SB 23B-004

This Colorado bill, titled "Property Tax Relief," aims to reduce property taxes for various types of properties in 2023. It lowers the assessment value for lodging and nonresidential properties to 25% and for multi-family and residential properties to 6.5%. The bill also establishes a task force to develop a long-term tax structure for Colorado, with a deadline to report back by December 31, 2023. Additionally, it delays some property tax deadlines and waives interest on late payments made within 10 days of receiving the tax statement. Since the status is "signed," these changes are now law and will affect property owners in Colorado starting with the 2023 tax year.

Official Summary

Section 2 of the bill, for property tax year 2023, reduces the valuation for assessment to 25% for lodging property and nonresidential property that is not lodging, agricultural, or renewable energy production property, producing mines, or lands or leaseholds producing oil and gas. Additionally, the valuation of assessment for lodging property and improved commercial property is 25% of an amount equal to the actual value minus the lesser of $60,000 or the amount that reduces the valuation for assessment to $1,000. Sections 3 and 4 , for property tax year 2023, reduce the valuation for assessment for multi-family residential real property and residential real property that is not multi-family to 6.5% of the amount equal to the actual value of such property minus the lesser of $80,000 or the amount that causes the valuation for assessment of the property to be $1,000. Section 5 makes a conforming amendment. Sections 6 and 7 modify the backfill mechanism established by Senate Bill 22-238 to offset reductions in local governmental entities' property tax revenue in order to require the backfill to be paid with unrestricted money in the general fund, including money that would otherwise have been required to be retained as a reserve to the unrestricted general fund year-end balance for the state fiscal year 2022-23. Additionally, the process established by Senate Bill 22-238 requires that the state treasurer issue a warrant to county treasurers for disbursement to local governmental entities no later than April 15, 2024. Section 6 also allows the warrant to be expedited if a county treasurer completes the reporting requirements regarding property tax revenue lost to local governmental entities on or before February 15, 2024. Section 8 creates the property tax task force (task force). The task force consists of both members of the general assembly and individuals who are not members of the general assembly. The purpose of the task force is to develop a permanent and sustainable tax structure for the state of Colorado. The task force is required to: Convene by December 1, 2023; Meet as many times as necessary in 2023; and Submit a report by December 31, 2023, to the finance committees of the house of representatives and the senate. After the task force makes its report the task force is disbanded. Sections 9, 12, 13, 14, 15, and 16 delay several property tax deadlines for the 2023 property tax year. Sections 10 and 11 modify provisions in the "Local Government Budget Law of Colorado" for the 2024 fiscal year to account for impacts on a local government's budget due to changes to the assessed valuation of property within the local government's boundaries pursuant to the bill. Section 17 waives the accrual of interest on delinquent property tax payments for the first payment of property taxes for the 2023 property tax year if a payment is made within 10 days after the mailing by the county treasurer of the property taxpayer's tax statement or notification of an electronic statement.(Note: This summary applies to this bill as introduced.)

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