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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0025.01 MKH SENATE BILL 98­094

STATE OF COLORADO

BY SENATOR Mutzebaugh;

also REPRESENTATIVE Young.

FINANCE

A BILL FOR AN ACT

CONCERNING A CREDIT AGAINST PROPERTY TAXES FOR ELDERLY HOME OWNERS.

Bill Summary

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

Beginning in the 1998 property tax year, establishes a credit against residential property taxes for qualified individuals. Defines a "qualified individual" as a natural person who is at least 65 years old and who has resided in Colorado for at least 10 consecutive years immediately preceding the beginning of the property tax year for which the credit is claimed. Defines "residence" as a single family, owner­occupied residence that is used as a primary residence by the qualified individual. Requires taxpayers to claim the property tax credit and allows the county treasurer to require proof that a taxpayer qualifies for the property tax credit before granting the credit. Calculates the amount of the credit based on the actual value of the residence as of January 1 of the property tax year for which the credit is claimed.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  Article 1 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

39­1­122.  Property tax credit for elderly homeowners ­ legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(a)  HOMEOWNERS SIXTY­FIVE YEARS OF AGE OR OLDER ARE MORE LIKELY TO LIVE ON A FIXED INCOME AND THEREFORE MAY EXPERIENCE DIFFICULTY IN MEETING THEIR PROPERTY TAX OBLIGATIONS, ESPECIALLY WHEN SENIOR HOMEOWNERS RESIDE IN AREAS WHERE RAPID GROWTH HAS CAUSED THE VALUE OF PROPERTIES TO INCREASE DRAMATICALLY;

(b)  IT IS IN THE PUBLIC INTEREST TO PROVIDE PROPERTY TAX RELIEF TO SENIOR HOMEOWNERS WHO, BY CONTINUOUSLY RESIDING IN THIS STATE FOR A LONG DURATION OF TIME, HAVE MADE A SIGNIFICANT CONTRIBUTION TO THIS STATE'S ECONOMY;

(c)  THE PROPERTY TAX CREDIT PROVIDED UNDER THIS SECTION REWARDS LONG­TERM SENIOR RESIDENTS WITH PROPERTY TAX RELIEF AS AN APPROXIMATE RETURN FOR THE BENEFITS THESE PERSONS HAVE CONFERRED UPON THE STATE; AND

(d)  THE PROPERTY TAX CREDIT PROVIDED UNDER THIS SECTION DOES NOT RESULT IN THE EXEMPTION OF ANY TAXPAYER'S PROPERTY FROM PROPERTY TAXATION BECAUSE UNLIKE AN EXEMPTION, WHICH PREVENTS THE IMPOSITION OF PROPERTY TAX ON ALL OR A PORTION OF THE VALUE OF A TAXPAYER'S PROPERTY, A CREDIT IS A DISTINCT MECHANISM USED TO REDUCE THE AMOUNT OF TAX A TAXPAYER OWES AFTER THE TAX HAS BEEN LEVIED ON THE TOTAL VALUE OF THE TAXPAYER'S PROPERTY.

(2)  FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER JANUARY 1, 1998, THERE SHALL BE ALLOWED TO A QUALIFIED INDIVIDUAL AS A CREDIT AGAINST PROPERTY TAXES LEVIED AND COLLECTED PURSUANT TO LAW AN AMOUNT AS SPECIFIED BY SUBSECTION (3) OF THIS SECTION, BASED UPON THE ACTUAL VALUE OF THE QUALIFIED INDIVIDUAL'S RESIDENCE.

(3)  THE AMOUNT OF THE CREDIT UNDER THIS SECTION SHALL BE CALCULATED AS FOLLOWS:

(a)  IF THE QUALIFIED INDIVIDUAL'S RESIDENCE HAS AN ACTUAL VALUE OF ONE HUNDRED THOUSAND DOLLARS OR LESS, THE CREDIT SHALL BE AN AMOUNT EQUAL TO THIRTY PERCENT OF THE QUALIFIED INDIVIDUAL'S PROPERTY TAX LIABILITY FOR SUCH RESIDENCE FOR THE PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED.

(b)  IF THE QUALIFIED INDIVIDUAL'S RESIDENCE HAS AN ACTUAL VALUE OF MORE THAN ONE HUNDRED THOUSAND DOLLARS BUT NOT MORE THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE CREDIT SHALL BE AN AMOUNT EQUAL TO TWENTY­FIVE PERCENT OF THE QUALIFIED INDIVIDUAL'S PROPERTY TAX LIABILITY FOR SUCH RESIDENCE FOR THE PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED.

(c)  IF THE QUALIFIED INDIVIDUAL'S RESIDENCE HAS AN ACTUAL VALUE OF MORE THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE CREDIT SHALL BE AN AMOUNT EQUAL TO TWENTY PERCENT OF THE QUALIFIED INDIVIDUAL'S PROPERTY TAX LIABILITY FOR SUCH RESIDENCE FOR THE PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED.

(4)  A TAXPAYER'S CLAIM FOR THE CREDIT PROVIDED UNDER THIS SECTION SHALL BE SUBMITTED TO THE COUNTY TREASURER BETWEEN OCTOBER 1 AND DECEMBER 1 OF THE PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED ON A FORM PRESCRIBED BY THE COUNTY TREASURER. THE COUNTY TREASURER MAY REQUIRE A TAXPAYER TO SUBMIT PROOF THAT HE OR SHE MEETS THE QUALIFICATIONS SET FORTH IN SUBSECTION (6) OF THIS SECTION BEFORE GRANTING THE TAXPAYER THE PROPERTY TAX CREDIT.

(5)  THE AMOUNT OF PROPERTY TAX NOT COLLECTED BECAUSE OF THE CREDIT PROVIDED UNDER THIS SECTION SHALL BE APPORTIONED AMONG PROPERTY TAXING ENTITIES BASED ON THE AMOUNT EACH TAXING ENTITY LEVIES ON THE PROPERTY IN PROPORTION TO THE TOTAL AMOUNT OF PROPERTY TAX LEVIED ON THE PROPERTY.

(6)  FOR PURPOSES OF THIS SECTION:

(a)  "ACTUAL VALUE" MEANS THE ACTUAL VALUE OF THE RESIDENCE AS OF JANUARY 1 OF THE PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED.

(b)  "QUALIFIED INDIVIDUAL" MEANS A NATURAL PERSON SIXTY­FIVE YEARS OF AGE OR OLDER WHO HAS RESIDED IN THIS STATE FOR AT LEAST TEN CONSECUTIVE YEARS IMMEDIATELY PRECEDING THE BEGINNING OF THE PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED.

(c)  "RESIDENCE" MEANS A SINGLE­FAMILY, OWNER­OCCUPIED RESIDENCE THAT IS USED AS A PRIMARY RESIDENCE BY A QUALIFIED INDIVIDUAL.

SECTION 2.  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.