Note
Status:
This revised fiscal note reflects the reengrossed bill.
Table 1
State Fiscal Impacts Under HB 22-1416
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue Cash Funds $16,000 -
Total Revenue $16,000 -
Expenditures General Fund $2,000 -
Cash Funds $16,000 -
Total Expenditures $18,000 -
Transfers - -
Other Budget Impacts TABOR Refund $16,000 -
General Fund Reserve $300 -
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May 6, 2022 HB 22-1416
Summary of Legislation
The bill changes procedures for property tax assessment appeals and amendments to the property tax
materials maintained by the state property tax administrator. It also requires that certain content be
included in notices of valuation.
Property tax assessment appeals. The bill delays the current June 1 deadline for a property owner to
file an assessment appeal to June 8 each year. It prohibits the board from increasing a property’s
valuation by more than 5 percent from the valuation previously set by the county board of
equalization.
The bill allows the owner of a rent-producing commercial property to have their appeal prioritized
before the Board of Assessment Appeals if they file a written letter of objection, request prioritization,
and are determined by their county assessor to have assembled the rental income, expenses, and
tenant information required in current law. The bill allows the board to assess a fee to defray the cost
of expediting a taxpayer’s appeal. Fee revenue is credited to a new Accelerated Appeal Cash Fund
and continuously appropriated to the board.
Amendments to property tax materials. The property tax administrator leads the Division of
Property Taxation (DPT) in the Department of Local Affairs. Under current law, the administrator
maintains manuals and guidelines used by county assessors for property tax valuation and
assessment, and may update these materials with input from an advisory committee.
The bill requires that the administrator:
conduct a noticed public hearing prior to proposing any changes to property tax materials;
consider written and oral submissions of data, views, or arguments presented at the hearing;
accept and consider written petitions for the issuance, amendment or repeal of any property tax
materials; and
notice meetings of the advisory committee, and include proposed changes to property tax
materials in the notice.
The bill allows the administrator to charge a fee to taxpayers who request hard copies of proposed
changes to property tax materials by mail to defray the costs of printing and mailing. Fees collected
this way are continuously appropriated to the DPT.
Notices of valuation. Under current law, each county assessor is required to mail notices of valuation
to property owners in their county annually by May 1. Current law allows an assessor to include an
estimate of the taxes owed on the notice of valuation; the bill changes this allowance to a requirement
and allows an assessor to include a range estimate instead.
The bill also requires that notices of valuation alert property owners to the June 8 deadline to file an
assessment appeal, and to the option to file a request for an abatement if the deadline is missed. For
commercial valuations, the bill requires that the notice inform a property owner that they may contact
their assessor to learn how the property was valued.
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May 6, 2022 HB 22-1416
State Revenue
The bill increases cash fund revenue by an estimated $16,000 in FY 2022-23, and by a minimal amount
in later years. The bill increases revenue from fees paid to the Board of Assessment Appeals and the
DPT. Fee revenue is subject to TABOR.
Board of Assessment Appeals. The bill increases cash fund revenue to the board by an estimated
$16,000 in FY 2022-23 and by a minimal amount in later years. The board receives about 4,000 appeals
annually. The fiscal note assumes that 2 percent of appeals, or approximately 80 appeals per year,
will be expedited under the bill, and that appellants will be charged a fee of $200 each. Fee revenue
is credited to the Accelerated Appeal Cash Fund and continuously appropriated to the board. To the
extent that the number of expedited appeals and the fee amount differs from these assumptions,
revenue may be greater or less than estimated.
Division of Property Taxation. The bill allows the DPT to assess a fee to mail copies of proposed
changes to property tax materials to interested persons who request mailed copies. The revenue
increase is assessed as minimal. Any fee revenue received this way is continuously appropriated to
the DPT.
State Expenditures
The bill increases state expenditures for the Board of Assessment Appeals by an estimated $18,000 in
FY 2022-23, and increases its workload thereafter. The bill also increases workload in the DPT. These
impacts are discussed below.
Board of Assessment Appeals. The Board of Assessment Appeals requires a one-time expenditure
of $18,000 in FY 2022-23 to update its software systems to accommodate the changes in the bill, in
order to allow for expedited appeals and accept fee payments. This fiscal note assumes that $16,000
of this expense can be paid from fee revenue collected in the Accelerated Appeal Cash Fund under
the bill. The remaining $2,000 requires a one-time General Fund expenditure in FY 2022-23 only.
Any ongoing expenditure for expedited assessment appeals will be paid from fee revenue credited to
the Accelerated Appeal Cash Fund.
Division of Property Taxation. The bill increases DPT workload to notice and conduct public
meetings. This workload is assessed as minimal and can be accomplished within existing
appropriations. If required, costs for mailing proposed changes to property tax materials to interested
persons will be paid from fee revenues collected under the bill.
Other Budget Impacts
TABOR refunds. The bill increases cash fund revenue subject to TABOR, correspondingly increasing
the state obligation for refunds to taxpayers by $16,000 in FY 2022-23. Because TABOR refunds are
paid from the General Fund, an increase in cash fund revenue subject to TABOR correspondingly
decreases the amount of General Fund revenue available for other purposes.
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May 6, 2022 HB 22-1416
General Fund reserve requirement. Current law requires that an amount equal to 15 percent of
General Fund appropriations for FY 2022-23 and subsequent years be held in reserve. The bill is
expected to increase General Fund appropriations in FY 2022-23, thereby increasing the General Fund
reserve requirement by the amount shown in Table 1.
Local Government
The bill is expected to increase expenditures in county assessors’ offices to program changes to notices
of valuation. The expenditure increase is expected to be minimal for most assessors.
The bill potentially decreases local government revenue in cases where the Board of Assessment
Appeals would otherwise have increased a property valuation by more than 5 percent upon appeal.
The amount of this impact depends on where and how often such cases would arise. Because
97 percent of appeals before the board are settled between the taxpayer and the county assessor before
a hearing, this impact is assessed as minimal in most jurisdictions and in most years.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State Appropriations
For FY 2022-23, the bill requires and includes a General Fund appropriation of $2,000 to the
Department of Local Affairs.
State and Local Government Contacts
Counties County Assessors
Information Technology Local Affairs
Property Taxation
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.