Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-1041.02 Pierce Lively x2059
SENATE BILL 22-238
Senate Committees House Committees
Appropriations
A BILL FOR AN ACT
C
ONCERNING REDUCTIONS IN REAL PROPERTY TAXATION FOR ONLY101
THE 2023 AND 2024 PROPERTY TAX YEARS, AND, IN CONNECTION102
THEREWITH, REDUCING THE ASSESSMENT RATES FOR CERTAIN103
CLASSES OF NONRESIDENTIAL PR OPERTY AND ALL RESIDENTIAL104
PROPERTY AND THE AMOUNT OF ACTUAL VALUE TO WHICH THE105
RATE IS APPLIED FOR ALL RESIDENTIAL REAL PROPERTY AND106
COMMERCIAL PROPERTY FOR 2023; REDUCING THE ASSESSMENT107
RATES FOR ALL MULTI-FAMILY RESIDENTIAL REAL PROPERTY TO108
A SET AMOUNT FOR 2024; REDUCING THE ASSESSMENT RATES109
FOR ALL RESIDENTIAL REAL PROPERTY OTHER THAN110
MULTI-FAMILY RESIDENTIAL REAL PROPERTY FOR 2024 BY AN111
AMOUNT DETERMINED BY THE PROPERTY TAX ADMINISTRATOR112
TO CUMULATIVELY WITH THE OTHER PROVISIONS OF THE BILL113
SENATE SPONSORSHIP
Hansen and Rankin,
HOUSE SPONSORSHIP
Weissman and Neville,
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. REDUCE STATEWIDE PROPERTY TAX REVENUE FOR 2023 AND101
2024
BY A SPECIFIED AMOUNT ; REDUCING THE ASSESSMENT102
RATES FOR REAL AND PERSONAL PROPERTY THAT IS CLASSIFIED103
AS AGRICULTURAL OR RENEWABLE ENERGY PRODUCTION104
PROPERTY FOR 2024; AND REQUIRING THE STATE TO REIMBURSE105
LOCAL GOVERNMENTS , EXCLUDING SCHOOL DISTRICTS , IN 2024106
FOR 2023 REDUCTIONS IN THEIR PROPERTY TAX REVENUE107
RESULTING FROM THE BILL .108
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
.)
For the 2023 property tax year:
! Section 1 of the bill reduces the valuation for assessment
of nonresidential property, excluding agricultural and
renewable energy production nonresidential property, from
29% of the actual value of the property to 27.9% of the
actual value of the property;
! Section 2 reduces the valuation for assessment of
residential property, including multi-family residential
property, to 6.765% of the actual value of the property; and
! Sections 1 and 3 reduce the actual value used for purposes
of the valuation for assessment of commercial real property
by $30,000 and of residential real property by $15,000, but
in either case to no less than $1,000.
For the 2024 property tax year:
! Section 1 continues the valuation for assessment of real
and personal property that is classified as agricultural
property or renewable energy production property at 26.4%
of the actual value of the property;
! Section 2 establishes the valuation for assessment for all
residential real property other than multi-family residential
real property as a percentage of the actual value of the
property based on there being a specific modification
determined by the property tax administrator; and
! Section 2 also establishes the valuation for assessment for
multi-family residential real property as 6.8% of the actual
SB22-238-2- value of the property.
Section 4 requires the adjustment of the ratio of valuation for
assessment for all residential real property other than multi-family
residential real property for the 2024 property tax year, so that the
aggregate decrease in local government property tax revenue during the
2023 and 2024 property tax years, as a result of the bill, equals $700
million.
Section 5 requires the state treasurer to reimburse counties for the
reduction in property tax revenue resulting from the bill during the 2023
property tax year and requires the property tax administrator to report this
amount to the general assembly. The state treasurer is required to fully
reimburse any county that:
! Received an increase of less than 10% in assessed value of
real property between the 2022 and 2023 property tax
years; and
! Has a population of 300,000 or less.
The state treasurer is also required to reimburse a county 90% of the
amount of the reduction if the county:
! Received an increase of 10% or more in assessed value of
real property between the 2022 and 2023 property tax
years; and
! Has a population of 300,000 or less.
Lastly, the state treasurer is also required to reimburse any county that
does not qualify for full or 90% reimbursement 65% of the amount of the
reduction. County treasurers must then distribute these reimbursements
to the local governmental entities, excluding school districts, within the
treasurer's county as if the revenue had been regularly paid as property
tax.
For school districts, section 6 requires the state treasurer to
transfer $200 million from the general fund to the public school fund to
offset school district property tax revenue reductions.
Section 5 also requires the property tax administrator to prepare
a report that identifies the aggregate reduction in local government
property tax revenue during the 2023 property tax year resulting from the
bill.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-1-104, amend (1),2
(1.8)(a), and (1.8)(b) as follows: 3
39-1-104. Valuation for assessment - definitions. (1) (a) The4
valuation for assessment of all taxable property in the state shall be5
SB22-238-3- twenty-nine percent of the actual value thereof as determined by the1
assessor and the administrator in the manner prescribed by law, and such2
THAT percentage shall be uniformly applied, without exception, to the3
actual value, so determined, of the real and personal property located4
within the territorial limits of the authority levying a property tax, and all5
property taxes shall be levied against the aggregate valuation for6
assessment resulting from the application of such THAT percentage.7
(b) N
OTWITHSTANDING SUBSECTION (1)(a) OF THIS SECTION, FOR8
THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1, 2023, THE9
VALUATION FOR ASSESSMENT OF NONRESIDENTIAL PROPERTY THAT IS10
CLASSIFIED AS LODGING PROPERTY IS TEMPORARILY REDUCED TO11
TWENTY-SEVEN AND NINE-TENTHS PERCENT OF AN AMOUNT EQUAL TO THE12
ACTUAL VALUE MINUS THE LESSER OF THIRTY THOUSAND DOLLARS OR THE13
AMOUNT THAT REDUCES THE VALUATION FOR ASSESSMENT TO ONE14
THOUSAND DOLLARS.15
(c) This subsection (1) only applies to nonresidential property that16
is classified as lodging property.17
(1.8) (a) The valuation for assessment of real and personal18
property that is classified as agricultural property or renewable energy19
production property is twenty-nine percent of the actual value thereof;20
except that, for property tax years commencing on January 1, 2022, and
21
January 1, 2023,
AND JANUARY 1, 2024, the valuation for assessment of22
this property is temporarily reduced to twenty-six and four-tenths percent23
of the actual value thereof.24
(b) The valuation for assessment of all nonresidential property that25
is not specified in subsection (1) or (1.8)(a) of this section is twenty-nine26
percent of the actual value thereof;
EXCEPT THAT, FOR THE PROPERTY TAX27
SB22-238
-4- YEAR COMMENCING ON JANUARY 1, 2023, THE VALUATION FOR1
ASSESSMENT OF THIS PROPERTY IS TEMPORARILY REDUCED TO :2
(I) F
OR ALL OF THE PROPERTY LISTED BY THE ASSESSOR UNDER3
ANY IMPROVED COMMERCIAL SUBCLASS CODES , TWENTY-SEVEN AND4
NINE-TENTHS PERCENT OF AN AMOUNT EQUAL TO THE ACTUAL VALUE5
MINUS THE LESSER OF THIRTY THOUSAND DOLLARS OR THE AMOUNT THAT6
REDUCES THE VALUATION FOR ASSESSMENT TO ONE THOUSAND DOLLARS ;7
AND8
(II) T
WENTY-SEVEN AND NINE-TENTHS PERCENT OF THE ACTUAL9
VALUE OF ALL OTHER NONRESIDENTIAL PROPERTY THAT IS NOT SPECIFIED10
IN SUBSECTIONS (1), (1.8)(a), AND (1.8)(b)(I) OF THIS SECTION.11
SECTION 2. In Colorado Revised Statutes, 39-1-104.2, amend12
(3)(q) and (3)(r) as follows:13
39-1-104.2. Adjustment of residential rate - legislative14
declaration - definitions. (3) (q) The ratio of valuation for assessment15
for multi-family residential real property is 7.15 percent of actual value16
for property tax years commencing on or after January 1, 2019; except17
that:18
(I) For
THE property tax years commencing on January 1, 2022,19
and January 1, 2023
JANUARY 1, 2024, the ratio of valuation for20
assessment for multi-family residential real property is temporarily21
reduced to 6.8 percent of actual value;22
(II) F
OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,23
2023,
THE RATIO OF VALUATION FOR ASSESSMENT FOR MULTI -FAMILY24
RESIDENTIAL REAL PROPERTY IS TEMPORARILY REDUCED TO 6.8 PERCENT25
OF ACTUAL VALUE.26
(r) The ratio of valuation for assessment for all residential real27
SB22-238
-5- property other than multi-family residential real property is 7.15 percent1
of actual value; except that:2
(I) For
THE property tax years
YEAR commencing on January 1,3
2022, and January 1, 2023, the ratio of valuation for assessment for all4
residential real property other than multi-family residential real property5
is temporarily reduced to 6.95 percent of actual value;6
(II) F
OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,7
2023,
THE RATIO OF VALUATION FOR ASSESSMENT FOR ALL RESIDENTIAL8
REAL PROPERTY OTHER THAN MULTI-FAMILY RESIDENTIAL REAL PROPERTY9
IS 6.765 PERCENT OF ACTUAL VALUE; AND10
(III) F
OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,11
2024,
THE RATIO OF VALUATION FOR ASSESSMENT FOR ALL RESIDENTIAL12
REAL PROPERTY OTHER THAN MULTI-FAMILY RESIDENTIAL REAL PROPERTY13
IS TEMPORARILY ESTABLISHED AS THE PERCENTAGE CALCULATED IN14
ACCORDANCE WITH SECTION 39-1-104.4.15
SECTION 3. In Colorado Revised Statutes, add 39-1-104.3 as16
follows:17
39-1-104.3. Partial real property tax reductions - residential18
property - definitions - repeal. (1) A
S USED IN THIS SECTION, UNLESS19
THE CONTEXT OTHERWISE REQUIRES , "RESIDENTIAL REAL PROPERTY "20
MEANS PROPERTY LISTED BY THE ASSESSOR UNDER ANY RESIDENTIAL REAL21
PROPERTY CLASSIFICATION CODE.22
(2) F
OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,23
2023,
THE VALUATION FOR ASSESSMENT FOR RESIDENTIAL REAL PROPERTY24
IS SIX AND SEVEN HUNDRED SIXTY-FIVE THOUSANDTHS PERCENT , AS SET25
FORTH IN SECTION 39-1-104.2 (3)(q)(II) AND (3)(r)(II), OF THE AMOUNT26
EQUAL TO THE ACTUAL VALUE , DETERMINED PURSUANT TO SECTION27
SB22-238
-6- 39-1-103, MINUS THE LESSER OF FIFTEEN THOUSAND DOLLARS OR THE1
AMOUNT THAT REDUCES THE VALUATION FOR ASSESSMENT TO ONE2
THOUSAND DOLLARS.3
(3) T
HIS ADJUSTMENT DOES NOT APPLY TO ANY OTHER CLASS OF4
PROPERTY.5
(4) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2025.6
SECTION 4. In Colorado Revised Statutes, add 39-1-104.4 as7
follows:8
39-1-104.4. Adjustment of residential rate. (1) T
HE RATIO OF9
VALUATION FOR ASSESSMENT FOR RESIDENTIAL REAL PROPERTY OTHER10
THAN MULTI-FAMILY RESIDENTIAL REAL PROPERTY FOR THE PROPERTY11
TAX YEAR COMMENCING ON JANUARY 1, 2024, IS EQUAL TO THE12
PERCENTAGE NECESSARY FOR THE FOLLOWING TO EQUAL A TOTAL OF13
SEVEN HUNDRED MILLION DOLLARS :14
(a) T
HE AGGREGATE REDUCTION OF LOCAL GOVERNMENT15
PROPERTY REVENUE DURING THE PROPERTY TAX YEAR COMMENCING ON16
J
ANUARY 1, 2023, AS A RESULT OF THE CHANGES MADE IN SENATE BILL17
22-____,
ENACTED IN 2022, THAT REDUCED VALUATIONS FOR ASSESSMENT18
SET FORTH PURSUANT TO SECTIONS 39-1-104 (1)(b) AND (1.8)(b),19
39-1-104.2 (3)(q)(II)
AND (3)(r)(II), AND 39-3-104.3 (2); AND20
(b) T
HE AGGREGATE REDUCTION OF LOCAL GOVERNMENT21
PROPERTY TAX REVENUE DURING THE PROPERTY TAX YEAR COMMENCING22
ON JANUARY 1, 2024, AS A RESULT OF THE REDUCED VALUATIONS FOR23
ASSESSMENT SET FORTH PURSUANT TO SECTIONS 39-1-104 (1.8)(a) AND24
39-1-104.2 (3)(q)(I)
AND (3)(r)(III) FOR THE PROPERTY TAX YEAR25
COMMENCING ON JANUARY 1, 2024.26
(2)
ON OR BEFORE MARCH 21, 2024, BASED ON THE INFORMATION27
SB22-238
-7- AVAILABLE ON THAT DATE, THE PROPERTY TAX ADMINISTRATOR SHALL1
SUBMIT A REPORT TO THE GENERAL ASSEMBLY CALCULATING THE RATIO2
OF VALUATION FOR ASSESSMENT SPECIFIED IN SUBSECTION (1) OF THIS3
SECTION.4
SECTION 5. In Colorado Revised Statutes, add 39-3-210 as5
follows:6
39-3-210. Reporting of property tax revenue reductions -7
reimbursement of local governmental entities - definition - repeal.8
(1) A
S USED IN THIS SECTION, "ADDITIONAL STATE REVENUES" MEANS THE9
LESSER OF TWO HUNDRED FORTY MILLION DOLLARS OR THE TOTAL10
AMOUNT OF THE STATE REVENUES IN EXCESS OF THE LIMITATION ON STATE11
FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7)(a) OF ARTICLE X OF12
THE STATE CONSTITUTION THAT THE STATE IS REQUIRED TO REFUND13
UNDER SECTION 20 (7)(d) OF ARTICLE X OF THE STATE CONSTITUTION,14
INCLUDING ANY AMOUNT SPECIFIED IN SECTION 24-77-103.8, THAT15
EXCEEDS THE AMOUNTS PROJECTED TO BE REFUNDED AS REQUIRED BY16
SECTIONS 39-3-209 AND 39-22-627 FOR THE STATE FISCAL YEAR17
COMMENCING ON JULY 1, 2022.18
(2) F
OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,19
2023,
EACH TREASURER SHALL CALCULATE :20
(a) T
HE TOTAL PROPERTY TAX REVENUES LOST BY EACH LOCAL21
GOVERNMENTAL ENTITY , EXCLUDING SCHOOL DISTRICTS , WITHIN THE22
TREASURER'S COUNTY AS A RESULT OF THE CHANGES MADE IN SENATE23
B
ILL 22-____, ENACTED IN 2022, THAT REDUCED VALUATIONS FOR24
ASSESSMENT SET FORTH PURSUANT TO SECTIONS 39-1-104 (1)(b) AND25
(1.8)(b), 39-1-104.2 (3)(q)(II)
AND (3)(r)(II), AND 39-3-104.3 (2); AND 26
(b) T
HE DIFFERENCE IN ASSESSED VALUE OF REAL PROPERTY FOR27
SB22-238
-8- THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1, 2022, AND THE1
PROPERTY TAX YEAR COMMENCING ON JANUARY 1, 2023 WITHIN THE2
TREASURER'S COUNTY.3
(3) N
O LATER THAN MARCH 1, 2024, EACH TREASURER SHALL4
REPORT THE AMOUNTS SPECIFIED IN SUBSECTION (2) OF THIS SECTION, AS5
APPLICABLE, AND THE BASIS FOR THE AMOUNTS TO THE ADMINISTRATOR ,6
AND THE ADMINISTRATOR MAY REQUIRE A TREASURER TO PROVIDE7
ADDITIONAL INFORMATION AS NECESSARY TO EVALUATE THE ACCURACY8
OF THE AMOUNTS REPORTED. THE ADMINISTRATOR SHALL CONFIRM THAT9
THE REPORTED AMOUNTS ARE CORRECT OR RECTIFY THE AMOUNTS , IF10
NECESSARY. THE ADMINISTRATOR SHALL THEN FORWARD THE CORRECT11
AMOUNTS FOR EACH COUNTY TO THE STATE TREASURER TO ENABLE THE12
STATE TREASURER TO ISSUE A REIMBURSEMENT WARRANT TO EACH13
TREASURER IN ACCORDANCE WITH SUBSECTION (4) OF THIS SECTION.14
(4) (a) N
O LATER THAN APRIL 15, 2024, THE STATE TREASURER15
SHALL ISSUE A WARRANT, TO BE PAID UPON DEMAND FROM ADDITIONAL16
STATE REVENUES FOR THE STATE FISCAL YEAR COMMENCING ON JULY 1,17
2022,
AND, IF NECESSARY, FROM OTHER MONEY IN THE GENERAL FUND , TO18
EACH TREASURER THAT IS EQUAL TO THE TOTAL OF :19
(I) T
HE AMOUNT SPECIFIED BY THE ADMINISTRATOR UNDER20
SUBSECTION (2)(a) OF THIS SECTION FOR EACH COUNTY THAT BOTH :21
(A) H
AD AN INCREASE OF LESS THAN TEN PERCENT IN THE22
ASSESSED VALUE OF REAL PROPERTY FROM THE PROPERTY TAX YEAR23
COMMENCING ON JANUARY 1, 2022, TO THE PROPERTY TAX YEAR24
COMMENCING ON JANUARY 1, 2023; AND25
(B) H
AS A POPULATION OF THREE HUNDRED THOUSAND OR FEWER ,26
AS DETERMINED PURSUANT TO THE MOST RECENTLY PUBLISHED27
SB22-238
-9- POPULATION ESTIMATES FROM THE STATE DEMOGRAPHER APPOINTED BY1
THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF LOCAL AFFAIRS ;2
(II) N
INETY PERCENT OF THE AMOUNT SPECIFIED BY THE3
ADMINISTRATOR UNDER SUBSECTION (2)(a) OF THIS SECTION FOR EACH4
COUNTY THAT BOTH:5
(A) H
AD AN INCREASE OF TEN PERCENT OR MORE IN THE ASSESSED6
VALUE OF REAL PROPERTY FROM THE PROPERTY TAX YEAR COMMENCING7
ON JANUARY 1, 2022, TO THE PROPERTY TAX YEAR COMMENCING ON8
J
ANUARY 1, 2023; AND9
(B) H
AS A POPULATION OF THREE HUNDRED THOUSAND OR FEWER ,10
AS DETERMINED PURSUANT TO THE MOST RECENTLY PUBLISHED11
POPULATION ESTIMATES FROM THE STATE DEMOGRAPHER APPOINTED BY12
THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF LOCAL AFFAIRS ; AND13
(III) S
IXTY-FIVE PERCENT OF THE AMOUNT SPECIFIED BY THE14
ADMINISTRATOR UNDER SUBSECTION (2)(a) OF THIS SECTION FOR ANY15
COUNTY NOT DESCRIBED IN SUBSECTIONS (4)(a)(I) AND (4)(a)(II) OF THIS16
SECTION.17
(b) E
ACH TREASURER SHALL DISTRIBUTE THE TOTAL AMOUNT18
RECEIVED FROM THE STATE TREASURER TO THE LOCAL GOVERNMENTAL19
ENTITIES, EXCLUDING SCHOOL DISTRICTS , WITHIN THE TREASURER 'S20
COUNTY AS IF THE REVENUES HAD BEEN REGULARLY PAID AS PROPERTY21
TAX, BUT SO THAT THE LOCAL GOVERNMENTAL ENTITIES ONLY RECEIVE22
THE AMOUNTS DETERMINED PURSUANT TO SUBSECTION (4)(a) OF THIS23
SECTION.24
(c) W
HEN DISTRIBUTING THE MONEY , THE TREASURER SHALL25
PROVIDE EACH LOCAL GOVERNMENTAL ENTITY WITH A STATEMENT OF THE26
AMOUNT DISTRIBUTED TO THE LOCAL GOVERNMENTAL ENTITY THAT27
SB22-238
-10- REPRESENTS THE REIMBURSEMENT RECEIVED UNDER THIS SUBSECTION (4).1
(d) T
HE USE OF ADDITIONAL STATE REVENUES PURSUANT TO2
SUBSECTION (4)(a) OF THIS SECTION IS A REASONABLE METHOD OF3
REFUNDING A PORTION OF THE EXCESS STATE REVENUES REQUIRED TO BE4
REFUNDED IN ACCORDANCE WITH SECTION 20 (7)(d) OF ARTICLE X OF THE5
STATE CONSTITUTION.6
(5) O
N OR BEFORE MARCH 21, 2024, BASED ON THE INFORMATION7
AVAILABLE AS OF THAT DATE, THE PROPERTY TAX ADMINISTRATOR SHALL8
SUBMIT A REPORT TO THE GENERAL ASSEMBLY DESCRIBING THE9
AGGREGATE REDUCTION OF LOCAL GOVERNMENT PROPERTY TAX REVENUE10
DURING THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1, 2023, AS11
A RESULT OF THE CHANGES MADE IN SENATE BILL 22-____, ENACTED IN12
2022,
THAT REDUCED VALUATIONS FOR ASSESSMENT SET FORTH13
PURSUANT TO SECTIONS 39-1-104 (1)(b) AND (1.8)(b), 39-1-104.214
(3)(q)(II)
AND (3)(r)(II), AND 39-3-104.3 (2).15
(6) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2025.16
SECTION 6. In Colorado Revised Statutes, 22-54-114, add (9)17
as follows:18
22-54-114. State public school fund - repeal. (9) (a) O
N JULY19
1,
2022, THE STATE TREASURER SHALL TRANSFER TWO HUNDRED MILLION20
DOLLARS FROM THE GENERAL FUND TO THE PUBLIC SCHOOL FUND FOR THE21
PURPOSE OF OFFSETTING REDUCTIONS IN SCHOOL DISTRICT PROPERTY TAX22
REVENUE.23
(b) T
HIS SUBSECTION (9) IS REPEALED JULY 1, 2023.24
SECTION 7. Safety clause. The general assembly hereby finds,25
determines, and declares that this act is necessary for the immediate26
preservation of the public peace, health, or safety.27
SB22-238
-11-