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October 1, 2024 HB 24B-1002
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24B-0002
Rep. Woodrow; Mabrey
Date:
Bill Status:
Fiscal Analyst:
October 1, 2024
Postponed Indefinitely
David Hansen | 303-866-2633
david.hansen@coleg.gov
Bill Topic: PRIMARY RESIDENCE REAL PROPERTY VALUATION
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill would have referred a measure to voters for the November 2025 general
election ballot to create a new residential property class for owner-occupied primary
residences and removed a subtraction for determining assessed value for other types
of residential property beginning with the 2026 property tax year. The bill would have
conditionally increased state expenditures, conditionally increased local government
revenue, and conditionally increased local government costs.
Appropriation
Summary:
For FY 2025-26, the bill conditionally required an appropriation of $134,000 to the
Department of Local Affairs.
Fiscal Note
Status:
The fiscal note reflects the introduced bill. The bill was postponed indefinitely by the
House Appropriations committee on August 26, 2024; therefore, the impacts
identified in this analysis do not take effect.
Table 1
Conditional State Fiscal Impacts Under HB 24B-1002
Budget Year
FY 2025-26
Out Year
FY 2026-27
Revenue -
Expenditures General Fund $134,000 $129,822
Centrally Appropriated - $24,106
Total Expenditures $134,000 $153,928
Total FTE 0.0 FTE 1.3 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $20,100 $19,473
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October 1, 2024 HB 24B-1002
Summary of Legislation
In May 2024, the General Assembly passed Senate Bill 24-233, which made changes to property
valuation assessments beginning in the 2024 property tax year. Among the changes was
reducing the residential assessment rate for determining assessed value for local government
entities other than school districts to 6.95 percent beginning with property tax year 2026,
applied to the actual value of the property minus 10 percent of the actual value up to $70,000,
or an amount that reduces assessed value to $1,000. SB 24-233 takes effect only if voters do not
approve 2024 ballot measures that either reduce valuations for assessment and/or require voter
approval for retaining property tax revenue that exceeds a limit.
The bill refers a measure to voters for the November 2025 general election ballot that would
narrow the assessed value reductions in SB 24-233 for 2026 and later property tax years by only
allowing owner-occupiers of primary residences to take the 10 percent value subtraction. The
bill accomplishes this by creating a new subclass of residential property called qualified primary
residence real property, and establishing procedures and criteria for applying for this property
classification.
Comparable Crime Analysis
Legislative Council Staff is required to include certain information in the fiscal note for any bill
that creates a new crime, changes the classification of an existing crime, or creates a new factual
basis for an existing crime. The following section outlines crimes that are comparable to the
offense in this bill and discusses assumptions on future rates of criminal convictions resulting
from the bill.
Prior conviction data. The bill conditionally creates the new factual basis for perjury by
prohibiting giving false information on an application for a property to be classified as qualified
primary residence real property or attempting to claim more than one property as qualified
primary residence real property for the same property tax year, a class 2 misdemeanor. To form
an estimate of the prevalence of this new crime, the fiscal note analyzed the existing offense of
false swearing. From FY 2020-21 to FY 2023-24, 3 individuals have been convicted and
sentenced for this existing offense. Of the persons convicted, 1 was male and 2 were female.
Demographically, 2 were white and 1 was Hispanic. Based on the low number of sentences for
the comparable crime, the bill is not expected to have a tangible impact on criminal
justice-related expenditures or revenue at the state or local levels, these potential impacts are
not discussed further in this fiscal note. Visit leg.colorado.gov/fiscalnotes for more information
about criminal justice costs in fiscal notes.
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October 1, 2024 HB 24B-1002
State Expenditures
The bill conditionally increases state expenditures by $134,000 in FY 2025-26 and $153,928 in
FY 2026-27 and later years. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24B-1002
FY 2025-26 FY 2026-27
Department of Local Affairs – DPT
Personal Services - $84,818
Operating Expenses - $1,664
Capital Outlay Costs - $13,340
Office of Information Technology $134,000 $30,000
Centrally Appropriated Costs
1
- $24,106
Total Cost $134,000 $153,928
Total FTE 0.0 FTE 1.3 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Local Affairs – Division of Property Taxation. In FY 2025-26, the bill
conditionally requires a new county portal application for counties to submit information for
qualified primary residence real property. This work will be done by the Office of Information
Technology using reappropriated funds. Beginning in 2026-27, the bill requires the addition of
temporary staff from September to March, estimated at 1.3 FTE, to process applications for the
new property subclass. Workload was estimated based on similar work for the senior and
veterans homestead exemption. Table 2 shows expenditures for these staff, including personal
services, standard operating, and capital outlay costs. The division will also have increased
workload to review and update procedures, forms, manuals, and to provide technical assistance
to local governments. Additionally, the Office of Information Technology will require ongoing
maintenance costs of the portal system.
Election expenditure impact – existing appropriations. The bill includes a referred measure
that will appear before voters at the November 2025 general election. While no additional
appropriation is required, certain election costs are incurred by the state when ballot measures
are referred. These include reimbursing counties for certain election costs; publishing the text
and title of the measure in newspapers across the state; and preparing and mailing the ballot
information booklet.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs
associated with this bill are addressed through the annual budget process and centrally
appropriated in the Long Bill or supplemental appropriations bills, rather than in this bill. These
costs, which include employee insurance and supplemental employee retirement payments, are
shown in Table 2. Page 4
October 1, 2024 HB 24B-1002
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve. Based on this fiscal note,
the bill is expected to conditionally increase the amount of General Fund held in reserve by the
amounts shown in Table 1, decreasing the amount of General Fund available for other purposes.
Local Government
Local revenue. In FY 2026-27, the bill conditionally increases local property tax revenue to
non-school local governments by $44.7 million, and larger amounts in later years, by limiting a
portion of the assessed value reductions in SB 24-233 to qualifying owner-occupied primary
residents.
Assumptions – Assessed value. Based on the December 2023 Legislative Council Staff (LCS)
forecast for assessed values, updated to reflect changes to policy, the bill conditionally increases
assessed values for local governmental entities, except school districts, by $1.7 billion in
property tax year 2026, and larger amounts in later years.
Assumptions – property taxes. The bill conditionally affects property tax revenue through
increased assessed values. Increased assessed values are assumed to increase property tax
revenue for local governments that levy fixed mills – including most counties, municipalities, and
special districts – that are not constrained by revenue limitations under TABOR, the 5.5 percent
property tax growth limit under current law, or the property tax limit in SB 24-233. Property tax
impacts were estimated assuming 2023 weighted average mill levies by county for affected local
governmental entities. Actual impacts may differ from estimates based on local policy, market
dynamics, and revenue constraints.
Local expenditures. The bill conditionally increases costs for county assessors and the need for
additional personnel to administer the provisions in the bill, and could total millions of dollars
statewide. Additional property tax revenue received will also increase spending or saving by
affected local governments, assuming they stay within any applicable constitutional or statutory
revenue limit.
Effective Date
The bill takes effect only if SB 24-233 becomes law. If Senate Bill 24-233 becomes law and if the
referred measure in the bill is approved by voters at the November 2025 general election, the
bill’s provisions take effect on the date of the official declaration of the vote by the Governor.
State Appropriations
For FY 2025-26, the bill conditionally requires a General Fund appropriation of $134,000 to the
Department of Local Affairs. This amount is reappropriated to the Office of Information
Technology. Page 5
October 1, 2024 HB 24B-1002
State and Local Government Contacts
Counties County Assessors Information Technology
Judicial Local Affairs Property Tax Division
Revenue Secretary of State
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.