The state auditor shall periodically audit the property tax exemption program administered pursuant to this part 2 to ensure that the program is operating in compliance with section 3.5 of article X of the state constitution and this part 2. In connection with an audit, the state auditor may suggest means of improving the administration of the program. Upon request, an assessor, a treasurer, the administrator, or the state treasurer shall provide the state auditor with any exemption applications, reports, or other documents relevant to the administration of the program.
Source: L. 2001: Entire part added, p. 469, � 1, effective April 25.
39-3-209. State expenditure for property tax exemptions - mechanism for refunding of excess state revenue - legislative declaration. (1) The general assembly hereby finds and declares that:
(a) Although the exemptions allowed by this part 2 are exemptions from local government property taxes, the state must reimburse local governments for the net amount of property tax revenues lost as a result of the exemptions and therefore bears the full cost of the exemptions;
(b) Section 3.5 of article X of the state constitution authorizes the general assembly to raise or lower the maximum amount of actual value of residential real property of which fifty percent is exempt pursuant to this part 2;
(c) In order to eliminate the cost of the exemption and fund other state needs, the general assembly, as authorized by section 3.5 of article X of the state constitution, has at times temporarily suspended the exemption for qualifying seniors allowed by this part 2 by lowering to zero the maximum amount of actual value of residential real property of which fifty percent is exempt;
(d) The general assembly intends to allow seniors to rely on predictable and sustainable exemptions by fully funding the property tax exemption for qualifying seniors in the future, and it is more likely to be able to do so if the cost of the exemption, which exclusively benefits taxpayers who reside in Colorado, constitutes a refund of excess state revenues for state fiscal years for which such refunds are required; and
(e) Section 20 of article X of the state constitution authorizes the state to use any reasonable method to make required refunds of excess state revenues, and the payment by the state of reimbursement to local governments for the net amount of property tax revenues lost as a result of the property tax exemptions allowed by this part 2, which exemptions directly reduce the tax liability of taxpaying Colorado residents throughout the state, is a reasonable method of making such refunds.
(2) For any state fiscal year commencing on or after July 1, 2017, for which state revenues, as defined in section 24-77-103.6 (6)(c), exceed the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(C) or (6)(b)(I)(D), and are required to be refunded in accordance with section 20 of article X of the state constitution, the lesser of all reimbursement paid by the state treasurer to each treasurer as required by section 39-3-207 (4) for the property tax year that commenced during the state fiscal year or an amount of such reimbursement equal to the amount of excess state revenues for the state fiscal year that are required to be refunded is a refund of such excess state revenues.
Source: L. 2017: Entire section added, (SB 17-267), ch. 267, p. 1467, � 24, effective May 30.
Cross references: For the legislative declaration in SB 17-267, see section 1 of chapter 267, Session Laws of Colorado 2017.
39-3-210. Reporting of property tax revenue reductions - reimbursement of local governmental entities - definitions - local government backfill cash fund - creation - repeal. (Repealed)
Source: L. 2022: Entire section added, (SB 22-238), ch. 157, p. 990, � 5, effective May 16. L. 2023 (1)(a.3) and (2.5) added, and (1)(e) amended, (SB 23-303), ch. 258, p. 1487, � 14, effective May 24. L. 2023, 1st Ex. Sess.: (1)(a.2), (1)(d.5), (1)(f.5), (2)(c), (2)(d), (2)(e), (4)(a.5), (4)(e), (4)(f), (4)(g), and (7) added, and (2)(a)(I), (2)(b)(I), (2)(b)(II), (3), IP(4)(a)(I), IP(4)(a)(II), (4)(a)(III), (4)(a)(IV), (4)(a)(V), (4)(b), and (5) amended, (SB 23B-001), ch. 1, p. 2, � 2, effective November 20. L. 2024: (4)(e) repealed, (HB 24-1302), ch. 340, p. 2300, � 2, effective June 3.
Editor's note: Subsection (6) provided for the repeal of this section, effective July 1, 2025. (See L. 2022, p. 990.)
39-3-211. Reporting of assessed value reductions - reimbursement of local governmental entities - local governmental entity backfill cash fund - creation - legislative declaration - definitions - repeal. (1) The general assembly finds and declares that:
(a) Most school districts rely on a combination of state and local sources of revenue to pay for total program funding;
(b) State revenue makes up the difference between the full amount of a school district's total program funding and the amount of a school district's total program funding that the school district pays for with its property tax revenue;
(c) The amount of state revenue necessary to make up the difference between the full amount of a school district's total program funding and the amount of a school district's total program funding that the school district pays for with its property tax revenue is annually determined by the general assembly in the annual public school finance act;
(d) Therefore, it is the general assembly's expectation and intent that, although school district property tax revenue is reduced by Senate Bill 24-233, the general assembly will increase the amount of state revenue that it annually distributes to school districts in order to maintain or increase school district total program funding;
(e) The general assembly will reimburse local governmental entities that rely on property tax revenue other than school districts, at least in part, through the reimbursement described in this section; and
(f) It is the intent of the general assembly to review both the impact of the property tax revenue reductions in Senate Bill 24-233 and the reimbursement described in this section on local governmental entities to ensure that local governmental entities can maintain the current level of critical services they provide.
(2) As used in this section, unless the context otherwise requires:
(a) County includes a city and county.
(b) Fund means the local governmental entity backfill cash fund created in subsection (7)(a) of this section.
(c) Local governmental entity 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 school districts.
(3) For the property tax year commencing on January 1, 2024, each assessor shall:
(a) Calculate the decrease, if any, in the total assessed value of real property for each local governmental entity within the assessor's county between the property tax year commencing on January 1, 2022, and the property tax year commencing on January 1, 2024; and
(b) Determine each local governmental entity's mill levy for the property tax year commencing on January 1, 2022, excluding any mills levied to provide for the payment of bonds and 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.
(3.5) For the property tax year commencing on January 1, 2025, each assessor shall:
(a) Calculate the decrease, if any, in the total assessed value of real property for each local governmental entity within the assessor's county between the property tax year commencing on January 1, 2024, and the property tax year commencing on January 1, 2025, as a result of House Bill 24B-1001; and
(b) Determine each local governmental entity's mill levy for the property tax year commencing on January 1, 2024, excluding any mills levied to provide for the payment of bonds and 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.
(4) No later than March 1, 2025, an assessor shall report the amounts calculated pursuant to subsection (3)(a) of this section, as applicable, the basis for the amounts, and the mill levies determined pursuant to subsection (3)(b) of this section to the administrator. No later than March 1, 2026, an assessor shall report the amounts calculated pursuant to subsection (3.5)(a) of this section, as applicable, the basis for the amounts, and the mill levies determined pursuant to subsection (3.5)(b) of this section to the administrator. The administrator may require an assessor to provide additional information as necessary to evaluate the accuracy of the amounts reported. The administrator shall confirm that the reported amounts are correct or rectify the amounts if necessary. The administrator shall then forward the correct amounts for a county to the state treasurer to enable the state treasurer to issue a reimbursement warrant to a treasurer in accordance with subsection (5) of this section.
(5) (a) No later than April 15, 2025, the state treasurer shall issue a warrant, to be paid upon demand from the fund, to each treasurer that is equal to the total reimbursement amounts set forth in subsection (6) of this section for all local governmental entities within the treasurer's county.
(a.5) No later than April 15, 2026, the state treasurer shall issue a warrant, to be paid upon demand from the fund, to each treasurer that is equal to the total reimbursement amounts set forth in subsection (6.5) of this section for all local governmental entities within the treasurer's county.
(b) Each treasurer shall distribute the total amount received from the state treasurer to the local governmental entities, excluding school districts, within the treasurer's county as if the amount had been regularly paid as property tax so that the local governmental entities receive the amounts determined pursuant to subsections (6) and (6.5) of this section. If the total amount received from the state treasurer is reduced pursuant to subsections (6)(b) and (6.5)(b) of this section, each treasurer shall proportionally reduce the amount distributed to each local governmental entity. When distributing the total amount received from the state treasurer, each treasurer shall provide each local governmental entity with a statement of the amount distributed to the local governmental entity that represents the reimbursement received under subsections (6) and (6.5)(b) of this section.
(6) (a) For each local governmental entity that had a decrease in total assessed value of real property from the property tax year commencing on January 1, 2022, to the property tax year commencing on January 1, 2024, the amount of reimbursement is an amount equal to that decrease in total assessed value multiplied by the local governmental entity's mill levy for the property tax year commencing on January 1, 2022, excluding any mills levied to provide for the payment of bonds and 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.
(b) Notwithstanding subsection (6)(a) of this section, if there is insufficient money in the fund for the state treasurer to issue warrants pursuant to subsection (5)(a) of this section in the amounts determined pursuant to subsection (6)(a) of this section, the amounts of the warrants issued by the state treasurer must be proportionally reduced.
(c) The reimbursement amounts set forth in this section are based on the amounts that the administrator reports to the treasurer in accordance with subsection (4) of this section.
(6.5) (a) For each local governmental entity that had a decrease in total assessed value of real property from the property tax year commencing on January 1, 2024, to the property tax year commencing on January 1, 2025, as a result of House Bill 24B-1001, the amount of reimbursement is an amount equal to that decrease in total assessed value multiplied by the local governmental entity's mill levy for the property tax year commencing on January 1, 2024, excluding any mills levied to provide for the payment of bonds and 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.
(b) Notwithstanding subsection (6.5)(a) of this section, if there is insufficient money in the fund for the state treasurer to issue warrants pursuant to subsection (5)(a.5) of this section in the amounts determined pursuant to subsection (6.5)(a) of this section, the amounts of the warrants issued by the state treasurer must be proportionally reduced.
(c) The reimbursement amounts set forth in this section are based on the amounts that the administrator reports to the treasurer in accordance with subsection (4) of this section.
(7) (a) The local governmental entity backfill cash fund is hereby created in the state treasury. The fund consists of money transferred to the fund in accordance with subsection (7)(b) of this section. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the local governmental entity backfill cash fund to the fund.
(b) On April 1, 2025, the state treasurer shall transfer from the sustainable rebuilding program fund created in section 24-38.5-115 (7) to the local governmental entity backfill cash fund ten million three hundred eleven thousand two hundred thirty-three dollars.
(c) The money in the fund is available for the state treasurer to pay the warrants required to be issued in accordance with subsection (5) of this section.
(d) After issuing every warrant required pursuant to subsection (5)(a.5) of this section, the state treasurer shall credit any unexpended and unencumbered money remaining in the fund at that time to the sustainable rebuilding program fund created in section 24-38.5-115 (7).
(8) This section is repealed, effective July 1, 2027.
Source: L. 2024: Entire section added, (SB 24-233), ch. 171, p. 921, � 9, effective October 1 (see editor's note). L. 2024, 2nd Ex. Sess.: (3.5), (5)(a.5), and (6.5) added and (4), (5)(b), (7)(d), and (8) amended, (HB 24B-1001), ch. 1, p. 20, � 15, effective October 1 (see editor's note).
Editor's note: (1) Section 18 of chapter 1, (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session, amended section 14 of chapter 171, (SB 24-233), Session Laws of Colorado 2024, to change the effective date of SB 24-233 to October 1, 2024, if both an initiative that reduces valuations for assessment and an initiative that requires voter approval for retaining property tax revenue that exceeds a limit are withdrawn pursuant to � 1-40-134 from the statewide ballot for the general election held on November 5, 2024. On September 4, 2024, the secretary of state announced both an initiative that reduces valuations for assessment and an initiative that requires voter approval for retaining property tax revenue that exceeds a limit were withdrawn from the 2024 general election ballot.
(2) 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.
Deferrals