Title 39
ARTICLE 3
PART 2
Property Tax Exemption for Qualifying Seniors
39-3-201. Legislative declaration.
(1) The general assembly hereby finds and declares that:
(a) Section 3.5 of article X of the state constitution, which was approved by the registered electors of the state at the 2000 general election and amended by the registered electors of the state at the 2006 general election, provides property tax exemptions for a qualifying senior and for a qualifying “disabled veteran”, defined, in accordance witht he “people first language” requirements of section 2-2-802, in section 39-3-202 (3.5) as a “qualifying veteran with a disability” for purposes of this part 2;
(b) It is within the legislative prerogative of the general assembly to enact legislation to implement section 3.5 of article X of the state constitution that will ensure compliance with the requirements of said section and facilitate its operation;
(c) In enacting legislation to implement section 3.5 of article X of the state constitution the general assembly has attempted to interpret the provisions of section 3.5 of article X of the state constitution in a manner that gives its words their natural and obvious significance;
(d) This part 2 reflects the considered judgment of the general assembly regarding the meaning and implementation of the provisions of section 3.5 of article X of the state constitution.
39-3-202. Definitions.
As used in this part 2, unless the context otherwise requires:
(1) “Division” means the division of veterans affairs in the department of military and veterans affairs.
(1.5) “Exemption” means the property tax exemption for qualifying seniors and qualifying veterans with a disability allowed by section 39-3-203.
(2) (a) “Owner-occupier” means an individual who:
(I) Is an owner of record of residential real property that he or she occupies as his or her primary residence;
(II) Is not an owner of record of the residential real property that he or she occupies as his or her primary residence, but is:
(A) The spouse of an individual who is an owner of record of the residential real property and who also occupies the residential real property as his or her primary residence; or
(B) The surviving spouse of an individual who was an owner of record of the residential real property and who occupied the residential real property with the surviving spouse as his or her primary residence until his or her death; or
(III) Is not an owner of record of the residential real property that he or she occupies as his or her primary residence, only because the property has been purchased by or transferred to a trust, a corporate partnership, or any other legal entity solely for estate planning purposes and is the maker of the trust or a principal of the corporate partnership or other legal entity;
(IV) (A) Occupies residential real property as his or her primary residence; and
(B) Is the spouse of a person who also occupies the residential real property, who is not the owner of record of the property only because the property has been purchased by or transferred to a trust, a corporate partnership, or any other legal entity solely for estate planning purposes, and who is the maker of the trust or a principal of the corporate partnership or other legal entity; and
(V) (A) Occupies residential real property as his or her primary residence; and
(B) Is the surviving spouse of a person who occupied the residential real property with the surviving spouse until his or her death, who was not the owner of record of the property at the time of his or her death only because the property had been purchased by or transferred to a trust, a corporate partnership, or any other legal entity solely for estate planning purposes prior to his or her death, and who was the maker of the trust or a principal of the corporate partnership or other legal entity prior to his or her death.
(b) “Owner-occupier” also includes any individual who, but for the confinement of the individual to a hospital, nursing home, or assisted living facility, would occupy residential real property as his or her primary residence and would meet one or more of the ownership criteria specified in paragraph (a) of this subsection (2), if the residential real property:
(I) Is temporarily unoccupied; or
(II) Is occupied by the spouse or a financial dependent of the individual.
(3) “Owner of record” means an individual whose name appears on a valid recorded deed to residential real property as an owner of the property.
(3.3) “Proof of qualifying veteran with a disability status” means documentary evidence from the United States department of veterans affairs that an individual is a qualifying veteran with a disability, as defined in subsection (3.5) of this section. The division shall develop guidelines that specify the documentary evidence from the United States department of veterans affairs that is required to establish proof of qualifying veteran with a disability status.
(3.5) “Qualifying veteran with a disability” means an individual who has served on active duty in the United States armed forces, including a member of the Colorado National Guard who has been ordered into the active military service of the United States, has been separated therefrom under honorable conditions, and has either established a service-connected disability that has been rated by the United States department of veterans affairs as one hundred percent permanent disability through disability retirement benefits pursuant to a law or regulation administered by the department, the United States department of homeland security, of the department of the Army, Navy, or Air Force or has individual unemployability status as determined by the United States department of veterans affairs.
(4) “Surviving spouse” means an individual who was legally married to another individual at the time of the other individual’s death and who has not remarried.
39-3-203. Property tax exemption – qualifications.
(1) For the property tax year commencing January 1, 2002, and for property tax years commencing on or after January 1, 2006, but before January 1, 2009, and for property tax years commencing on or after January 1, 2012, fifty percent of the first two hundred thousand dollars of actual value of residential real property that as of the assessment date is owner-occupied and is used as the primary residence of the owner-occupier shall be exempt from taxation, and for property tax years commencing on or after January 1, 2003, but before January 1, 2006, and on or after January 1, 2009, but before January 1, 2012, fifty percent of zero dollars of actual value of residential real property that as of the assessment date is owner-occupied and is used as the primary residence of the owner-occupier shall be exempt from taxation if:
(a) (I) The owner-occupier is sixty-five years of age or older as of the assessment date and has owned and occupied such residential real property as his or her primary residence for the ten years preceding the assessment date; or
(II) The owner-occupier is the surviving spouse of an owner-occupier who previously qualified for a property tax exemption for the same residential real property under subparagraph (I) of this paragraph (a); and
(b) The owner-occupier has completed and filed an exemption application in the manner required by section 39-3-205 and the circumstances that qualify the property for the exemption have not changed since the filing of the application. Under no circumstances shall an exemption be allowed for property taxes assessed during any property tax year prior to the year in which an owner-occupier first files an exemption application.
(1.5) (a) For property tax years commencing on or after January 1, 2007, fifty percent of the first two hundred thousand dollars of actual value of residential real property that as of the assessment date is owner-occupied and is used as the primary residence of an owner-occupier who is a qualifying veteran with a disability shall be exempt from taxation if:
(I) The owner-occupier has completed and filed an exemption application in the manner required by section 39-3-205; and
(II) The circumstances that qualify the property for the exemption have not changed since the filing of the application.
(a.5) For property tax years commencing on or after January 1, 2015, fifty percent of the first two hundred thousand dollars of actual value of residential real property that as of the assessment date is owner-occupied and is used as the primary residence of an owner-occupier who is the surviving spouse of a qualifying veteran with a disability who previously received an exemption under subsection (1.5)(a) of this section is exempt from taxation.
(b) Under no circumstances shall an exemption be allowed for property taxes assessed during any property tax year prior to the year for which an owner-occupier first files an exemption application.
(2) Notwithstanding the provisions of paragraph (a) of subsection (1) and subsection (1.5) of this section, if ownership of residential real property that qualified for an exemption as of the assessment date changes after the assessment date, an exemption shall be allowed only if an owner-occupier whose status as an owner-occupier qualified the property for the exemption has filed an exemption application by the deadline for filing exemption applications specified in section 39-3-205 (1).
(3) An individual who owns and occupies a dwelling unit in a common interest community, as defined in section 38-33.3-103 (8), C.R.S., as his or her primary residence, or who owns residential real property consisting of multiple-dwelling units and occupies one of the dwelling units as his or her primary residence, shall be allowed an exemption only with respect to the dwelling unit that the individual occupies as his or her primary residence.
(4) No more than one exemption per property tax year shall be allowed for a single dwelling unit of residential real property, regardless of how many owner-occupiers use the dwelling unit as their primary residence or whether one or more owner-occupiers qualify for exemptions under both subsections (1) and (1.5) of this section. The full amount of the exemption allowed by subsection (1) or (1.5) of this section shall be allowed with respect to any single dwelling unit of residential real property so long as any owner-occupier of the dwelling unit satisfies the requirements of subsection (1) or (1.5) of this section and the fact that any other person who does not satisfy said requirements is also an owner of record of the dwelling unit shall not affect the amount of the exemption.
(5) For purposes of this part 2, two individuals who are legally married, but who own more than one piece of residential real property, shall be deemed to occupy the same primary residence and may claim no more than one exemption.
(6) (a) Notwithstanding the ten-year occupancy requirement set forth in subparagraph (I) of paragraph (a) of subsection (1) of this section, an owner-occupier who has not actually owned and occupied residential real property for which the owner-occupier has claimed an exemption under said subsection (1) for the ten years preceding the assessment date shall be deemed to have met the ten-year requirement and shall be allowed an exemption under said subsection (1) with respect to the property if:
(I) The owner-occupier would have qualified for the exemption with respect to other residential real property that the owner-occupier owned and occupied as his or primary residence before moving to the residential real property for which an exemption is claimed but for the fact that the other property was condemned by a governmental entity through an eminent domain proceeding; or
(I.5) For property tax years commencing on or after January 1, 2015, the owner-occupier would have qualified for the exemption with respect to other residential real property that the owner-occupier owned and occupied as his or her primary residence before moving to the residential real property for which an exemption is claimed but for the fact that a natural disaster destroyed the former primary residence or otherwise rendered it uninhabitable; and
(II) The owner-occupier has not owned and occupied residential property as his or her primary residence other than the residential real property for which an exemption is claimed since the condemnation occurred.
(b) An owner-occupier who claims an exemption with respect to residential real property that he or she has not actually owned and occupied as his or her primary residence for the ten years preceding the assessment date as permitted by paragraph (a) of this subsection (6) shall provide to the assessor with whom the owner-occupier files the exemption application any information that the assessor may reasonably require to verify that the owner-occupier is entitled to an exemption.
39-3-204. Notice of property tax exemption.
No later than May 1, 2013, and no later than May 1 of each year thereafter in which an assessor sends a notice of valuation pursuant to section 39-5-121 (1) (a) that is not included with the tax bill, each assessor shall mail to each residential real property address in the assessor’s county notice of the exemption allowed by section 39-3-203 (1). As soon as practicable after January 1, 2014, and as soon as practicable after January 1 of each year thereafter, each county treasurer shall, at the treasurer’s discretion, mail or electronically send to each person whose name appears on the tax list and warrant as an owner of residential real property notice of the exemption allowed by section 39-3-203 (1). The treasurer must mail or electronically send the notice in each year on or before the date on which the treasurer mails the property tax statement for the previous property tax year pursuant to section 39-10-103. No later than May 1, 2008, and no later than each May 1 thereafter, each assessor also shall mail to each residential property address in the assessor’s county notice of the exemption allowed by section 39-3-203 (1.5). No later than May 1, 2007, the division shall mail to the residential property address of each person residing in the state who the division believes is a qualifying veteran with a disability notice of the exemption allowed by section 39-3-203 (1.5) for the 2007 property tax year. However, the sending of notice to a person by the division does not constitute a determination that the person sent notice is entitled to an exemption. The notice must be in a form prescribed by the administrator, who shall consult with the division before prescribing the form of the notice of the exemption allowed by section 39-3-203 (1.5), and must include a statement of the eligibility criteria for the exemptions, instructions for obtaining an exemption application, and, for applications for exemptions for property tax years commencing on or after January 1 2024, instructions for obtaining proof of qualifying veteran with a disability status. To reduce mailing costs, an assessor may coordinate with the treasurer of the same county to include notice with the tax statement for the previous property tax year mailed pursuant to section 39-10-103 or may include notice with the notice of valuation mailed pursuant to section 39-5-121 (1) (a).
39-3-205. Exemption applications – penalty for providing false information – confidentiality.
(1) (a) To claim the exemption allowed by section 39-3-203 (1), an individual shall file with the assessor a completed exemption application and proof of qualifying veteral with a disability status no later than July 15 of the first property tax year for which the exemption is claimed. An application returned by mail shall be deemed filed on the date it is postmarked. An individual who filed an exemption application with the division rather than with the assessor as was required before this subsection (1)(b) was amended by Senate Bill 23-036, enacted in 2023, and who qualified for and received an exemption for a property tax year commencing before January 1, 2024, retains the exemption and is not required to submit a new application or proof of qualifying veteran with a disability status to the assessor.
(b) To claim the exemption allowed by section 39-3-203 (1.5), an individual shall file with the assessor a completed exemption application no later than July 1 of the first property tax year for which the exemption is claimed. An application returned by mail shall be deemed filed on the date it is postmarked.
(2) (a) An exemption application shall be a form prescribed by the administrator, who shall consult with the division before prescribing the form of the application for the exemption allowed by section 39-3-203 (1.5), and shall require an applicant to provide the following information:
(I) The applicant’s name, mailing address, date of birth, and social security number;
(II) The address and schedule or parcel number of the residential real property for which an exemption is claimed;
(III) The name and social security number of each individual who occupies as his or her primary residence the residential real property for which an exemption is claimed;
(IV) If a trust is the owner of record of the residential real property for which an exemption is claimed, the names of the maker of the trust, the trustee, and the beneficiaries of the trust;
(V) If a corporate partnership or other legal entity is the owner of record of the residential real property for which an exemption is claimed, the names of the principals of the corporate partnership or other legal entity;
(VI) An affirmation, in a form prescribed by the administrator, that the applicant believes, under penalty of perjury in the second degree, as defined in section 18-8-503, C.R.S., that all information provided by the applicant is correct; and
(VII) Any other information that the administrator may reasonably require as necessary for the proper and efficient administration of the exemption.
(b) The exemption application shall also contain a statement that an applicant, or in the case of residential real property for which the owner of record is a trust, the trustee, has a legal obligation to inform the assessor within sixty days of any change in the ownership or occupancy of residential real property for which an exemption has been applied for or allowed that would prevent an exemption from being allowed for the property.
(c) For the exemption allowed by section 39-3-203 (1.5), the exemption application must include proof of qualifying veteran with a disability status.
(3) (a) In addition to any penalties prescribed by law for perjury in the second degree, an applicant who knowingly provides false information on an exemption application or files more than one exemption application in any property tax year:
(I) Shall not be entitled to an exemption;
(II) Shall be required to pay, to the treasurer of any county in which an exemption was improperly allowed due to the provision by the applicant of false information or the filing by the applicant of more than one exemption application, an amount equal to the amount of property taxes not paid as a result of the exemption being improperly allowed; and
(III) Shall, upon conviction of perjury, be required to pay to the treasurer of any county in which an invalid exemption application was filed an additional amount equal to twice the amount of the property taxes that would not have had to be paid had the exemption application been valid plus interest. Interest shall be calculated at the annual rate calculated pursuant to section 39-21-110.5 (2) and (3) from the date the invalid exemption application was filed until the date the applicant makes the payment required by this subparagraph (III).
(b) If an applicant or a trustee fails to inform the assessor within sixty days of any change in the ownership or occupancy of residential real property for which an exemption has been applied for or allowed that would prevent an exemption from being allowed for the property as required by paragraph (b) of subsection (2) of this section:
(I) An exemption shall not be allowed with respect to the residential real property; and
(II) The applicant or trustee shall be required to pay, to the treasurer of any county in which an exemption was improperly allowed due to the applicant’s or trustee’s failure to immediately inform the assessor of any change in the ownership or occupancy of residential real property, an amount equal to the amount of property taxes not paid as a result of the exemption being improperly allowed plus interest. Interest shall be calculated at the annual rate calculated pursuant to section 39-21-110.5 (2) and (3) from the date on which the change in the ownership or occupancy occurred until the date the applicant makes the payment required by this subparagraph (II).
(c) Any amount required to be paid to a treasurer pursuant to paragraph (a) or (b) of this subsection (3) shall be deemed part of the lien of general taxes imposed on the person required to pay the amount and shall have the priority specified in section 39-1-107 (2).
(4) (a) Completed exemption applications shall be kept confidential; except that:
(I) (A) An assessor may release statistical compilations or informational summaries of any information contained in exemption applications and shall provide a copy of an exemption application to the applicant who returned the application, the treasurer of the same county as the assessor, the administrator, the state treasurer, or the state auditor upon request or as otherwise required by this part 2.
(B) An assessor may introduce a copy of an exemption application as evidence in any administrative hearing or legal proceeding in which the accuracy or veracity of the exemption application is at issue so long as neither the applicant’s social security number nor any other social security number set forth in the application are divulged.
(II) A treasurer, the administrator, the state treasurer, or the state auditor shall keep confidential each individual exemption application that it may receive from an assessor but may release statistical compilations or informational summaries of any information contained in exemption applications and may introduce a copy of an exemption application as evidence in any administrative hearing or legal proceeding in which the accuracy or veracity of the exemption application is at issue so long as the applicant’s social security number is not divulged.
(III) The administrator may share information contained in an exemption application, including any social security number set forth in the application, with the department of revenue to the extent necessary to enable the administrator to verify that the applicant satisfies legal requirements for claiming the exemption.
(b) Notwithstanding the provisions of paragraph (a) of this subsection (4), an assessor, the division, a treasurer, the administrator, the state treasurer, or the state auditor shall not give any other person any listing of individuals who have applied for an exemption or any other information that would enable a person to easily assemble a mailing list of individuals who have applied for an exemption.
39-3-206. Notice to individuals returning incomplete or nonqualifying exemption applications – denial of exemption – administrative remedies.
(1) (a) Except as otherwise provided in paragraph (a.5) of subsection (2) of this section, an assessor shall only grant the exemption allowed to qualifing seniors under section 39-3-203-(1) to an applicant who has timely returned an exemption application in accordance with section 39-3-205 (1) (a) that establishes that the applicant is entitled to the exemption.
(b) If the information provided on or with an application for the exemption allowed to qualifying seniors under section 39-3-203 (1) indicates that the applicant is not entitled to the exemption, or is insufficient to allow the assessor to determine whether or not the applicant is entitled to the exemption, the assessor shall deny the application and mail to the applicant a statement providing the reasons for the denial and informing the applicant of the applicant’s right to contest the denial pursuant to subsection (2) of this section. The assessor shall mail the statement no later than August 1 of the property tax year for which the exemption application was filed.
(1.5) (a) Except as otherwise provided in subsection (2)(a,7) of this section, the assessor shall only accept an application for the exemption allowed to qualifying veterans with a disability under section 39-3-203 (1.5) if the applicant timely returned the exemption application in accordance with section 39-3-205 (1) (b), and an assessor shall only grant the exemption if the applicant submits proof of qualifying veteran with a disability status as required by section 39-3-205 and the exemption application establishes that the applicant meets the other requirements to be entitled to the exemption.
(b) If the information provided on or with an application for the exemption allowed to qualifying veterans with a disability under section 39-3-203 (1.5) indicates that the applicant is not entitled to the exemption, or is insufficient to allow the assessor to determine whether or not the applicant is entitled to the exemption, the assessor shall deny the application and mail to the applicant a statement providing the reasons for the denial and informing the applicant of the applicant’s right to contest the denial pursuant to subsection (2) of this section. The assessor shall mail the statement no later than August 1 of the property tax year for which the exemption application was filed.
(2) (a) An applicant whose exemption application has been denied pursuant to subsection (1)(b) or (1.5)(b) of this section may contest the denial by requesting a hearing before the county commissioners sitting as the county board of equalization no later than August 15 of the property tax year for which the exemption application was filed. The hearing shall be held on or after August 1 and no later than September 1 of the property tax year for which the exemption application was filed and the decision of the county board of equalization is not subject to further administrative appeal by either the applicant or the assessor.
(a.5) An individual who wishes to claim the exemption for qualifying seniors allowed by section 39-3-203 (1), but who has not timely filed an exemption application with the assessor by July 15, may file a late exemption application no later than the August 15 that immediately follows that deadline. The assessor shall accept any such application but may not accept any late application filed after August 15. The assessor shall grant an exemption if an accepted late application establishes that the applicant is entitled to the exemption. A decision of an assessor to disallow the filing of a late application after August 15 or to grant or deny an exemption to an applicant who has filed a late application after July 15 but no later than August 15 is final, and an applicant who is denied late filing or an exemption may not contest the denial.
(a.7) An individual who wishes to claim the exemption for qualifying veterans with a disability allowed by section 39-3-203 (1.5), but who has not timely filed an exemption application may request that the assessor waive the application deadline and allow the individual to file a late exemption application no later than the August 1 that immediately follows the original application deadline. The assessor may accept an application if, in the assessor’s sole discretion, the applicant shows good cause for not timely filing an application. If the assessor accepts a late application, the assessor shall determine whether the application should be granted or denied pursuant to subsection (1.5) of this section and shall mail notice of its determination to the applicant no later than the August 25 that immediately follows the late application deadline. A decision of the assessor to allow or disallow the filing of a late application or of an assessor to grant or deny an exemption to an applicant who has filed a late application is final, and an applicant who is denied late filing or an exemption may not contest the denial.
(b) The county board of equalization may appoint independent referees to conduct hearings requested pursuant to paragraph (a) of this subsection (2) on behalf of the county board and to make findings and submit recommendations to the county board for its final action.
39-3-207. Reporting of exemptions – reimbursement to local governmental entities.
(1) No later than October 10, 2002, and no later than each October 10 thereafter through October 10, 2016 and no later than September 10, 2017, and no later than each September 10 thereafter, each assessor shall forward to the administrator a report on the exemptions allowed in his or her county for the current property tax year. The report shall include:
(a) A statement of the total amount of actual value of residential real property within the county that is exempted from taxation; and
(b) With respect to each unit of residential real property for which an exemption is allowed:
(I) The legal description of the property;
(II) The schedule or parcel number for the property;
(III) The name and social security number of the applicant who claimed an exemption for the property and each additional person who occupies the property; and
(IV) A statement of the taxable and tax exempt value of the property.
(c) For reports issued for the 2007 property tax year and for each subsequent property tax year, separate identification, in such form as the administrator may require, of the units of residential real property within the county exempted from taxation under section 39-3-203 (1.5) and of the total amount of actual value of the property so exempted.
(2) (a) (I) The administrator shall examine the reports sent by each assessor pursuant to subsection (1) of this section to ensure that no applicant has claimed an exemption without meeting all legal requirements for claiming the exemption. No later than November 1, 2002, and no later than each November 1 thereafter, if the administrator determines that an applicant has claimed more than one exemption, the administrator shall provide written notice to the applicant that the applicant has claimed more than one exemption and is therefore not entitled to any exemption. No later than November 1, 2016, and no later than each November 1 thereafter, if the administrator determines that the applicant and the applicant’s spouse have claimed separate exemptions in violation of section 39-3-203 (5), that the applicant has claimed an exemption for residential real property that the applicant does not own and occupy as the applicant’s primary residence as required by section 39-3-203 (1), or that the applicant is otherwise ineligible to claim an exemption, the administrator shall provide written notice to the applicant that the applicant is ineligible for the exemption and specify the reasons for the determination of ineligibility. The notice shall also include a statement specifying the deadline and procedures for protesting the denial of the exemption or exemptions claimed.
(II) An applicant whose claims for exemption are denied by the administrator pursuant to subparagraph (I) of this paragraph (a) may file a written protest with the administrator no later than November 15 of the year in which the exemption or exemptions were denied. If the ground for the denials is that the applicant, or the applicant and the applicant’s spouse, claimes multiple exemptions, the sole ground for a protest is that the applicant, or the applicant and the applicant’s spouse, filed only one claim for an exemption and the protest shall specify property or properties identified by the administrator in the notice denying exemptions for which no exemption was claimed. The administrator shall request that any appropriate assessor check the assessor’s records of exemption applications to determine whether the applicant filed a disputed exemption application and shall decide the protest accordingly. If the ground for the denial is that the applicant is not an owner-occupier of the residential real property for which an exemption is claimed, the sole grounds for a protest are that the applicant actually is an owner-occupier or that the applicant qualifies for an exemption for the property under section 39-3-203 (6). If a protest is denied, the administrator shall mail the applicant a written statement of the basis for the denial and a copy of each exemption application filed with an assessor that the applicant claimed had not been filed.
(b) No later than December 1, 2002, and no later than each December 1 thereafter, and after examining the reports sent by each assessor, denying claims for exemptions, and deciding protests in accordance with paragraph (a) of this subsection (2), the administrator shall provide written notice to the assessor of each county in which an exemption application has been denied because the applicant filed multiple exemption applications with the identity of the applicant who filed multiple exemption applications and the denial of the exemption. No later than December 1, 2016, and no later than each December 1 thereafter, and after examining the reports sent by each assessor, denying claims for exemptions, and deciding protests in accordance with paragraph (a) of this subsection (2), the administrator shall also provide written notice to the assessor of each county in which an exemption application has been denied for any other reason with the identity of the applicant and the denial of the exemption, specifying the reason for the denial. No later than January 10, 2017, and no later than each January 10 thereafter, each assessor shall forward to the administrator a partial copy of the tax warrant for the assessor’s county that includes only property for which the assessor has granted an exemption. The administrator shall examine the tax warrants to ensure that no additional exemptions have been allowed since the administrator examined the reports previously received from the assessors and that each assessor has removed from the tax warrant all exemptions that the administrator previously denied. No later than January 17, 2017, and no later than each January 17 thereafter, the administrator shall notify each assessor and each treasurer of any exemptions to be removed from the tax warrant.
(3) No later than April 1, 2003, and no later than each April 1 thereafter through April 1, 2016, to enable the state treasurer to issue a reimbursement warrant to each treasurer in accordance with subsection (4) of this section, each treasurer shall forward to the state treasurer a report on the exemptions allowed in his or her county for the previous property tax year. No later than March 1, 2017, and no later than March 1 of each year thereafter, each treasurer shall forward the report to the administrator, who shall cross-check it as specified in subsection (3.5) of this section before correcting it, if necessary, and forwarding it to the state treasurer to enable the state treasurer to issue a reimbursement warrant to each treasurer in accordance with subsection (4) of this section. The report shall include:
(a) A statement of the total amount of actual value of residential real property within the county that was exempted from taxation and the total amount of property tax revenues lost by local governmental entities within the county as a result of the exemption that must be reimbursed by the state; and
(b) With respect to each unit of residential real property for which an exemption was allowed:
(I) The legal description of the property;
(II) The schedule or parcel number for the property;
(III) The name of the applicant who claimed an exemption for the property and each additional person who occupies the property; and
(IV) A statement of the taxable and tax exempt value of the property and the amount of taxes due on the property.
(c) For reports issued for the 2007 property tax year and for each subsequent property tax year, separate identification, in such form as the administrator may require, of the units of residential real property within the county exempted from taxation under section 39-3-203 (1.5), the total amount of actual value of the property so exempted, and the total amount of property tax revenues lost by local government entities within the county as a result of the exemption.
(3.5) After receiving reports from each treasurer pursuant to subsection (3) of this section, the administrator shall cross-check the reports to identify any exemption allowed in a county that must be denied due to a failure of the individual allowed the exemption to satisfy all legal requirements for claiming the exemption. The administrator shall remove any exemption that must be denied from the report in which it appears and shall forward all reports to the state treasurer no later than the April 1 immediately following the receipt of the reports by the administrator. In addition, if the administrator identifies any exemption improperly allowed for a prior property tax year commencing on or after January 1, 2016, for which the state treasurer reimbursed a treasurer pursuant to subsection (4) of this section or identifies any exemption properly allowed for such a prior property tax year for which the state treasurer did not reimburse a treasurer, the administrator shall advise the state treasurer to adjust the current year reimbursement to the treasurer to correct the error. No later than that April 1, the administrator shall also notify the treasurer and assessor of each county of the exemptions removed from the report for the county and any resulting and other adjustments to the amount of current year reimbursement to be paid by the state treasurer to the treasurer.
(3.7) In accordance with section 25-2-103 (4.5), C.R.S., the administrator shall annually provide to the state registrar of vital statistics of the department of public health and environment a list, by name and social security number, of every individual who received an exemption for the immediately preceding year so that the registrar can provide to the administrator a list of all such individuals who have died. No later than April 1, 2017, and no later than each April 1 thereafter, the administrator shall forward to the assessor of each county, the name and social security number of each deceased individual who received an exemption for the immediately preceding year for residential real property located within the county so that the assessor can terminate the exemption for the property.
(4) (a) (I) In accordance with section 3.5 of article X of the state constitution, no later than April 15, 2003, and no later than each April 15 thereafter, the state treasurer shall issue a warrant to each treasurer for the amount needed to fully reimburse all local governmental entities within the treasurer’s county for the amount of property tax revenues lost as a result of the application of the exemption to property taxes that accrued during the previous property tax year and are payable during the year in which the state treasurer issues the warrant. The reimbursement shall be paid from the state general fund and shall not be subject to the statutory limitation on state general fund appropriations set forth in section 24-75-201.1, C.R.S.
(II) As used in this paragraph (a), with respect to exemptions allowed for property tax years commencing on or after January 1, 2016, “property tax revenues lost as a result of the application of the exemption” includes only those revenues lost as a result of exemptions properly allowed in accordance with the requirements of this part 2 and does not include any revenues lost as a result of an exemption being erroneously allowed.
(b) Each treasurer shall distribute the total amount received from the state treasurer pursuant to paragraph (a) of this subsection (4) to the local governmental entities within the treasurer’s county as if the lost tax revenues had been regularly paid. When a treasurer distributes said amount, the treasurer shall provide each local governmental entity with a statement of the amount distributed to the local governmental entity that represents reimbursement received from the state for property tax revenues lost as a result of the exemption. In accordance with section 3.5 of article X of the state constitution, moneys distributed to a local governmental entity as reimbursement for property tax revenues lost as a result of the exemption shall not be included in the local governmental entity’s fiscal year spending for purposes of section 20 of article X of the state constitution.
(4.5) In accordance with subsection (3.5) of this section, for any property tax year commencing on or after January 1, 2016, the state treasurer shall not reimburse a treasurer for property tax revenues lost as a result of an exemption erroneously allowed in the treasurer’s county. If, pursuant to subsection (3.5) of this section, the administrator advises the state treasurer that the state treasurer has provided either too much or too little reimbursement to a treasurer for exemptions allowed in the treasurer’s county for any prior property tax year commencing on or after January 1, 2016, the state treasurer shall adjust the reimbursement for the current property tax year as directed by the administrator in order to correct the error.
(5) Notwithstanding any provision of law to the contrary, the reports required by this section and the contents thereof shall be kept confidential by an assessor, a treasurer, the administrator, the state treasurer, or the state auditor; except that said persons may provide the reports to each other as required or authorized by law.
(6) Repealed.
(7) (a) On or before December 1, 2022, the administrator shall provide a report to the department of revenue with the names and social security numbers of all the applicants eligible for the exemption for the property tax year commencing on January 1, 2022, based on the administrator’s examination under subsection (2) of this section of the reports received in accordance with subsection (1) of this section.
(b) On or before April 1, 2023, the administrator shall provide a report to the department of revenue with the names and social security numbers of all taxpayers entitled to the exemption for the property tx year commencing on January 1, 2022, based on the administrator’s examination under subsection (3.5) of this section of the reports received in accordance with subsection (3) of this section.
39-3-208. Auditing of property tax exemption program.
The state auditor shall periodically audit the property tax exemption program administered pursuant to this part 2 to ensure that the program is operating in compliance with section 3.5 of article X of the state constitution and this part 2. In connection with an audit, the state auditor may suggest means of improving the administration of the program. Upon request, an assessor, a treasurer, the administrator, or the state treasurer shall provide the state auditor with any exemption applications, reports, or other documents relevant to the administration of the program.
39-3-209. State expenditure for property tax exemptions – mechanism for refunding of excess state revenue – legislative declaration.
(1) The general assembly hereby finds and declares that:
(a) Although the exemptions allowed by this part 2 are exemptions from local government property taxes, the state must reimburse local governments for the net amount of property tax revenues lost as a result of the exemptions and therefore bears the full cost of the exemptions;
(b) Section 3.5 of article X of the state constitution authorizes the general assembly to raise or lower the maximum amount of actual value of residential real property of which fifty percent is exempt pursuant to this part 2;
(c) In order to eliminate the cost of the exemption and fund other state needs, the general assembly, as authorized by section 3.5 of article X of the state constitution, has at times temporarily suspended the exemption for qualifying seniors allowed by this part 2 by lowering to zero the maximum amount of actual value of residential real property of which fifty percent is exempt;
(d) The general assembly intends to allow seniors to rely on predictable and sustainable exemptions by fully funding the property tax exemption for qualifying seniors in the future, and it is more likely to be able to do so if the cost of the exemption, which exclusively benefits taxpayers who reside in Colorado, constitutes a refund of excess state revenues for state fiscal years for which such refunds are required; and
(e) Section 20 of article X of the state constitution authorizes the state to use any reasonable method to make required refunds of excess state revenues, and the payment by the state of reimbursement to local governments for the net amount of property tax revenues lost as a result of the property tax exemptions allowed by this part 2, which exemptions directly reduce the tax liability of taxpaying Colorado residents throughout the state, is a reasonable method of making such refunds.
(2) For any state fiscal year commencing on or after July 1, 2017, for which state revenues, as defined in section 24-77-103.6 (6)(c), exceed the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(C) or (6)(b)(I)(D), and are required to be refunded in accordance with section 20 of article X of the state constitution, the lesser of all reimbursement paid by the state treasurer to each treasurer as required by section 39-3-207 (4) for the property tax year that commenced during the state fiscal year or an amount of such reimbursement equal to the amount of excess state revenues for the state fiscal year that are required to be refunded is a refund of such excess state revenues.
39-3-210. Reporting of property tax revenue reductions – reimbursement of local governmental entities – definition – repeal.
(1) As used in this section, unless the context otherwise requires:
(a) “Additional state revenues” means the lesser of two hundred forty million dollars or the total amount of the state revenues in excess of the limitation on state fiscal year spending imposed by section 20 (7)(a) of article X of the state constitution that the state is required to refund under section 20 (7)(d) of article X of the state constitution, including any amount specified in section 24-77-103.8, that exceeds the amounts projected to be refunded as required by sections 39-3-209 and 39-22-627 for the state fiscal year commencing on July 1, 2022.
(a.3) “County” includes a city and county.
(b) “Fire district” means any special district that has the sole responsibility of providing fire protection services.
(c) “Health service district” means a special district that may establish, maintain, or operate, directly or indirectly through lease to or from other parties or other arrangement, public hospitals, convalescent centers, nursing care facilities, intermediate care facilities, emergency facilities, community clinics, or other facilities licensed or certified pursuant to section 25-1.5-103 (l)(a) providing health and personal care services and may organize, own, operate, control, direct, manage, contract for, or furnish ambulance service.
(d) “Library district” means a public library established as its own taxing authority by one or more governmental units or parts thereof. A library district is a political subdivision of the state.
(e) “Municipality” means a home rule or statutory city, town, or territorial charter city.
(f) “Sanitation district” means a special district that provides for storm or sanitary sewers, or both, flood and surface drainage, treatment and disposal works and facilities, or solid waste disposal facilities or waste services, and all necessary or proper equipment and appurtenances incident thereto.
(g) “Water district” means a special district that supplies water for domestic and other public and private purposes by any available means and provides all necessary or proper reservoirs, treatment works and facilities, equipment, and appurtenances incident thereto.
(2) (a) For the property tax year commencing on January 1, 2023, for counties with a population of three hundred thousand or less as determined pursuant to the most recently published population estimates from the state demographer appointed by the executive director of the department of local affairs:
(I) Each treasurer shall calculate the total property tax revenues lost by each local governmental entity, excluding school districts, within the treasurer’s county as a result of the changes made in Senate Bill 22-238, enacted in 2022, that reduced valuations for assessment set forth pursuant to sections 39-1-104 (1)(b) and (1.8)(b), 39-1-104.2 (3)(q)(Il) and (3)(r)(Il), and 39-3-104.3 (2); and
(II) Each assessor shall calculate the difference in assessed value of real property for the property tax year commencing on January 1, 2022, and the property tax year commencing on January 1, 2023 within the assessor’s county.
(b) For the property tax year commencing on January 1, 2023, for counties with a population greater than three hundred thousand as determined pursuant to the most recently published population estimates from the state demographer appointed by the executive director of the department of local affairs:
(I) (a) Each treasurer shall calculate, for each municipality, fire district, health service district, water district, sanitation district, and library district, the aggregate reduction of local government property tax revenue during the property tax year commencing on January 1, 2023, as a result of the changes made in Senate Bill 22-238, enacted in 2022, that reduced valuations for assessment set forth pursuant to sections 39-1-104 (1)(b) and (1.8)(b), 39-1-104.2 (3)(q)(II) and (3)(r)(II), and 39-3-104.3 (2);
(b) Each assessor shall calculate, for each municipality, fire district, health service district, water district, sanitation district, and library district, the difference in assessed value of real property for the property tax year commencing on January 1, 2022, and the property tax year commencing on January 1, 2023, within the assessor’s county; and
(II) Each treasurer shall calculate, for all local governmental entities besides municipalities, fire districts, health service districts, water districts, sanitation districts, school districts, and library districts, the aggregate reduction of local government property tax revenue during the property tax year commencing on January 1, 2023, as a result of the changes made in Senate Bill 22-238, enacted in 2022, that reduced valuations for assessment set forth pursuant to sections 39-1-104 (1)(b) and (1.8)(b), 39-1-104.2 (3)(q)(II) and (3)(r)(II), and 39-3-104.3 (2).
(2.5) (a) On or before September 15, 2023, each treasurer shall report the following estimates to the administrator for all local governmental entities within the treasurer’s county:
(I) The total property tax revenue reduction for the property tax year commencing on January 1, 2023, that is based on the:
(A) Temporary reductions in the valuation for the assessment made in Senate Bill 22-238, enacted in 2022; and
(B) Cumulative temporary reductions in the valuation for assessment made in Senate Bill 22-238, enacted in 2022, and Senate Bill 23-303, if a majority of voters approve the ballot issue referred in accordance with section 24-77-202; and
(II) The increase in assessed value from the property tax year commencing on January 1, 2022, to the property tax year commencing on January 1, 2023, that is based on the:
(A) Temporary reductions in the valuation for the assessment made in Senate Bill 22-238, enacted in 2022; and
(B) Cumulative temporary reductions in the valuation for assessment made in Senate Bill 22-238, enacted in 2022, and Senate Bill 23-303, if a majority of voters approve the ballot issue referred in accordance with section 24-77-202.
(b) The administrator shall provide the estimates received in accordance with subsection (2.5)(a) of this section to the department of revenue and legislative council staff.
(3) No later than March 1, 2024, each treasurer shall report the amounts specified in subsection (2) of this section, as applicable, and the basis for the amounts to the administrator, and the administrator may require a treasurer to provide additional information as necessary to evaluate the accuracy of the amounts reported. The administrator shall confirm that the reported amounts are correct or rectify the amounts, if necessary. The administrator shall then forward the correct amounts for each county to the state treasurer to enable the state treasurer to issue a reimbursement warrant to each treasurer in accordance with subsection ( 4) of this section.
(4) (a) No later than April 15, 2024, the state treasurer shall issue a warrant, to be paid upon demand from additional state revenues for the state fiscal year commencing on July 1, 2022, and, if necessary, from other money in the general fund, to each treasurer that is equal to the total of:
(I) The amount specified by the administrator under subsection (3) of this section, based on the amount reported by each treasurer under subsection (2)(a)(l) of this section, for each county that both:
(A) Had an increase of less than ten percent in the assessed value of real property from the property tax year commencing on January 1, 2022, to the property tax year commencing on January 1, 2023; and
(B) Has a population of three hundred thousand or fewer, as determined pursuant to the most recently published population estimates from the state demographer appointed by the executive director of the department of local affairs;
(II) Ninety percent of the amount specified by the administrator under subsection (3) of this section, based on the amount reported by each treasurer under subsection (2)(a)(I) of this section, for each county that both:
(A) Had an increase of ten percent or more in the assessed value of real property from the property tax year commencing on January 1, 2022, to the property tax year commencing on January 1, 2023; and
(B) Has a population of three hundred thousand or fewer, as determined pursuant to the most recently published population estimates from the state demographer appointed by the executive director of the department of local affairs; and
(III) Sixty-five percent of the amount specified by the administrator under subsection (3) of this section, based on the amount reported by each treasurer under subsection (2)(b)(II) of this section, for any county not described in subsections (4)(a)(I) and (4)(a)(II) of this section.
(IV) Ninety percent of the amount specified by the administrator under subsection (3) of this section, based on the amount reported by each treasurer under subsection (2)(b)(I)(A) of this section for each municipality, fire district, health service district, water district, sanitation district, and library district that had an increase of ten percent or more in the assessed value of real property from the property tax year commencing on January 1, 2022, to the property tax year commencing on January 1, 2023; and
(V) The entire amount specified by the administrator under subsection (3) of this section, based on the amount reported by each treasurer under subsection (2)(b)(I)(A) of this section for each municipality, fire district, health service district, water district, sanitation district, and library district that had an increase of less than ten percent in the assessed value of real property from the property tax year commencing on January 1, 2022, to the property tax year commencing on January 1, 2023.
(b) Each treasurer shall distribute the total amount received from the state treasurer to the local governmental entities, excluding school districts, within the treasurer’s county as if the revenues had been regularly paid as property tax, but so that the local governmental entities only receive the amounts determined pursuant to subsection (4)(a) of this section.
(c) When distributing the money, the treasurer shall provide each local governmental entity with a statement of the amount distributed to the local governmental entity that represents the reimbursement received under this subsection (4).
(d) The use of additional state revenues pursuant to subsection (4)(a) of this section is a reasonable method of refunding a portion of the excess state revenues required to be refunded in accordance with section 20 (7)(d) of article X of the state constitution.
(5) On or before March 21, 2024, based on the information available as of that date, the property tax administrator shall submit a report to the general assembly describing the aggregate reduction of local government property tax revenue during the property tax year commencing on January 1, 2023, as a result of the changes made in Senate Bill 22-238, enacted in 2022, that reduced valuations for assessment set forth pursuant to sections 39-1-104 (1)(b) and (1.8)(b), 39-1-104.2 (3)(q)(II) and (3)(r)(II), and 39-3-104.3 (2).
(6) This section is repealed, effective July 1, 2025.