Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0907.01 Ed DeCecco x4216
SENATE BILL 22-220
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE PROPERTY TAX DEFERRAL PROGRAM .101
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
.)
Currently, there is a property tax deferral program (program) for
the state to make a secured loan to a qualified taxpayer to pay property
taxes owed for the taxpayer's homestead. In 2021, the general assembly
enacted legislation to expand the program and required the governor's
office, in consultation with the state treasurer, to commission a study of
the program and make recommendations for possible changes. The bill
implements some of those recommendations, among other things.
The bill shifts current administrative responsibilities from county
SENATE SPONSORSHIP
Hansen and Rankin,
HOUSE 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 statute.
Dashes through the words indicate deletions from existing statute. treasurers to the state treasurer. This includes requiring:
! A taxpayer to file a claim for deferral with the state
treasurer (section 2 of the bill);
! The state treasurer to supply the deferral forms (section 5);
! The state treasurer to issue the certificate of tax deferral
and record the certificate with the appropriate county clerk
and recorder free of charge (section 6);
! The county treasurer to refund any overpayment on an
account that has been deferred to the person who paid the
taxes (section 8);
! A taxpayer to tender repayment of the loan to the state
treasurer (section 9); and
! The state treasurer to send a deferral notice to taxpayers
who have previously deferred property taxes, which notice
has been updated to reflect the state treasurer's
administrative role (section 10). Section 11 provides that
the state treasurer cannot be held personally liable for
failure to provide notices relating to property in the
program.
In addition, section 4 permits the state treasurer to:
! Conduct a public education campaign about the program;
! Contract with a third party to administer the program on
behalf of the state treasurer; and
! Promulgate rules for the administration of the program.
Section 12 creates an exception to the requirement that a loan
becomes payable for a taxpayer when a property becomes uninhabitable
and loses its value as a result of natural causes, which is currently defined
for property taxes to mean "fire, explosion, flood, tornado, action of the
elements, act of war or terror, or similar cause beyond the control of and
not caused by the party holding title to the property destroyed".
Section 13 permits the state treasurer to foreclose a deferred tax
lien once taxes and accrued interest become delinquent, instead of
requiring such foreclosure.
Sections 1 and 3 make conforming amendments and sections 6
and 7 correct a defect with the initial date that interest accrues on a
program loan to be consistent with another statute and current practice.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-3.5-101, add (2.5)2
as follows:3
39-3.5-101. Definitions. As used in this article 3.5, unless the4
SB22-220-2- context otherwise requires:1
(2.5) "S
TATE TREASURER " INCLUDES A THIRD -PARTY2
ADMINISTRATOR THAT ENTERS INTO A CONTRACT WITH THE STATE3
TREASURER TO ADMINISTER THE PROPERTY TAX DEFERRAL PROGRAM4
CREATED IN THIS ARTICLE 3.5 IN ACCORDANCE WITH SECTION 39-3.5-103.55
(2).6
SECTION 2. In Colorado Revised Statutes, 39-3.5-102, amend7
(1)(a) and (1)(c)(I) as follows:8
39-3.5-102. Deferral of tax on homestead - qualifications -9
filing of claim. (1) (a) Subject to the provisions of this article
ARTICLE10
3.5, a person who is sixty-five years of age or older or who is a person11
called into military service on January 1 of the year in which the person12
files a claim under this section may elect to defer the payment of real13
property taxes. To exercise this option, the taxpayer shall MUST file a14
claim for deferral with the treasurer of the county in which the taxpayer's15
homestead is located STATE TREASURER. The claim shall MUST be filed16
after January 1 and on or before April 1 of each year in which the17
taxpayer claims the deferral.18
(c) (I) Subject to the provisions of this article 3.5, including the19
limitations set forth in subsection (1)(c)(II) of this section, beginning20
January 1, 2023, a person who is not otherwise eligible for deferral under21
this section may elect to defer the payment of the portion of real property22
taxes that exceed the person's tax-growth cap. To exercise this option, the23
taxpayer must file a claim for deferral with the treasurer of the county in24
which the taxpayer's homestead is located STATE TREASURER. The25
taxpayer must file the claim after January 1 and on or before April 1 of26
each year in which the taxpayer claims the deferral.27
SB22-220
-3- SECTION 3. In Colorado Revised Statutes, 39-3.5-103, amend1
(1)(d.5)(II) as follows:2
39-3.5-103. Property entitled to deferral. (1) In order to qualify3
for real property tax deferral under this article 3.5, the property shall meet4
all of the following requirements at the time the claim is filed and so long5
thereafter as payment is deferred:6
(d.5) (II) For purposes of this paragraph (d.5) SUBSECTION7
(1)(d.5), the actual value of the property shall be the most recent appraisal8
by the county assessor as of the time the claim for deferral is submitted.9
to the county treasurer.10
SECTION 4. In Colorado Revised Statutes, add 39-3.5-103.5 as11
follows:12
39-3.5-103.5. State treasurer - program administration - rules.13
(1) T
HE STATE TREASURER MAY CONDUCT A PUBLIC EDUCATION14
CAMPAIGN ABOUT THE PROPERTY TAX DEFERRAL PROGRAM CREATED IN15
THIS ARTICLE 3.5.16
(2) T
HE STATE TREASURER MAY CONTRACT WITH A THIRD PARTY17
TO ADMINISTER THE PROPERTY TAX DEFERRAL PROGRAM ON BEHALF OF18
THE STATE TREASURER.19
(3) T
HE STATE TREASURER MAY PROMULGATE RULES , IN20
ACCORDANCE WITH ARTICLE 4 OF TITLE 24, RELATED TO THE21
ADMINISTRATION OF THE PROPERTY TAX DEFERRAL PROGRAM .22
SECTION 5. In Colorado Revised Statutes, 39-3.5-104, amend23
(1) introductory portion as follows:24
39-3.5-104. Claim form - contents. (1) A taxpayer's claim for25
deferral shall
MUST be in writing on a form prescribed AND SUPPLIED by26
the state treasurer and supplied by the county treasurer and shall MUST:27
SB22-220
-4- SECTION 6. In Colorado Revised Statutes, 39-3.5-105, amend1
(1); and add (1.5) as follows:2
39-3.5-105. Listing of tax-deferred property - tax as lien -3
interest accrual. (1) If eligibility for deferral of homestead property is4
established as provided in this article ARTICLE 3.5, THE STATE TREASURER5
SHALL ISSUE A CERTIFICATE OF DEFERRAL, WHICH INCLUDES THE NAME OF6
THE TAXPAYER, THE DESCRIPTION OF THE PROPERTY, THE AMOUNT OF TAX7
DEFERRED, AND THE YEAR FOR WHICH THE DEFERRAL WAS GRANTED , AND8
RECORD THE CERTIFICATE OF DEFERRAL WITH THE COUNTY CLERK AND9
RECORDER IN THE COUNTY WHERE THE PROPERTY IS LOCATED . THE STATE10
TREASURER SHALL NOTIFY THE COUNTY TREASURER OF A PROPERTY 'S11
ELIGIBILITY AND PROVIDE THE COUNTY TREASURER WITH THE CERTIFICATE12
OF DEFERRAL, AND the county treasurer shall:13
(a) Enter in his THE COUNTY TREASURER'S records a notation that14
the property is tax-deferred;15
(b) (I) Promptly, upon designation of the property as tax-deferred,16
issue a certificate of deferral, which shall include the name of the17
taxpayer, the description of the property, the amount of tax deferred, and18
the year for which the deferral was granted. The certificate shall be19
recorded in the county records and thereafter sent to the state treasurer.20
One copy shall be given to the assessor, and RETAIN one copy shall be21
retained in the county treasurer's office.22
(II) Promptly, upon designation of a mobile home as tax-deferred,23
the owner of the mobile home shall surrender title to the property to the24
county clerk and recorder STATE TREASURER. The county clerk and25
recorder shall, pursuant to the provisions of article 29 of title 38, C.R.S.,26
make application with the department of revenue for issuance of a new27
SB22-220
-5- certificate of title with a record of the lien of the state treasurer. This1
procedure shall be followed for each subsequent year that the property is2
deferred. The county treasurer shall issue a certificate of deferral, which3
shall include the name of the taxpayer, the description of the property, the4
amount deferred, and the tax year for which the deferral was granted, and5
shall send such certificate to the state treasurer. One copy shall be given6
to the county assessor, and one copy shall be retained in the county7
treasurer's office. Upon satisfaction of said THE lien, the state treasurer8
shall release the lien from said THE title.9
(1.5) N
OTWITHSTANDING ANY PROVISION OF LAW TO THE10
CONTRARY, A COUNTY CLERK AND RECORDER SHALL NOT CHARGE A FEE11
FOR RECORDING THE CERTIFICATE OF DEFERRAL IN ACCORDANCE WITH12
SUBSECTION (1) OF THIS SECTION.13
SECTION 7. In Colorado Revised Statutes, 39-3.5-105.5, amend14
(2) as follows:15
39-3.5-105.5. Loan of state money to taxpayers. (2) Interest on16
a loan for property tax deferral shall accrue at the rate specified in section17
39-3.5-105 (5). The interest shall accrue beginning April 30
MAY 1 of the18
calendar year in which the deferral is claimed until the date on which such19
THE loan is repaid.20
SECTION 8. In Colorado Revised Statutes, 39-3.5-106, add (3)21
as follows:22
39-3.5-106. State treasurer to pay county treasurer an amount23
equivalent to deferred taxes. (3) I
F A TAXPAYER DEFERS ALL OR PART24
OF THE PROPERTY TAXES DUE FOR A PROPERTY TAX YEAR AND THE25
COUNTY TREASURER RECEIVES A PAYMENT FROM , OR ON BEHALF OF, THE26
TAXPAYER SO THAT THE TOTAL RECEIVED FROM THE STATE TREASURER27
SB22-220
-6- AND THE PAYER IS GREATER THAN THE TAXPAYER 'S PROPERTY TAXES DUE,1
THEN THE COUNTY TREASURER SHALL REFUND THE EXCESS TO THE PAYER2
OF THE TAXES.3
SECTION 9. In Colorado Revised Statutes, 39-3.5-107, amend4
(2) as follows:5
39-3.5-107. Repayment of loans - release of liens - disposition6
of payments. (2) If repayment of a loan for deferred taxes is tendered to7
the A TAXPAYER MUST TENDER REPAYMENTS OF A LOAN FOR DEFERRED8
TAXES TO THE STATE TREASURER, AND THE STATE TREASURER SHALL GIVE9
THE TAXPAYER A RECEIPT THEREFOR . A county treasurer he or she shall10
NOT accept payment, give a receipt therefor, and forthwith transmit the11
money collected to the state treasurer A REPAYMENT.12
SECTION 10. In Colorado Revised Statutes, amend 39-3.5-10813
as follows:14
39-3.5-108. Notice to taxpayer regarding duty to claim15
deferral annually. At the time the treasurer sends the annual real16
property tax AS SOON AS PRACTICABLE AFTER JANUARY 1, THE STATE17
TREASURER SHALL SEND A DEFERRAL notice to any taxpayer who has18
claimed a deferral of property taxes in the previous calendar year. he shall19
enclose a deferral notice. The deferral notice shall MUST be substantially20
in the following form:21
To: (name of taxpayer)22
If you want to defer the collection of ad valorem property taxes on23
your homestead for the assessment year ending on December 31, , you24
must file a claim for deferral not later than April 1, , in the office of the25
county treasurer WITH (STATE TREASURER OR THE NAME OF THIRD -PARTY26
ADMINISTRATOR, IF APPLICABLE). Forms for filing such THE claims are27
SB22-220
-7- available at the county treasurer's office (WEBSITE AND MAILING ADDRESS1
FOR STATE TREASURER OR THIRD-PARTY ADMINISTRATOR, IF APPLICABLE).2
If you fail to file your claim for deferral on or before April 1, ,3
your real property taxes will be due and payable in accordance with the4
schedule set out in the enclosed tax notice YOU SEPARATELY RECEIVED5
FROM YOUR COUNTY TREASURER .6
If you change your permanent address at any time during the7
assessment year ending on December 31, , you must notify the county8
assessor STATE TREASURER promptly.9
SECTION 11. In Colorado Revised Statutes, amend 39-3.5-10910
as follows:11
39-3.5-109. Failure to receive notices. Failure to receive the12
notice provided for in this article ARTICLE 3.5 is not a defense in any13
proceeding for the collection of taxes or for the foreclosure of a tax lien.14
N
EITHER the STATE treasurer NOR A COUNTY TREASURER is not
personally15
liable for failure to give such notices.16
SECTION 12. In Colorado Revised Statutes, 39-3.5-110, amend17
(1)(c) and (1)(d); and add (1)(d.5) and (1.5) as follows:18
39-3.5-110. Events requiring repayment of loans - notice to19
state treasurer. (1) All loans for deferred real property taxes, including20
accrued interest, shall become payable subject to sections 39-3.5-111 and21
39-3.5-112 when:22
(c) The property is no longer the homestead of the taxpayer who23
claimed the deferral, except in the case of a taxpayer required to be absent24
from such tax-deferred property by reason of ill health
OR BECAUSE THE25
PROPERTY IS UNINHABITABLE AS A RESULT OF NATURAL CAUSES ;26
(d) The tax-deferred property no longer meets the requirements
27
SB22-220
-8- REQUIREMENT of section 39-3.5-103 (1)(c); or (1)(f);1
(d.5) T
HE TAX-DEFERRED PROPERTY NO LONGER MEETS THE2
REQUIREMENT OF SECTION 39-3.5-103 (1)(f), EXCEPT IN THE CASE OF A3
PROPERTY WHOSE VALUE HAS DECREASED AS A RESULT OF NATURAL4
CAUSES;5
(1.5) T
HE EXCEPTIONS RELATED TO NATURAL CAUSES SET FORTH6
IN SUBSECTIONS (1)(c) AND (1)(d.5) OF THIS SECTION APPLY FOR THREE7
YEARS FROM THE DATE OF THE NATURAL CAUSE OR UNTIL THE DATE THAT8
THE PROPERTY IS NO LONGER VALUED AS VACANT RESIDENTIAL LAND ,9
WHICHEVER DATE IS SOONER.10
SECTION 13. In Colorado Revised Statutes, 39-3.5-111, amend11
(3) as follows:12
39-3.5-111. Time for payment - delinquencies. (3) If a loan for13
deferred taxes and accrued interest is not paid on the due date, such14
amounts are delinquent as of that date, and the state treasurer shall
MAY15
foreclose the deferred tax lien.16
SECTION 14. Safety clause. The general assembly hereby finds,17
determines, and declares that this act is necessary for the immediate18
preservation of the public peace, health, or safety.19
SB22-220
-9-