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Second Regular Session

Sixty-first General Assembly

LLS NO. R98­0021.01 GWF

STATE OF COLORADO

FINANCE


BY REPRESENTATIVE George



HOUSE CONCURRENT RESOLUTION 98-1002

SUBMITTING TO THE REGISTERED ELECTORS OF THE STATE OF COLORADO AN AMENDMENT TO SECTIONS 3 AND 20 OF ARTICLE X OF THE STATE CONSTITUTION, CONCERNING PROPERTY TAXATION, AND, IN CONNECTION THEREWITH, MODIFYING THE VALUATION FOR ASSESSMENT PERCENTAGES FOR CERTAIN CLASSIFICATIONS OF PROPERTY, 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, AND AUTHORIZING MILL LEVIES TO BE INCREASED WITHOUT PRIOR VOTER APPROVAL AS LONG AS THE EXISTING CONSTITUTIONAL RESTRICTION ON PROPERTY TAX REVENUES IS NOT EXCEEDED.


Resolution Summary

(Note: This summary applies to this resolution as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

For property tax years commencing on or after January 1, 1999:

$ Eliminates the requirement that the general assembly annually adjust the ratio of valuation for assessment for residential real property so that the percentage of the aggregate statewide valuation for assessment which is attributable to residential real property remains the same as it was in 1985;

$ Specifies that residential property shall be valued for assessment at 10% of its actual value;

$ Reduces the valuation for assessment ratio for vacant land from 29% to 15% over a period of 7 property tax years;

$ Reduces the valuation for assessment ratio for other property from 29% to 25% over a period of 7 property tax years.

For property tax years commencing on or after January 1, 2000, establishes 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 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 over the subsequent 4 property tax years up 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.

On and after January 1, 1999, modifies the Taxpayer's Bill of Rights (TABOR) by allowing local districts to increase mill levies without prior voter approval as long as total property tax revenues collected do not exceed the existing limit on such revenues imposed by TABOR.


Be It Resolved by the House of Representatives of the Sixty­first General Assembly of the State of Colorado, the Senate concurring herein:

SECTION 1.  At the next election at which such question may be submitted, there shall be submitted to registered electors of the state of Colorado, for their approval or rejection, the following amendment to the constitution of the state of Colorado, to wit:

Section 3 (1) (b) of article X of the constitution of the state of Colorado is amended, and the said section 3 (1) is further amended BY THE ADDITION OF A NEW PARAGRAPH, to read:

Section 3.  Uniform taxation ­ exemptions. (1) (b)  FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER JANUARY 1, 1999:

(I)  Residential real property, which shall include all residential dwelling units and the land, as defined by law, on which such units are located, and mobile home parks, but shall not include hotels and motels, shall be valued for assessment at twenty­one TEN percent of its actual value. For the property tax year commencing January 1, 1985, the general assembly shall determine the percentage of the aggregate statewide valuation for assessment which is attributable to residential real property. For each subsequent year, the general assembly shall again determine the percentage of the aggregate statewide valuation for assessment which is attributable to each class of taxable property, after adding in the increased valuation for assessment attributable to new construction and to increased volume of mineral and oil and gas production. For each year in which there is a change in the level of value used in determining actual value, the general assembly shall adjust the ratio of valuation for assessment for residential real property which is set forth in this paragraph (b) as is necessary to insure that the percentage of the aggregate statewide valuation for assessment which is attributable to residential real property shall remain the same as it was in the year immediately preceding the year in which such change occurs. Such adjusted ratio shall be the ratio of valuation for assessment for residential real property for those years for which such new level of value is used.

(II)  VACANT LAND, AS DEFINED BY LAW, 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; TWENTY­THREE PERCENT FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 2001, AND JANUARY 1, 2002; NINETEEN PERCENT FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 2003, AND JANUARY 1, 2004; AND FIFTEEN PERCENT FOR THE PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2005.

(III)  All other taxable property shall be valued for assessment at twenty­nine TWENTY­EIGHT percent of its actual value FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 1999, AND JANUARY 1, 2000; TWENTY­SEVEN PERCENT FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 2001, AND JANUARY 1, 2002; TWENTY­SIX PERCENT FOR THE PROPERTY TAX YEARS COMMENCING ON JANUARY 1, 2003, AND JANUARY 1, 2004; AND TWENTY­FIVE PERCENT FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2005. However, the valuation for assessment for producing mines, as defined by law, and lands or leaseholds producing oil or gas, as defined by law, shall be a portion of the actual annual or actual average annual production therefrom, based upon the value of the unprocessed material, according to procedures prescribed by law for different types of minerals. Non­producing unpatented mining claims, which are possessory interests in real property by virtue of leases from the United States of America, shall be exempt from property taxation.

(e)  FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER JANUARY 1, 2000, A PORTION OF THE ACTUAL VALUE OF RESIDENTIAL REAL PROPERTY THAT, AS OF THE ASSESSMENT DATE, IS OWNER­OCCUPIED, IS USED AS THE PRIMARY RESIDENCE OF THE OWNER, AND IS OWNED BY A PERSON WHO HAS RESIDED IN THIS STATE FOR TWO YEARS OR LONGER SHALL BE EXEMPT FROM PROPERTY TAXATION AS FOLLOWS:

(I)  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;

(II)  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;

(III)  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 20 (4) of article X of the constitution of the state of Colorado is amended, and the said section 20 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

Section 20.  The Taxpayer's Bill of Rights.  (4)  Required elections. Starting November 4, 1992, districts must have voter approval in advance for: (a) Unless (1), or (6), OR (10) applies, any new tax, tax rate increase, mill levy above that for the prior year, valuation for assessment ratio increase for a property class, or extension of an expiring tax, or a tax policy change directly causing a net tax revenue gain to any district.

(10)  Mill levies.  ON OR AFTER JANUARY 1, 1999, A LOCAL DISTRICT MAY IMPOSE A MILL LEVY ABOVE THAT FOR THE PRIOR YEAR WITHOUT VOTER APPROVAL AS LONG AS THE AMOUNT OF THE DISTRICT'S PROPERTY TAX REVENUE THAT WILL RESULT FROM THE IMPOSITION OF SUCH MILL LEVY DOES NOT EXCEED THE LIMITATION ON THE DISTRICT'S PROPERTY TAX REVENUE SET FORTH IN PARAGRAPH (c) OF SUBSECTION (7) OF THIS SECTION FOR THE BUDGET YEAR FOR WHICH THE MILL LEVY IS IMPOSED.

SECTION 2.  Each elector voting at said election and desirous of voting for or against said amendment shall cast a vote as provided by law either "Yes" or "No" on the proposition: "AN AMENDMENT TO SECTIONS 3 AND 20 OF ARTICLE X OF THE STATE CONSTITUTION, CONCERNING PROPERTY TAXATION, AND, IN CONNECTION THEREWITH, MODIFYING THE VALUATION FOR ASSESSMENT PERCENTAGES FOR CERTAIN CLASSIFICATIONS OF PROPERTY, 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, AND AUTHORIZING MILL LEVIES TO BE INCREASED WITHOUT PRIOR VOTER APPROVAL AS LONG AS THE EXISTING CONSTITUTIONAL RESTRICTION ON PROPERTY TAX REVENUES IS NOT EXCEEDED?"

SECTION 3.  The votes cast for the adoption or rejection of said amendment shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress, and if a majority of the electors voting on the question shall have voted "Yes", the said amendment shall become a part of the state constitution.