HB 25-1199

House Bill 25-1199 in Colorado allows property owners who owe more than $25 in real estate taxes on their residential or certain commercial properties to pay these taxes in four equal installments instead of the current two. The first installment is due by February 30th, and subsequent payments are due April 30th, July 15th, and September 15th. To qualify for this option, property owners must have paid at least half of their tax bill by April 30th. If a payment isn't made on time, interest starts accruing from the missed deadline date. The bill also extends the notice period for unpaid taxes to October 15th if someone opts for the four-payment plan and misses the September 15th deadline. This new law has been signed into effect.

Official Summary

Under current law, property taxes must be paid either in full on or before April 30 or in 2 equal installments, the first due on or before the last day of February and the second due on or before June 15. For property tax payments made for property tax years commencing on or after January 1, 2025, the bill creates a 4-installment-payment option for taxpayers that owe real property taxes in an amount greater than $25 on residential real property or real property that is listed by the assessor under any improved commercial subclass codes and that do not have such taxes paid out of an escrow account by a mortgage company (allowed taxpayers). Under the 4-installment-payment option, allowed taxpayers may pay their real property taxes owed on residential real property or real property that is listed by the assessor under any improved commercial subclass codes in 4 equal installments, the first due on or before the last day of February, the second due on or before April 30, the third due on or before July 15, and the fourth due on or before September 15. An allowed taxpayer must pay at least half of their real property taxes owed on or before April 30 to be permitted to make installment payments pursuant to the 4-installment-payment option in that year, however, an allowed taxpayer can pay in full the real property taxes owed at any time after April 30 and up to the day before the date of the sale of a tax lien on the allowed taxpayer's property, including delinquent interest, if any. County treasurers are required to provide information about the 4-installment-payment option with tax statements. An allowed taxpayer that does not pay the third installment of real property taxes owed on or before July 15 owes delinquent interest on the unpaid third installment at a rate of 1% per month that the installment is unpaid accruing from July 16, and if an allowed taxpayer does not pay the fourth installment of real property taxes owed on or before September 15, the allowed taxpayer owes delinquent interest on the unpaid fourth installment at a rate of 1% per month that the installment is unpaid accruing from September 16. Current law requires the county treasurer to provide notice to taxpayers that have unpaid property taxes that, if remaining unpaid, may be subject to a tax lien sale by no later than September 1. Under the bill, allowable taxpayers paying pursuant to the 4-installment-payment option have until September 15 to make their fourth installment payment of real property taxes. Accordingly, the bill extends the September 1 notice deadline to October 15. (Note: This summary applies to this bill as introduced.)

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