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New Property Tax Legislation Passes in Colorado

Tax Development May 20, 2022

New Property Tax Legislation Passes in Colorado

Colorado Governor Polis has enacted two property tax bills into law. SB 22-238 changes the assessment ratios for residential and nonresidential properties, while HB 22-1416 changes certain administrative procedures.

Senate Bill 22-238 reduces the commercial assessment ratio to 27.9% in 2023, down from 29%. It will go back up to 29% in 2024. As for the residential assessment ratio, both multifamily residential and all other residential property is reduced to 6.765% for 2023. In 2024, multifamily residential assessment ratios are increased to 6.8%, while all other residential real property is temporarily established as the percentage calculated in accordance with CRS 39-1-104.4. This new section states the ratio of valuation is equal to the percentage necessary for an aggregate reduction of local government property tax review for 2023 and 2024 to equal $700,000,000. This new ratio for 2024 must be set by March 21, 2024.

There are additional provisions in this legislation for the state to backfill a portion of the lost local revenue based on the population of the county. There are also provisions that relate to funds being transferred from the state’s General Fund to the state’s Public-School Fund and a number of other detailed reimbursements.

HB 22-1416 covers a wide range of Colorado property tax administrative issues. The Property Tax Administrator will now be required to conduct a public hearing on proposed changes to property tax materials, often referred to as the Assessor’s Reference Library, but could include other materials. The administrator must publish notice of the hearing and mail notice to those people that request the mailing.

This new statute will also change language requiring each assessor to include an estimate of the property tax owed on any notice of value. A range of possibilities is allowed, but the language was changed from “may” to “shall,” requiring this to be completed. Also included is a requirement to discuss the Colorado abatement process. In Colorado, the abatement process is a retroactive appeal if the normal appeal cycle is missed for whatever reason.

Another significant change is that the appeal deadline is moved from June 1 to June 8. This will give taxpayers an additional week to review values and file an appeal. This does not change any other dates in the process. Counties that elect to stay on what is referred to as the “normal calendar” will only have until June 30 to issue notices of determination.

This bill also includes a method to fast track appeals of rent-producing commercial property. If requested by the taxpayer, the appeal is advanced on the calendar and takes precedence of other matters pending before the Board of Assessment Appeals. A written letter of objection and protest must be filed prior to July 15 and must include all information required under CRS 39-8-107(5)(a)(I); the assessor will verify that they have the information required under this section. In addition, the Board may charge a fee to a taxpayer for advancing this on the calendar.

Lastly, there is a provision in this bill that will limit the amount of valuation increase that the Board of Assessment Appeals may grant, should a case go to hearing. The Board would only be allowed to further increase a value 5% above the value that is appealed.


Matt Poling

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