America's Property Tax Advisor

Colorado Approves Temporary Rate Cut

BY JOE MONZON, DENVER, MAY 2022

Colorado cut its commercial and residential property tax assessment ratios for 2023 and 2024 under a bill signed into law by the governor on May 9. Senate Bill 238 enacts the following changes.

 

For the 2023 Property Tax Year

 

Section 1 reduces the valuation for assessment of nonresidential property, excluding agricultural and renewable energy production, from 29% to 27.9% of the actual value of the property.

 

Section 2 reduces the valuation for assessment of residential property, including multi-family residential property, to 6.765% of the property’s actual value.

 

Sections 1 and 3 reduce the actual value used for the tax assessment of commercial real property by $30,000 and of residential real property by $15,000.

 

For the 2024 Property Tax Year

 

Section 1 continues the valuation for assessment of real and personal property that is classified as agricultural property or renewable energy production property at 26.4% of the actual value.

 

Section 2 establishes the valuation for assessment for all residential real property other than multi-family residential real property as a percentage of the actual value of the property based on there being a specific modification determined by the property tax administrator. It also establishes the valuation for assessment for multi-family residential real property as 6.8% of the actual value.

 

Section 4 requires the adjustment of the ratio of valuation for all residential real property other than multi-family for the 2024 property tax year so that the aggregate decrease in local government property tax revenue during the 2023 and 2024 property tax years equals $700 million.

 

Section 5 requires the state treasurer to reimburse counties for the reduction in property tax revenue resulting from the bill and requires the property tax administrator to report this amount to the General Assembly. The state treasurer is required to fully reimburse any county that received an increase of less than 10% in assessed value of real property between the 2022 and 2023 property tax years and has a population of 300,000 or less.