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Second Regular Session
Sixty-first General Assembly
LLS NO. 980022.01 GWF
HOUSE BILL 981152
STATE OF COLORADO
BY REPRESENTATIVE George;
also SENATOR Bishop.
A BILL FOR AN ACT
CONCERNING PROPERTY TAXATION, AND, IN CONNECTION
THEREWITH, SPECIFYING THE VALUATION FOR ASSESSMENT PERCENTAGES
FOR CERTAIN CLASSIFICATIONS OF PROPERTY AND ESTABLISHING A HOMESTEAD
EXEMPTION FOR A PORTION OF THE ACTUAL VALUE OF OWNEROCCUPIED
RESIDENTIAL PROPERTY USED AS A PRIMARY RESIDENCE AND OWNED BY
A PERSON WHO HAS RESIDED IN THE STATE FOR TWO YEARS OR LONGER.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Provides that residential property shall be valued for assessment at 10% of its actual value. Defines "vacant land" and reduces the valuation for assessment ratio for vacant land from 29% to 15% over a period of 7 years. Reduces the valuation for assessment ratio for all other property from 29% to 25% over a period of 7 years.
Repeals the statutory provisions governing the annual adjustment of the ratio of valuation for the assessment of residential real property.
Provides for a homestead exemption for a portion of the actual value of residential real property that is owneroccupied, used as a primary residence, and owned by a person who has resided in the state for 2 years or longer. Specifies the initial amount of the exemption to be the first $25,000 of the actual value or an amount equal to 30% of the actual value, whichever is less, for the property tax year commencing January 1, 2000, and provides for increases in the amount of the exemption every other year over the subsequent 4 tax years to a maximum amount of the first $75,000 of the actual value or an amount equal to 50% of the actual value, whichever is less.
Provides that this act shall not take effect unless the constitutional amendment providing for the provisions contained in the act is adopted by the electorate.
Makes conforming amendments.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 391104 (1), (1.5), and (4), Colorado Revised Statutes, are amended, and the said 391104 is amended BY THE ADDITION OF A NEW SUBSECTION, to read:
391104. Valuation for assessment.
(1) The valuation for assessment of all taxable property
in the state shall be
TWENTYEIGHT percent of the actual value thereof as
FOR THE PROPERTY TAX YEARS COMMENCING JANUARY 1, 1999, AND JANUARY
1, 2000; TWENTYSEVEN PERCENT OF THE ACTUAL VALUE THEREOF
FOR THE PROPERTY TAX YEARS COMMENCING JANUARY 1, 2001, AND JANUARY
1, 2002; TWENTYSIX PERCENT OF THE ACTUAL VALUE THEREOF FOR
THE PROPERTY TAX YEARS COMMENCING JANUARY 1, 2003, AND JANUARY
1, 2004; AND TWENTYFIVE PERCENT FOR THE PROPERTY TAX YEARS
COMMENCING ON OR AFTER JANUARY 1, 2005. ACTUAL VALUE SHALL BE
determined by the assessor and the administrator in the manner
prescribed by law, and such percentage shall be uniformly applied,
without exception, to the actual value, so determined, of the
various classes and subclasses of real and personal property located
within the territorial limits of the authority levying a property
tax, and all property taxes shall be levied against the aggregate
valuation for assessment resulting from the application of such
percentage. This subsection (1) shall not apply to residential
real property, VACANT LAND, producing mines, and lands or leaseholds
producing oil or gas.
(1.5) FOR PROPERTY TAX YEARS COMMENCING
ON OR AFTER JANUARY 1, 1999, residential real property shall be
valued for assessment at
TEN percent of its actual value. except
as provided in section 391104.2.
(1.8) VACANT LAND SHALL BE VALUED FOR ASSESSMENT AT TWENTYSIX PERCENT OF ITS ACTUAL VALUE FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 1999, AND JANUARY 1, 2000; TWENTY-FOUR PERCENT FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 2001, AND JANUARY 1, 2002; TWENTY-TWO PERCENT FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 2003, AND JANUARY 1, 2004; AND TWENTY PERCENT FOR THE PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2005.
(4) Except as provided in section 397109,
FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 1999,
nonproducing severed mineral interests are to be valued at
percent THE SAME PERCENTAGE of actual
value AND in the same manner as other real property AS PROVIDED
IN SUBSECTION (1) OF THIS SECTION. Such valuation shall be determined
by the assessing officer only upon preponderant evidence shown
by such officer that the cost approach, market approach, and income
approach result in uniform and just and equal valuation.
SECTION 2. 391102 (8), Colorado Revised Statutes, is amended, and the said 391102 is further amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS, to read:
391102. Definitions. As used in articles 1 to 13 of this title, unless the context otherwise requires:
home" means a manufactured home as defined in section 421102
(106) (b), C.R.S. "MINOR STRUCTURES"
MEANS IMPROVEMENTS THAT DO NOT ADD VALUE TO THE LAND ON WHICH
THEY ARE LOCATED AND THAT ARE NOT SUITABLE TO BE USED FOR AND
ARE NOT ACTUALLY USED FOR ANY COMMERCIAL, RESIDENTIAL, OR AGRICULTURAL
(8.3) "MOBILE HOME" MEANS A MANUFACTURED HOME AS DEFINED IN SECTION 421102 (106) (b), C.R.S.
(15.7) "SITE IMPROVEMENTS" MEANS STREETS WITH CURBS AND GUTTERS, CULVERTS AND OTHER SEWAGE AND DRAINAGE FACILITIES, AND UTILITY EASEMENTS AND HOOKUPS FOR INDIVIDUAL LOTS OR PARCELS.
(17.5) "VACANT LAND" MEANS ANY LOT, PARCEL, SITE, OR TRACT OF LAND UPON WHICH NO BUILDINGS OR FIXTURES OTHER THAN MINOR STRUCTURES ARE LOCATED. "VACANT LAND" MAY INCLUDE LAND WITH SITE IMPROVEMENTS. "VACANT LAND" INCLUDES LAND THAT IS PART OF A DEVELOPMENT TRACT OR SUBDIVISION WHEN USING PRESENT WORTH DISCOUNTING IN THE MARKET APPROACH TO APPRAISAL; HOWEVER, "VACANT LAND" SHALL NOT INCLUDE ANY LOTS WITHIN SUCH SUBDIVISION OR ANY PORTION OF SUCH DEVELOPMENT TRACT THAT IMPROVEMENTS, OTHER THAN SITE IMPROVEMENTS OR MINOR STRUCTURES, HAVE BEEN ERECTED UPON OR AFFIXED THERETO. "VACANT LAND" DOES NOT INCLUDE AGRICULTURAL LAND, PRODUCING OIL AND GAS PROPERTIES, SEVERED MINERAL INTERESTS, OR ANY MINES, WHETHER PRODUCING OR NONPRODUCING.
SECTION 3. Repeal. 391103 (14) (c), Colorado Revised Statutes, is repealed as follows:
391103. Actual value determined
when. (14) (c)
purposes of this subsection (14), "vacant land" means
any lot, parcel, site, or tract of land upon which no buildings
or fixtures, other than minor structures, are located. "Vacant
land" may include land with site improvements. "Vacant
land" includes land that is part of a development tract or
subdivision when using present worth discounting in the market
approach to appraisal; however, "vacant land" shall
not include any lots within such subdivision or any portion of
such development tract that improvements, other than site improvements
or minor structures, have been erected upon or affixed thereto.
"Vacant land" does not include agricultural land, producing
oil and gas properties, severed mineral interests, and all mines,
whether producing or nonproducing.
(II) For purposes of this subsection
(A) "Minor structures"
means improvements that do not add value to the land on which
they are located and that are not suitable to be used for and
are not actually used for any commercial, residential, or agricultural
(B) "Site improvements"
means streets with curbs and gutters, culverts and other sewage
and drainage facilities, and utility easements and hookups for
individual lots or parcels.
SECTION 4. Article 3 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
393101.5. Homestead exemption. (1) THE FOLLOWING PORTIONS OF THE ACTUAL VALUE OF RESIDENTIAL REAL PROPERTY THAT, AS OF THE ASSESSMENT DATE, IS OWNEROCCUPIED AND IS USED AS THE PRIMARY RESIDENCE OF THE OWNER SHALL BE EXEMPT FROM PROPERTY TAXATION:
(a) FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 2000, AND JANUARY 1, 2001, THE FIRST TWENTYFIVE THOUSAND DOLLARS OF THE ACTUAL VALUE OR AN AMOUNT EQUAL TO THIRTY PERCENT OF THE ACTUAL VALUE, WHICHEVER IS LESS;
(b) FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 2002, AND JANUARY 1, 2003, THE FIRST FIFTY THOUSAND DOLLARS OF THE ACTUAL VALUE OR AN AMOUNT EQUAL TO FORTY PERCENT OF THE ACTUAL VALUE, WHICHEVER IS LESS;
(c) FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2004, THE FIRST SEVENTYFIVE THOUSAND DOLLARS OF THE ACTUAL VALUE OR AN AMOUNT EQUAL TO FIFTY PERCENT OF THE ACTUAL VALUE, WHICHEVER IS LESS.
SECTION 5. 395122 (2), Colorado Revised Statutes, is amended to read:
395122. Taxpayer's remedies
to correct errors. (2) If
any person is of the opinion that his OR HER property has been
valued too high,
has been twice valued, or is exempt by law from taxation or that
property has been erroneously assessed to him OR HER, he OR SHE
may appear before the assessor and object, he OR SHE may complete
the form mailed with his OR HER notice of valuation pursuant to
section 395121 (1) or (1.5), or he OR SHE may file
a written letter of objection and protest by mail with the assessor's
office before the last day specified in the notice, stating in
general terms the reason for the objection and protest. Reasons
for the objection and protest may include, but shall not be limited
to, the installation and operation of surface equipment relating
to oil and gas wells on agricultural land. Any
change or adjustment of any ratio of valuation for assessment
for residential real property pursuant to the provisions of section
391104.2 shall not constitute grounds for such objection.
If the form initiating an appeal or the written letter of objection
and protest is filed by mail, it shall be presumed that it was
received as of the day it was postmarked. If the form initiating
an appeal or the written letter of objection and protest is handdelivered,
the date it was received by the assessor shall be stamped on the
form or letter. As stated in the public notice given by the assessor
pursuant to subsection (1) of this section, if the taxpayer notifies
the assessor of his OR HER objection and protest to the adjustment
in valuation by mail, such notification shall be postmarked by
May 27 in the case of real property and June 30 in the case of
personal property. If the taxpayer notifies the assessor in person,
such notice shall be given by June 1 in the case of real property
and July 5 in the case of personal property. All such forms and
letters received from protesters shall be presumed to be on time
unless the assessor can present evidence to show otherwise. The
county shall not prescribe the written form of objection and protest
to be used. The protester shall have the opportunity on the days
specified in the public notice to present his OR HER objection
by mail or protest in person and be heard, whether or not there
has been a change in valuation of such property from the previous
year and whether or not any change is the result of a determination
by the assessor for the current year or by the state board of
equalization for the previous year. If the assessor finds any
valuation to be erroneous or otherwise improper, he OR SHE shall
correct such error, but, if he OR SHE declines to change any valuation
which he OR SHE has determined, he OR SHE shall state his OR HER
reasons in writing on the form described in section 398106,
shall insert the information otherwise required by the form, and
shall, on or before the last regular working day of the assessor
in June in the case of real property and July 10 in the case of
personal property, mail two copies of such completed form to the
person presenting the objection and protest so denied.
SECTION 6. 3910114 (1) (a) (I) (C), Colorado Revised Statutes, is amended to read:
3910114. Abatement, cancellation of taxes repeal. (1) (a) (I) (C) The change or adjustment of any ratio of valuation for assessment for residential real property pursuant to the provisions of section 391104.2 shall not constitute grounds for abatement of taxes as provided in subsubparagraph (A) of this subparagraph (I). THIS SUBSUBPARAGRAPH (C) IS REPEALED, EFFECTIVE JULY 1, 2000.
SECTION 7. 391104.2, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
391104.2. Legislative declaration adjustment of residential rate repeal. (8) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2000.
SECTION 8. Effective date. This act shall take effect following proclamation by the governor of the vote of the registered electors at the 1998 general election approving House Concurrent Resolution 98____. This act shall not take effect if the registered electors at the 1998 general election disapprove House Concurrent Resolution 98____.
SECTION 9. 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.