Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0907.01 Ed DeCecco x4216
SENATE BILL 22-220
Senate Committees House Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE PROPERTY TAX DEFERRAL PROGRAM , AND, IN
101
CONNECTION THEREWITH , MAKING AN APPROPRIATION .102
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
HOUSE
2nd Reading Unamended
May 10, 2022
SENATE
3rd Reading Unamended
May 2, 2022
SENATE
Amended 2nd Reading
April 29, 2022
SENATE SPONSORSHIP
Hansen and Rankin, Bridges, Buckner, Coram, Donovan, Fenberg, Jaquez Lewis, Lee,
Pettersen, Priola, Smallwood, Story, Winter
HOUSE SPONSORSHIP
McCluskie and Esgar,
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. implements some of those recommendations, among other things.
The bill shifts current administrative responsibilities from county
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
220-2- 39-3.5-101. Definitions. As used in this article 3.5, unless the1
context otherwise requires:2
(2.5) "S
TATE TREASURER " INCLUDES A THIRD -PARTY3
ADMINISTRATOR THAT ENTERS INTO A CONTRACT WITH THE STATE4
TREASURER TO ADMINISTER THE PROPERTY TAX DEFERRAL PROGRAM5
CREATED IN THIS ARTICLE 3.5 IN ACCORDANCE WITH SECTION 39-3.5-103.56
(2).7
SECTION 2. In Colorado Revised Statutes, 39-3.5-102, amend8
(1)(a) and (1)(c)(I) as follows:9
39-3.5-102. Deferral of tax on homestead - qualifications -10
filing of claim. (1) (a) Subject to the provisions of this article
ARTICLE11
3.5, a person who is sixty-five years of age or older or who is a person12
called into military service on January 1 of the year in which the person13
files a claim under this section may elect to defer the payment of real14
property taxes. To exercise this option, the taxpayer shall MUST file a15
claim for deferral with the treasurer of the county in which the taxpayer's16
homestead is located STATE TREASURER. The claim shall MUST be filed17
after January 1 and on or before April 1 of each year in which the18
taxpayer claims the deferral.19
(c) (I) Subject to the provisions of this article 3.5, including the20
limitations set forth in subsection (1)(c)(II) of this section, beginning21
January 1, 2023, a person who is not otherwise eligible for deferral under22
this section may elect to defer the payment of the portion of real property23
taxes that exceed the person's tax-growth cap. To exercise this option, the24
taxpayer must file a claim for deferral with the treasurer of the county in25
which the taxpayer's homestead is located STATE TREASURER. The26
taxpayer must file the claim after January 1 and on or before April 1 of27
220
-3- each year in which the taxpayer claims the deferral.1
SECTION 3. In Colorado Revised Statutes, 39-3.5-103, amend2
(1)(d.5)(II) as follows:3
39-3.5-103. Property entitled to deferral. (1) In order to qualify4
for real property tax deferral under this article 3.5, the property shall meet5
all of the following requirements at the time the claim is filed and so long6
thereafter as payment is deferred:7
(d.5) (II) For purposes of this paragraph (d.5) SUBSECTION8
(1)(d.5), the actual value of the property shall be the most recent appraisal9
by the county assessor as of the time the claim for deferral is submitted.10
to the county treasurer.11
SECTION 4. In Colorado Revised Statutes, add 39-3.5-103.5 as12
follows:13
39-3.5-103.5. State treasurer - program administration - rules.14
(1) T
HE STATE TREASURER MAY CONDUCT A PUBLIC EDUCATION15
CAMPAIGN ABOUT THE PROPERTY TAX DEFERRAL PROGRAM CREATED IN16
THIS ARTICLE 3.5.17
(2) T
HE STATE TREASURER MAY CONTRACT WITH A THIRD PARTY18
TO ADMINISTER THE PROPERTY TAX DEFERRAL PROGRAM ON BEHALF OF19
THE STATE TREASURER.20
(3) T
HE STATE TREASURER MAY PROMULGATE RULES , IN21
ACCORDANCE WITH ARTICLE 4 OF TITLE 24, RELATED TO THE22
ADMINISTRATION OF THE PROPERTY TAX DEFERRAL PROGRAM .23
SECTION 5. In Colorado Revised Statutes, 39-3.5-104, amend24
(1) introductory portion as follows:25
39-3.5-104. Claim form - contents. (1) A taxpayer's claim for26
deferral shall
MUST be in writing on a form prescribed AND SUPPLIED by27
220
-4- the state treasurer and supplied by the county treasurer and shall MUST:1
SECTION 6. In Colorado Revised Statutes, 39-3.5-105, amend2
(1); and add (1.5) as follows:3
39-3.5-105. Listing of tax-deferred property - tax as lien -4
interest accrual. (1) If eligibility for deferral of homestead property is5
established as provided in this article ARTICLE 3.5, THE STATE TREASURER6
SHALL ISSUE A CERTIFICATE OF DEFERRAL, WHICH INCLUDES THE NAME OF7
THE TAXPAYER, THE DESCRIPTION OF THE PROPERTY, THE AMOUNT OF TAX8
DEFERRED, AND THE YEAR FOR WHICH THE DEFERRAL WAS GRANTED , AND9
RECORD THE CERTIFICATE OF DEFERRAL WITH THE COUNTY CLERK AND10
RECORDER IN THE COUNTY WHERE THE PROPERTY IS LOCATED . THE STATE11
TREASURER SHALL NOTIFY THE COUNTY TREASURER OF A PROPERTY 'S12
ELIGIBILITY AND PROVIDE THE COUNTY TREASURER WITH THE CERTIFICATE13
OF DEFERRAL, AND the county treasurer shall:14
(a) Enter in his THE COUNTY TREASURER'S records a notation that15
the property is tax-deferred;16
(b) (I) Promptly, upon designation of the property as tax-deferred,17
issue a certificate of deferral, which shall include the name of the18
taxpayer, the description of the property, the amount of tax deferred, and19
the year for which the deferral was granted. The certificate shall be20
recorded in the county records and thereafter sent to the state treasurer.21
One copy shall be given to the assessor, and RETAIN one copy shall be22
retained in the county treasurer's office.23
(II) Promptly, upon designation of a mobile home as tax-deferred,24
the owner of the mobile home shall surrender title to the property to the25
county clerk and recorder STATE TREASURER. The county clerk and26
recorder shall, pursuant to the provisions of article 29 of title 38, C.R.S.,27
220
-5- make application with the department of revenue for issuance of a new1
certificate of title with a record of the lien of the state treasurer. This2
procedure shall be followed for each subsequent year that the property is3
deferred. The county treasurer shall issue a certificate of deferral, which4
shall include the name of the taxpayer, the description of the property, the5
amount deferred, and the tax year for which the deferral was granted, and6
shall send such certificate to the state treasurer. One copy shall be given7
to the county assessor, and one copy shall be retained in the county8
treasurer's office. Upon satisfaction of said THE lien, the state treasurer9
shall release the lien from said THE title.10
(1.5) N
OTWITHSTANDING ANY PROVISION OF LAW TO THE11
CONTRARY, A COUNTY CLERK AND RECORDER SHALL NOT CHARGE A FEE12
FOR RECORDING THE CERTIFICATE OF DEFERRAL IN ACCORDANCE WITH13
SUBSECTION (1) OF THIS SECTION.14
SECTION 7. In Colorado Revised Statutes, 39-3.5-105.5, amend15
(2) as follows:16
39-3.5-105.5. Loan of state money to taxpayers. (2) Interest on17
a loan for property tax deferral shall accrue at the rate specified in section18
39-3.5-105 (5). The interest shall accrue beginning April 30
MAY 1 of the19
calendar year in which the deferral is claimed until the date on which such20
THE loan is repaid.21
SECTION 8. In Colorado Revised Statutes, 39-3.5-106, add (3)22
as follows:23
39-3.5-106. State treasurer to pay county treasurer an amount24
equivalent to deferred taxes. (3) I
F A TAXPAYER DEFERS ALL OR PART25
OF THE PROPERTY TAXES DUE FOR A PROPERTY TAX YEAR AND THE26
COUNTY TREASURER RECEIVES A PAYMENT FROM , OR ON BEHALF OF, THE27
220
-6- TAXPAYER SO THAT THE TOTAL RECEIVED FROM THE STATE TREASURER1
AND THE PAYER IS GREATER THAN THE TAXPAYER 'S PROPERTY TAXES DUE,2
THEN THE COUNTY TREASURER SHALL REFUND THE EXCESS TO THE PAYER3
OF THE TAXES.4
SECTION 9. In Colorado Revised Statutes, 39-3.5-107, amend5
(2) as follows:6
39-3.5-107. Repayment of loans - release of liens - disposition7
of payments. (2) If repayment of a loan for deferred taxes is tendered to8
the A TAXPAYER MUST TENDER REPAYMENTS OF A LOAN FOR DEFERRED9
TAXES TO THE STATE TREASURER, AND THE STATE TREASURER SHALL GIVE10
THE TAXPAYER A RECEIPT THEREFOR . A county treasurer he or she shall11
NOT accept payment, give a receipt therefor, and forthwith transmit the12
money collected to the state treasurer A REPAYMENT.13
SECTION 10. In Colorado Revised Statutes, amend 39-3.5-10814
as follows:15
39-3.5-108. Notice to taxpayer regarding duty to claim16
deferral annually. At the time the treasurer sends the annual real17
property tax AS SOON AS PRACTICABLE AFTER JANUARY 1, THE STATE18
TREASURER SHALL SEND A DEFERRAL notice to any taxpayer who has19
claimed a deferral of property taxes in the previous calendar year. he shall20
enclose a deferral notice. The deferral notice shall MUST be substantially21
in the following form:22
To: (name of taxpayer)23
If you want to defer the collection of ad valorem property taxes on24
your homestead for the assessment year ending on December 31, , you25
must file a claim for deferral not later than April 1, , in the office of the26
county treasurer WITH (STATE TREASURER OR THE NAME OF THIRD -PARTY27
220
-7- ADMINISTRATOR, IF APPLICABLE). Forms for filing such THE claims are1
available at the county treasurer's office (WEBSITE AND MAILING ADDRESS2
FOR STATE TREASURER OR THIRD-PARTY ADMINISTRATOR, IF APPLICABLE).3
If you fail to file your claim for deferral on or before April 1, ,4
your real property taxes will be due and payable in accordance with the5
schedule set out in the enclosed tax notice YOU SEPARATELY RECEIVED6
FROM YOUR COUNTY TREASURER .7
If you change your permanent address at any time during the8
assessment year ending on December 31, , you must notify the county9
assessor STATE TREASURER promptly.10
SECTION 11. In Colorado Revised Statutes, amend 39-3.5-10911
as follows:12
39-3.5-109. Failure to receive notices. Failure to receive the13
notice provided for in this article ARTICLE 3.5 is not a defense in any14
proceeding for the collection of taxes or for the foreclosure of a tax lien.15
N
EITHER the STATE treasurer NOR A COUNTY TREASURER is not
personally16
liable for failure to give such notices.17
SECTION 12. In Colorado Revised Statutes, 39-3.5-110, amend18
(1)(c) and (1)(d); and add (1)(d.5) and (1.5) as follows:19
39-3.5-110. Events requiring repayment of loans - notice to20
state treasurer. (1) All loans for deferred real property taxes, including21
accrued interest, shall become payable subject to sections 39-3.5-111 and22
39-3.5-112 when:23
(c) The property is no longer the homestead of the taxpayer who24
claimed the deferral, except in the case of a taxpayer required to be absent25
from such tax-deferred property by reason of ill health
OR BECAUSE THE26
PROPERTY IS UNINHABITABLE AS A RESULT OF NATURAL CAUSES ;27
220
-8- (d) The tax-deferred property no longer meets the requirements1
REQUIREMENT of section 39-3.5-103 (1)(c); or (1)(f);2
(d.5) T
HE TAX-DEFERRED PROPERTY NO LONGER MEETS THE3
REQUIREMENT OF SECTION 39-3.5-103 (1)(f), EXCEPT IN THE CASE OF A4
PROPERTY WHOSE VALUE HAS DECREASED AS A RESULT OF NATURAL5
CAUSES;6
(1.5) T
HE EXCEPTIONS RELATED TO NATURAL CAUSES SET FORTH7
IN SUBSECTIONS (1)(c) AND (1)(d.5) OF THIS SECTION APPLY FOR THREE8
YEARS FROM THE DATE OF THE NATURAL CAUSE OR UNTIL THE DATE THAT9
THE PROPERTY IS NO LONGER VALUED AS VACANT RESIDENTIAL LAND ,10
WHICHEVER DATE IS SOONER.11
SECTION 13. In Colorado Revised Statutes, 39-3.5-111, amend12
(3) as follows:13
39-3.5-111. Time for payment - delinquencies. (3) If a loan for14
deferred taxes and accrued interest is not paid on the due date, such15
amounts are delinquent as of that date, and the state treasurer shall
MAY16
foreclose the deferred tax lien.17
SECTION 14. Appropriation. (1) For the 2022-23 state fiscal18
year, $1,725,883 is appropriated to the department of the treasury for use19
by the administration division. This appropriation is from the general20
fund. To implement this act, the division may use this appropriation as21
follows:22
(a) $788,184 for personal services, which amount is based on an23
assumption that the division will require an additional 16.0 FTE; and24
(b) $937,699 for operating expenses.25
SECTION 15. Safety clause. The general assembly hereby finds,26
220
-9- determines, and declares that this act is necessary for the immediate1
preservation of the public peace, health, or safety.2
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-10-