First Regular Session
Sixty-second General Assembly
LLS NO. 99-0399.01 Jane Ard-Smith SENATE BILL 99-092
STATE OF COLORADO
BY SENATOR Tanner;
also REPRESENTATIVE Tate.
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING A CREDIT AGAINST PROPERTY TAXES FOR ELDERLY HOME
102 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 with the 1999 property tax year, establishes a credit
against residential property taxes for qualified individuals. Defines
"qualified individual" as a natural person who is at least 65 years of age,
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, and whose federal adjusted gross income for the income tax year
immediately preceding the property tax year for which the property tax
credit is claimed is $30,000 or less. Defines "residence" as a
single-family, owner-occupied dwelling that is used as a primary
residence by the qualified individual. Creates a rebuttable presumption
that the amount of the property tax credit shall be divided pro rata among
the qualified taxpayers if more than one taxpayer qualifies for such credit
for the same residence. Requires taxpayers to submit a claim for 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 a percentage of the actual
value of the residence as of January 1 of the property tax year for which
the credit is claimed.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Part 5 of article 22 of title 39, Colorado Revised
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
2 read:
3 39-22-522. Property tax credit for elderly homeowners -
4 legislative declaration - definitions. (1) THE GENERAL ASSEMBLY
5 HEREBY FINDS AND DECLARES THAT:
6 (a) HOMEOWNERS SIXTY-FIVE YEARS OF AGE OR OLDER ARE MORE
7 LIKELY TO LIVE ON A FIXED INCOME AND, THEREFORE, MAY EXPERIENCE
8 DIFFICULTY IN MEETING THEIR PROPERTY TAX OBLIGATIONS, ESPECIALLY
9 WHEN SENIOR HOMEOWNERS RESIDE IN AREAS WHERE RAPID GROWTH HAS
10 CAUSED THE VALUE OF PROPERTIES TO INCREASE DRAMATICALLY;
11 (b) THE PUBLIC INTEREST IS FURTHERED BY PROVIDING PROPERTY
12 TAX RELIEF TO SENIOR HOMEOWNERS WHO, BY CONTINUOUSLY RESIDING
13 IN THIS STATE FOR A LONG DURATION OF TIME, HAVE MADE A SIGNIFICANT
14 CONTRIBUTION TO THIS STATE'S ECONOMY;
15 (c) THE PROPERTY TAX CREDIT PROVIDED BY THIS SECTION
16 REWARDS LONG-TERM SENIOR RESIDENTS WITH PROPERTY TAX RELIEF AS
17 AN APPROXIMATE RETURN FOR THE BENEFITS THESE PERSONS HAVE
18 CONFERRED UPON THE STATE; AND
19 (d) THE PROPERTY TAX CREDIT PROVIDED BY THIS SECTION DOES
20 NOT RESULT IN THE EXEMPTION OF ANY TAXPAYER'S PROPERTY FROM
21 PROPERTY TAXATION BECAUSE UNLIKE AN EXEMPTION, WHICH PREVENTS
22 THE IMPOSITION OF PROPERTY TAX ON ALL OR A PORTION OF THE VALUE OF
23 A TAXPAYER'S PROPERTY, A CREDIT IS A DISTINCT MECHANISM USED TO
24 REDUCE THE AMOUNT OF TAX A TAXPAYER OWES AFTER THE TAX HAS BEEN
25 LEVIED ON THE TOTAL VALUE OF THE TAXPAYER'S PROPERTY.
26 (2) FOR PURPOSES OF THIS SECTION:
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1 (a) "ACTUAL VALUE" MEANS THE ACTUAL VALUE OF THE
2 RESIDENCE AS OF JANUARY 1 OF THE PROPERTY TAX YEAR FOR WHICH THE
3 CREDIT IS CLAIMED.
4 (b) "QUALIFIED INDIVIDUAL" MEANS A NATURAL PERSON
5 SIXTY-FIVE YEARS OF AGE OR OLDER WHO HAS RESIDED IN THIS STATE FOR
6 AT LEAST TEN CONSECUTIVE YEARS IMMEDIATELY PRECEDING THE
7 BEGINNING OF THE PROPERTY TAX YEAR FOR WHICH THE PROPERTY TAX
8 CREDIT IS CLAIMED AND WHOSE FEDERAL ADJUSTED GROSS INCOME FOR
9 THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE PROPERTY TAX YEAR
10 FOR WHICH THE PROPERTY TAX CREDIT IS CLAIMED WAS THIRTY THOUSAND
11 DOLLARS OR LESS.
12 (c) "RESIDENCE" MEANS A SINGLE-FAMILY, OWNER-OCCUPIED
13 DWELLING THAT IS USED AS A PRIMARY RESIDENCE BY A QUALIFIED
14 INDIVIDUAL.
15 (3) FOR PROPERTY TAX YEARS COMMENCING ON OR AFTER
16 JANUARY 1, 1999, THERE SHALL BE ALLOWED TO A QUALIFIED INDIVIDUAL
17 AS A CREDIT AGAINST PROPERTY TAXES LEVIED AND COLLECTED PURSUANT
18 TO LAW AN AMOUNT, AS SPECIFIED BY SUBSECTION (3) OF THIS SECTION,
19 BASED UPON THE ACTUAL VALUE OF THE QUALIFIED INDIVIDUAL'S
20 RESIDENCE.
21 (4) THE AMOUNT OF THE CREDIT PROVIDED BY THIS SECTION SHALL
22 BE CALCULATED AS FOLLOWS:
23 (a) IF THE QUALIFIED INDIVIDUAL'S RESIDENCE HAS AN ACTUAL
24 VALUE OF ONE HUNDRED THOUSAND DOLLARS OR LESS, THE CREDIT SHALL
25 BE AN AMOUNT EQUAL TO THIRTY PERCENT OF THE QUALIFIED
26 INDIVIDUAL'S PROPERTY TAX LIABILITY FOR SUCH RESIDENCE FOR THE
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1 PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED.
2 (b) IF THE QUALIFIED INDIVIDUAL'S RESIDENCE HAS AN ACTUAL
3 VALUE OF MORE THAN ONE HUNDRED THOUSAND DOLLARS, THE CREDIT
4 SHALL BE AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF THE QUALIFIED
5 INDIVIDUAL'S PROPERTY TAX LIABILITY FOR SUCH RESIDENCE OR THE
6 PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED.
7 (5) A TAXPAYER'S CLAIM FOR THE CREDIT PROVIDED BY THIS
8 SECTION SHALL BE SUBMITTED TO THE COUNTY TREASURER ON A FORM
9 PRESCRIBED BY SUCH TREASURER BETWEEN OCTOBER 1 AND DECEMBER
10 1 OF THE PROPERTY TAX YEAR FOR WHICH THE CREDIT IS CLAIMED. THE
11 COUNTY TREASURER MAY REQUIRE A TAXPAYER TO SUBMIT PROOF THAT
12 HE OR SHE IS A QUALIFIED INDIVIDUAL BEFORE GRANTING THE TAXPAYER
13 THE PROPERTY TAX CREDIT.
14 (6) WHEN MORE THAN ONE TAXPAYER QUALIFIES FOR THE
15 PROPERTY TAX CREDIT PROVIDED FOR IN THIS SECTION FOR THE SAME
16 RESIDENCE, THERE SHALL BE A REBUTTABLE PRESUMPTION THAT THE
17 AMOUNT OF THE TAX CREDIT SHALL BE DIVIDED PRO RATA ACCORDING TO
18 THE NUMBER OF SUCH QUALIFIED INDIVIDUALS. SUCH PRESUMPTION SHALL
19 BE REBUTTED ONLY UPON THE FILING OF A BINDING AGREEMENT WITH THE
20 COUNTY TREASURER THAT IS SIGNED BY ALL OF THE TAXPAYERS WHO
21 QUALIFY FOR SAID TAX CREDIT FOR THE SAME QUALIFIED RESIDENCE AND
22 THAT SPECIFIES THAT THE MANNER IN WHICH THE AMOUNT OF THE
23 ALLOWED PROPERTY TAX CREDIT IS TO BE DIVIDED AMONG SUCH
24 QUALIFIED INDIVIDUALS.
25 (7) THE AMOUNT OF PROPERTY TAX NOT COLLECTED BECAUSE OF
26 THE CREDIT PROVIDED BY THIS SECTION SHALL BE APPORTIONED AMONG
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1 PROPERTY TAXING ENTITIES BASED ON THE AMOUNT OF PROPERTY TAX
2 EACH TAXING ENTITY LEVIES ON THE RESIDENCE IN PROPORTION TO THE
3 TOTAL AMOUNT OF PROPERTY TAX LEVIED ON THE RESIDENCE.
4 SECTION 2. Safety clause. The general assembly hereby finds,
5 determines, and declares that this act is necessary for the|~ immediate
|~ 6 preservation of the public peace, health, and safety.