First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0755.01 Jed Franklin x5484
SENATE BILL 23-107
Senate Committees House Committees
State, Veterans, & Military Affairs
A BILL FOR AN ACT
C
ONCERNING THE EXPANSION OF EXISTING PROPERTY TAX101
EXEMPTIONS FOR CERTAIN OWNER -OCCUPIED PRIMARY102
RESIDENCES.103
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 property tax years commencing on or after January 1, 2023, the
bill specifies that a senior is deemed to be a 10-year owner-occupier of a
primary residence that the senior has owned and occupied for less than 10
years and therefore qualifies for the senior property tax exemption for the
residence if:
SENATE SPONSORSHIP
Liston, Baisley, Gardner, Ginal, Lundeen, Pelton B., Pelton R., Rich, Simpson, Will
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 law.
Dashes through the words or numbers indicate deletions from existing law. ! The senior would have qualified for the senior property tax
exemption for the senior's former primary residence but a
medical necessity required the senior to stop occupying the
former primary residence;
! The senior has not previously received the exemption for a
former primary residence on the basis of medical necessity;
and
! The senior has not owned and occupied another primary
residence since the senior first stopped occupying the
senior's former primary residence due to medical necessity.
"Medical necessity" is defined as one or more medical conditions
of a senior that a physician licensed to practice medicine in Colorado has
certified on a form developed by the state property tax administrator as
having required the senior to stop occupying the senior's prior primary
residence.
When applying for an exemption on the basis of medical necessity,
a senior must provide the form establishing proof of medical necessity.
For property tax years commencing on or after January 1, 2023,
but before January 1, 2028, the bill increases the maximum amount of
actual value of the owner-occupied residence of a qualifying senior or
veteran with a disability that is exempt from property taxation from
$200,000 to $300,000.
For property tax years commencing on or after January 1, 2028, the
bill increases the maximum amount of actual value of the owner-occupied
residence of a qualifying senior or veteran with a disability that is exempt
from property taxation from $300,000 to $500,000.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-3-201, amend2
(1)(a) as follows:3
39-3-201. Legislative declaration. (1) The general assembly4
hereby finds and declares that:5
(a) Section 3.5 of article X of the state constitution, which was6
approved by the registered electors of the state at the 2000 general7
election and amended by the registered electors of the state at the 20068
general election, provides property tax exemptions for qualifying seniors9
and qualifying disabled veterans. I
N ACCORDANCE WITH THE PEOPLE FIRST10
SB23-107-2- LANGUAGE REQUIREMENTS OF SECTION 2-2-802, SECTION 39-3-202 (3.5)1
DEFINES THE TERM "QUALIFYING VETERAN WITH A DISABILITY " FOR2
PURPOSES OF THIS PART 2 SO THAT THE TERM HAS THE SAME MEANING AS3
THE CONSTITUTIONALLY DEFINED TERM "DISABLED VETERAN".4
SECTION 2. In Colorado Revised Statutes, 39-3-202, amend5
(1.5) and (3.5) as follows:6
39-3-202. Definitions. As used in this part 2, unless the context7
otherwise requires:8
(1.5) "Exemption" means the property tax exemptions for9
qualifying seniors and qualifying disabled veterans WITH A DISABILITY10
allowed by section 39-3-203.11
(3.5) "Qualifying disabled veteran WITH A DISABILITY" means an12
individual who has served on active duty in the United States armed13
forces, including a member of the Colorado National Guard who has been14
ordered into the active military service of the United States, has been15
separated therefrom under honorable conditions, and has established a16
service-connected disability that has been rated by the federal department17
of veterans affairs as a one hundred percent permanent disability through18
disability retirement benefits pursuant to a law or regulation administered19
by the department, the United States department of homeland security, or20
the department of the Army, Navy, or Air Force.21
SECTION 3. In Colorado Revised Statutes, 39-3-203, amend (1)22
introductory portion, (1.5)(a) introductory portion, (1.5)(a.5), (6)(a)23
introductory portion, (6)(a)(I.5), and (6)(a)(II); and add (6)(a)(I.7) as24
follows:25
39-3-203. Property tax exemption - qualifications - definition.26
(1) For the property tax year commencing January 1, 2002, for property27
SB23-107
-3- tax years commencing on or after January 1, 2006, but before January 1,1
2009, and for property tax years commencing on or after January 1, 2012,2
BUT BEFORE JANUARY 1, 2023, fifty percent of the first two hundred3
thousand dollars of actual value of residential real property that as of the4
assessment date is owner-occupied and is used as the primary residence5
of the owner-occupier shall be exempt from taxation, and
for property tax6
years commencing on or after January 1, 2003, but before January 1,7
2006, and on or after January 1, 2009, but before January 1, 2012, fifty8
percent of zero dollars of actual value of residential real property that as9
of the assessment date is owner-occupied and is used as the primary10
residence of the owner-occupier shall be exempt from taxation,
FOR11
PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2023, BUT12
BEFORE JANUARY 1, 2028, FIFTY PERCENT OF THE FIRST THREE HUNDRED13
THOUSAND DOLLARS OF ACTUAL VALUE OF RESIDENTIAL REAL PROPERTY14
THAT AS OF THE ASSESSMENT DATE IS OWNER -OCCUPIED AND IS USED AS15
THE PRIMARY RESIDENCE OF THE OWNER -OCCUPIER IS EXEMPT FROM16
TAXATION, AND FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER17
J
ANUARY 1, 2028, FIFTY PERCENT OF THE FIRST FIVE HUNDRED THOUSAND18
DOLLARS OF ACTUAL VALUE OF RESIDENTIAL REAL PROPERTY THAT AS OF19
THE ASSESSMENT DATE IS OWNER-OCCUPIED AND IS USED AS THE PRIMARY20
RESIDENCE OF THE OWNER-OCCUPIER IS EXEMPT FROM TAXATION if:21
(1.5) (a) For property tax years commencing on or after January22
1, 2007,
BUT BEFORE JANUARY 1, 2023, fifty percent of the first two23
hundred thousand dollars of actual value of residential real property that24
as of the assessment date is owner-occupied and is used as the primary25
residence of an owner-occupier who is a qualifying disabled veteran shall
26
be VETERAN WITH A DISABILITY IS exempt from taxation, FOR PROPERTY27
SB23-107
-4- TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2023, BUT BEFORE1
J
ANUARY 1, 2028, FIFTY PERCENT OF THE FIRST THREE HUNDRED2
THOUSAND DOLLARS OF ACTUAL VALUE OF RESIDENTIAL REAL PROPERTY3
THAT AS OF THE ASSESSMENT DATE IS OWNER -OCCUPIED AND IS USED AS4
THE PRIMARY RESIDENCE OF AN OWNER -OCCUPIER WHO IS A QUALIFYING5
VETERAN WITH A DISABILITY IS EXEMPT FROM T AXATION , AND FOR6
PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2028, FIFTY7
PERCENT OF THE FIRST FIVE HUNDRED THOUSAND DOLLARS OF ACTUAL8
VALUE OF RESIDENTIAL REAL PROPERTY THAT AS OF THE ASSESSMENT9
DATE IS OWNER-OCCUPIED AND IS USED AS THE PRIMARY RESIDENCE OF AN10
OWNER-OCCUPIER WHO IS A QUALIFYING VETERAN WITH A DISABILITY IS11
EXEMPT FROM TAXATION if:12
(a.5) For property tax years commencing on or after January 1,13
2015,
BUT BEFORE JANUARY 1, 2023, fifty percent of the first two hundred14
thousand dollars of actual value of residential real property that as of the15
assessment date is owner-occupied and is used as the primary residence16
of an owner-occupier who is the surviving spouse of a qualifying disabled
17
veteran
WITH A DISABILITY who previously received an exemption under18
paragraph (a) of this subsection (1.5)
SUBSECTION (1.5)(a) OF THIS19
SECTION is exempt from taxation, FOR PROPERTY TAX YEARS20
COMMENCING ON OR AFTER JANUARY 1, 2023, BUT BEFORE JANUARY 1,21
2028,
FIFTY PERCENT OF THE FIRST THREE HUNDRED THOUSAND DOLLARS22
OF ACTUAL VALUE OF RESIDENTIAL REAL PROPERTY THAT AS OF THE23
ASSESSMENT DATE IS OWNER -OCCUPIED AND IS USED AS THE PRIMARY24
RESIDENCE OF AN OWNER-OCCUPIER WHO IS THE SURVIVING SPOUSE OF A25
QUALIFYING VETERAN WITH A DISABILITY WHO PREVIOUSLY RECEIVED AN26
EXEMPTION UNDER SUBSECTION (1.5)(a) OF THIS SECTION IS EXEMPT FROM27
SB23-107
-5- TAXATION, AND FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER1
J
ANUARY 1, 2028, FIFTY PERCENT OF THE FIRST FIVE HUNDRED THOUSAND2
DOLLARS OF ACTUAL VALUE OF RESIDENTIAL REAL PROPERTY THAT AS OF3
THE ASSESSMENT DATE IS OWNER-OCCUPIED AND IS USED AS THE PRIMARY4
RESIDENCE OF AN OWNER-OCCUPIER WHO IS THE SURVIVING SPOUSE OF A5
QUALIFYING VETERAN WITH A DISABILITY WHO PREVIOUSLY RECEIVED AN6
EXEMPTION UNDER SUBSECTION (1.5)(a) OF THIS SECTION IS EXEMPT FROM7
TAXATION.8
(6) (a) Notwithstanding the ten-year occupancy requirement set9
forth in subparagraph (I) of paragraph (a) of subsection (1)
SUBSECTION10
(1)(a)(I) of this section, an owner-occupier who has not actually owned11
and occupied residential real property for which the owner-occupier has12
claimed an exemption under said subsection (1) OF THIS SECTION for the13
ten years preceding the assessment date shall be IS deemed to have met14
the ten-year requirement and shall be IS allowed an exemption under said15
subsection (1)
OF THIS SECTION with respect to the property if:16
(I.5) For property tax years commencing on or after January 1,17
2015, the owner-occupier would have qualified for the exemption with18
respect to other residential real property that the owner-occupier owned19
and occupied as his or her
THE OWNER-OCCUPIER'S primary residence20
before moving to the residential real property for which an exemption is21
claimed but for the fact that a natural disaster destroyed the former22
primary residence or otherwise rendered it uninhabitable; and OR23
(I.7) (A) F
OR PROPERTY TAX YEARS COMMENCING ON OR AFTER24
J
ANUARY 1, 2023, THE OWNER-OCCUPIER WOULD HAVE QUALIFIED FOR25
THE EXEMPTION WITH RESPECT TO OTHER RESIDENTIAL REAL PROPERTY26
THAT THE OWNER -OCCUPIER OWNED AND OCCUPIED AS THE27
SB23-107
-6- OWNER-OCCUPIER'S PRIMARY RESIDENCE BEFORE MOVING TO THE1
RESIDENTIAL REAL PROPERTY FOR WHICH AN EXEMPTION IS CLAIMED BUT2
MEDICAL NECESSITY REQUIRED THE OWNER -OCCUPIER TO STOP OCCUPYING3
THE OTHER RESIDENTIAL REAL PROPERTY AS THE OWNER -OCCUPIER'S4
PRIMARY RESIDENCE, SO LONG AS THE OWNER -OCCUPIER HAS NOT5
PREVIOUSLY RECEIVED THE EXEMPTION PURSUANT TO THIS SUBSECTION6
(6)(a)(I.7)(A)
FOR PROPERTY OTHER THAN THE RESIDENTIAL REAL7
PROPERTY FOR WHICH AN EXEMPTION IS CLAIMED AND THE8
OWNER-OCCUPIER PRESENTS TO THE ASSESSOR, WHEN APPLYING FOR THE9
EXEMPTION, THE FORM ESTABLISHING PROOF OF MEDICAL NECESSITY THAT10
IS DESCRIBED IN SUBSECTION (6)(a)(I.7)(B) OF THIS SECTION.11
(B) A
S USED IN THIS SUBSECTION (6)(a), "MEDICAL NECESSITY"12
MEANS ONE OR MORE MEDICAL CONDITIONS OF AN OWNER -OCCUPIER THAT13
A PHYSICIAN LICENSED TO PRACTICE MEDICINE IN THE STATE PURSUANT TO14
ARTICLE 240 OF TITLE 12 HAS CERTIFIED, ON A FORM DEVELOPED BY THE15
ADMINISTRATOR AND MADE AVAILABLE ON THE WEBSITE OF THE DIVISION16
OF PROPERTY TAXATION OF THE DEPARTMENT OF LOCAL AFFAIRS , AS17
HAVING REQUIRED THE OWNER -OCCUPIER TO STOP OCCUPYING THE18
OWNER-OCCUPIER'S PRIMARY RESIDENCE; AND19
(II) W
ITH RESPECT TO AN EXEMPTION CLAIMED PURSUANT TO20
SUBSECTION (6)(a)(I) OR (6)(a)(I.7) OF THIS SECTION, the owner-occupier21
has not owned and occupied residential property as his or her
THE22
OWNER-OCCUPIER'S primary residence other than the residential real23
property for which an exemption is claimed since the condemnation24
occurred
OR SINCE THE OWNER-OCCUPIER FIRST STOPPED OCCUPYING THE25
OWNER-OCCUPIER'S FORMER PRIMARY RESIDENCE DUE TO MEDICAL26
NECESSITY.27
SB23-107
-7- SECTION 4. In Colorado Revised Statutes, amend 39-3-204 as1
follows:2
39-3-204. Notice of property tax exemption. No later than May3
1, 2013, and no later than May 1 of each year thereafter in which an4
assessor sends a notice of valuation pursuant to section 39-5-121 (1)(a)5
that is not included with the tax bill, each assessor shall mail to each6
residential real property address in the assessor's county notice of the7
exemption allowed by section 39-3-203 (1). As soon as practicable after8
January 1, 2014, and as soon as practicable after January 1 of each year9
thereafter, each county treasurer shall, at the treasurer's discretion, mail10
or electronically send to each person whose name appears on the tax list11
and warrant as an owner of residential real property notice of the12
exemption allowed by section 39-3-203 (1). The treasurer must mail or13
electronically send the notice in each year on or before the date on which14
the treasurer mails the property tax statement for the previous property tax15
year pursuant to section 39-10-103. No later than May 1, 2008, and no16
later than each May 1 thereafter, each assessor also shall mail to each17
residential property address in the assessor's county notice of the18
exemption allowed by section 39-3-203 (1.5). No later than May 1, 2007,19
the division shall mail to the residential property address of each person20
residing in the state who the division believes is a qualifying disabled21
veteran
WITH A DISABILITY notice of the exemption allowed by section22
39-3-203 (1.5) for the 2007 property tax year. However, the sending of23
notice to a person by the division does not constitute a determination by24
the division that the person sent notice is entitled to an exemption. The25
notice shall be in a form prescribed by the administrator, who shall26
consult with the division before prescribing the form of the notice of the27
SB23-107
-8- exemption allowed by section 39-3-203 (1.5), and shall include a1
statement of the eligibility criteria for the exemptions and instructions for2
obtaining an exemption application. To reduce mailing costs, an assessor3
may coordinate with the treasurer of the same county to include notice4
with the tax statement for the previous property tax year mailed pursuant5
to section 39-10-103 or may include notice with the notice of valuation6
mailed pursuant to section 39-5-121 (1)(a).7
SECTION 5. In Colorado Revised Statutes, 39-3-205, amend8
(2.5) as follows:9
39-3-205. Exemption applications - penalty for providing false10
information - confidentiality. (2.5) For the purpose of verifying the11
eligibility of each applicant for the exemption allowed to qualifying12
disabled veterans WITH A DISABILITY under section 39-3-203 (1.5)13
efficiently and with minimal inconvenience to each applicant, the division14
shall determine whether an applicant for the exemption is a qualifying15
disabled veteran WITH A DISABILITY. With respect to any application16
timely filed by July 1 pursuant to paragraph (b) of subsection (1)17
SUBSECTION (1)(b) of this section, the division shall, if possible,18
determine whether the applicant is a qualifying disabled veteran WITH A19
DISABILITY and send notice of its determination to the applicant on or20
before the immediately succeeding August 1. If the division determines21
that the applicant is a qualifying disabled veteran WITH A DISABILITY, it22
shall also send notice of its determination and a copy of the exemption23
application to the assessor for the county where the property is located.24
If the division is unable to determine whether the applicant is a qualifying25
disabled veteran WITH A DISABILITY on or before said August 1, it shall26
send preliminary notice to both the applicant and the assessor that its27
SB23-107
-9- determination is pending and shall follow up the preliminary notice by1
sending final notice of its ultimate determination to the applicant and,2
together with a copy of the exemption application, to the assessor as soon3
as possible thereafter.4
SECTION 6. In Colorado Revised Statutes, 39-3-206, amend5
(1.5), (2)(a), and (2)(a.7) as follows:6
39-3-206. Notice to individuals returning incomplete or7
nonqualifying exemption applications - denial of exemption -8
administrative remedies. (1.5) (a) Except as otherwise provided in9
paragraph (a.7) of subsection (2) SUBSECTION (2)(a.7) of this section, the10
division shall only accept an application for the exemption allowed to11
qualifying disabled veterans WITH A DISABILITY under section 39-3-20312
(1.5) if the applicant timely returned the exemption application in13
accordance with section 39-3-205 (1)(b), and an assessor shall only grant14
the exemption if the division verifies that the applicant is a qualified15
disabled QUALIFYING veteran WITH A DISABILITY and the exemption16
application forwarded by the division to the assessor pursuant to section17
39-3-205 (2.5) establishes that the applicant meets the other requirements18
to be entitled to the exemption.19
(b) If the information provided on or with an application for the20
exemption allowed to qualifying disabled veterans WITH A DISABILITY21
under section 39-3-203 (1.5) that is forwarded by the division to an22
assessor pursuant to section 39-3-205 (2.5) indicates that the applicant is23
not entitled to the exemption, or is insufficient to allow the assessor to24
determine whether or not the applicant is entitled to the exemption, the25
assessor shall deny the application and mail to the applicant a statement26
providing the reasons for the denial and informing the applicant of the27
SB23-107
-10- applicant's right to contest the denial pursuant to subsection (2) of this1
section. The assessor shall mail the statement no later than August 1 of2
the property tax year for which the exemption application was filed.3
(2) (a) An applicant whose exemption application has been denied4
pursuant to paragraph (b) of subsection (1) or paragraph (b) of subsection5
(1.5) SUBSECTION (1)(b) OR (1.5)(b) of this section may contest the denial6
by requesting a hearing before the county commissioners sitting as the7
county board of equalization no later than August 15 of the property tax8
year for which the exemption application was filed. The hearing shall be9
held on or after August 1 and no later than September 1 of the property10
tax year for which the exemption application was filed, and the decision11
of the county board of equalization is not subject to further administrative12
appeal by either the applicant or the assessor. An applicant may not13
contest a determination by the division that the applicant is not a14
qualifying disabled veteran WITH A DISABILITY at a hearing requested15
pursuant to this paragraph (a) SUBSECTION (2)(a).16
(a.7) An individual who wishes to claim the exemption for17
qualifying disabled veterans WITH A DISABILITY allowed by section18
39-3-203 (1.5), but who has not timely filed an exemption application19
with the division, may request that the division waive the application20
deadline and allow the individual to file a late exemption application no21
later than the August 1 that immediately follows the original application22
deadline. The division may accept an application if, in the division's sole23
discretion, the applicant shows good cause for not timely filing an24
application. If the division accepts a late application, it shall determine25
whether the applicant is a qualifying disabled veteran WITH A DISABILITY26
and shall mail notice of its determination to the applicant no later than the27
SB23-107
-11- August 25 that immediately follows the late application deadline. If the1
division determines that a veteran is a qualifying disabled veteran WITH2
A DISABILITY, it shall mail a copy of the notice of its determination to the3
assessor for the county in which the property for which the applicant has4
claimed the exemption is located and shall include with the notice a copy5
of the applicant's exemption application. The assessor shall grant an6
exemption if the notice and application forwarded by the division to the7
assessor establish that the applicant is entitled to the exemption. A8
decision of the division to allow or disallow the filing of a late application9
or of an assessor to grant or deny an exemption to an applicant who has10
filed a late application is final, and an applicant who is denied late filing11
or an exemption may not contest the denial.12
SECTION 7. In Colorado Revised Statutes, 25-2-103, amend13
(4.5) as follows:14
25-2-103. Centralized registration system for all vital statistics15
- office of the state registrar of vital statistics created - appointment16
of registrar - rules. (4.5) Notwithstanding any other provision of law17
that limits the sharing of vital statistics, after receiving the list of names18
and social security numbers of individuals who received property tax19
exemptions as either qualifying seniors or disabled QUALIFYING veterans20
WITH A DISABILITY for the prior year that is provided by the property tax21
administrator pursuant to section 39-3-207, C.R.S., the state registrar shall22
identify all individuals on the list who have died and transmit a list of the23
names and social security numbers of such individuals to the24
administrator.25
SECTION 8. In Colorado Revised Statutes, 39-21-113, amend26
(24) as follows:27
SB23-107
-12- 39-21-113. Reports and returns - rule - repeal.1
(24) Notwithstanding any other provision of this section, the executive2
director, after receiving from the property tax administrator a list of3
individuals who are claiming the property tax exemptions for qualifying4
seniors and disabled QUALIFYING veterans WITH A DISABILITY allowed5
under part 2 of article 3 of this title TITLE 39, shall provide to the property6
tax administrator information pertaining to the listed individuals,7
including their names, social security numbers, marital and income tax8
filing status, and residency status, needed by the administrator to verify9
that the exemption is allowed only to applicants who satisfy legal10
requirements for claiming it. The administrator and the administrator's11
agents, clerks, and employees shall keep all information received from the12
executive director confidential, and any individual who fails to do so is13
guilty of a misdemeanor and subject to punishment as specified in14
subsection (6) of this section.15
SECTION 9. Act subject to petition - effective date. This act16
takes effect at 12:01 a.m. on the day following the expiration of the17
ninety-day period after final adjournment of the general assembly; except18
that, if a referendum petition is filed pursuant to section 1 (3) of article V19
of the state constitution against this act or an item, section, or part of this20
act within such period, then the act, item, section, or part will not take21
effect unless approved by the people at the general election to be held in22
November 2024 and, in such case, will take effect on the date of the23
official declaration of the vote thereon by the governor.24
SB23-107
-13-