SB 26-116

Senate Bill 26-116, which has been signed into law, modifies Colorado's property tax system. It allows cities and towns to collect a lodging tax from hotels and similar businesses if approved by voters, with the same rules as counties for collecting this tax. The bill also ensures that existing local hotel taxes can continue but prevents any new or increased taxes without voter approval after 2026. Additionally, it updates property tax exemptions for business equipment starting in 2027, setting a fixed exemption amount and eliminating certain reimbursement provisions. This means cities will need to follow specific rules when implementing lodging taxes, and businesses will see changes in how their personal property is taxed.

Official Summary

Under current law, residential real property that is classified as qualified-senior primary residence real property is subject to a reduced valuation for assessment for property tax years beginning on or after January 1, 2025, but before January 1, 2027. The act ends the qualified-senior primary residence real property classification for property tax years beginning on or after January 1, 2027, and changes related requirements for county assessors, county treasurers, and the property tax administrator so that the classification and all related administrative and reporting requirements end on dates that align with the end of the reduced valuation for assessment.     The act changes the state property tax exemption for business personal property, commencing on and after January 1, 2027, by setting the exemption at $58,000, without an adjustment for inflation. The act also sets the reimbursement for property tax losses due to the exemption, for property tax years beginning on and after January 1, 2027, at the reimbursement amount for the 2026 property tax year.(Note: This summary applies to this bill as enacted.)

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