America's Property Tax Advisor

Colorado Property Tax Legislation

BY ALEX MARTINEZ, DENVER, JULY 2021

Colorado lawmakers focused on property taxes with their 2021 Regular Session. Here are some highlights of the legislation passed.

 

Abbreviated Notice of Valuation (SB 21-019) -- County assessors can mail a Notice of Valuation postcard to property owners following approval of the tax administrator.

 

Assessing Clean Energy Resources (SB 21-020) -- Clean Energy Facilities with capacity under 2 megawatts must be valued by the income approach.

 

BPP Exemption (SB 21-130) -- Any county, municipality, or special district my exempt up to 100% of business personal property effective for the 2021 tax year.

 

Temporary Assessment Ratio Adjustment (SB 21-293) -- Provides for the temporary adjustment in the assessment ratio for residential, multi-family, agricultural and nonresidential property used to produce renewable energy for tax years 2022 and 2023. Also expands the property tax deferral program for homeowners.

 

Residential Land Definition (HB 21-1061) -- Clarifies the definition of residential land for assigning the preferential residential assessment ratio for property tax purposes. The bill stipulates that residential land must contain an improvement such as a driveway essential to use on a contiguous parcel. Previous legislation allowed “parcels used as a unit in conjunction with a residential improvement” to be classified as residential.

 

CBAA Can Increase Taxable Value (HB 21-1083) -- Gives the Colorado Board of Assessment Appeals authority to increase the taxable value under its jurisdiction. Legislative Council expects fewer appeals will be filed because of this change.

 

CDE Mill Levy Credits (HB 21-1164) -- Authorizes the Colorado Department of Education to begin correcting the effects of mill levy credits previously allowed in response to TABOR tax overrides. The CDE is required to establish a plan and timeline for phasing out the credits. This bill was passed by both the House and Senate and sent to the Governor June 2021.

 

BPP Exemption (HB 21-1312) -- Raises the Business Personal Property exemption from $7,900 to $50,000 to be adjusted every two years for inflation. In addition, the bill clarified in statute that “actual value” reflects value to the “fee simple estate.” For personal property, it defines its actual value as the property’s “value in use.”

 

Lease-Purchase Agreement (HB 21-1316) -- Clarifies and replaces the term “lease-purchase agreement” with “financed purchase of an asset or certificate of participation agreement” to conform with current requirements established by the Government Accounting Standards Board.