HB 22-1006

House Bill 22-1006, which has been signed into law in Colorado, changes the rules for property tax exemptions related to child care centers. Previously, only properties owned strictly for charitable purposes could qualify for these exemptions. Now, properties used by tenants or subtenants to run a child care center can also get this exemption, as long as the primary use is for child care and not private gain. This means more child care facilities may be eligible for tax breaks, potentially lowering costs for families using these centers. The bill has been enacted, so its changes are now in effect.

Official Summary

The act repeals the requirements that property must be owned for strictly charitable purposes and not for private gain or corporate profit and that the property must be irrevocably dedicated to a charitable purpose in order for the property to qualify for the property tax exemption for property used as an integral part of a child care center. These changes allow property that is used by a tenant or subtenant to operate a child care center to be eligible for the exemption, and the act specifies that in such case, only the operator's use is to be considered for purposes of determining whether the property is eligible for the exemption. An operator of an eligible facility, or the operator's authorized agent, is required to sign the exemption application form and to provide the property tax administrator with any requested information related to the exemption. (Note: This summary applies to this bill as enacted.)

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