Second Extraordinary Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24B-0022.01 Jason Gelender x4330
HOUSE BILL 24B-1006
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE EXPANSION OF PR OPERTY TAX EXEMPTIONS FOR101
CERTAIN OWNER-OCCUPIED PRIMARY RESIDENCES .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
.)
For property tax years commencing during property tax
reassessment cycles (cycles) that begin on or after January 1, 2025, the
bill changes the amount of the exemptions for the owner-occupied
primary residence (residence) of a qualifying senior, a veteran with a
disability, or the surviving spouse of a United States armed forces service
member who died in the line of duty or veteran whose death resulted from
HOUSE SPONSORSHIP
DeGraaf,
SENATE 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. a service-related injury or disease (exemptions) from 50% of the first
$200,000 of actual value of the residence to 50% of an amount of actual
value of the residence equal to 50% of 50% of the estimated state median
home value (median home value) for the state; except that, if the median
home value declines, the exemption amount continues to be calculated
based on the median home value used to calculate the exemption amount
for the property tax years included in the prior cycle.
The state constitution currently only allows a senior who has
owned and occupied the senior's residence for 10 years, or the surviving
spouse of such a senior, to claim the exemption. For property tax years
commencing on or after January 1, 2027, if at the 2026 general election
the voters of the state approve a referred constitutional amendment to
allow a senior, or the surviving spouse of such a senior (surviving
spouse), who has previously qualified for the exemption for 2016 or any
later year for a prior residence to claim the exemption for the senior's or
surviving spouse's current residence regardless of how long the senior or
surviving spouse has owned and occupied that residence, the bill makes
the statutory changes needed to conform to the constitutional amendment.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-3-203, amend (1)2
introductory portion, (1)(a), (1.5)(a) introductory portion, (1.5)(a.5), and3
(6)(a); and add (1.7) and (1.8) as follows:4
39-3-203. Property tax exemption - qualifications - definitions.5
(1) For the property tax year commencing January 1, 2002, for property6
tax years commencing on or after January 1, 2006, but before January 1,7
2009, and for property tax years commencing on or after January 1, 2012,8
BUT BEFORE JANUARY 1, 2025, fifty percent of the first two hundred9
thousand dollars of actual value of residential real property that as of the10
assessment date is owner-occupied and is used as the primary residence11
of the owner-occupier shall be
IS exempt from taxation, and for property12
tax years commencing on or after January 1, 2003, but before January 1,13
2006, and on or after January 1, 2009, but before January 1, 2012, fifty14
percent of zero dollars of actual value of residential real property that as15
HB24B-1006-2- of the assessment date is owner-occupied and is used as the primary1
residence of the owner-occupier shall be SUCH PROPERTY IS exempt from2
taxation,
AND FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER3
J
ANUARY 1, 2025, AN AMOUNT OF THE ACTUAL VALUE OF SUCH PROPERTY4
THAT IS EQUAL TO THE LESSER OF FIFTY PERCENT OF THE ACTUAL VALUE5
OF SUCH PROPERTY OR FIFTY PERCENT OF AN AMOUNT EQUAL TO FIFTY6
PERCENT OF THE ESTIMATED STATE MEDIAN HOME VALUE IS EXEMPT FROM7
TAXATION if:8
(a) (I) The owner-occupier is sixty-five years of age or older as of9
the assessment date and has owned and occupied such residential real10
property as his or her
THE OWNER-OCCUPIER'S primary residence for the11
ten years preceding the assessment date; or12
(II) The owner-occupier is the surviving spouse of an13
owner-occupier who previously qualified for a property tax exemption for14
the same residential real property under subparagraph (I) of this15
paragraph (a); and SUBSECTION (1)(a)(I) OF THIS SECTION; OR16
(III) F
OR PROPERTY TAX YEARS COMMENCING ON OR AFTER17
J
ANUARY 1, 2027, ONLY, THE OWNER-OCCUPIER HAD RECEIVED AN18
EXEMPTION PURSUANT TO SUBSECTION (1)(a)(I) OR (1)(a)(II) OF THIS19
SECTION OR THIS SUBSECTION (1)(a)(III), FOR ANY PROPERTY TAX YEAR20
COMMENCING ON OR AFTER JANUARY 1, 2016, FOR RESIDENTIAL REAL21
PROPERTY THAT THE OWNER-OCCUPIER THEREAFTER CEASED OCCUPYING ,22
FOR ANY PERIOD, AS THE OWNER-OCCUPIER'S PRIMARY RESIDENCE; AND23
(1.5) (a) For property tax years commencing on or after January24
1, 2007,
BUT BEFORE JANUARY 1, 2025, fifty percent of the first two25
hundred thousand dollars of actual value of residential real property that26
as of the assessment date is owner-occupied and is used as the primary27
HB24B-1006
-3- residence of an owner-occupier who is a qualifying veteran with a1
disability shall be IS exempt from taxation, AND FOR PROPERTY TAX2
YEARS COMMENCING ON OR AFTER JANUARY 1, 2025, AN AMOUNT OF THE3
ACTUAL VALUE OF SUCH PROPERTY THAT IS EQUAL TO THE LESSER OF4
FIFTY PERCENT OF AN AMOUNT EQUAL TO FIFTY PERCENT OF THE ACTUAL5
VALUE OF SUCH PROPERTY OR FIFTY PERCENT OF THE ESTIMATED STATE6
MEDIAN HOME VALUE IS EXEMPT FROM TAXATION if:7
(a.5) For property tax years commencing on or after January 1,8
2015, fifty percent of the first two hundred thousand dollars of actual9
value of residential real property that as of the assessment date is10
owner-occupied and is used as the primary residence of an11
owner-occupier who is the surviving spouse of a qualifying veteran with12
a disability who previously received an exemption under subsection13
(1.5)(a) of this section
OR WHO IS AN ELIGIBLE SPOUSE, AS DEFINED IN14
SECTION 3.5 (1.7) OF ARTICLE X OF THE STATE CONSTITUTION, is exempt15
from taxation,
AND FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER16
J
ANUARY 1, 2025, AN AMOUNT OF THE ACTUAL VALUE OF SUCH PROPERTY17
THAT IS EQUAL TO THE LESSER OF FIFTY PERCENT OF AN AMOUNT EQUAL18
TO FIFTY PERCENT OF THE ACTUAL VALUE OF SUCH PROPERTY OR FIFTY19
PERCENT OF THE ESTIMATED STATE MEDIAN HOME VALUE is exempt from20
taxation.21
(1.7) N
O LATER THAN MARCH 15, 2025, AND NO LATER THAN22
M
ARCH 15 OF THE FIRST YEAR OF EACH PROPERTY TAX REASSESSMENT23
CYCLE THEREAFTER, THE STAFF OF THE LEGISLATIVE COUNCIL SHALL24
CALCULATE AND PROVIDE TO THE ADMINISTRATOR THE ESTIMATED STATE25
MEDIAN HOME VALUE FOR THE PROPERTY TAX YEARS THAT COMMENCE26
DURING THE CURRENT PROPERTY TAX REASSESSMENT CYCLE .27
HB24B-1006
-4- (1.8) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE1
REQUIRES:2
(a) "E
STIMATED STATE MEDIAN HOME VALUE " MEANS:3
(I) F
OR THE PROPERTY TAX YEARS THAT COMMENCE DURING THE4
PROPERTY TAX REASSESSMENT CYCLE THAT BEGINS ON JANUARY 1, 2025,5
THE MOST RECENT AVAILABLE ESTIMATE OF MEDIAN HOME VALUE FOR THE6
STATE OF COLORADO IN THE UNITED STATES BUREAU OF THE CENSUS7
A
MERICAN COMMUNITY SURVEY , ADJUSTED FOR INFLATION OR DEFLATION8
THROUGH THE FOURTH QUARTER OF 2024AND ROUNDED TO THE NEAREST9
ONE THOUSAND DOLLARS ; AND10
(II) F
OR THE PROPERTY TAX YEARS THAT COMMENCE DURING11
EACH SUBSEQUENT PROPERTY TAX REASSESSMENT CYCLE , THE GREATER12
OF THE ESTIMATED STATE MEDIAN HOME VALUE FOR THE PROPERTY TAX13
YEARS THAT COMMENCED DURING THE PRIOR PROPERTY TAX14
REASSESSMENT CYCLE OR THE MOST RECENT AVAILABLE ESTIMATE OF15
MEDIAN HOME VALUE FOR THE STATE OF COLORADO IN THE UNITED16
S
TATES BUREAU OF THE CENSUS AMERICAN COMMUNITY SURVEY ,17
ADJUSTED FOR INFLATION OR DEFLATION THROUGH THE FOURTH QUARTER18
OF THE CALENDER YEAR THAT IMMEDIATELY PRECEDES THE FIRST19
PROPERTY TAX YEAR OF THE PROPERTY TAX REASSESSMENT CYCLE AND20
ROUNDED TO THE NEAREST ONE THOUSAND DOLLARS .21
(b) "I
NFLATION OR DEFLATION" MEANS THE PERCENTAGE CHANGE22
IN THE FEDERAL HOUSING FINANCE AGENCY 'S SEASONALLY ADJUSTED23
QUARTERLY PURCHASE -ONLY HOUSE PRICE INDEX FOR THE STATE OF24
C
OLORADO.25
(c) "P
ROPERTY TAX REASSESSMENT CYCLE " MEANS THE26
REASSESSMENT CYCLE DESCRIBED IN SECTION 39-1-104 (10.2).27
HB24B-1006
-5- (6) (a) Notwithstanding the ten-year occupancy requirement set1
forth in subparagraph (I) of paragraph (a) of subsection (1) SUBSECTIONS2
(1)(a)(I)
AND (1)(a)(II) of this section, an owner-occupier who DOES NOT3
QUALIFY FOR AN EXEMPTION PURSUANT TO SUBSECTION (1)(a)(III) OF THIS4
SECTION AND WHO has not actually owned and occupied residential real5
property for which the owner-occupier has claimed an exemption under
6
said subsection (1) PURSUANT TO SUBSECTION (1)(a)(I) OR (1)(a)(II) OF7
THIS SECTION for the ten years preceding the assessment date shall be IS8
deemed to have met the ten-year requirement and shall be IS allowed an9
exemption under said subsection (1) PURSUANT TO SUBSECTION (1)(a)(I)10
OR (1)(a)(II) OF THIS SECTION with respect to the property if:11
(I) The owner-occupier would have qualified for the exemption12
with respect to other residential real property that the owner-occupier13
owned and occupied as his or her THE OWNER-OCCUPIER'S primary14
residence before moving to the residential real property for which an15
exemption is claimed but for the fact that the other property was16
condemned by a governmental entity through an eminent domain17
proceeding; or18
(I.5) For property tax years commencing on or after January 1,19
2015, the owner-occupier would have qualified for the exemption with20
respect to other residential real property that the owner-occupier owned21
and occupied as his or her THE OWNER-OCCUPIER'S primary residence22
before moving to the residential real property for which an exemption is23
claimed but for the fact that a natural disaster destroyed the former24
primary residence or otherwise rendered it uninhabitable; and25
(II) The owner-occupier has not owned and occupied residential26
property as his or her THE OWNER-OCCUPIER'S primary residence other27
HB24B-1006
-6- than the residential real property for which an exemption is claimed since1
the condemnation occurred.2
SECTION 2. Act subject to petition - effective date. (1) Except3
as otherwise provided in subsections (2) and (3) of this section, this act4
takes effect at 12:01 a.m. on the day following the expiration of the5
ninety-day period after final adjournment of the general assembly.6
(2) If a referendum petition is filed pursuant to section 1 (3) of7
article V of the state constitution against this act or an item, section, or8
part of this act within the period specified in subsection (1) of this9
section, then the act, item, section, or part will not take effect unless10
approved by the people at the general election to be held in November11
2026 and, in such case, will take effect on the date of the official12
declaration of the vote thereon by the governor.13
(3) Section 39-3-203 (1)(a) and (6)(a), Colorado Revised Statutes,14
as amended in section 1 of this act, takes effect only if the general15
assembly refers a ballot title to amend the Colorado constitution to allow16
a senior, or the surviving spouse of such a senior, who has previously17
qualified for the property tax exemption allowed by section 3.5 (1)(a) and18
(1)(b) of article X of the Colorado constitution for 2016 or any later year19
for a prior residence to claim the exemption for the senior's or surviving20
spouse's current residence regardless of how long the senior or surviving21
spouse has owned and occupied that residence to the registered electors22
of the state at the 2026 general election and the ballot title is approved, in23
which case section 39-3-203 (1)(a) and (6)(a), Colorado Revised Statutes,24
as amended in section 1 of this act, takes effect on the date of the official25
declaration of the vote thereon by the governor.26
HB24B-1006
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