Colorado 2025 Regular Session

Colorado House Bill HB1139 Compare Versions

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

Old	New	Differences
1	1	First Regular Session
2	2	Seventy-fifth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 25-0681.01 Nicole Myers x4326
8	8	HOUSE BILL 25-1139
9	9	House Committees Senate Committees
10	10	Finance
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING THE CREATION OF AN INCOME TAX CREDIT ALLOWED TO101
14	14	VETERANS WITH A SERVICE-CONNECTED DISABILITY TO OFFSET102
15	15	THE PROPERTY TAX PAID ON THE VETERAN 'S PRIMARY103
16	16	RESIDENCE.104
17	17	Bill Summary
18	18	(Note: This summary applies to this bill as introduced and does
19	19	not reflect any amendments that may be subsequently adopted. If this bill
20	20	passes third reading in the house of introduction, a bill summary that
21	21	applies to the reengrossed version of this bill will be available at
22	22	http://leg.colorado.gov
23	23	.)
24	24	For income tax years commencing on or after January 1, 2026, the
25	25	bill allows a veteran who is honorably discharged, possesses a
26	26	service-connected disability rating of at least 10%, and owns and
27	27	HOUSE SPONSORSHIP
28	28	Keltie,
29	29	SENATE SPONSORSHIP
30	30	(None),
31	31	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
32	32	Capital letters or bold & italic numbers indicate new material to be added to existing law.
33	33	Dashes through the words or numbers indicate deletions from existing law. occupies a primary residence in the state (eligible veteran) to claim a
34	34	refundable income tax credit (tax credit) in an amount equal to a
35	35	percentage, based on the eligible veteran's service-connected disability
36	36	rating, of the amount of property tax that the eligible veteran paid on their
37	37	primary residence during the income tax year.
38	38	To claim a tax credit, a taxpayer must apply to the county assessor
39	39	for the county in which the taxpayer's primary residence is located and
40	40	submit a decision letter from the U.S. department of veterans affairs that
41	41	sets forth their service-connected disability rating. The county assessor is
42	42	required to determine whether the taxpayer is an eligible veteran and if so,
43	43	the amount of the income tax credit the eligible veteran may claim, based
44	44	on the property tax paid by the eligible veteran and the eligible veteran's
45	45	service-connected disability rating. The county assessor is required to
46	46	issue a tax credit certificate to an eligible veteran in an amount equal to
47	47	the amount of the tax credit that may be claimed.
48	48	Upon the death of an eligible veteran, the eligible veteran's
49	49	surviving spouse or legal dependents are eligible to claim the tax credit
50	50	until specified events have occurred.
51	51	Be it enacted by the General Assembly of the State of Colorado:1
52	52	SECTION 1. In Colorado Revised Statutes, add 39-22-571 as2
53	53	follows:3
54	54	39-22-571. Tax credit for eligible veterans - property tax paid4
55	55	on primary residence - tax preference performance statement -5
56	56	legislative declaration - definitions. (1) (a) I
57	57	N ACCORDANCE WITH6
58	58	SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL THAT CREATES A NEW7
59	59	TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE8
60	60	STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE9
61	61	GENERAL ASSEMBLY FINDS AND DECLARES THAT THE PURPOSE OF THE TAX10
62	62	CREDIT PROVIDED IN THIS SECTION IS TO PROVIDE TAX RELIEF FOR CERTAIN11
63	63	INDIVIDUALS, SPECIFICALLY TO HONORABLY DISCHARGED V ETERANS WHO12
64	64	HAVE A SERVICE-CONNECTED DISABILITY RATING OF AT LEAST TEN13
65	65	PERCENT AND WHO PAY PROPERTY TAXES ON A PRIMARY RESIDENCE IN14
66	66	THE STATE, BY ALLOWING AN INCOME TAX CREDIT IN AN AMOUNT EQUAL15
67	67	HB25-1139-2- TO A PORTION OF THE PROPERTY TAX PAID ON THE PRIMARY RESIDENCE .1
68	68	(b) T
69	69	HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL2
70	70	MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE3
71	71	SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION BASED ON THE NUMBER4
72	72	AND VALUE OF CREDITS CLAIMED.5
73	73	(2) A
74	74	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE6
75	75	REQUIRES:7
76	76	(a) "D
77	77	ISABILITY RATING" MEANS THE PERCENTAGE ASSIGNED BY8
78	78	THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS TO INDICATE THE9
79	79	DEGREE OF A VETERAN'S SERVICE-CONNECTED DISABILITY.10
80	80	(b) "E
81	81	LIGIBLE VETERAN" MEANS A VETERAN WHO:11
82	82	(I) I
83	83	S HONORABLY DISCHARGED ;12
84	84	(II) P
85	85	OSSESSES A DISABILITY RATING OF AT LEAST TEN PERCENT ;13
86	86	AND14
87	87	(III) O
88	88	WNS AND OCCUPIES A PRIMARY RESIDENCE .15
89	89	(c) "P
90	90	RIMARY RESIDENCE" MEANS A PROPERTY IN THE STATE THAT16
91	91	A VETERAN OWNS AND OCCUPIES AS THEIR PRINCIPAL PLACE OF17
92	92	RESIDENCE.18
93	93	(d) "V
94	94	ETERAN" MEANS A PERSON WHO HAS SERVED IN THE UNITED19
95	95	S
96	96	TATES ARMED FORCES.20
97	97	(3) F
98	98	OR ANY INCOME TAX YEAR COMMENCING ON OR AFTER21
99	99	J
100	100	ANUARY 1, 2026, AN ELIGIBLE VETERAN IS ALLOWED AN INCOME TAX22
101	101	CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE 22 IN AN AMOUNT23
102	102	EQUAL TO A PERCENTAGE, SPECIFIED IN SUBSECTION (4) OF THIS SECTION,24
103	103	OF THE AMOUNT THAT THE ELIGIBLE VETERAN PAID IN PROPERTY TAX ON25
104	104	THEIR PRIMARY RESIDENCE DURING THE INCOME TAX YEAR .26
105	105	(4) T
106	106	HE AMOUNT OF THE TAX CREDIT ALLOWED TO AN ELIGIBLE27
107	107	HB25-1139
108	108	-3- VETERAN PURSUANT TO SUBSECTION (3) OF THIS SECTION IS AS FOLLOWS:1
109	109	(a) F
110	110	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF TEN2
111	111	PERCENT TO NINETEEN PERCENT, AN AMOUNT EQUAL TO TEN PERCENT OF3
112	112	THE AMOUNT OF PROPERTY TAX PAID ;4
113	113	(b) F
114	114	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF5
115	115	TWENTY PERCENT TO TWENTY -NINE PERCENT, AN AMOUNT EQUAL TO6
116	116	TWENTY PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;7
117	117	(c) F
118	118	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF8
119	119	THIRTY PERCENT TO THIRTY-NINE PERCENT, AN AMOUNT EQUAL TO THIRTY9
120	120	PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;10
121	121	(d) F
122	122	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF11
123	123	FORTY PERCENT TO FORTY-NINE PERCENT, AN AMOUNT EQUAL TO FORTY12
124	124	PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;13
125	125	(e) F
126	126	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF FIFTY14
127	127	PERCENT TO FIFTY-NINE PERCENT, AN AMOUNT EQUAL TO FIFTY PERCENT15
128	128	OF THE AMOUNT OF PROPERTY TAX PAID ;16
129	129	(f) F
130	130	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF SIXTY17
131	131	PERCENT TO SIXTY-NINE PERCENT, AN AMOUNT EQUAL TO SIXTY PERCENT18
132	132	OF THE AMOUNT OF PROPERTY TAX PAID ;19
133	133	(g) F
134	134	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF20
135	135	SEVENTY PERCENT TO SEVENTY -NINE PERCENT, AN AMOUNT EQUAL TO21
136	136	SEVENTY PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;22
137	137	(h) F
138	138	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF23
139	139	EIGHTY PERCENT TO EIGHTY -NINE PERCENT, AN AMOUNT EQUAL TO24
140	140	EIGHTY PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;25
141	141	(i) F
142	142	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF26
143	143	NINETY PERCENT TO NINETY -NINE PERCENT, AN AMOUNT EQUAL TO27
144	144	HB25-1139
145	145	-4- NINETY PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ; AND1
146	146	(j) F
147	147	OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF ONE2
148	148	HUNDRED PERCENT, AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF3
149	149	THE AMOUNT OF PROPERTY TAX PAID .4
150	150	(5) (a) (I) T
151	151	O CLAIM A TAX CREDIT PURSUANT TO THIS SECTION , A5
152	152	TAXPAYER MUST SUBMIT AN APPLICATION FOR A TAX CREDIT CERTIFICATE6
153	153	TO THE COUNTY ASSESSOR FOR THE COUNTY IN WHICH THE TAXPAYER 'S7
154	154	PRIMARY RESIDENCE IS LOCATED . A TAXPAYER MUST SUBMIT AN8
155	155	APPLICATION FOR A TAX CREDIT CERTIFICATE ON OR BEFORE SEPTEMBER9
156	156	1
157	157	OF THE YEAR FOR WHICH THE TAXPAYER INTENDS TO CLAIM THE TAX10
158	158	CREDIT.11
159	159	(II) W
160	160	ITH AN APPLICATION SUBMITTED PURSUANT TO SUBSECTION12
161	161	(5)(a)(I)
162	162	OF THIS SECTION, A TAXPAYER MUST SUBMIT A DECISION LETTER13
163	163	FROM THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS THAT SETS14
164	164	FORTH THE TAXPAYER'S DISABILITY RATING.15
165	165	(b) T
166	166	HE DIVISION OF PROPERTY TAXATION IN THE DEPARTMENT OF16
167	167	LOCAL AFFAIRS, IN CONSULTATION WITH THE DEPARTMENT OF MILITARY17
168	168	AND VETERANS AFFAIRS, SHALL DEVELOP AND PROVIDE TO EACH COUNTY18
169	169	ASSESSOR THE APPLICATION TO BE USED BY A TAXPAYER TO APPLY FOR A19
170	170	TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION (5)(a) OF THIS20
171	171	SECTION AND SHALL INCLUDE ANY NECESSARY INSTRUCTIONS FOR A21
172	172	COUNTY ASSESSOR IN THEIR REVIEW OF AN APPLICATION PURSUANT TO22
173	173	SUBSECTION (5)(c) OF THIS SECTION.23
174	174	(c) T
175	175	HE COUNTY ASSESSOR SHALL REVIEW A TAXPAYER 'S24
176	176	APPLICATION SUBMITTED PURSUANT TO SUBSECTION (5)(a) OF THIS25
177	177	SECTION TO DETERMINE:26
178	178	(I) W
179	179	HETHER THE TAXPAYER IS AN ELIGIBLE VETERAN ; AND27
180	180	HB25-1139
181	181	-5- (II) IF THE TAXPAYER IS AN ELIGIBLE VETERAN, THE AMOUNT OF1
182	182	THE CREDIT THAT THE ELIGIBLE VETERAN MAY CLAIM FOR THE APPLICABLE2
183	183	INCOME TAX YEAR BASED ON THE AMOUNT OF PROPERTY TAX PAID BY THE3
184	184	ELIGIBLE VETERAN ON THEIR PRIMARY RESIDENCE IN THE APPLICABLE4
185	185	PROPERTY TAX YEAR AND ON THE ELIGIBLE VETERAN 'S DISABILITY RATING.5
186	186	(d) U
187	187	PON APPROVING AN ELIGIBLE VETERAN 'S APPLICATION AND6
188	188	MAKING THE DETERMINATIONS DESCRIBED IN SUBSECTION (5)(c) OF THIS7
189	189	SECTION, THE APPLICABLE COUNTY ASSESSOR SHALL ISSUE A TAX CREDIT8
190	190	CERTIFICATE TO THE ELIGIBLE VETERAN IN AN AMOUNT EQUAL TO THE9
191	191	AMOUNT DETERMINED BY THE COUNTY ASSESSOR PURSUANT TO10
192	192	SUBSECTION (5)(c)(II) OF THIS SECTION.11
193	193	(e) E
194	194	ACH COUNTY ASSESSOR SHALL , IN A SUFFICIENTLY TIMELY12
195	195	MANNER TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING13
196	196	THE TAX CREDIT ALLOWED IN THIS SECTION , PROVIDE THE DEPARTMENT14
197	197	WITH AN ELECTRONIC REPORT FOR THE PRECEDING TAX YEAR THAT LISTS15
198	198	EACH ELIGIBLE VETERAN TO WHICH THE COUNTY ASSESSOR ISSUED A TAX16
199	199	CREDIT CERTIFICATE AND INCLUDES THE FOLLOWING INFORMATION :17
200	200	(I) T
201	201	HE ELIGIBLE VETERAN'S NAME;18
202	202	(II) T
203	203	HE AMOUNT OF THE INCOME TAX CREDIT THAT THE19
204	204	CERTIFICATE INDICATES THE ELIGIBLE VETERAN IS ELIGIBLE TO CLAIM ;20
205	205	AND21
206	206	(III) T
207	207	HE ELIGIBLE VETERAN'S SOCIAL SECURITY NUMBER OR22
208	208	C
209	209	OLORADO ACCOUNT NUMBER AND FEDERAL EMPLOYER IDENTIFICATION23
210	210	NUMBER.24
211	211	(6) T
212	212	O CLAIM THE CREDIT AUTHORIZED BY THIS SECTION , AN25
213	213	ELIGIBLE VETERAN SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY26
214	214	THE COUNTY ASSESSOR PURSUANT TO SUBSECTION (5) OF THIS SECTION27
215	215	HB25-1139
216	216	-6- WITH THE ELIGIBLE VETERAN'S STATE INCOME TAX RETURN.1
217	217	(7) U
218	218	PON THE DEATH OF AN ELIGIBLE VETERAN , THE ELIGIBLE2
219	219	VETERAN'S SURVIVING SPOUSE OR LEGAL DEPENDENTS ARE ELIGIBLE TO3
220	220	CLAIM THE INCOME TAX CREDIT ALLOWED IN THIS SECTION AT THE4
221	221	PERCENTAGE SPECIFIED IN SUBSECTION (4) OF THIS SECTION LAST CLAIMED5
222	222	BY THE ELIGIBLE VETERAN, UNTIL:6
223	223	(a) T
224	224	HE DEATH OF THE SURVIVING SPOUSE OR LEGAL DEPENDENTS ;7
225	225	(b) T
226	226	HE PRIMARY RESIDENCE THAT IS THE BASIS OF THE INCOME8
227	227	TAX CREDIT IS SOLD OR TRANSFERRED; OR9
228	228	(c) T
229	229	HE SURVIVING SPOUSE OR LEGAL DEPENDANTS OF THE10
230	230	ELIGIBLE VETERAN NO LONGER OCCUPY THE RESIDENCE THAT IS THE BASIS11
231	231	OF THE INCOME TAX CREDIT AS THEIR PRIMARY RESIDENCE .12
232	232	(8) I
233	233	F THE AMOUNT OF THE TAX CREDIT ALLOWED PURSUANT TO13
234	234	THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES OTHERWISE DUE14
235	235	ON THE INCOME OF THE ELIGIBLE VETERAN IN THE INCOME TAX YEAR FOR15
236	236	WHICH THE CREDIT IS BEING CLAIMED, THE AMOUNT OF THE CREDIT NOT16
237	237	USED AS AN OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR IS17
238	238	REFUNDED TO THE ELIGIBLE VETERAN .18
239	239	(9) N
240	240	OTWITHSTANDING SECTION 39-21-304 (4), THE CREDIT19
241	241	ALLOWED BY THIS SECTION CONTINUES INDEFINITELY .20
242	242	SECTION 2. Act subject to petition - effective date. This act21
243	243	takes effect at 12:01 a.m. on the day following the expiration of the22
244	244	ninety-day period after final adjournment of the general assembly; except23
245	245	that, if a referendum petition is filed pursuant to section 1 (3) of article V24
246	246	of the state constitution against this act or an item, section, or part of this25
247	247	act within such period, then the act, item, section, or part will not take26
248	248	effect unless approved by the people at the general election to be held in27
249	249	HB25-1139
250	250	-7- November 2026 and, in such case, will take effect on the date of the1
251	251	official declaration of the vote thereon by the governor.2
252	252	HB25-1139
253	253	-8-