HB 23-1054

House Bill 23-1054, also known as the Property Valuation bill, changes how property values are reassessed in Colorado. It extends the reassessment cycle for real estate from every odd-numbered year to a four-year period starting in 2025, skipping the 2023 assessment. The bill also removes previous reductions on property value assessments for both commercial and residential properties that were set to apply in 2023. Additionally, it caps the increase in property values at 5% annually from 2022 to 2025 for most properties, with some exceptions. This bill has been signed into law, meaning these changes are now in effect.

Official Summary

Most real property is reassessed every odd-numbered year. The bill establishes a one-time exception by making the reassessment cycle beginning on January 1, 2021, a 4-year cycle so that the next reassessment cycle will begin in 2025 instead of 2023. Under current law, for the 2023 property tax year, the actual value used for purposes of valuation for assessment is reduced for commercial real property by $30,000 and for residential real property by $15,000. The bill eliminates these reductions. The bill also sets the assessment rates for nonresidential real property and multi-family residential real property for the 2024 property tax year, so that they are the same rates as for the 2023 property tax year. Lastly, the bill ensures that the actual value of property used for purposes of valuation for assessment does not increase by more than 5% between 2022 and 2025, for property that does not have an unusual condition which results in an increase or decrease in actual value. (Note: This summary applies to this bill as introduced.)

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