Colorado 2024 1st Special Session

Colorado House Bill HCR1002 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Second Extraordinary Session
2	2	Seventy-fourth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. R24B-0021.01 Christy Chase x2008
8	8	HCR24B-1002
9	9	House Committees Senate Committees
10	10	Transportation, Housing & Local Government
11	11	HOUSE CONCURRENT RESOLUTION 24B-1002
12	12	S
13	13	UBMITTING TO THE REGISTERED ELECTORS OF THE STATE OF101
14	14	C
15	15	OLORADO AN AMENDMENT TO THE COLORADO CONSTITUTION102
16	16	CONCERNING THE VALUATION FOR ASSESSMENT USED TO103
17	17	DETERMINE PROPERTY TAXES , AND, IN CONNECTION104
18	18	THEREWITH, ESTABLISHING THE REQUIREMENT THAT THE105
19	19	GENERAL ASSEMBLY PERIODICALLY CHANGE THE VALUATION106
20	20	FOR ASSESSMENT FOR RESIDENTIAL REAL PROPERTY IN ORDER107
21	21	TO MAINTAIN THE STATEWIDE PROPORTION OF RESIDENTIAL108
22	22	REAL PROPERTY AS COMPARED TO ALL OTHER TAXABLE109
23	23	PROPERTY VALUED FOR PROPERTY TAX PURPOSES AND110
24	24	PERMANENTLY ESTABLISHING THE VALUATION FOR ASSESSMENT111
25	25	FOR NONRESIDENTIAL PROPERTY AS SPECIFIED IN LAW FOR THE112
26	26	2026
27	27	PROPERTY TAX YEAR.113
28	28	HOUSE SPONSORSHIP
29	29	Bradley,
30	30	SENATE SPONSORSHIP
31	31	(None),
32	32	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
33	33	Capital letters or bold & italic numbers indicate new material to be added to existing law.
34	34	Dashes through the words or numbers indicate deletions from existing law. Resolution Summary
35	35	(Note: This summary applies to this resolution as introduced and
36	36	does not reflect any amendments that may be subsequently adopted. If this
37	37	resolution passes third reading in the house of introduction, a resolution
38	38	summary that applies to the reengrossed version of this resolution will be
39	39	available at http://leg.colorado.gov/
40	40	.)
41	41	Under a provision commonly known as the "Gallagher
42	42	Amendment", the state constitution previously required that the
43	43	percentage of the aggregate assessed value attributable to residential real
44	44	property remain the same as it was in the year immediately preceding a
45	45	new reassessment cycle. Under the Gallagher Amendment, the assessment
46	46	rate for most nonresidential property was fixed at 29% of actual value,
47	47	and over time, as residential property values increased, the assessment
48	48	rate for residential property was driven down, from 21% of actual value
49	49	in 1985, to 7.15% of actual value in 2019, in order to maintain the
50	50	required percentage of statewide assessed value attributable to residential
51	51	property.
52	52	In 2020, the general assembly adopted, and the voters approved,
53	53	an amendment to the state constitution to repeal the Gallagher
54	54	Amendment, thus eliminating the required proportion of statewide
55	55	assessed value attributable to residential real property and the
56	56	constitutionally fixed assessment rate for most nonresidential property.
57	57	The concurrent resolution amends the state constitution to
58	58	reestablish the essential components of the Gallagher Amendment by:
59	59	! Setting a new base year, which is the 2026 property tax
60	60	year, for determining the percentage of the aggregate
61	61	statewide assessed value that is attributable to residential
62	62	real property;
63	63	! Requiring that percentage of the aggregate statewide
64	64	assessed value attributable to residential real property to
65	65	remain the same as the percentage in the year immediately
66	66	preceding a new reassessment cycle;
67	67	! Requiring the general assembly to establish the valuation
68	68	for assessment for residential real property to ensure
69	69	compliance with the proportion required by the state
70	70	constitution; and
71	71	! Permanently fixing the valuation for assessment for
72	72	nonresidential property, other than producing mines and
73	73	lands or leaseholds producing oil or gas, to be as set forth
74	74	in state statute for the 2026 property tax year.
75	75	HCR24B-1002-2- WHEREAS, The clauses appearing before Section 1 of this1
76	76	measure express the intent of the general assembly in adopting the2
77	77	measure and are intended to be included as part of the text of the measure3
78	78	for purposes of publication pursuant to section 1-40-124, Colorado4
79	79	Revised Statutes, and the ballot information booklet pursuant to section5
80	80	1 (7.5) of article V of the state constitution and section 1-40-124.5,6
81	81	Colorado Revised Statutes; and7
82	82	WHEREAS, In 1982, Colorado voters approved an amendment to8
83	83	the state constitution, commonly referred to as the "Gallagher9
84	84	Amendment", that fixed in the constitution the valuation for assessment10
85	85	of most nonresidential taxable property at twenty-nine percent of actual11
86	86	value and required the general assembly to adjust the valuation for12
87	87	assessment of residential real property as necessary to comply with the13
88	88	requirement under the Gallagher Amendment that the percentage of14
89	89	aggregate assessed value attributable to residential real property remains15
90	90	the same as it was in the prior assessment cycle; and16
91	91	WHEREAS, The original intent of the Gallagher Amendment was17
92	92	to create a fairer balance between what homeowners were paying in18
93	93	property taxes compared to what commercial property owners were19
94	94	paying, but over time it had the effect of avoiding large property tax20
95	95	increases on residential real property; and 21
96	96	WHEREAS, As property values increased over time, the Gallagher22
97	97	Amendment resulted in a drop in the valuation for assessment of23
98	98	residential real property from twenty-one percent of actual value in 198524
99	99	to seven and fifteen one-hundredths percent of actual value in 2019; and25
100	100	WHEREAS, The significant drop in the valuation for assessment26
101	101	of residential real property over time resulted in an effective tax rate for27
102	102	HCR24B-1002
103	103	-3- nonresidential property owners that was approximately four times higher1
104	104	than the tax rate for residential real property owners; and 2
105	105	WHEREAS, Recognizing the disproportionate tax burden imposed3
106	106	on nonresidential property owners, and with the goal of devising a4
107	107	long-term solution to this issue, in 2020, the general assembly adopted5
108	108	and the voters approved a constitutional amendment to repeal the6
109	109	Gallagher Amendment; and7
110	110	WHEREAS, Since the repeal of the Gallagher Amendment in8
111	111	2020, residential real property owners have seen their property tax bills9
112	112	increase significantly; and10
113	113	WHEREAS, The general assembly has struggled to devise a11
114	114	comprehensive solution that protects residential real property owners12
115	115	from dramatic increases in their property tax burden and lessens the13
116	116	disproportionate burden on nonresidential property owners while also14
117	117	ensuring that local governments, school districts, and special districts,15
118	118	which derive the bulk of their revenue from property taxes, are not16
119	119	decimated; and17
120	120	WHEREAS, Until a comprehensive, long-term solution is18
121	121	achieved, the general assembly determines that the Gallagher Amendment19
122	122	should be restored in order to shield residential real property owners from20
123	123	continued dramatic increases in their property tax bills; now, therefore,21
124	124	Be It Resolved by the House of Representatives of the22
125	125	Seventy-fourth General Assembly of the State of Colorado, the Senate23
126	126	concurring herein:24
127	127	SECTION 1. At the election held on November 5, 2024, the25
128	128	secretary of state shall submit to the registered electors of the state the26
129	129	ballot title set forth in section 2 for the following amendment to the state27
130	130	HCR24B-1002
131	131	-4- constitution:1
132	132	In the constitution of the state of Colorado, section 3 of article X,2
133	133	amend (1)(b) as follows:3
134	134	Section 3. Uniform taxation - exemptions.4
135	135	(1) (b) (I) (A) Residential real property, which shall include all5
136	136	residential dwelling units and the land, as defined by law, on which such6
137	137	units are located, and mobile home parks, but shall not include hotels and7
138	138	motels, shall be valued for assessment.8
139	139	(B) F
140	140	OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,9
141	141	2026,
142	142	THE GENERAL ASSEMBLY SHALL DETERMINE THE PERCENTAGE OF10
143	143	THE AGGREGATE STATEWIDE VALUATION FOR ASSESSMENT THAT IS11
144	144	ATTRIBUTABLE TO RESIDENTIAL REAL PROPERTY . FOR EACH SUBSEQUENT12
145	145	YEAR, THE GENERAL ASSEMBLY SHALL AGAIN DETERMINE THE13
146	146	PERCENTAGE OF THE AGGREGATE STATEWIDE VALUATION FOR14
147	147	ASSESSMENT THAT IS ATTRIBUTABLE TO EACH CLASS OF TAXABLE15
148	148	PROPERTY, AFTER ADDING THE INCREASED VALUATION FOR ASSESSMENT16
149	149	ATTRIBUTABLE TO NEW CONSTRUCTION AND TO ANY INCREASED VOLUME17
150	150	OF MINERAL AND OIL AND GAS PRODUCTION . FOR EACH YEAR IN WHICH18
151	151	THERE IS A CHANGE IN THE LEVEL OF VALUE USED IN DETERMINING19
152	152	ACTUAL VALUE, THE GENERAL ASSEMBLY SHALL ADJUST THE VALUATION20
153	153	FOR ASSESSMENT FOR RESIDENTIAL REAL PROPERTY , AS SET FORTH IN LAW,21
154	154	AS NECESSARY TO ENSURE THAT THE PERCENTAGE OF THE AGGREGATE22
155	155	STATEWIDE VALUATION FOR ASSESSMENT THAT IS ATTRIBUTABLE TO23
156	156	RESIDENTIAL REAL PROPERTY REMAINS THE SAME AS THE PERCENTAGE IN24
157	157	THE YEAR IMMEDIATELY PRECEDING THE YEAR IN WHICH THE CHANGE IN25
158	158	THE LEVEL OF VALUE USED IN DETERMINING ACTUAL VALUE OCCURS . THE26
159	159	ADJUSTED VALUATION FOR ASSESSMENT APPLIES FOR RESIDENTIAL REAL27
160	160	HCR24B-1002
161	161	-5- PROPERTY FOR THOSE YEARS FOR WHICH SUCH NEW LEVEL OF VALUE IS1
162	162	USED. IN DETERMINING THE ADJUSTMENT TO BE MADE IN THE VALUATION2
163	163	FOR ASSESSMENT FOR RESIDENTIAL REAL PROPERTY , THE AGGREGATE3
164	164	STATEWIDE VALUATION FOR ASSESSMENT THAT IS ATTRIBUTABLE TO4
165	165	RESIDENTIAL REAL PROPERTY IS CALCULATED AS IF THE FULL ACTUAL5
166	166	VALUE OF ALL OWNER -OCCUPIED PRIMARY RESIDENCES THAT ARE6
167	167	PARTIALLY EXEMPT FROM TAXATION PURSUANT TO SECTION 3.5 OF THIS7
168	168	ARTICLE X WAS SUBJECT TO TAXATION.8
169	169	(II) F
170	170	OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,9
171	171	2026,
172	172	AND ALL PROPERTY TAX YEARS THEREAFTER , all other taxable10
173	173	property shall be valued for assessment
174	174	AS SPECIFIED IN LAW FOR THE11
175	175	PROPERTY TAX YEAR COMMENCING ON JANUARY 1, 2026. HOWEVER, the12
176	176	valuation for assessment for producing mines, as defined by law, and13
177	177	lands or leaseholds producing oil or gas, as defined by law, shall be a14
178	178	portion of the actual annual or actual average annual production15
179	179	therefrom, based upon the value of the unprocessed material, according16
180	180	to procedures prescribed by law for different types of minerals.17
181	181	Non-producing unpatented mining claims, which are possessory interests18
182	182	in real property by virtue of leases from the United States of America,19
183	183	shall be exempt from property taxation.20
184	184	SECTION 2. Each elector voting at the election may cast a vote21
185	185	either "Yes/For" or "No/Against" on the following ballot title: "Shall22
186	186	there be an amendment to the Colorado constitution concerning the23
187	187	valuation for assessment used to determine property taxes, and, in24
188	188	connection therewith, establishing the requirement that the general25
189	189	assembly periodically change the valuation for assessment for residential26
190	190	real property in order to maintain the statewide proportion of residential27
191	191	HCR24B-1002
192	192	-6- real property as compared to all other taxable property valued for property1
193	193	tax purposes and permanently establishing the valuation for assessment2
194	194	for nonresidential property as specified in law for the 2026 property tax3
195	195	year?"4
196	196	SECTION 3. Except as otherwise provided in section 1-40-123,5
197	197	Colorado Revised Statutes, if at least fifty-five percent of the electors6
198	198	voting on the ballot title vote "Yes/For", then the amendment will become7
199	199	part of the state constitution.8
200	200	HCR24B-1002
201	201	-7-