Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 14-0012.02 Ed DeCecco x4216 HOUSE BILL 14-1143 HOUSE SPONSORSHIP Saine, Moreno, Priola, Singer, Melton, Holbert, Everett SENATE SPONSORSHIP Hodge, Grantham House Committees Senate Committees Local Government Appropriations A BILL FOR AN ACT Concerning the classification of a residential storage condominium unit as a residential improvement for property tax purposes. 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.) The bill establishes that a residential storage condominium unit is a residential improvement. This allows the unit to be assessed as residential real property, which currently has an assessment ratio of 7.96%, instead of as nonresidential property, which has an assessment ratio of 29%. A residential storage condominium unit is defined to mean a building that is: A unit under the "Colorado Common Interest Ownership Act"; Used by its owner or a lessee whose lease term is a year or longer to store items from or related to the owner's or lessee's residence; and Not used for storage related to a business. For a building unit to qualify as a residential storage condominium unit, the owner of the building unit must submit an affidavit stating that the building unit meets the definition of a residential storage condominium unit. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 39-1-102, amend (14.3) as follows: 39-1-102. Definitions. As used in articles 1 to 13 of this title, unless the context otherwise requires: (14.3) "Residential improvements" means a building, or that portion of a building, designed for use predominantly as a place of residency by a person, a family, or families. The term includes buildings, structures, fixtures, fences, amenities, and water rights that are an integral part of the residential use. The term also includes a manufactured home as defined in subsection (7.8) of this section, a mobile home as defined in subsection (8) of this section, and a modular home as defined in subsection (8.3) of this section, and a residential storage condominium unit as set forth in section 39-1-123. SECTION 2. In Colorado Revised Statutes, add 39-1-123 as follows: 39-1-123. Residential storage condominium unit - residential improvement - affidavit - definitions. (1) As used in this section, unless the context otherwise requires, "residential storage condominium unit" means a building that is: (a) A unit, as defined in section 38-33.3-103 (30), C.R.S.; (b) Used by its owner or a lessee whose lease term is a year or longer to store items from or related to the owner's or lessee's residence; and (c) Not used for storage related to a business. (2) (a) Subject to paragraph (b) of this subsection (2), a residential storage condominium unit is a residential improvement. (b) For a building unit to qualify as a residential storage condominium unit for a property tax year, an owner must submit to the assessor of the county in which the building unit is located, on or before January 1 of the property tax year, an affidavit signed by the owner stating that the building unit meets the definition of a residential storage condominium unit set forth in this section. The administrator shall establish the form of the affidavit. (3) (a) An owner's affidavit that meets the requirements of paragraph (b) of subsection (2) of this section is valid for all the following property tax years until: (I) The building unit is transferred to a new owner; or (II) The assessor receives the notice required by paragraph (b) of this subsection (3). (b) An owner of a building unit shall notify the assessor of the county in which the building unit is located if the building unit no longer meets the definition of a residential storage condominium unit. SECTION 3. Act subject to petition - effective date - applicability. (1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 6, 2014, if adjournment sine die is on May 7, 2014); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. (2) This act applies to the classification of a residential storage condominium unit for all property tax years that commence on or after January 1, 2015.