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ColoradoSB26-1442026 Regular SessionSenateWALLET

Modify Property Tax Lien Sales Treasurer Deeds & Fees

Sponsored By: Lisa Frizell (Republican), Sean Camacho (Democratic), Ty Winter (Republican), William Lindstedt (Democratic)

Signed by Governor

Fiscal Policy & TaxesLocal Government

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Bill Overview

Analyzed Economic Effects

31 provisions identified: 9 benefits, 5 costs, 17 mixed.

Missing records can end property rights

A claimant whose recorded document lacks an address is not entitled to notice under that document. That interest ends when the treasurer’s deed is executed and delivered. Beginning June 1, 2026, deed proceedings can also continue against property owned by deceased, mentally incompetent, or incapacitated people. Treasurers must notify the owner as though living and competent, recorded interest holders, and lessees as required by law. Heirs and representatives need notice only when their interests appear of record; covered interests end unless affected people redeem on time.

Auction buyers gain title with deadlines

Beginning June 1, 2026, title passes to the deed-option holder when the repurchase period ends or the eighth business day after auction closes. If a repurchase occurs, title passes to the repurchase-certificate holder. The deed clears junior liens and claims, subject to statutory exceptions and rights to claim excess auction money. An assignee can be named in the deed only if the treasurer receives a recorded assignment within 10 business days after auction. The assignment must be dated and signed, and notarized or recorded before title passes.

Omitted claimants face limited property remedies

Beginning June 1, 2026, these rules cover omitted junior interests recorded before the deed application, or valid possessory interests with actual possession before it. A court can end such an interest after auction, but must consider notice and provide an opportunity to claim excess money. Court-set claim terms cannot be more favorable than the statutory rights. An interested person can instead file to preserve the omitted interest, which removes its excess-money claim. Unless the omitted party waives or agrees otherwise in writing, its remedy is limited to the statutory excess-money claim.

Owners get redemption rights and deadlines

Owners can keep property by filing an intent to redeem at least seven calendar days before the currently scheduled auction. Specified heirs or representatives can act with satisfactory proof if the owner dies or becomes incapacitated on or after application recording. The treasurer must provide an itemized statement within three business days and may charge a filing fee up to $25. Owners must redeem the whole property and pay before the statement expires: ten business days or noon the day before auction, whichever comes first. If a court finds a material error in the stated debt to the lawful holder, the harmed person receives court costs and reasonable attorney fees and costs, besides other relief.

Auction surplus goes to creditors, owners

Excess auction money goes first to junior lienholders who file qualifying claims, then to the property owner. Beginning June 1, 2026, junior lienholder claims have no filing fee, and payments occur between the ninth and fifteenth business day after auction. Payments follow recording priority as of the deed application and cannot exceed unpaid liens plus allowable fees and costs. Treasurers with office websites must post the required notice. For owners’ remaining amounts of at least $25, treasurers must seek a current address and mail notice within 30 calendar days after the claim period ends.

Property access rights survive tax deeds

Beginning June 1, 2026, a treasurer’s deed does not erase protected roads, rights-of-way, conservation easements, or other easements. It also preserves qualifying property obligations called equitable servitudes. These rights must run with the property and carry both benefits and burdens. They must have existed or been claimed before the deed was signed.

Counties can pursue deeds and transfers

County commissioners can seek a deed auction when a lien was struck off to the county and held at least three years. Counties holding certificates for separate mineral interests can also apply for deeds after three years, using the lawful-holder process. Counties can assign, sell, or transfer certificates for unpaid general taxes under terms and timing set by commissioners’ resolutions. They must deliver the documents needed to transfer their interests. The amended transfer provision removes specified administrator-approval and public-notice requirements for certificates involving more than $10,000 in delinquent taxes.

Auction bidders face bans and safeguards

Treasurers can offer an unpaid certificate to another bidder without new advertising, resell it, or sue to recover the bid. Defaulting bidders can be barred from covered auctions for up to five years. Before an auction starts, treasurers can also impose bans of up to five years for rule-breaking or disruptive, abusive, fraudulent, or threatening behavior. Treasurers cannot bid privately, except on mineral rights when they own the surface rights.

Delayed auctions have limits and restarts

Before an auction starts, treasurers can postpone it for good cause or a lawful holder’s written request, generally up to 12 months. Separate bankruptcy rules apply; missed auctions not otherwise continued move week to week. An injunction or bankruptcy petition stops the affected auction; restarting requires a holder’s request within one year after the injunction ends or the specified court order. A qualifying order after an auction violates a bankruptcy stay restores the purchase certificate and application with original lien priority. When a court sets aside an auction, it cancels the option certificate and restores the purchase certificate’s original priority. Holders or assignees must request a new auction in writing within one year of that order, or the application is withdrawn.

Junior lienholders can claim auction money

Junior lienholders can claim excess auction money by filing with the treasurer within eight business days after auction. Claims need lien documents, any assignment, and a signed amount statement with daily interest through the eighth business day. The lien generally must be recorded in the county before the deed application. A lien recorded in the wrong county must be recorded again in the correct county at least 15 calendar days before the actual auction. Any assignment must also be recorded there at least 15 calendar days before auction for the assignee to claim money.

Lien investors get credits, owe shortfalls

A winning lawful holder pays only the bid amount above the debt owed to that holder on the bid form. That excess is due within three business days after auction. Covered taxes, assessments, prior liens, and auction expenses become additional amounts owed under the purchase certificate. Auction proceeds cover these costs; the lawful holder must pay any shortfall. The treasurer can withhold the deed until all money due is paid.

New steps for tax lien deeds

Beginning June 1, 2026, treasurer’s deeds must use the new process, not the old one. Covered property includes real estate, manufactured, mobile, modular and tiny homes, and separate mineral interests or mining claims. Certificate holders or their assignees must apply; lawful holders can apply after August 1 of the third calendar year following the tax-lien sale. One application can cover up to 25 properties under one ownership title, even with separate locations or lien sales. Errors in the stated lien balance or nonmaterial mistakes do not invalidate the application, auction notices, auction, or related redemption steps.

Property proceedings carry fees and discounts

Fees include $300 for a deed application, $60 to issue a deed, and $30 to process and issue a redemption certificate. Delivery costs are $5 for a purchase certificate, $10 for a redemption certificate, and $5 for a certificate assignment. A distraint warrant or property posting costs the greater of $50 plus mileage or actual delivery or posting costs. Auction processing costs up to $300 when the deed-option holder is not the lawful holder; prior-year receipt copies cost at most $5. Treasurers may reduce covered fees for property assessed under $500 at application recording, or mobile, manufactured, modular, or tiny homes. Maximum fees change with the Denver-area consumer price index beginning January 1, 2027, and every two years afterward. Adjustments round upward to whole dollars; counties must post maximums by January 1 of odd-numbered years, and the General Assembly host site must post schedules.

Renters and land buyers get classifications

Beginning June 1, 2026, lessees and easement holders count as junior lienholders in deed proceedings, but have no lien amount. Installment land contract sellers count as junior lienholders for unpaid purchase price, interest, and other contract amounts. Sellers do not count as owners. Buyers count as owners, except for portions later transferred by a recorded document.

Tax deed searches get firm deadlines

Beginning June 1, 2026, treasurers must start title searches or record reviews within 30 calendar days after recording a deed application. They must receive or finish that work within 180 calendar days, then build the mailing list within 30 business days. The list covers owners, lawful holders, qualifying occupants, recorded lessees, and junior lienholders whose liens predate the application. Returned notices require a reasonable address search and renewed notice within 30 calendar days. A treasurer who misses a notice deadline can notify the lawful holder or lawyer and record the application again, restarting deadlines, unless the holder or lawyer already withdrew the auction.

Tax lien holders can repurchase property

A lawful tax-lien holder who loses the auction can repurchase the whole property’s certificate of option for a treasurer’s deed. The holder must file intent and pay the required fee within three business days after auction. Payment must reach the treasurer by noon on the eighth business day after auction. The price includes the certificate amount above the debt owed to the holder, interest through that eighth day at the bid rate, and reasonable fees and costs. Recording the repurchase certificate transfers the auction buyer’s interest to the holder, subject to specified continuing rights.

Owners get capped surplus recovery fees

Covered agreements to recover unclaimed auction surplus are enforceable only when compensation is no more than 10% of the surplus. Agreements must be made at least two years after transfer to the administrator or county treasurer under a county resolution.

Certificate assignment filing fees are capped

Beginning June 1, 2026, treasurers may charge no more than $25 to file certain certificate assignments. The cap covers an endorsement or separate assignment of a treasurer’s deed option certificate or repurchase certificate. The treasurer may charge the person transferring or receiving the certificate.

Counties can cancel old taxes sooner

Treasurers can find taxes uncollectible five years after delinquency, instead of six, for property struck off to the county. The county must still hold the purchase certificate. Commissioners may cancel those taxes, but cancellation is not automatic. Cancellation does not end the county’s right to transfer the certificate or obtain a deed.

Owners get mailed and posted auction notices

Treasurers must mail auction notices by first-class mail within ten business days after creating the mailing list. For property assessed at $500 or more, newspaper notice runs for three weeks and starts at least 30 calendar days before the first scheduled auction. Property assessed below $500 and manufactured, mobile, modular, or tiny homes require website notice within ten business days after mailing. Notice generally must also be posted on the property at least 30 calendar days before auction. On-property posting is not required for severed mineral rights.

Owners get notices and auction access

Treasurers must mail delinquency notices by first-class mail to the taxpayer’s last-known address. The payment deadline must be at least 15 calendar days after mailing. Sale notices must identify the property and sale details; electronic-sale notices must explain public computer access. Those notices must also say bidding rules will be posted at least two weeks before the sale. Treasurers can accept or share electronic records under uniform written policies and electronic-transactions law, but require electronic format only when needed for electronic auctions.

Renters get mailed tax deed notices

Beginning June 1, 2026, treasurers must mail notice to renters whose possession rights are not recorded. This covers single-family homes and buildings with multiple residential units involved in treasurer’s deed proceedings. Notice is complete when sent by first-class mail to the premises address or to “Lessee” at that address.

Counties and support units avoid fees

Counties and county agencies are exempt from clerk-and-recorder fees when they grant or receive interests through a recorded document. Delegate child support enforcement units are exempt for documents filed or recorded to collect support, arrears, maintenance, retroactive support, or support debt. Filing and recording surcharges also do not apply to fee-exempt documents.

Auction bidders face fees and minimums

Treasurers may charge successful auction bidders a processing fee of up to $300. It applies to third-party buyers and lawful tax-lien holders bidding competitively. A lawful holder bidding for a certificate of purchase must bid at least the total debt set by the treasurer. A lower bid does not invalidate the auction.

Auction participants face limited damage recovery

Counties, treasurers, and covered employees acting officially are not liable when device failure blocks participation in an electronic auction. For rescissions covered by the law, damage recovery is limited to reasonable actual expenses. Speculative or expected-gain damages, awards, and other legal or equitable claims arising from that rescission are excluded.

Online tax sales can add fees

County treasurers may add a fee to delinquent property taxes when a tax-lien sale takes place online or electronically. The fee can cover only the cost of conducting that sale. The law does not set a dollar amount.

Lien holders can withdraw, still owe

Lawful holders can withdraw deed applications before auction, but remain responsible for applicable fees and costs, including a withdrawal fee. If no auction or withdrawal occurs within 45 calendar days after the last possible auction date, treasurers may give notice and record withdrawal. A withdrawal recorded during a bankruptcy automatic stay is void. Unpaid charges, the withdrawal fee, and interest remain due; treasurers can withhold documents or services until payment.

Owners get redemption statements with deadlines

Owners must file intent to redeem at least seven calendar days before auction; treasurers must provide statements within three business days. Filing that intent or requesting an updated statement costs no more than $25. Statements last 10 business days or until noon the day before auction, whichever comes first. Written update requests must follow statement expiration and arrive at least seven calendar days before auction. Redemption overpayment refunds unclaimed for two years after becoming payable are presumed abandoned and may go to the Colorado State Treasurer.

Surface owners get mineral purchase options

Surface owners get a first chance to buy the entire separately owned mineral property beneath their land. When the treasurer mails the notice and purchase form, mailing must occur at least 30 calendar days before the originally scheduled auction. Owners have 14 calendar days after mailing to file the form and must pay the full amount by its deadline. Partial purchases are barred, and the option expires without a timely response. Separately, treasurers may waive all deed-application fees for mineral interests when the county holds the tax lien.

Unclaimed auction money has transfer deadlines

Treasurers hold unclaimed auction surplus in escrow for two years from auction, with exceptions for amounts under $25. Amounts under $25 go to the county general fund after six months; amounts of at least $25 transfer to the state treasurer after two years. Escrow interest goes to the county at least annually. For amounts over $500 still unclaimed 60 calendar days after the claim period ends, treasurers must publish notice within 90 days. They must also mail a copy to the owner, with notice costs paid from escrow.

Winning lien holders can cancel auctions

A lawful tax-lien holder who wins an auction can cancel it without a court order. The holder must file notice within three business days and pay required fees and recording costs. Recording the cancellation cancels the option certificate and restores the purchase certificate with its original lien priority. The holder or assignee can request a new auction, which must be scheduled 30 to 45 calendar days after the request. If no request arrives within one year after cancellation is recorded, the treasurer’s deed application must be withdrawn.

Sponsors & Cosponsors

Sponsors

  • Lisa Frizell

    Republican • Senate

  • Sean Camacho

    Democratic • House

  • Ty Winter

    Republican • House

  • William Lindstedt

    Democratic • Senate

Cosponsors

  • Jarvis Caldwell

    Republican • House

  • Julie McCluskie

    Democratic • House

  • Monica Duran

    Democratic • House

  • Ron Weinberg

    Republican • House

  • Cathy Kipp

    Democratic • Senate

  • Dylan Roberts

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Janice Marchman

    Democratic • Senate

  • Marc Snyder

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 339 • No: 4

Senate vote • 4/23/2026

House amendments: Repass

Yes: 34 • No: 0

Senate vote • 4/23/2026

House amendments: Concur

Yes: 34 • No: 0

House vote • 4/21/2026

Third reading: Bill

Yes: 61 • No: 2

House vote • 4/21/2026

Third reading: Perm

Yes: 62 • No: 1

House vote • 4/21/2026

Third reading: Amd (l.009)

Yes: 62 • No: 1

House vote • 4/13/2026

Refer Senate Bill 26-144 to the Committee of the Whole.

Yes: 10 • No: 0

Senate vote • 4/8/2026

Third reading: Amend (l.007)

Yes: 34 • No: 0

Senate vote • 4/8/2026

Third reading: Bill

Yes: 34 • No: 0

Senate vote • 3/31/2026

Refer Senate Bill 26-144, as amended, to the Committee of the Whole.

Yes: 8 • No: 0

Actions Timeline

  1. Governor Signed

    5/19/2026House

  2. Signed by the President of the Senate

    5/12/2026Senate

  3. Signed by the Speaker of the House

    5/12/2026House

  4. Sent to the Governor

    5/12/2026House

  5. Senate Considered House Amendments - Result was to Concur - Repass

    4/23/2026Senate

  6. House Third Reading Passed with Amendments - Floor

    4/21/2026House

  7. House Third Reading Laid Over Daily - No Amendments

    4/15/2026House

  8. House Second Reading Special Order - Passed with Amendments - Floor

    4/14/2026House

  9. House Committee on Finance Refer Unamended to House Committee of the Whole

    4/13/2026House

  10. Introduced In House - Assigned to Finance

    4/9/2026House

  11. Senate Third Reading Passed with Amendments - Floor

    4/8/2026Senate

  12. Senate Second Reading Passed with Amendments - Committee, Floor

    4/7/2026Senate

  13. Senate Second Reading Laid Over to 04/07/2026 - No Amendments

    4/6/2026Senate

  14. Senate Committee on Finance Refer Amended to Senate Committee of the Whole

    3/31/2026Senate

  15. Introduced In Senate - Assigned to Finance

    3/20/2026Senate

Bill Text

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