SB 17-078

Senate Bill 17-078, also known as Residential Storage Condo Unit Property Taxation, changes how residential storage condominium units are taxed. Instead of being treated like nonresidential property and taxed at a higher rate (29%), these units will now be considered residential property and taxed at the lower rate of 7.96%. This applies to buildings that store items from or related to an owner's Colorado residence, not for business use. To qualify, owners must submit an affidavit stating their intended use, which is verified by local tax administrators. The bill has been signed into law, meaning these changes are now in effect and will lower property taxes for eligible storage condominium units.

Official Summary

The bill establishes that a residential storage condominium unit is a residential improvement. This allows the unit to be assessed as residential real property, which currently has an assessment ratio of 7.96%, instead of as nonresidential property, which has an assessment ratio of 29%. A residential storage condominium unit is defined to mean a building that is: A unit under the 'Colorado Common Interest Ownership Act'; Used by its owner to store items from or related to the owner's Colorado residence; and Not used for storage related to a business. For a property to qualify as a residential storage condominium unit, the owner of the building unit must submit an affidavit of intended use. The property tax administrator is required to establish the form of the affidavit and to prepare and publish standards for assessors to determine whether a property qualifies as a residential storage condominium unit. The bill establishes penalties for a person that knowingly provides false information on the affidavit. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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