Date: 04/22/2015
Final
BILL SUMMARY for SB15-227
HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS
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11:15 AM -- SB15-227
Representatives Melton and Van Winkle, co-sponsors, presented Senate Bill 15-227. This reengrossed bill permits one residential storage condominium unit per residence to qualify as a residential improvement for the purposes of property taxation. A residential storage condominium unit is qualified for treatment as a residential improvement under the bill if:
• the unit is part of a common interest community;
• the unit is more than 400 square feet in size, or any size if the unit is part of the same common interest community as the owner's residence;
• items from or related to the owner's residence are stored in the unit, and items related to a business are not stored in the unit; and
• by March 1 of each tax year in which status as a residential improvement is sought, the owner submits proof of ownership and an affidavit of intended use to the county assessor, stating that the property
meets the definition of a residential storage condominium unit.
The owner must comply with all requirements and seek classification as a residential storage condominium unit for each property tax year that property tax treatment under the bill is sought. The assessor may inspect a property to confirm its qualifications as a residential storage condominium unit. An owner is required to notify the assessor any time his or her property no longer meets the definition of a residential storage condominium unit or the property is transferred to a new owner.
The Division of Property Taxation (DPT) in the Department of Local Affairs (DOLA) is responsible for developing a form for the affidavit of intended use and related standards to be used by assessors.
Representative Melton responded to questions from the committee about the fiscal note.
11:24 AM -- Alex Schatz, representing Legislative Council Staff, came to the table to respond to questions about the fiscal note.
11:35 AM -- Donald Rosier, representing Jefferson County, testified in support of the bill. Mr. Rosier spoke about the storage needs of Jefferson County residents, especially those who are senior citizens. He discussed the potential for more development of residential storage condominiums if the bill is enacted. He responded to questions from the committee.
11:45 AM
Discussion about the fiscal impact of the bill continued with Mr. Rosier.
11:51 AM -- Glenn McWilliams and Mike Ard, representing the residential storage industry in Colorado, testified in support of the bill. Mr. McWilliams spoke about the number of large-format storage units in Colorado. He discussed the common uses of such units and the affidavit required by the bill. He expressed his opinion that the bill will result in significant development of the units. He commented that this is an issue of fairness. He responded to questions from the committee about future growth in the sales industry. Mr. Ard responded to questions about these types of units and homeowners' associations. Mr. McWilliams spoke about the rental storage industry.
12:03 PM
The committee continued to discuss the bill with Mr. McWilliams and Mr. Ard.
12:05 PM -- Gini Pingenot, representing Colorado Counties, Inc., testified in opposition to the bill. Ms. Pingenot indicated that the main reasons for county commissioners opposing the bill is the impact to local property tax revenues. She also expressed concern about the potential for setting a precedent and the increased workload for county assessors.
12:09 PM
Representatives Melton and Van Winkle wrapped up their presentation of the bill and asked for a favorable recommendation. The committee took a brief recess.