First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0967.02 Jason Gelender x4330
SENATE BILL 25-261
Senate Committees House Committees
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE ADMINISTRATION OF THE PROPERTY TAX DEFERRAL101
PROGRAM, AND, IN CONNECTION THEREWITH , REVERSING THE102
2022
SHIFT OF ADMINISTRATIVE RESPONSIBILITIES FOR THE103
PROGRAM FROM COUNTY TREASURERS TO THE STATE104
TREASURER AND LIMITING THE APPLICABILITY OF THE 2022105
EXPANSION OF PROGRAM ELIGIBILITY TO TAXPAYERS WHOSE106
HOMESTEADS ARE IN COUNTIE S THAT OPT IN TO THAT107
EXPANSION.108
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
SENATE SPONSORSHIP
Amabile and Kirkmeyer, Bridges
HOUSE SPONSORSHIP
Bird and Sirota, Taggart
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. http://leg.colorado.gov/.)
Joint Budget Committee. The state has a property tax deferral
program (program) under which the state makes a secured loan to a
qualified taxpayer to pay property taxes owed for the taxpayer's
homestead. The program was available only to seniors and persons called
into active military service until 2021, when the general assembly
expanded the program to also allow an otherwise nonqualifying taxpayer
whose property tax had increased by at least a specified percentage (new
qualified taxpayer) to participate. In 2022, the general assembly shifted
much of the responsibility for the administration of the program from the
county treasurers to the state treasurer.
The bill reverses the 2022 shift of administrative responsibilities
for the program so that county treasurers will generally have the same
responsibilities for administering the program as they did prior to 2022.
The bill also specifies that a new qualified taxpayer may only claim
deferral of property taxes levied for a property tax year commencing on
or after January 1, 2025, if the board of county commissioners of the
county in which the taxpayer's homestead is located has, after receiving
input from the county treasurer of that county, adopted a resolution
requiring the county treasurer to accept applications for such deferral
claims.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-3.5-101, repeal2
(2.5) as follows:3
39-3.5-101. Definitions. As used in this article 3.5, unless the4
context otherwise requires:5
(2.5) "State treasurer" includes a third-party administrator that
6
enters into a contract with the state treasurer to administer the property7
tax deferral program created in this article 3.5 in accordance with section8
39-3.5-103.5 (2).9
SECTION 2. In Colorado Revised Statutes, 39-3.5-102, amend10
(1)(a), (1)(c)(I), and (1)(c)(III); and add (1)(c)(V) as follows:11
39-3.5-102. Deferral of tax on homestead - qualifications -12
filing of claim. (1) (a) Subject to the provisions of this article 3.5, a13
SB25-261-2- person who is sixty-five years of age or older or who is a person called1
into military service on January 1 of the year in which the person files a2
claim under this section may elect to defer the payment of real property3
taxes. To exercise this option, the taxpayer must file a claim for deferral4
with the state treasurer OF THE COUNTY IN WHICH THE TAXPAYER 'S5
HOMESTEAD IS LOCATED. The claim must be filed after January 1 and on6
or before April 1 of each year in which the taxpayer claims the deferral. 7
(c) (I) Subject to the provisions of this article 3.5, including the8
limitations set forth in subsection (1)(c)(II) SUBSECTIONS (1)(c)(II) AND9
(1)(c)(V) of this section, beginning January 1, 2023, a person who is not10
otherwise eligible for deferral under this section may elect to defer the11
payment of the portion of real property taxes that exceed the person's12
tax-growth cap. To exercise this option, the taxpayer must file a claim for13
deferral with the state COUNTY treasurer. The taxpayer must file the claim14
after January 1 and on or before April 1 of each year in which the15
taxpayer claims the deferral.16
(III) S
UBJECT TO THE LIMITATION SET FORTH IN SUBSECTION17
(1)(c)(V)
OF THIS SECTION, a person who previously deferred real property18
taxes as a person called into military service but is no longer eligible for19
a new deferral on that basis may defer additional real property taxes under20
this subsection (1)(c).21
(V) A
TAXPAYER MAY ONLY CLAIM DEFERRAL OF PROPERTY TAXES22
LEVIED FOR A PROPERTY TAX YEAR COMMENCING ON OR AFTER JANUARY23
1,
2025, UNDER SUBSECTION (1)(c)(I) OR (1)(c)(III) OF THIS SECTION IF24
THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY IN WHICH THE25
TAXPAYER'S HOMESTEAD IS LOCATED HAS, AFTER RECEIVING INPUT FROM26
THE COUNTY TREASURER OF THAT COUNTY , ADOPTED A RESOLUTION27
SB25-261
-3- REQUIRING THE COUNTY TREASURER TO ACCEPT APPLICATIONS FOR SUCH1
DEFERRAL CLAIMS.2
SECTION 3. In Colorado Revised Statutes, 39-3.5-103, amend3
(1)(d.5)(II) as follows:4
39-3.5-103. Property entitled to deferral. (1) In order to qualify5
for real property tax deferral under this article 3.5, the property shall meet6
all of the following requirements at the time the claim is filed and so long7
thereafter as payment is deferred:8
(d.5) (II) For purposes of this subsection (1)(d.5), the actual value9
of the property shall be the most recent appraisal by the county assessor10
as of the time the claim for deferral is submitted
TO THE COUNTY11
TREASURER.12
SECTION 4. In Colorado Revised Statutes, repeal 39-3.5-103.513
as follows:14
39-3.5-103.5. State treasurer - program administration - rules.15
(1) The state treasurer may conduct a public education campaign about
16
the property tax deferral program created in this article 3.5.17
(2) The state treasurer may contract with a third party to18
administer the property tax deferral program on behalf of the state19
treasurer.20
(3) The state treasurer may promulgate rules, in accordance with21
article 4 of title 24, related to the administration of the property tax22
deferral program.23
SECTION 5. In Colorado Revised Statutes, 39-3.5-104, amend24
(1) introductory portion as follows:25
39-3.5-104. Claim form - contents. (1) A taxpayer's claim for26
deferral must be in writing on a form prescribed and supplied by the state27
SB25-261
-4- treasurer and SUPPLIED BY THE COUNTY TREASURER AND must:1
SECTION 6. In Colorado Revised Statutes, 39-3.5-105, amend2
(1); and repeal (1.5) as follows:3
39-3.5-105. Listing of tax-deferred property - tax as lien -4
interest accrual. (1) If eligibility for deferral of homestead property is5
established as provided in this article 3.5, the state treasurer shall issue a6
certificate of deferral, which includes the name of the taxpayer, the7
description of the property, the amount of tax deferred, and the year for8
which the deferral was granted, and record the certificate of deferral with9
the county clerk and recorder in the county where the property is located.10
The state treasurer shall notify the county treasurer of a property's11
eligibility and provide the county treasurer with the certificate of deferral,12
and the county treasurer shall:13
(a) Enter in the county treasurer's records a notation that the14
property is tax-deferred;15
(b) (I) Retain one copy PROMPTLY, UPON DESIGNATION OF THE16
PROPERTY AS TAX-DEFERRED, ISSUE A CERTIFICATE OF DEFERRAL, WHICH17
SHALL INCLUDE THE NAME OF THE TAXPAYER , THE DESCRIPTION OF THE18
PROPERTY, THE AMOUNT OF TAX DEFERRED , AND THE YEAR FOR WHICH19
THE DEFERRAL WAS GRANTED . THE COUNTY CLERK AND RECORDER SHALL20
RECORD THE CERTIFICATE IN THE COUNTY RECORDS AND THEREAFTER 21
SEND A COPY OF THE CERTIFICATE TO THE STATE TREASURER . THE COUNTY22
TREASURER SHALL GIVE ONE COPY OF THE CERTIFICATE TO THE ASSESSOR23
AND SHALL RETAIN ONE COPY in the county treasurer's office. 24
(II) Promptly, upon designation of a mobile home as tax-deferred,25
the owner of the mobile home shall surrender title to the property to the26
state treasurer COUNTY CLERK AND RECORDER . The county clerk and27
SB25-261
-5- recorder shall, pursuant to the provisions of article 29 of title 38, make1
application with the department of revenue for issuance of a new2
certificate of title with a record of the lien of the state treasurer. This3
procedure shall be followed for each subsequent year that the property is4
deferred. T
HE COUNTY TREASURER SHALL ISSUE A CERTIFICATE OF5
DEFERRAL, WHICH SHALL INCLUDE THE NAME OF THE TAXPAYER , THE6
DESCRIPTION OF THE PROPERTY, THE AMOUNT DEFERRED, AND THE TAX7
YEAR FOR WHICH THE DEFERRAL WAS GRANTED , AND SHALL SEND SUCH8
CERTIFICATE TO THE STATE TREASURER. THE COUNTY TREASURER SHALL9
GIVE ONE COPY OF THE CERTIFICATE TO THE COUNTY ASSESSOR AND SHALL10
RETAIN ONE COPY IN THE COUNTY TREASURER 'S OFFICE. Upon satisfaction11
of the lien, the state treasurer shall release the lien from the title.12
(1.5) Notwithstanding any provision of law to the contrary, a
13
county clerk and recorder shall not charge a fee for recording the14
certificate of deferral in accordance with subsection (1) of this section.15
SECTION 7. In Colorado Revised Statutes, 39-3.5-106, repeal16
(3) as follows:17
39-3.5-106. State treasurer to pay county treasurer an amount18
equivalent to deferred taxes. (3) If a taxpayer defers all or part of the19
property taxes due for a property tax year and the county treasurer20
receives a payment from, or on behalf of, the taxpayer so that the total21
received from the state treasurer and the payer is greater than the22
taxpayer's property taxes due, then the county treasurer shall refund the23
excess to the payer of the taxes.24
SECTION 8. In Colorado Revised Statutes, 39-3.5-107, amend25
(2) as follows:26
39-3.5-107. Repayment of loans - release of liens - disposition27
SB25-261
-6- of payments. (2) A taxpayer must tender repayments of a loan for1
deferred taxes to the state treasurer, and the state treasurer shall give the2
taxpayer a receipt therefor. A county treasurer shall not accept a3
repayment. IF REPAYMENT OF A LOAN FOR DEFERRED TAXES IS TENDERED4
TO THE COUNTY TREASURER , THE COUNTY TREASURER SHALL ACCEPT5
PAYMENT, GIVE THE PAYER A RECEIPT FOR THE PAYMENT, AND PROMPTLY6
TRANSMIT THE MONEY COLLECTED TO THE STATE TREASURER .7
SECTION 9. In Colorado Revised Statutes, amend 39-3.5-1088
as follows:9
39-3.5-108. Notice to taxpayer regarding duty to claim10
deferral annually. As soon as practicable after January 1, the state11
treasurer shall send a deferral AT THE TIME THE TREASURER SENDS THE12
ANNUAL PROPERTY TAX notice to any taxpayer who has claimed a deferral13
of property taxes in the previous calendar year,
THE TREASURER SHALL14
ENCLOSE A DEFERRAL NOTICE. The deferral notice must be substantially15
in the following form:16
To: (name of taxpayer)17
If you want to defer the collection of ad valorem property taxes on18
your homestead for the assessment year ending on December 31,
, you19
must file a claim for deferral not later than April 1, , with (state20
treasurer or the name of third-party administrator, if applicable) THE21
OFFICE OF THE COUNTY TREASURER . Forms for filing the claims are22
available at (website and mailing address for state treasurer or third-party23
administrator, if applicable) THE COUNTY TREASURER'S OFFICE.24
If you fail to file your claim for deferral on or before April 1, ,25
your real property taxes will be due and payable in accordance with the26
schedule set out in the
ENCLOSED tax notice. you separately received from
27
SB25-261
-7- your county treasurer.1
If you change your permanent address at any time during the2
assessment year ending on December 31, , you must notify the state3
treasurer promptly COUNTY ASSESSOR.4
SECTION 10. In Colorado Revised Statutes, amend 39-3.5-1095
as follows:6
39-3.5-109. Failure to receive notices. Failure to receive the7
notice provided for in this article 3.5 is not a defense in any proceeding8
for the collection of taxes or for the foreclosure of a tax lien. Neither the9
state treasurer nor A county treasurer is NOT personally liable for failure10
to give such notices.11
SECTION 11. Effective date. This act takes effect July 1, 2025.12
SECTION 12. Safety clause. The general assembly finds,13
determines, and declares that this act is necessary for the immediate14
preservation of the public peace, health, or safety or for appropriations for15
the support and maintenance of the departments of the state and state16
institutions.17
SB25-261
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