Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING RAISING THE PRIORITY LEVEL OF LIENS FOR DEFERRED PROPERTY TAXES AND INTEREST.

Summary of Assessment

            Persons who are 65 years of age or older may elect to defer the payment of their property taxes. Under current law, the lien for deferred taxes and interest attaches on the date of recordation of the certificate of deferral, and is junior to any mortgage or deed of trust recorded prior to the date of the recording of the certificate. Interest of the deferred taxes accrues at the rate of 8.0 percent per annum beginning May 1 of the calendar year in which the deferral is claimed, until the date on which the taxes are paid. This bill would increase the priority level of liens for deferred property taxes and interest that attach on or after the effective date of the bill. These liens would have priority over all liens except tax liens. The increased priority level of the liens would provide more leverage to the State Treasurer’s office in collecting deferred property taxes that are due. The bill would not affect the revenues or expenditures of the state or of units of local government. Therefore, the bill is assessed as having no fiscal impact.

            The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.

Departments Contacted

            Treasury         Local Affairs