As used in this part 17, unless the context otherwise requires:
(1) Local government means a governmental entity authorized by law to impose ad valorem taxes on taxable property located within its territorial limits; except that the term excludes any:
(a) and (b) (Deleted by amendment, L. 2024, Second Extraordinary Session.)
(c) Local governmental entity that is subject to and has not received voter approval to exceed the revenue limit set forth in section 29-1-301 for that property tax year; and
(d) Local governmental entity or school district that does not have voter approval to collect, retain, and spend, without regard to any spending, revenue, or other limitation contained within section 20 of article X of the state constitution, the majority of the local governmental entity or school district's revenue from the imposition of ad valorem property taxes levied in any year subsequent to the approval.
(1.5) Local governmental entity means a local government authorized by law to impose ad valorem taxes on taxable property located within its territorial limits; except that the term excludes any:
(a) School district; and
(b) City and county, city, or town that has adopted a home rule charter.
(2) Property tax limit means, as applicable, the annual limit on a local governmental entity's qualified property tax revenue that is established in sections 29-1-1702 (1) and 29-1-1703 (1) and calculated pursuant to section 29-1-1703 (1) or the annual limit on a school district's qualified local share property tax revenue that is established in sections 29-1-1702.5 (2) and 29-1-1703 (3) and calculated pursuant to section 29-1-1703 (3).
(2.5) (a) Qualified local share property tax revenue means the total amount of property tax revenue estimated to be retained by all school districts in the state in connection with district total program funding from a property tax year exclusive of property tax revenue that is from any of the following sources or is used for any of the following purposes:
(I) The increased valuation for assessment within a school district for the preceding property tax year that is attributable to new construction and personal property connected therewith, as defined by the property tax administrator in manuals prepared pursuant to section 39-2-109 (1)(e);
(II) The increased valuation for assessment attributable to a change in law for a property tax classification or to the annexation or inclusion of additional land, the improvements thereon, and personal property connected therewith within a school district for the preceding property tax year;
(III) Increased property tax revenue attributable to the expiration of the use of a school district's incremental tax revenues diverted for the purposes of part 1 of article 25 of title 31, part 8 of article 25 of title 31, article 31 of title 30, or other tax increment financing purposes;
(IV) The valuation for assessment that was omitted from the assessment roll in the preceding property tax year;
(V) Property tax revenue abated or refunded by a school district from the property tax year;
(VI) The increase in the valuation for assessment attributable to previously legally exempt property in the previous property tax year that becomes taxable;
(VII) The increase in the valuation for assessment from producing mines or lands or leaseholds producing oil or gas in the previous property tax year;
(VIII) Property tax revenue attributable to a school district increasing the total number of mills it levies in connection with district total program funding and upon receiving the approval of the majority of a school district's voters voting thereon for such an increase in an election occurring on or after November 5, 2024;
(IX) Property tax revenue attributable to any mills a school district levies that are not levied in connection with district total program funding;
(X) Property tax revenue attributable to a change in the amount of specific ownership tax revenue paid to the district, as defined in section 22-54-103 (11), in the previous property tax year; or
(XI) Property tax revenue attributable to a change in the amount of property tax credits issued pursuant to section 22-54-106 (2.1) in the previous property tax year.
(b) Except as applied in determining the counterfactual percentage, as defined in section 29-1-1702.5 (1)(c), in determining the amount of qualified local share property tax revenue for purposes of subsections (2.5)(a)(I), (2.5)(a)(II), (2.5)(a)(IV), (2.5)(a)(VI), and (2.5)(a)(VII) of this section, the annual change in property tax revenue or valuation for assessment is assumed to be the same for the relevant property tax year as it was for the property tax year immediately preceding the relevant property tax year.
(3) Qualified property tax revenue means a local governmental entity's property tax revenue for a property tax year exclusive of property tax revenue that is from any of the following sources or is used for any of the following purposes:
(a) Property tax revenue from the increased valuation for assessment within the taxing entity for the preceding property tax year that is attributable to new construction and personal property connected therewith, as defined by the property tax administrator in manuals prepared pursuant to section 39-2-109 (1)(e);
(b) Property tax revenue from the increased valuation for assessment attributable to a change in law for a property tax classification or to the annexation or inclusion of additional land, the improvements thereon, and personal property connected therewith within the taxing entity for the preceding property tax year;
(c) Increased property tax revenue attributable to the expiration in the previous property tax year of the use of the local governmental entity's incremental tax revenues diverted for the purposes of part 1 of article 25 of title 31, part 8 of article 25 of title 31, article 31 of title 30, or other tax increment financing purposes;
(d) Property tax revenue for property that was omitted from the assessment roll in the preceding property tax year;
(e) Property tax revenue abated or refunded by the local governmental entity from the property tax year;
(f) Property tax revenue attributable to property that was legally exempt property in the previous property tax year that becomes taxable;
(g) Property tax revenue from producing mines or lands or leaseholds producing oil or gas;
(h) An amount to provide for the payment of bonds that have both been approved by a majority of the local governmental entity's voters voting thereon and are outstanding as of November 5, 2024, and the interest thereon, or for the payment of any other contractual obligation that has been approved by a majority of the local governmental entity's voters voting thereon outstanding as of November 5, 2024; and bonds or other contractual obligations issued in accordance with the existing voted authorization of a local governmental entity approved by a majority of the local governmental entity's voters voting thereon in accordance with section 20 of article X of the state constitution as of November 5, 2024;
(i) Property tax revenue attributable to a local governmental entity increasing the total number of mills it levies upon receiving the approval of the majority of the local governmental entity's voters voting thereon for such an increase in an election occurring on or after November 5, 2024; or
(j) Property tax revenue attributable to specific ownership tax revenue paid to the local governmental entity.
(4) Reassessment cycle means a reassessment cycle established pursuant to section 39-1-104 (10.2).
(5) School district means a local government that is authorized by law to impose ad valorem taxes on taxable property located within its territorial limits and has a district total program determined by article 54 of title 22.
Source: L. 2024: Entire part added, (SB 24-233), ch. 171, p. 907, � 1, effective October 1 (see editor's note following the heading for this part 17). L. 2024, 2nd Ex. Sess.: (1), (2), IP(3), (3)(c), (3)(e), (3)(f), (3)(h), and (3)(i) amended and (1.5), (2.5), (3)(j), (4), and (5) added, (HB 24B-1001), ch. 1, p. 2, � 3, effective October 1 (see editor's note).
Editor's note: Section 19 of chapter 1 (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session, provides that the act changing this section takes effect only if SB 24-233 takes effect and takes effect upon the effective date of SB 24-233. SB 24-233 took effect on October 1, 2024, due to an amendment to the effective date of SB 24-233 by section 18 of chapter 1 (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session.
29-1-1702. Property tax limit imposition - temporary property tax credit - refund. (1) For property tax years commencing on or after January 1, 2025, a local governmental entity's qualified property tax revenue for a property tax year must not increase by more than the property tax limit.
(2) (a) To prevent the local governmental entity's qualified property tax revenue from exceeding the property tax limit, a local governmental entity's governing body shall either:
(I) Enact a temporary property tax credit that is up to the number of mills necessary to prevent the local governmental entity's qualified property tax revenue from exceeding the property tax limit; or
(II) Temporarily reduce the mill levy imposed by the local government entity.
(b) Neither a temporary property tax credit enacted by a local governmental entity pursuant to subsection (2)(a)(I) of this section nor a temporary reduction by a local governmental entity pursuant to subsection (2)(a)(II) of this section of the mill levy imposed by the local governmental entity changes the underlying mill levy imposed by a local governmental entity. Therefore, reducing or eliminating a temporary property tax credit or a temporary mill levy reduction does not require prior voter approval under section 20 (4)(a) of article X of the state constitution.
(3) If a local governmental entity's qualified property tax revenue exceeds the property tax limit for a property tax year and the local governmental entity does not comply with subsection (2) of this section, then the local governmental entity shall refund any qualified property tax revenue in excess of the property tax limit for the property tax year.
Source: L. 2024: Entire part added, (SB 24-233), ch. 171, p. 909, � 1, effective October 1 (see editor's note following the heading for this part 17).
29-1-1702.5. School district property tax limit imposition - temporary residential valuation for assessment adjustment - correction - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Balancing percentage means the valuation for assessment of all residential real property, for the purpose of a levy imposed by a school district, necessary for school district qualified local share property tax revenue to equal the school district property tax limit.
(b) Correction percentage means the difference between the counterfactual percentage and the valuation for assessment of all residential real property for the purpose of a levy imposed by a school district for the immediately preceding property tax year.
(c) Counterfactual percentage means the valuation for assessment of all residential real property for the immediately preceding property tax year for the purpose of a levy imposed by a school district that would have resulted in school district qualified local share property tax revenue equaling the school district property tax limit.
(2) For property tax years commencing on or after January 1, 2025, qualified local share property tax revenue for all school districts from a property tax year must not increase by more than the school district property tax limit.
(3) (a) If the qualified local share property tax revenue for school districts from a property tax year commencing on or after January 1, 2025, would otherwise exceed the school district property tax limit, the valuation for assessment for all residential real property, for the purpose of a levy imposed by a school district, is temporarily reduced for that property tax year to the total of the balancing percentage calculated by the state board of equalization pursuant to subsection (4)(d) of this section and, if the school district qualified local share property tax revenue exceeded the school district property tax limit in the immediately preceding property tax year, the correction percentage.
(b) If the qualified local share property tax revenue for school districts from a property tax year commencing on or after January 1, 2025, is not projected to exceed the school district property tax limit, the valuation for assessment for all residential real property, for the purpose of a levy imposed by a school district, is temporarily reduced, as calculated by the state board of equalization pursuant to subsection (4)(d) of this section, for that property tax year by the correction percentage if the school district qualified local share property tax revenue exceeded the school district property tax limit in the immediately preceding property tax year.
(c) A temporary reduction in the valuation for assessment that applies to that residential real property for the purpose of a levy imposed by a school district pursuant to subsection (3)(a) of this section does not change the underlying valuation for assessment that applies to that residential real property for the purpose of a levy imposed by a school district. Therefore, reducing the amount of the temporary reduction in the valuation for assessment that applies to residential real property for the purpose of a levy imposed by a school district pursuant to subsection (3)(a) or (3)(b) of this section, or removing such a temporary reduction, from one property tax year to the next does not require prior voter approval under section 20 (4)(a) of article X of the state constitution.
(d) (I) Notwithstanding subsections (3)(a) and (3)(b) of this section, the valuation for assessment established pursuant to subsection (3)(a) of this section must not exceed the valuation for assessment established in section 39-1-104.2 that applies to residential real property for the purpose of a levy imposed by a school district.
(II) Notwithstanding subsection (2) of this section and section 29-1-1703 (3), qualified local share property tax revenue may exceed the school district property tax limit for a property tax year if doing so is a result of establishing the valuation for assessment pursuant to subsections (3)(a) and (3)(b) of this section.
(4) (a) (I) Repealed.
(II) No later than August 25, 2025, and each August 25 thereafter, an assessor shall report to the property tax administrator in the division of property taxation in the department of local affairs the information that the administrator determines necessary to determine the amount of qualified local share property tax revenue for purposes of section 29-1-1701 (2.5)(a)(I) to (2.5)(a)(VII) for the relevant property tax year.
(b) (I) Repealed.
(II) No later than October 31, 2025, and each October 31 thereafter, the property tax administrator in the division of property taxation in the department of local affairs shall report to legislative council staff the information that the legislative council staff determines necessary to determine the amount of qualified local share property tax revenue for purposes of section 29-1-1701 (2.5)(a)(I) to (2.5)(a)(VII) for the relevant property tax year.
(c) No later than January 15, 2025, and each January 15 thereafter, legislative council staff shall provide the state board of equalization with the information necessary to calculate the balancing percentage and correction percentage for the relevant property tax year and the counterfactual percentage for the immediately preceding property tax year.
(d) No later than twenty-one days after receiving the information provided by legislative council staff pursuant to subsection (4)(c) of this section, the state board of equalization shall meet and submit a report to the general assembly that calculates, as applicable, the total of the balancing percentage and the correction percentage for the relevant property tax year or the total of the valuation for assessment that applies to that residential real property for the purpose of a levy imposed by a school district and the correction percentage for the relevant property tax year.
Source: L. 2024, 2nd Ex. Sess.: Entire section added, (HB 24B-1001), ch. 1, p. 5, � 4, effective October 1 (see editor's note).
Editor's note: (1) Section 19 of chapter 1 (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session, provides that the act adding this section takes effect only if SB 24-233 takes effect and takes effect upon the effective date of SB 24-233. SB 24-233 took effect on October 1, 2024, due to an amendment to the effective date of SB 24-233 by section 18 of chapter 1 (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session.
(2) Subsections (4)(a)(I)(B) and (4)(b)(I)(B) provided for the repeal of subsections (4)(a)(I) and (4)(b)(I), respectively, effective July 1, 2025. (See L. 2024, 2nd Ex. Sess., p. 5.)