Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0137.02 Jason Gelender x4330 HOUSE BILL 12-1287 HOUSE SPONSORSHIP Pabon, SENATE SPONSORSHIP (None), House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT Concerning the amount of the actual value of residential real property that qualifies for the senior property tax exemption to be exempted from property taxation for any property tax year commencing on or after January 1, 2012. 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 http://www.leg.state.co.us/billsummaries.) For any property tax year that commences on or after January 1, 2012, the amount of actual value of residential real property that qualifies for the senior property tax exemption of which 50% is exempt is the lowest of: The actual value of the residential real property; $200,000; or A percentage of the actual value of the residential real property estimated by the state property tax administrator, in consultation with the staff of the legislative council, to cause the total costs to the state of reimbursing local governments for property tax revenues lost due to the exemption to equal 1.02% of the estimated amount of state general fund revenues for the fiscal year in which the state will pay the reimbursement. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 39-3-203, amend (1) introductory portion, (2), (4), and (6) (a) introductory portion; and add (1.2) as follows: 39-3-203. Property tax exemption - qualifications - definition. (1) For the property tax year commencing January 1, 2002, and for property tax years commencing on or after January 1, 2006, but before January 1, 2009, and for property tax years commencing on or after January 1, 2012, fifty percent of the first two hundred thousand dollars of actual value of residential real property that as of the assessment date is owner-occupied and is used as the primary residence of the owner-occupier shall be exempt from taxation, and for property tax years commencing on or after January 1, 2003, but before January 1, 2006, and on or after January 1, 2009, but before January 1, 2012, fifty percent of zero dollars of actual value of residential real property that as of the assessment date is owner-occupied and is used as the primary residence of the owner-occupier shall be exempt from taxation if: (1.2) (a) For property tax years commencing on or after January 1, 2012, fifty percent of an amount of actual value determined pursuant to paragraph (b) of this subsection (1.2) of residential real property that as of the assessment date is owner-occupied and is used as the primary residence of the owner-occupier is exempt from taxation if: (I) (A) The owner-occupier is sixty-five years of age or older as of the assessment date and has owned and occupied such residential real property as his or her primary residence for the ten years preceding the assessment date; or (B) The owner-occupier is the surviving spouse of an owner-occupier who previously qualified for a property tax exemption for the same residential real property under sub-subparagraph (A) of this subparagraph (I); and (II) The owner-occupier has completed and filed an exemption application in the manner required by section 39-3-205 and the circumstances that qualify the property for the exemption have not changed since the filing of the application. Under no circumstances shall an exemption be allowed for property taxes assessed during any property tax year prior to the year in which an owner-occupier first files an exemption application. (b) (I) For any given property tax year commencing on or after January 1, 2012, with respect to residential real property that qualifies for an exemption pursuant to paragraph (a) of this subsection (1.2), the amount of actual value of which fifty percent is exempt is the lowest of: (A) The actual value of the residential real property; (B) Two hundred thousand dollars; or (C) A percentage of the actual value of the residential real property estimated by the administrator, in consultation with the chief economist of the staff of the legislative council, to cause the total amount of reimbursement to be paid by the state to local governmental entities for property tax revenues lost due to the exemption pursuant to section 39-3-207 to equal one and two one-hundredths percent of the estimated amount of state general fund revenues, as estimated in the economic forecast of the legislative council staff published in March of the property tax year, for the fiscal year in which the state will pay the reimbursement. (2) Notwithstanding the provisions of paragraph (a) of subsection (1), subsection (1.2), and subsection (1.5) of this section, if ownership of residential real property that qualified for an exemption as of the assessment date changes after the assessment date, an exemption shall be allowed only if an owner-occupier whose status as an owner-occupier qualified the property for the exemption has filed an exemption application by the deadline for filing exemption applications specified in section 39-3-205 (1). (4) No more than one exemption per property tax year shall be allowed for a single dwelling unit of residential real property, regardless of how many owner-occupiers use the dwelling unit as their primary residence or whether one or more owner-occupiers qualify for exemptions under both subsections (1) subsection (1) or (1.2) and subsection (1.5) of this section. The full amount of the exemption allowed by subsection (1) or (1.5) (1), (1.2), or (1.5) of this section shall be allowed with respect to any single dwelling unit of residential real property so long as any owner-occupier of the dwelling unit satisfies the requirements of subsection (1) or (1.5) (1), (1.2), or (1.5) of this section, and the fact that any other person who does not satisfy said requirements is also an owner of record of the dwelling unit shall not affect the amount of the exemption. (6) (a) Notwithstanding the ten-year occupancy requirement set forth in subparagraph (I) of paragraph (a) of subsection (1) and subparagraph (I) of paragraph (a) of subsection (1.2) of this section, an owner-occupier who has not actually owned and occupied residential real property for which the owner-occupier has claimed an exemption under either of said subsection (1) subsections for the ten years preceding the assessment date shall be deemed to have met the ten-year requirement and shall be allowed an exemption under said subsection (1) the applicable subsection with respect to the property if: SECTION 2. In Colorado Revised Statutes, amend 39-3-204 as follows: 39-3-204. Notice of property tax exemption. No later than May 1, 2002, and no later than each May 1 thereafter, each assessor shall mail to each residential real property address in the assessor's county notice of the exemption allowed by section 39-3-203 (1) or (1.2), as applicable. No later than May 1, 2008, and no later than each May 1 thereafter, each assessor also shall mail to each residential property address in the assessor's county notice of the exemption allowed by section 39-3-203 (1.5). No later than May 1, 2007, the division shall mail to the residential property address of each person residing in the state who the division believes is a qualifying disabled veteran notice of the exemption allowed by section 39-3-203 (1.5) for the 2007 property tax year. However, the sending of notice to a person by the division does not constitute a determination by the division that the person sent notice is entitled to an exemption. The notice shall be in a form prescribed by the administrator, who shall consult with the division before prescribing the form of the notice of the exemption allowed by section 39-3-203 (1.5), and shall include a statement of the eligibility criteria for the exemptions and instructions for obtaining an exemption application. To reduce mailing costs, an assessor may coordinate with the treasurer of the same county to include notice with the tax statement for the previous property tax year mailed pursuant to section 39-10-103 or may include notice with the notice of valuation mailed pursuant to section 39-5-121 (1) (a). SECTION 3. In Colorado Revised Statutes, 39-3-205, amend (1) (a) as follows: 39-3-205. Exemption applications - penalty for providing false information - confidentiality. (1) (a) To claim the exemption allowed by section 39-3-203 (1) or (1.2), an individual shall file with the assessor a completed exemption application no later than July 15 of the first property tax year for which the exemption is claimed. An application returned by mail shall be deemed filed on the date it is postmarked. SECTION 4. In Colorado Revised Statutes, 39-3-206, amend (1) and (2) (a.5) as follows: 39-3-206. Notice to individuals returning incomplete or nonqualifying exemption applications - denial of exemption - administrative remedies. (1) (a) Except as otherwise provided in paragraph (a.5) of subsection (2) of this section, an assessor shall only grant the an exemption allowed to qualifying seniors under section 39-3-203 (1) or (1.2) to an applicant who has timely returned an exemption application in accordance with section 39-3-205 (1) (a) that establishes that the applicant is entitled to the exemption. (b) If the information provided on or with an application for the exemption allowed to qualifying seniors under section 39-3-203 (1) or (1.2) indicates that the applicant is not entitled to the exemption, or is insufficient to allow the assessor to determine whether or not the applicant is entitled to the exemption, the assessor shall deny the application and mail to the applicant a statement providing the reasons for the denial and informing the applicant of the applicant's right to contest the denial pursuant to subsection (2) of this section. The assessor shall mail the statement no later than August 15 of the property tax year for which the exemption application was filed. (2) (a.5) An individual who wishes to claim the an exemption for qualifying seniors allowed by section 39-3-203 (1) or (1.2), but who has not timely filed an exemption application with the assessor, may request that the assessor waive the application deadline and allow the individual to file a late exemption application no later than the September 15 that immediately follows the original application deadline. The assessor may accept an application if, in the assessor's sole discretion, the applicant shows good cause for not timely filing an application, but the property tax administrator shall prepare and furnish to each assessor uniform standards to be applied by the assessor in determining whether an applicant has shown good cause. The assessor shall grant an exemption if an accepted late application establishes that the applicant is entitled to the exemption. A decision of an assessor to allow or disallow the filing of a late application or to grant or deny an exemption to an applicant who has filed a late application is final, and an applicant who is denied late filing or an exemption may not contest the denial. SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.