Colorado 2022 Regular Session

Colorado Senate Bill SB093 Compare Versions

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11 Second Regular Session
22 Seventy-third General Assembly
33 STATE OF COLORADO
44 INTRODUCED
55
66
77 LLS NO. 22-0681.01 Jason Gelender x4330
88 SENATE BILL 22-093
99 Senate Committees House Committees
1010 State, Veterans, & Military Affairs
1111 A BILL FOR AN ACT
1212 C
1313 ONCERNING EXPANSION OF EXISTI NG PROPERTY TAX EXEMPTIONS101
1414 FOR CERTAIN OWNER-OCCUPIED PRIMARY RESIDENCES , AND, IN102
1515 CONNECTION THEREWITH , INCREASING THE EXEMPT AMOUNT103
1616 OF ACTUAL VALUE OF THE OWNER -OCCUPIED PRIMARY104
1717 RESIDENCE OF A QUALIFYING SENIOR OR VETERAN WITH A105
1818 DISABILITY AND PRESERVING THE EXEMPTION OF A SENIOR WHO106
1919 CHANGES PRIMARY RESIDENCES DUE TO MEDICAL NECESSITY .107
2020 Bill Summary
2121 (Note: This summary applies to this bill as introduced and does
2222 not reflect any amendments that may be subsequently adopted. If this bill
2323 passes third reading in the house of introduction, a bill summary that
2424 applies to the reengrossed version of this bill will be available at
2525 http://leg.colorado.gov
2626 .)
2727 SENATE SPONSORSHIP
2828 Liston, Gardner, Hisey, Holbert, Lundeen, Priola, Rankin, Simpson, Smallwood, Woodward
2929 HOUSE SPONSORSHIP
3030 Carver,
3131 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
3232 Capital letters or bold & italic numbers indicate new material to be added to existing statute.
3333 Dashes through the words indicate deletions from existing statute. For property tax years commencing on or after January 1, 2022, the
3434 bill:
3535 ! Increases the maximum amount of actual value of the
3636 owner-occupied residence of a qualifying senior or veteran
3737 with a disability that is exempt from property taxation from
3838 $200,000 to $400,000; and
3939 ! Specifies that a senior is deemed to be a 10-year
4040 owner-occupier of a primary residence that the senior has
4141 owned and occupied for less than 10 years and therefore
4242 qualifies for the senior property tax exemption for the
4343 residence if:
4444 ! The senior would have qualified for the senior
4545 property tax exemption for the senior's former
4646 primary residence but for the fact that medical
4747 necessity required the senior to stop occupying the
4848 former primary residence;
4949 ! The senior has not previously received the
5050 exemption for a former primary residence on the
5151 basis of medical necessity; and
5252 ! The senior has not owned and occupied another
5353 primary residence since the senior first stopped
5454 occupying his or her former primary residence due
5555 to medical necessity.
5656 "Medical necessity" is defined as a medical condition of a senior that a
5757 physician licensed to practice medicine in Colorado has certified, on a
5858 form developed by the state property tax administrator, as having required
5959 the senior to stop occupying the senior's prior primary residence.
6060 When applying for an exemption on the basis of medical necessity,
6161 a senior must provide the form establishing proof of medical necessity.
6262 Be it enacted by the General Assembly of the State of Colorado:1
6363 SECTION 1. In Colorado Revised Statutes, 39-3-201, amend2
6464 (1)(a) as follows:3
6565 39-3-201. Legislative declaration. (1) The general assembly4
6666 hereby finds and declares that:5
6767 (a) Section 3.5 of article X of the state constitution, which was6
6868 approved by the registered electors of the state at the 2000 general7
6969 election and amended by the registered electors of the state at the 20068
7070 SB22-093-2- general election, provides property tax exemptions for qualifying seniors1
7171 and qualifying disabled veterans. I
7272 N ACCORDANCE WITH THE PEOPLE FIRST2
7373 LANGUAGE REQUIREMENTS OF SECTION 2-2-802, SECTION 39-3-202 (3.5)3
7474 DEFINES THE TERM "QUALIFYING VETERAN WITH A DISABILITY " FOR4
7575 PURPOSES OF THIS PART 2 SO THAT THE TERM HAS THE SAME MEANING AS5
7676 THE CONSTITUTIONALLY DEFINED TERM "DISABLED VETERAN".6
7777 SECTION 2. In Colorado Revised Statutes, 39-3-202, amend7
7878 (1.5) and (3.5) as follows:8
7979 39-3-202. Definitions. As used in this part 2, unless the context9
8080 otherwise requires:10
8181 (1.5) "Exemption" means the property tax exemptions for11
8282 qualifying seniors and qualifying disabled
8383 veterans WITH A DISABILITY12
8484 allowed by section 39-3-203.13
8585 (3.5) "Qualifying disabled veteran WITH A DISABILITY" means an14
8686 individual who has served on active duty in the United States armed15
8787 forces, including a member of the Colorado National Guard who has been16
8888 ordered into the active military service of the United States, has been17
8989 separated therefrom under honorable conditions, and has established a18
9090 service-connected disability that has been rated by the federal department19
9191 of veterans affairs as a one hundred percent permanent disability through20
9292 disability retirement benefits pursuant to a law or regulation administered21
9393 by the department, the United States department of homeland security, or22
9494 the department of the Army, Navy, or Air Force.23
9595 SECTION 3. In Colorado Revised Statutes, 39-3-203, amend (1)24
9696 introductory portion, (1.5)(a) introductory portion, (1.5)(a.5), (6)(a)25
9797 introductory portion, (6)(a)(I.5), and (6)(a)(II); and add (6)(a)(I.7) as26
9898 follows:27
9999 SB22-093
100100 -3- 39-3-203. Property tax exemption - qualifications - definition.1
101101 (1) For the property tax year commencing January 1, 2002, for property2
102102 tax years commencing on or after January 1, 2006, but before January 1,3
103103 2009, and for property tax years commencing on or after January 1, 2012,4
104104 BUT BEFORE JANUARY 1, 2022, fifty percent of the first two hundred5
105105 thousand dollars of actual value of residential real property that as of the6
106106 assessment date is owner-occupied and is used as the primary residence7
107107 of the owner-occupier shall be exempt from taxation, and
108108 for property tax8
109109 years commencing on or after January 1, 2003, but before January 1,9
110110 2006, and on or after January 1, 2009, but before January 1, 2012, fifty10
111111 percent of zero dollars of actual value of residential real property that as11
112112 of the assessment date is owner-occupied and is used as the primary12
113113 residence of the owner-occupier shall be exempt from taxation,
114114 AND FOR13
115115 PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2022, FIFTY14
116116 PERCENT OF THE FIRST FOUR HUNDRED THOUSAND DOLLARS OF ACTUAL15
117117 VALUE OF RESIDENTIAL REAL PROPERTY THAT AS OF THE ASSESSMENT16
118118 DATE IS OWNER-OCCUPIED AND IS USED AS THE PRIMARY RESIDENCE OF17
119119 THE OWNER-OCCUPIER SHALL BE EXEMPT FROM TAXATION if:18
120120 (1.5) (a) For property tax years commencing on or after January19
121121 1, 2007,
122122 BUT BEFORE JANUARY 1, 2022, fifty percent of the first two20
123123 hundred thousand dollars of actual value of residential real property that21
124124 as of the assessment date is owner-occupied and is used as the primary22
125125 residence of an owner-occupier who is a qualifying disabled veteran shall
126126 23
127127 be VETERAN WITH A DISABILITY IS exempt from taxation, AND FOR24
128128 PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2022, FIFTY25
129129 PERCENT OF THE FIRST FOUR HUNDRED THOUSAND DOLLARS OF ACTUAL26
130130 VALUE OF RESIDENTIAL REAL PROPERTY THAT AS OF THE ASSESSMENT27
131131 SB22-093
132132 -4- DATE IS OWNER-OCCUPIED AND IS USED AS THE PRIMARY RESIDENCE OF AN1
133133 OWNER-OCCUPIER WHO IS A QUALIFYING VETERAN WITH A DISABILITY IS2
134134 EXEMPT FROM TAXATION, if:3
135135 (a.5) For property tax years commencing on or after January 1,4
136136 2015,
137137 BUT BEFORE JANUARY 1, 2022, fifty percent of the first two hundred5
138138 thousand dollars of actual value of residential real property that as of the6
139139 assessment date is owner-occupied and is used as the primary residence7
140140 of an owner-occupier who is the surviving spouse of a qualifying disabled
141141 8
142142 veteran
143143 WITH A DISABILITY who previously received an exemption under9
144144 paragraph (a) of this subsection (1.5)
145145 SUBSECTION (1.5)(a) OF THIS10
146146 SECTION IS EXEMPT FROM TAXATION , AND FOR PROPERTY TAX YEARS11
147147 COMMENCING ON OR AFTER JANUARY 1, 2022, FIFTY PERCENT OF THE12
148148 FIRST FOUR HUNDRED THOUSAND DOLLARS OF ACTUAL VALUE OF13
149149 RESIDENTIAL REAL PROPERTY THAT AS OF THE ASSESSMENT DATE IS14
150150 OWNER-OCCUPIED AND IS USED AS THE PRIMARY RESIDENCE OF AN15
151151 OWNER-OCCUPIER WHO IS THE SURVIVING SPOUSE OF A QUALIFYING16
152152 VETERAN WITH A DISABILITY WHO PREVIOUSLY RECEIVED AN EXEMPTION17
153153 UNDER SUBSECTION (1.5)(a) OF THIS SECTION IS EXEMPT FROM TAXATION.18
154154 (6) (a) Notwithstanding the ten-year occupancy requirement set19
155155 forth in subparagraph (I) of paragraph (a) of subsection (1) SUBSECTION20
156156 (1)(a)(I) of this section, an owner-occupier who has not actually owned21
157157 and occupied residential real property for which the owner-occupier has22
158158 claimed an exemption under said subsection (1) OF THIS SECTION for the23
159159 ten years preceding the assessment date shall be IS deemed to have met24
160160 the ten-year requirement and shall be IS allowed an exemption under said25
161161 subsection (1)
162162 OF THIS SECTION with respect to the property if:26
163163 (I.5) For property tax years commencing on or after January 1,27
164164 SB22-093
165165 -5- 2015, the owner-occupier would have qualified for the exemption with1
166166 respect to other residential real property that the owner-occupier owned2
167167 and occupied as his or her primary residence before moving to the3
168168 residential real property for which an exemption is claimed but for the4
169169 fact that a natural disaster destroyed the former primary residence or5
170170 otherwise rendered it uninhabitable; and OR6
171171 (I.7) (A) F
172172 OR PROPERTY TAX YEARS COMMENCING ON OR AFTER7
173173 J
174174 ANUARY 1, 2022, THE OWNER-OCCUPIER WOULD HAVE QUALIFIED FOR8
175175 THE EXEMPTION WITH RESPECT TO OTHER RESIDENTIAL REAL PROPERTY9
176176 THAT THE OWNER-OCCUPIER OWNED AND OCCUPIED AS HIS OR HER10
177177 PRIMARY RESIDENCE BEFORE MOVING TO THE RESIDENTIAL REAL11
178178 PROPERTY FOR WHICH AN EXEMPTION IS CLAIMED BUT FOR THE FACT THAT12
179179 MEDICAL NECESSITY REQUIRED THE OWNER -OCCUPIER TO STOP OCCUPYING13
180180 THE OTHER RESIDENTIAL REAL PROPERTY AS HIS OR HER PRIMARY14
181181 RESIDENCE, SO LONG AS THE OWNER -OCCUPIER HAS NOT PREVIOUSLY15
182182 RECEIVED THE EXEMPTION PURSUANT TO THIS SUBSECTION (6)(a)(I.7)(A)16
183183 FOR PROPERTY OTHER THAN THE RESIDENTIAL REAL PROPERTY FOR WHICH17
184184 AN EXEMPTION IS CLAIMED AND THE OWNER -OCCUPIER PRESENTS TO THE18
185185 ASSESSOR, WHEN APPLYING FOR THE EXEMPTION, THE FORM ESTABLISHING19
186186 PROOF OF MEDICAL NECESSITY THAT IS DESCRIBED IN SUBSECTION20
187187 (6)(a)(I.7)(B)
188188 OF THIS SECTION.21
189189 (B) A
190190 S USED IN THIS SUBSECTION (6)(a), "MEDICAL NECESSITY"22
191191 MEANS A MEDICAL CONDITION OF AN OWNER -OCCUPIER THAT A PHYSICIAN23
192192 LICENSED TO PRACTICE MEDICINE IN THE STATE PURSUANT TO ARTICLE 24024
193193 OF TITLE 12 HAS CERTIFIED, ON A FORM DEVELOPED BY THE25
194194 ADMINISTRATOR AND MADE AVAILABLE ON THE WEBSITE OF THE DIVISION26
195195 OF PROPERTY TAXATION OF THE DEPARTMENT OF LOCAL AFFAIRS , AS27
196196 SB22-093
197197 -6- HAVING REQUIRED THE OWNER -OCCUPIER TO STOP OCCUPYING THE1
198198 OWNER-OCCUPIER'S PRIMARY RESIDENCE.2
199199 (II) W
200200 ITH RESPECT TO AN EXEMPTION CLAIMED PURSUANT TO3
201201 SUBSECTION (6)(a)(I) OR (6)(a)(I.7) OF THIS SECTION, the owner-occupier4
202202 has not owned and occupied residential property as his or her primary5
203203 residence other than the residential real property for which an exemption6
204204 is claimed since the condemnation occurred
205205 OR SINCE THE7
206206 OWNER-OCCUPIER FIRST STOPPED OCCUPYING HIS OR HER FORMER8
207207 PRIMARY RESIDENCE DUE TO MEDICAL NECESSITY .9
208208 SECTION 4. In Colorado Revised Statutes, amend 39-3-204 as10
209209 follows:11
210210 39-3-204. Notice of property tax exemption. No later than May12
211211 1, 2013, and no later than May 1 of each year thereafter in which an13
212212 assessor sends a notice of valuation pursuant to section 39-5-121 (1)(a)14
213213 that is not included with the tax bill, each assessor shall mail to each15
214214 residential real property address in the assessor's county notice of the16
215215 exemption allowed by section 39-3-203 (1). As soon as practicable after17
216216 January 1, 2014, and as soon as practicable after January 1 of each year18
217217 thereafter, each county treasurer shall, at the treasurer's discretion, mail19
218218 or electronically send to each person whose name appears on the tax list20
219219 and warrant as an owner of residential real property notice of the21
220220 exemption allowed by section 39-3-203 (1). The treasurer must mail or22
221221 electronically send the notice in each year on or before the date on which23
222222 the treasurer mails the property tax statement for the previous property tax24
223223 year pursuant to section 39-10-103. No later than May 1, 2008, and no25
224224 later than each May 1 thereafter, each assessor also shall mail to each26
225225 residential property address in the assessor's county notice of the27
226226 SB22-093
227227 -7- exemption allowed by section 39-3-203 (1.5). No later than May 1, 2007,1
228228 the division shall mail to the residential property address of each person2
229229 residing in the state who the division believes is a qualifying disabled3
230230 veteran
231231 WITH A DISABILITY notice of the exemption allowed by section4
232232 39-3-203 (1.5) for the 2007 property tax year. However, the sending of5
233233 notice to a person by the division does not constitute a determination by6
234234 the division that the person sent notice is entitled to an exemption. The7
235235 notice shall be in a form prescribed by the administrator, who shall8
236236 consult with the division before prescribing the form of the notice of the9
237237 exemption allowed by section 39-3-203 (1.5), and shall include a10
238238 statement of the eligibility criteria for the exemptions and instructions for11
239239 obtaining an exemption application. To reduce mailing costs, an assessor12
240240 may coordinate with the treasurer of the same county to include notice13
241241 with the tax statement for the previous property tax year mailed pursuant14
242242 to section 39-10-103 or may include notice with the notice of valuation15
243243 mailed pursuant to section 39-5-121 (1)(a).16
244244 SECTION 5. In Colorado Revised Statutes, 39-3-205, amend17
245245 (2.5) as follows:18
246246 39-3-205. Exemption applications - penalty for providing false19
247247 information - confidentiality. (2.5) For the purpose of verifying the20
248248 eligibility of each applicant for the exemption allowed to qualifying21
249249 disabled
250250 veterans WITH A DISABILITY under section 39-3-203 (1.5)22
251251 efficiently and with minimal inconvenience to each applicant, the division23
252252 shall determine whether an applicant for the exemption is a qualifying24
253253 disabled veteran WITH A DISABILITY. With respect to any application25
254254 timely filed by July 1 pursuant to paragraph (b) of subsection (1)26
255255 SUBSECTION (1)(b) of this section, the division shall, if possible,27
256256 SB22-093
257257 -8- determine whether the applicant is a qualifying disabled veteran WITH A1
258258 DISABILITY and send notice of its determination to the applicant on or2
259259 before the immediately succeeding August 1. If the division determines3
260260 that the applicant is a qualifying disabled veteran WITH A DISABILITY, it4
261261 shall also send notice of its determination and a copy of the exemption5
262262 application to the assessor for the county where the property is located.6
263263 If the division is unable to determine whether the applicant is a qualifying7
264264 disabled veteran WITH A DISABILITY on or before said August 1, it shall8
265265 send preliminary notice to both the applicant and the assessor that its9
266266 determination is pending and shall follow up the preliminary notice by10
267267 sending final notice of its ultimate determination to the applicant and,11
268268 together with a copy of the exemption application, to the assessor as soon12
269269 as possible thereafter.13
270270 SECTION 6. In Colorado Revised Statutes, 39-3-206, amend14
271271 (1.5), (2)(a), and (2)(a.7) as follows:15
272272 39-3-206. Notice to individuals returning incomplete or16
273273 nonqualifying exemption applications - denial of exemption -17
274274 administrative remedies. (1.5) (a) Except as otherwise provided in18
275275 paragraph (a.7) of subsection (2) SUBSECTION (2)(a.7) of this section, the19
276276 division shall only accept an application for the exemption allowed to20
277277 qualifying disabled veterans WITH A DISABILITY under section 39-3-20321
278278 (1.5) if the applicant timely returned the exemption application in22
279279 accordance with section 39-3-205 (1)(b), and an assessor shall only grant23
280280 the exemption if the division verifies that the applicant is a qualified24
281281 disabled veteran WITH A DISABILITY and the exemption application25
282282 forwarded by the division to the assessor pursuant to section 39-3-20526
283283 (2.5) establishes that the applicant meets the other requirements to be27
284284 SB22-093
285285 -9- entitled to the exemption.1
286286 (b) If the information provided on or with an application for the2
287287 exemption allowed to qualifying disabled veterans WITH A DISABILITY3
288288 under section 39-3-203 (1.5) that is forwarded by the division to an4
289289 assessor pursuant to section 39-3-205 (2.5) indicates that the applicant is5
290290 not entitled to the exemption, or is insufficient to allow the assessor to6
291291 determine whether or not the applicant is entitled to the exemption, the7
292292 assessor shall deny the application and mail to the applicant a statement8
293293 providing the reasons for the denial and informing the applicant of the9
294294 applicant's right to contest the denial pursuant to subsection (2) of this10
295295 section. The assessor shall mail the statement no later than August 1 of11
296296 the property tax year for which the exemption application was filed.12
297297 (2) (a) An applicant whose exemption application has been denied13
298298 pursuant to paragraph (b) of subsection (1) or paragraph (b) of subsection14
299299 (1.5) SUBSECTION (1)(b) OR (1.5)(b) of this section may contest the denial15
300300 by requesting a hearing before the county commissioners sitting as the16
301301 county board of equalization no later than August 15 of the property tax17
302302 year for which the exemption application was filed. The hearing shall be18
303303 held on or after August 1 and no later than September 1 of the property19
304304 tax year for which the exemption application was filed, and the decision20
305305 of the county board of equalization is not subject to further administrative21
306306 appeal by either the applicant or the assessor. An applicant may not22
307307 contest a determination by the division that the applicant is not a23
308308 qualifying disabled veteran WITH A DISABILITY at a hearing requested24
309309 pursuant to this paragraph (a) SUBSECTION (2)(a).25
310310 (a.7) An individual who wishes to claim the exemption for26
311311 qualifying disabled veterans WITH A DISABILITY allowed by section27
312312 SB22-093
313313 -10- 39-3-203 (1.5), but who has not timely filed an exemption application1
314314 with the division, may request that the division waive the application2
315315 deadline and allow the individual to file a late exemption application no3
316316 later than the August 1 that immediately follows the original application4
317317 deadline. The division may accept an application if, in the division's sole5
318318 discretion, the applicant shows good cause for not timely filing an6
319319 application. If the division accepts a late application, it shall determine7
320320 whether the applicant is a qualifying disabled veteran WITH A DISABILITY8
321321 and shall mail notice of its determination to the applicant no later than the9
322322 August 25 that immediately follows the late application deadline. If the10
323323 division determines that a veteran is a qualifying disabled veteran WITH11
324324 A DISABILITY, it shall mail a copy of the notice of its determination to the12
325325 assessor for the county in which the property for which the applicant has13
326326 claimed the exemption is located and shall include with the notice a copy14
327327 of the applicant's exemption application. The assessor shall grant an15
328328 exemption if the notice and application forwarded by the division to the16
329329 assessor establish that the applicant is entitled to the exemption. A17
330330 decision of the division to allow or disallow the filing of a late application18
331331 or of an assessor to grant or deny an exemption to an applicant who has19
332332 filed a late application is final, and an applicant who is denied late filing20
333333 or an exemption may not contest the denial.21
334334 SECTION 7. In Colorado Revised Statutes, 25-2-103, amend22
335335 (4.5) as follows:23
336336 25-2-103. Centralized registration system for all vital statistics24
337337 - appointment of registrar - rules. (4.5) Notwithstanding any other25
338338 provision of law that limits the sharing of vital statistics, after receiving26
339339 the list of names and social security numbers of individuals who received27
340340 SB22-093
341341 -11- property tax exemptions as either qualifying seniors or disabled1
342342 QUALIFYING veterans WITH A DISABILITY for the prior year that is provided2
343343 by the property tax administrator pursuant to section 39-3-207, C.R.S., the3
344344 state registrar shall identify all individuals on the list who have died and4
345345 transmit a list of the names and social security numbers of such5
346346 individuals to the administrator.6
347347 SECTION 8. In Colorado Revised Statutes, 39-21-113, amend7
348348 (24) as follows:8
349349 39-21-113. Reports and returns - rule. (24) Notwithstanding9
350350 any other provision of this section, the executive director, after receiving10
351351 from the property tax administrator a list of individuals who are claiming11
352352 the property tax exemptions for qualifying seniors and disabled12
353353 QUALIFYING veterans WITH A DISABILITY allowed under part 2 of article13
354354 3 of this title TITLE 39, shall provide to the property tax administrator14
355355 information pertaining to the listed individuals, including their names,15
356356 social security numbers, marital and income tax filing status, and16
357357 residency status, needed by the administrator to verify that the exemption17
358358 is allowed only to applicants who satisfy legal requirements for claiming18
359359 it. The administrator and the administrator's agents, clerks, and employees19
360360 shall keep all information received from the executive director20
361361 confidential, and any individual who fails to do so is guilty of a21
362362 misdemeanor and subject to punishment as specified in subsection (6) of22
363363 this section.23
364364 SECTION 9. Act subject to petition - effective date. This act24
365365 takes effect at 12:01 a.m. on the day following the expiration of the25
366366 ninety-day period after final adjournment of the general assembly; except26
367367 that, if a referendum petition is filed pursuant to section 1 (3) of article V27
368368 SB22-093
369369 -12- of the state constitution against this act or an item, section, or part of this1
370370 act within such period, then the act, item, section, or part will not take2
371371 effect unless approved by the people at the general election to be held in3
372372 November 2022 and, in such case, will take effect on the date of the4
373373 official declaration of the vote thereon by the governor.5
374374 SB22-093
375375 -13-