First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0559.01 Jason Gelender x4330
HOUSE BILL 25-1111
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 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 (surviving spouse), to claim the exemption. If at
the 2026 general election the voters of the state approve a referred
constitutional amendment to allow a senior or a 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
of the assessment date is owner-occupied and is used as the primary16
HB25-1111-2- residence of the owner-occupier shall be SUCH PROPERTY IS exempt from1
taxation;
AND FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER2
J
ANUARY 1, 2025, AN AMOUNT OF THE ACTUAL VALUE OF SUCH PROPERTY3
THAT IS EQUAL TO THE LESSER OF FIFTY PERCENT OF THE ACTUAL VALUE4
OF SUCH PROPERTY OR FIFTY PERCENT OF AN AMOUNT EQUAL TO FIFTY5
PERCENT OF THE ESTIMATED STATE MEDIAN HOME VALUE IS EXEMPT FROM6
TAXATION, if:7
(a) (I) The owner-occupier is sixty-five years of age or older as of8
the assessment date and has owned and occupied such residential real9
property as his or her
THE OWNER-OCCUPIER'S primary residence for the10
ten years preceding the assessment date; or11
(II) The owner-occupier is the surviving spouse of an12
owner-occupier who previously qualified for a property tax exemption for13
the same residential real property under subparagraph (I) of this14
paragraph (a); and SUBSECTION (1)(a)(I) OF THIS SECTION; OR15
(III) F
OR PROPERTY TAX YEARS COMMENCING ON OR AFTER16
J
ANUARY 1, 2027, ONLY, THE OWNER-OCCUPIER HAD RECEIVED AN17
EXEMPTION PURSUANT TO SUBSECTION (1)(a)(I) OR (1)(a)(II) OF THIS18
SECTION OR THIS SUBSECTION (1)(a)(III), FOR ANY PROPERTY TAX YEAR19
COMMENCING ON OR AFTER JANUARY 1, 2016, FOR RESIDENTIAL REAL20
PROPERTY THAT THE OWNER-OCCUPIER THEREAFTER CEASED OCCUPYING ,21
FOR ANY PERIOD, AS THE OWNER-OCCUPIER'S PRIMARY RESIDENCE; AND22
(1.5) (a) For property tax years commencing on or after January23
1, 2007,
BUT BEFORE JANUARY 1, 2025, fifty percent of the first two24
hundred thousand dollars of actual value of residential real property that25
as of the assessment date is owner-occupied and is used as the primary26
residence of an owner-occupier who is a qualifying veteran with a27
HB25-1111
-3- disability shall be IS exempt from taxation; AND FOR PROPERTY TAX1
YEARS COMMENCING ON OR AFTER JANUARY 1, 2025, AN AMOUNT OF THE2
ACTUAL VALUE OF SUCH PROPERTY THAT IS EQUAL TO THE LESSER OF3
FIFTY PERCENT OF THE ACTUAL VALUE OF SUCH PROPERTY OR FIFTY4
PERCENT OF AN AMOUNT EQUAL TO FIFTY PERCENT OF THE ESTIMATED5
STATE MEDIAN HOME VALUE IS EXEMPT FROM TAXATION , if:6
(a.5) For property tax years commencing on or after January 1,7
2015, fifty percent of the first two hundred thousand dollars of actual8
value of residential real property that as of the assessment date is9
owner-occupied and is used as the primary residence of an10
owner-occupier who is the surviving spouse of a qualifying veteran with11
a disability who previously received an exemption under subsection12
(1.5)(a) of this section
OR WHO IS AN ELIGIBLE SPOUSE, AS DEFINED IN13
SECTION 3.5 (1.7) OF ARTICLE X OF THE STATE CONSTITUTION, is exempt14
from taxation;
AND FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER15
J
ANUARY 1, 2025, AN AMOUNT OF THE ACTUAL VALUE OF SUCH PROPERTY16
THAT IS EQUAL TO THE LESSER OF FIFTY PERCENT OF THE ACTUAL VALUE17
OF SUCH PROPERTY OR FIFTY PERCENT OF AN AMOUNT EQUAL TO FIFTY18
PERCENT OF THE ESTIMATED STATE MEDIAN HOME VALUE is exempt from19
taxation.20
(1.7) N
O LATER THAN MARCH 15, 2025, AND NO LATER THAN21
M
ARCH 15 OF THE FIRST YEAR OF EACH PROPERTY TAX REASSESSMENT22
CYCLE THEREAFTER, THE STAFF OF THE LEGISLATIVE COUNCIL SHALL23
CALCULATE AND PROVIDE TO THE ADMINISTRATOR THE ESTIMATED STATE24
MEDIAN HOME VALUE FOR THE PROPERTY TAX YEARS THAT COMMENCE25
DURING THE CURRENT PROPERTY TAX REASSESSMENT CYCLE .26
(1.8) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE27
HB25-1111
-4- REQUIRES:1
(a) "E
STIMATED STATE MEDIAN HOME VALUE " MEANS:2
(I) F
OR THE PROPERTY TAX YEARS THAT COMMENCE DURING THE3
PROPERTY TAX REASSESSMENT CYCLE THAT BEGINS ON JANUARY 1, 2025,4
THE MOST RECENT AVAILABLE ESTIMATE OF MEDIAN HOME VALUE FOR THE5
STATE OF COLORADO IN THE UNITED STATES BUREAU OF THE CENSUS6
A
MERICAN COMMUNITY SURVEY , ADJUSTED FOR INFLATION OR DEFLATION7
THROUGH THE FOURTH QUARTER OF 2024 AND ROUNDED TO THE NEAREST8
ONE THOUSAND DOLLARS ; AND9
(II) F
OR THE PROPERTY TAX YEARS THAT COMMENCE DURING10
EACH SUBSEQUENT PROPERTY TAX REASSESSMENT CYCLE , THE GREATER11
OF THE ESTIMATED STATE MEDIAN HOME VALUE FOR THE PROPERTY TAX12
YEARS THAT COMMENCED DURING THE PRIOR PROPERTY TAX13
REASSESSMENT CYCLE OR THE MOST RECENT AVAILABLE ESTIMATE OF14
MEDIAN HOME VALUE FOR THE STATE OF COLORADO IN THE UNITED15
S
TATES BUREAU OF THE CENSUS AMERICAN COMMUNITY SURVEY ,16
ADJUSTED FOR INFLATION OR DEFLATION THROUGH THE FOURTH QUARTER17
OF THE CALENDER YEAR THAT IMMEDIATELY PRECEDES THE FIRST18
PROPERTY TAX YEAR OF THE PROPERTY TAX REASSESSMENT CYCLE AND19
ROUNDED TO THE NEAREST ONE THOUSAND DOLLARS .20
(b) "I
NFLATION OR DEFLATION" MEANS THE PERCENTAGE CHANGE21
IN THE FEDERAL HOUSING FINANCE AGENCY 'S SEASONALLY ADJUSTED22
QUARTERLY PURCHASE -ONLY HOUSE PRICE INDEX FOR THE STATE OF23
C
OLORADO.24
(c) "P
ROPERTY TAX REASSESSMENT CYCLE " MEANS THE25
REASSESSMENT CYCLE DESCRIBED IN SECTION 39-1-104 (10.2).26
(6) (a) Notwithstanding the ten-year occupancy requirement set27
HB25-1111
-5- forth in subparagraph (I) of paragraph (a) of subsection (1) SUBSECTIONS1
(1)(a)(I)
AND (1)(a)(II) of this section, an owner-occupier who DOES NOT2
QUALIFY FOR AN EXEMPTION PURSUANT TO SUBSECTION (1)(a)(III) OF THIS3
SECTION AND WHO has not actually owned and occupied residential real4
property for which the owner-occupier has claimed an exemption under
5
said subsection (1) PURSUANT TO SUBSECTION (1)(a)(I) OR (1)(a)(II) OF6
THIS SECTION for the ten years preceding the assessment date shall be IS7
deemed to have met the ten-year requirement and shall be IS allowed an8
exemption under said subsection (1) PURSUANT TO SUBSECTION (1)(a)(I)9
OR (1)(a)(II) OF THIS SECTION with respect to the property if:10
(I) The owner-occupier would have qualified for the exemption11
with respect to other residential real property that the owner-occupier12
owned and occupied as his or her THE OWNER-OCCUPIER'S primary13
residence before moving to the residential real property for which an14
exemption is claimed but for the fact that the other property was15
condemned by a governmental entity through an eminent domain16
proceeding; or17
(I.5) For property tax years commencing on or after January 1,18
2015, the owner-occupier would have qualified for the exemption with19
respect to other residential real property that the owner-occupier owned20
and occupied as his or her THE OWNER-OCCUPIER'S primary residence21
before moving to the residential real property for which an exemption is22
claimed but for the fact that a natural disaster destroyed the former23
primary residence or otherwise rendered it uninhabitable; and24
(II) The owner-occupier has not owned and occupied residential25
property as his or her THE OWNER-OCCUPIER'S primary residence other26
than the residential real property for which an exemption is claimed since27
HB25-1111
-6- the condemnation occurred.1
SECTION 2. Act subject to petition - effective date. (1) Except2
as otherwise provided in subsections (2) and (3) of this section, this act3
takes effect at 12:01 a.m. on the day following the expiration of the4
ninety-day period after final adjournment of the general assembly.5
(2) If a referendum petition is filed pursuant to section 1 (3) of6
article V of the state constitution against this act or an item, section, or7
part of this act within the period specified in subsection (1) of this8
section, then the act, item, section, or part will not take effect unless9
approved by the people at the general election to be held in November10
2026 and, in such case, will take effect on the date of the official11
declaration of the vote thereon by the governor.12
(3) Section 39-3-203 (1)(a), Colorado Revised Statutes, as13
amended in section 1 of this act, takes effect only if the ballot title14
submitted to the registered electors of the state pursuant to House15
Concurrent Resolution 25-_____ is approved by the people at the next16
general election, in which case section 39-3-203 (1)(a), Colorado Revised17
Statutes, as amended in section 1 of this act, takes effect on the date of the18
official declaration of the vote thereon by the governor.19
HB25-1111
-7-