Reduce Property Taxes And Voter-approved Revenue Change
Colorado Ballot Measure - Proposition HH
Election: Nov. 7, 2023 (General)
Outcome: Failed
Categories:
Housing and PropertySummary
Section 3 of the bill requires the secretary of state to refer a ballot issue to voters at the November 2023 election that asks voters whether property taxes should be reduced and that seeks voter approval to retain and spend excess state revenues that will be used to backfill some of the reduced property tax revenue. Most of the bill only becomes effective if the voters approve the ballot issue.Local government property tax revenue limit. Beginning with the 2023 property tax year, section 6 establishes a limit on specified property tax revenue for local governments, excluding those that are home rule and school districts, that is equal to inflation above the property tax revenue from the prior property tax year (limit). A local government may establish a temporary property tax credit, which does not change the gross mill levy, that is up to the number of mills necessary to prevent the local government's property tax revenue from exceeding the limit. Alternatively, the governing board may approve a mill levy that would cause the local government to exceed the limit, if the governing board approves the mill levy at a public meeting that meets certain criteria.Valuation changes. The valuation for assessment (valuation) of nonresidential real and personal property, excluding producing mines and lands or leaseholds producing oil or gas, is based on an assessment rate of 29% of actual value, but currently, there are temporary reductions in the valuation for certain subclasses of property. Section 8 creates the additional temporary reductions. For the 2023 property tax year:
For lodging property, property listed under any improved commercial subclass code, and all other nonresidential property, excluding agricultural property and renewable energy production property, the assessment rate is reduced from 27.9% to 27.85%;
For renewable energy agricultural land, which is a newly created subclass of agricultural property that is valued under section 7 , the assessment rate is reduced from 26.4% to 21.9%.
Thereafter, the assessment rate for lodging property and all nonresidential property, excluding agricultural property and renewable energy production property and property that is not under a vacant land subclass, is reduced from 29% to:
27.85% for the 2024 through 2026 property tax years;
27.65% for the 2027 and 2028 property tax years;
26.9% for the 2029 and 2030 property tax years; and
25.9% or 26.9% for the 2031 and 2032 property tax years, depending on the increase in the valuation in the 32 counties with the smallest increases from the 2030 to 2031 property tax years (revenue increases).
The assessment rate for agricultural property, excluding renewable energy agricultural land, and renewable energy property is reduced from 29% to:
26.4% for the 2025 through 2030 property tax years; and
25.9% or 26.4% for the 2031 and 2032 property tax years, depending on the increase in the valuation in the 32 counties with the smallest revenue increases.
The assessment rate for renewable energy agricultural land, which is a newly created subclass of agricultural property that is valued under section 7 , is reduced from 29% to 21.9% for the 2024 through 2032 property tax years.
Beginning with the 2033 property tax year, all of the temporary valuation reductions expire and the valuation of all nonresidential real property is 29% of the actual value of the property.
The valuation of residential real property is based on an assessment rate of 7.15% of actual value, but currently, there are temporary reductions in the valuation. Section 9 further reduces the valuation of residential real property. For the 2023 property tax year, the valuation is reduced from 6.765% of the amount equal to the actual value minus the lesser of $15,000 or the amount that causes the valuation to be $1,000 (alternate amount) to 6.7% of the amount equal to the actual value minus the lesser of $40,000 or the alternate amount.
For the 2024 property tax year, the valuation is reduced as follows:
For multi-family residential real property, the valuation is reduced from 6.8% of the actual value to 6.7% of the amount equal to the actual value minus the lesser of $40,000 or the alternate amount; and
For all other residential real property, the valuation is reduced from an estimate of 6.98% of the actual value to 6.7% of the amount equal to the actual value minus the lesser of $40,000 or the alternate amount.
For the 2025 through 2032 property tax years:
For multi-family residential real property and primary residence real property, including multi-family primary residence real property, the valuation is reduced from 7.15% of the actual value to 6.7% of the actual value minus the lesser of $40,000 or the alternate amount;
For qualified-senior primary residence real property, including multi-family qualified-senior primary residence real property, the valuation is reduced from 7.15% of the actual value to 6.7% of the amount equal to the actual value minus $140,000 or the alternate amount; and
For all other residential real property, the assessment rate is reduced from 7.15% to 7.1 6.7 %.
Beginning with the 2033 property tax year, all of the temporary valuation reductions expire and the valuation of all residential real property is 7.15% of the actual value of the property.
The bill also establishes that all of the temporary reductions in valuation for residential and nonresidential property created in the bill are contingent on the state's ability to retain and spend state surplus up to the proposition HH cap. If, for any reason, excluding a legislative enactment by the general assembly, the state is not permitted to retain and spend this money, then the temporary reductions in the bill do not apply.
Section 11 creates the residential subclass of primary residence real property for owner-occupiers and establishes administrative procedures related to the classification that are based on the procedures for the homestead exemption, with those procedures expanded to treat civil union partners like spouses. Section 11 also creates the residential subclass of qualified-senior primary residence real property, which is a property with an owner-occupier who previously qualified for the senior homestead exemption for a different property and who does not qualify for the exemption for the current property tax year.Sections 1, 12, 13, 15, and 16 , and 21 delay deadlines as necessary due to the valuation changes for the 2023 property tax year. Section 20 requires county assessors to provide notice, which will be prepared by the property tax administrator, to taxpayers about the new valuations for assessment and the application process for primary residence real property and qualified-senior primary residence real property.
The state is currently required to reimburse local governmental entities for property tax revenue lost as a result of the reductions in valuation enacted in Senate Bill 22-238. Section 14 modifies this backfill mechanism by:
Specifying that the amount of revenue lost for a property tax year is based on a local governmental entity's mill levy for the 2022 property tax year, excluding specified mills;
Including the additional property tax revenue reductions that result from the bill in the backfill for the 2023 property tax year;
Eliminating the maximum amount of the backfill for the 2023 property tax year that is a refund of excess state revenues;
Extending the backfill for the 2024 through 2032 property tax years for the valuation reductions in the bill, but making a local governmental entity that has an increase in real property total valuation of 20% or more from the 2022 property tax year ineligible for the backfill;
Creating the local government backfill cash fund, which includes a $128 million general fund transfer, and requiring the money from the fund to be used to backfill revenue to local governments beginning with the 2024 property tax year; and
Beginning with the 2024 property tax year, proportionally reducing the amount that each eligible local government receives, if necessary to avoid exceeding the total amount that is identified as being available for the backfills statewide . ;
Clarifies how local governmental entities, which are now defined, are treated if their boundaries are in more than one county for purposes of the backfill; and
Requires the state treasurer to reduce a backfill as necessary to avoid a local governmental entity exceeding its constitutional fiscal year spending limit.
Section 14 also modifies the backfill mechanism to treat cities and counties as counties instead of municipalities, and this change is not contingent on voter-approval of the ballot issue. Section 18 requires the department of revenue to calculate the amount of excess state revenues that will be refunded for the fiscal year 2022-23 with and without the changes from the bill. Section 19 requires the state treasurer to transfer $72 million from the general fund to the state public school fund.Voter-approved revenue change. If the voters approve the referred ballot issue, then the state will be authorized to retain and spend revenues up to the proposition HH cap, created in section 3. For the 2023-24 fiscal year, the proposition HH cap is equal to the excess state revenues cap for the prior fiscal year, adjusted for inflation plus 1% and population changes. Thereafter, the proposition HH cap is equal to the proposition HH cap for the prior fiscal year, adjusted for inflation plus 1% and population changes. The proposition HH cap is also annually adjusted for the qualification or disqualification of enterprises and debt service changes.
If the general assembly does not enact assessment rates for the 2033 property tax year that are the same or lower than the assessment rates for the 2032 property tax year described above, then the proposition HH cap is reduced to be equal to the excess state revenues cap, and the state will retain $0 under this authority beginning with the 2031-32 fiscal year. Thereafter, the general assembly may partially or wholly restore the proposition HH cap without additional voter approval if the general assembly enacts valuation reductions equal to or greater than those for the 2032 property tax year.
The amount retained under this authority is first used in the following fiscal year to backfill certain local governments for the reduced property tax revenue as a result of the property tax changes in the bill and Senate Bill 22-238, and the remainder is transferred to the state education fund to offset the revenue that school districts lose as a result of the property tax changes. Section 5 requires the state controller to include the new voter-approved revenue change in the annual report on TABOR revenues.Sections 2, 4, 10, and 17 make conforming amendments related to the valuation changes and related procedures and the voter-approved revenue changes.
Measure Text
SECTION 1. In Colorado Revised Statutes, 22-40-102, amend
3 (3) and (6) as follows:
4 22-40-102. Certification - tax revenues - repeal. (3) (a) The
5 board of education of a school district which had an actual enrollment of
6 more than fifty thousand pupils during the preceding school year may
7 make the certification provided for in subsection (1) of this section no
8 later than December 15.
9 (b) (I) FOR THE PROPERTY TAX YEAR COMMENCING ON JANUARY
10 1, 2023, THE DEADLINE SET FORTH IN SUBSECTION (3)(a) OF THIS SECTION
11 IS POSTPONED FROM DECEMBER 15, 2023, TO JANUARY 5, 2024.
12 (II) THIS SUBSECTION (3)(b) IS REPEALED, EFFECTIVE JULY 1,2025.
13 (6) (a) Each school district, with such assistance as may be
14 required from the department of education, shall inform the county
15 treasurer for each county within the district's boundaries no later than
16 December 15 of each year of said district's general fund mill levy in the
17 absence of funds estimated to be received by said district pursuant to the
18 "Public School Finance Act of 1994", article 54 of this title TITLE 22, and
19 the estimated funds to be received for the general fund of the district from
20 the state.
21 (b) (I) FOR THE PROPERTY TAX YEAR COMMENCING ON JANUARY
22 1, 2023, THE DEADLINE SET FORTH IN SUBSECTION (6)(a) OF THIS SECTION
23 IS POSTPONED FROM DECEMBER 15, 2023, TO JANUARY 5, 2024.
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1 (II) THIS SUBSECTION (6)(b) IS REPEALED, EFFECTIVE JULY 1,2025.
2 SECTION 2. In Colorado Revised Statutes, 25-2-103, add (4.7)
3 as follows:
4 25-2-103. Centralized registration system for all vital statistics
5 - office of the state registrar of vital statistics created - appointment
6 of registrar - rules. (4.7) NOTWITHSTANDING ANY OTHER PROVISION OF
7 LAW THAT LIMITS THE SHARING OF VITAL STATISTICS, AFTER RECEIVING
8 THE LIST OF NAMES AND SOCIAL SECURITY NUMBERS OF INDIVIDUALS WHO
9 HAD PROPERTY CLASSIFIED AS PRIMARY RESIDENCE REAL PROPERTY OR
10 QUALIFIED-SENIOR PRIMARY RESIDENCE REAL PROPERTY THAT IS
11 PROVIDED BY THE PROPERTY TAX ADMINISTRATOR PURSUANT TO SECTION
12 39-1-104.6 (5)(c), THE STATE REGISTRAR SHALL IDENTIFY ALL
13 INDIVIDUALS ON THE LIST WHO HAVE DIED AND TRANSMIT A LIST OF THE
14 NAMES AND SOCIAL SECURITY NUMBERS OF SUCH INDIVIDUALS TO THE
15 ADMINISTRATOR.
16 SECTION 3. In Colorado Revised Statutes, add part 2 to article
17 77 of title 24 as follows:
18 PART 2
19 SUBMISSION OF BALLOT ISSUE - VOTER-APPROVED
20 REVENUE CHANGE - PROPERTY TAX REDUCTION
21 BACKFILL
22 24-77-201. Definitions. AS USED IN THIS PART 2, UNLESS THE
23 CONTEXT OTHERWISE REQUIRES:
24 (1) "ACCOUNT" MEANS THE PROPOSITION HH GENERAL FUND
25 EXEMPT ACCOUNT IN THE GENERAL FUND CREATED IN SECTION 24-77-203
26 (3)(a).
27 (2) "BALLOT ISSUE" MEANS THE QUESTION REFERRED TO VOTERS
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1 IN ACCORDANCE WITH SECTION 24-77-202 (1).
2 (3) "EXCESS STATE REVENUES CAP" HAS THE SAME MEANING AS
3 SET FORTH IN SECTION 24-77-103.6 (6)(b).
4 (4) "STATE REVENUES" MEANS STATE REVENUES NOT EXCLUDED
5 FROM STATE FISCAL YEAR SPENDING, AS DEFINED IN SECTION 24-77-102
6 (17).
7 (5) "STATE SURPLUS" MEANS THE AMOUNT OF STATE REVENUES
8 THAT EXCEED THE EXCESS STATE REVENUES CAP FOR A GIVEN STATE
9 FISCAL YEAR.
10 24-77-202. Submission of ballot issue - voter-approved
11 revenue change. (1) AT THE ELECTION HELD ON NOVEMBER 7, 2023, THE
12 SECRETARY OF STATE SHALL SUBMIT TO THE REGISTERED ELECTORS OF
13 THE STATE FOR THEIR APPROVAL OR REJECTION THE FOLLOWING BALLOT
14 ISSUE: "SHALL THE STATE REDUCE PROPERTY TAXES FOR HOMES AND
15 BUSINESSES, INCLUDING EXPANDING PROPERTY TAX RELIEF FOR SENIORS,
16 AND BACKFILL COUNTIES, WATER DISTRICTS, FIRE DISTRICTS,
17 AMBULANCE AND HOSPITAL DISTRICTS, AND OTHER LOCAL GOVERNMENTS
18 AND FUND SCHOOL DISTRICTS BY USING A PORTION OF THE STATE SURPLUS
19 UP TO THE PROPOSITION HH CAP AS DEFINED IN THIS MEASURE?"
20 (2) FOR PURPOSES OF SECTION 1-5-407, THE BALLOT ISSUE IS A
21 PROPOSITION TO BE IDENTIFIED AS "PROPOSITION HH". SECTION 1-40-106
22 (3)(d) DOES NOT APPLY TO THE BALLOT ISSUE.
23 24-77-203. Retention of excess state revenues - transfer to state
24 education fund - local government reimbursement - legislative
25 declaration. (1) (a) IF A MAJORITY OF THE ELECTORS VOTING ON THE
26 BALLOT ISSUE VOTE "YES/FOR", THEN FOR EACH FISCAL YEAR
27 COMMENCING ON OR AFTER JULY 1, 2023, THE STATE IS AUTHORIZED TO
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1 RETAIN AND SPEND ALL OF THE STATE SURPLUS THAT IS LESS THAN THE
2 PROPOSITION HH CAP, WHICH IS:
3 (I) FOR THE 2023-24 FISCAL YEAR, AN AMOUNT EQUAL TO THE
4 EXCESS STATE REVENUES CAP FOR THE 2022-23 FISCAL YEAR, ADJUSTED
5 FOR INFLATION PLUS ONE PERCENTAGE POINT, THE PERCENTAGE CHANGE
6 IN STATE POPULATION, THE QUALIFICATION OR DISQUALIFICATION OF
7 ENTERPRISES, AND DEBT SERVICE CHANGES; AND
8 (II) FOR THE FISCAL YEAR 2024-25 AND EACH SUCCEEDING FISCAL
9 YEAR, AN AMOUNT EQUAL TO THE PROPOSITION HH CAP FOR THE PRIOR
10 FISCAL YEAR, ADJUSTED FOR INFLATION PLUS ONE PERCENTAGE POINT, THE
11 PERCENTAGE CHANGE IN STATE POPULATION, THE QUALIFICATION OR
12 DISQUALIFICATION OF ENTERPRISES, AND DEBT SERVICE CHANGES.
13 (b) (I) NOTWITHSTANDING SUBSECTION (1)(a) OF THIS SECTION
14 AND EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (1)(b)(II) OF THIS
15 SECTION, IF THE GENERAL ASSEMBLY DOES NOT ENACT LEGISLATION TO
16 ESTABLISH VALUATIONS FOR ASSESSMENT FOR THE PROPERTY TAX YEARS
17 COMMENCING ON AND AFTER JANUARY 1, 2033, THAT ARE LESS THAN OR
18 EQUAL TO THE TEMPORARILY REDUCED VALUATIONS FOR ASSESSMENT
19 ESTABLISHED IN SECTIONS 39-1-104 (1)(b)(V), (1.8)(a)(III), (1.8)(a)(IV),
20 AND (1.8)(b)(VI) AND 39-1-104.2 (3)(q)(III) AND (3)(r)(IV) IN THIS
21 SENATE BILL 23-____ FOR THE PROPERTY TAX YEAR COMMENCING ON
22 JANUARY 1, 2032, FOR THE SAME CLASSES OF PROPERTY, THEN, FOR THE
23 FISCAL YEAR COMMENCING ON JULY 1, 2032, AND EACH FISCAL YEAR
24 THEREAFTER, THE PROPOSITION HH CAP IS AN AMOUNT EQUAL TO THE
25 EXCESS STATE REVENUES CAP.
26 (II) IF THE PROPOSITION HH CAP IS REDUCED BY OPERATION OF
27 SUBSECTION (1)(b)(I) OF THIS SECTION, THE GENERAL ASSEMBLY MAY,
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1 WITHOUT ADDITIONAL VOTER APPROVAL, ENACT LEGISLATION TO RESTORE
2 THE CAP FOR A FISCAL YEAR TO AN AMOUNT THAT IS LESS THAN OR EQUAL
3 TO THE AMOUNT THAT THE PROPOSITION HH CAP WOULD HAVE BEEN FOR
4 THE FISCAL YEAR UNDER SUBSECTION (1)(a)(II) OF THIS SECTION IF
5 SUBSECTION (1)(b)(I) OF THIS SECTION HAD NOT APPLIED IF, FOR THE
6 PROPERTY TAX YEAR THAT ENDS DURING THE FISCAL YEAR, THE GENERAL
7 ASSEMBLY:
8 (A) ESTABLISHES VALUATIONS FOR ASSESSMENT THAT ARE LESS
9 THAN OR EQUAL TO THE TEMPORARILY REDUCED VALUATIONS FOR
10 ASSESSMENT ESTABLISHED IN SECTIONS 39-1-104 (1)(b)(V), (1.8)(a)(III),
11 (1.8)(a)(IV), AND (1.8)(b)(VI) AND 39-1-104.2 (3)(q)(III) AND (3)(r)(IV)
12 IN THIS SENATE BILL 23-____ FOR THE PROPERTY TAX YEAR COMMENCING
13 ON JANUARY 1, 2032, FOR THE SAME CLASSES OF PROPERTY; OR
14 (B) REDUCES THE VALUATIONS FOR ASSESSMENT DIFFERENTLY
15 FROM THE VALUATIONS FOR ASSESSMENT ESTABLISHED IN THIS SENATE
16 BILL 23-____, BUT THE AGGREGATE REDUCTION IN THE VALUATION FOR
17 ASSESSMENT STATEWIDE FROM THE REDUCTIONS IS GREATER THAN OR
18 EQUAL TO THE ESTIMATED AGGREGATE REDUCTION IN THE VALUATION FOR
19 ASSESSMENTS FROM THE MINIMUM REDUCTIONS IN VALUATION FOR
20 ASSESSMENT NECESSARY TO MEET THE CONDITION SPECIFIED IN
21 SUBSECTION (1)(b)(II)(A) OF THIS SECTION.
22 (c) FOR PURPOSES OF THE CALCULATION SET FORTH IN THIS
23 SUBSECTION (1):
24 (I) INFLATION AND THE PERCENTAGE CHANGE IN STATE
25 POPULATION ARE THE SAME RATES THAT ARE USED IN CALCULATING THE
26 MAXIMUM ANNUAL PERCENTAGE CHANGE IN STATE FISCAL YEAR SPENDING
27 PURSUANT TO SECTION 24-77-103; AND
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1 (II) THE QUALIFICATION OR DISQUALIFICATION OF AN ENTERPRISE
2 OR A DEBT SERVICE CHANGE AFFECTS THE PROPOSITION HH CAP IN THE
3 SAME MANNER AS THE CHANGE AFFECTS THE LIMITATION ON STATE FISCAL
4 YEAR SPENDING.
5 (2) THIS SECTION DOES NOT AFFECT THE AMOUNT THAT THE STATE
6 IS PERMITTED TO RETAIN AND SPEND UNDER THE AUTHORITY CONFERRED
7 BY THE VOTERS' APPROVAL OF SECTION 24-77-103.6.
8 (3) (a) THE PROPOSITION HH GENERAL FUND EXEMPT ACCOUNT IS
9 HEREBY CREATED IN THE GENERAL FUND. THE ACCOUNT CONSISTS OF AN
10 AMOUNT EQUAL TO THE AMOUNT OF STATE SURPLUS THAT THE STATE IS
11 AUTHORIZED TO RETAIN AND SPEND UNDER THIS PART 2 FOR THE PRIOR
12 FISCAL YEAR, IF ANY.THE STATE TREASURER SHALL CREDIT ALL INTEREST
13 AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN
14 THE PROPOSITION HH GENERAL FUND EXEMPT ACCOUNT TO THE ACCOUNT.
15 (b) THE MONEY IN THE ACCOUNT FOR EACH FISCAL YEAR
16 BEGINNING WITH THE 2023-24 FISCAL YEAR MUST BE USED AS FOLLOWS:
17 (I) THE MONEY IS FIRST USED TO PROVIDE REIMBURSEMENTS TO
18 LOCAL GOVERNMENTS UNDER SECTION 39-3-210 (4)(a)(II);
19 (II) IF THERE IS ANY MONEY REMAINING AFTER THE ALLOCATION
20 SET FORTH IN SUBSECTION (3)(b)(I) OF THIS SECTION, THE STATE
21 TREASURER SHALL TRANSFER AN AMOUNT EQUAL TO THE REMAINDER,
22 FIVE PERCENT OF THE TOTAL AMOUNT IN THE ACCOUNT FOR THE FISCAL
23 YEAR, OR TWENTY MILLION DOLLARS, WHICHEVER AMOUNT IS THE LEAST,
24 TO THE HOUSING DEVELOPMENT GRANT FUND CREATED IN SECTION
25 24-32-721 (1) TO BE USED TO REDUCE THE AMOUNT OF PROPERTY TAXES
26 THAT ARE PAID AS A PORTION OF A TENANT'S RENT THROUGH A PROGRAM
27 ESTABLISHED UNDER SUBSECTION (2)(d)(VI) OF SAID SECTION; AND
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1 (III) AS SOON AS POSSIBLE AFTER RECEIVING THE REPORT FROM
2 THE PROPERTY TAX ADMINISTRATOR IN ACCORDANCE WITH SECTION
3 39-3-210 (3), THE STATE TREASURER SHALL TRANSFER THE AMOUNT, IF
4 ANY, IN THE ACCOUNT THAT IS IN EXCESS OF THE AMOUNT THAT WILL BE
5 USED IN ACCORDANCE WITH SUBSECTIONS (3)(b)(I) AND (3)(b)(II) OF THIS
6 SECTION TO THE STATE EDUCATION FUND CREATED IN SECTION 17 OF
7 ARTICLE IX OF THE STATE CONSTITUTION.
8 (4) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:
9 (a) PUBLIC SCHOOL FUNDING CONSISTS OF A COMBINATION OF
10 STATE AND LOCAL SCHOOL DISTRICT REVENUE;
11 (b) UNDER THE CURRENT SCHOOL FINANCE FORMULA, AN
12 INCREASE IN STATE FUNDING CAN BACKFILL A DECREASE IN LOCAL
13 PROPERTY TAX REVENUE;
14 (c) REDUCTIONS IN PROPERTY TAX VALUATIONS REDUCE THE
15 LOCAL PROPERTY TAX REVENUE COLLECTED FOR LOCAL GOVERNMENTS,
16 INCLUDING SCHOOL DISTRICTS;
17 (d) MONEY IN THE STATE EDUCATION FUND IS USED TO PROVIDE
18 FUNDING FOR LOCAL SCHOOL DISTRICTS; AND
19 (e) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT
20 TRANSFERRING A PORTION OF THE MONEY FROM THE ACCOUNT TO THE
21 STATE EDUCATION FUND IN ACCORDANCE WITH SUBSECTION (3) OF THIS
22 SECTION PROVIDES ADDITIONAL FUNDING TO LOCAL SCHOOL DISTRICTS IN
23 ORDER TO BACKFILL PROPERTY TAX REVENUE REDUCTIONS RESULTING
24 FROM PROPERTY TAX CHANGES ENACTED IN THIS SENATEBILL23-___ AND
25 THAT THE MONEY SO TRANSFERRED SHALL NOT SUPPLANT GENERAL FUND
26 APPROPRIATIONS MADE FOR SCHOOL DISTRICTS' TOTAL PROGRAM, AS
27 DEFINED BY SECTION 22-54-103 (6).
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1 24-77-204. Repeal. (1) IF A MAJORITY OF THE ELECTORS VOTING
2 ON THE BALLOT ISSUE VOTE "NO/AGAINST", THEN THIS PART 2 IS
3 REPEALED, EFFECTIVE JULY 1, 2024.
4 (2) IF A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE
5 VOTE "YES/FOR", THEN THIS SECTION IS REPEALED, EFFECTIVE JULY 1,
6 2024.
7 SECTION 4. In Colorado Revised Statutes, 22-55-103, amend
8 (1) as follows:
9 22-55-103. State education fund - creation - transfers to fund
10 - use of money in fund - permitted investments - exempt from
11 spending limitations. (1) In accordance with section 17 (4) of article IX
12 of the state constitution, there is hereby created in the state treasury the
13 state education fund. The fund shall consist CONSISTS of state education
14 fund revenues, MONEY TRANSFERRED TO THE FUND IN ACCORDANCE WITH
15 SECTION 24-77-203 (3)(b)(III), all interest and income earned on the
16 deposit and investment of moneys MONEY in the fund, and any gifts or
17 other moneys MONEY that are exempt from the limitation on state fiscal
18 year spending set forth in section 20 (7)(a) of article X of the state
19 constitution and section 24-77-103 C.R.S., that may be credited to the
20 fund. All interest and income derived from the deposit and investment of
21 moneys MONEY in the fund shall be ARE credited to the fund. At the end
22 of any state fiscal year, all unexpended and unencumbered moneys
23 MONEY in the fund shall remain REMAINS in the fund and shall not revert
24 to the general fund or any other fund.
25 SECTION 5. In Colorado Revised Statutes, 24-77-106.5, amend
26 (1) as follows:
27 24-77-106.5. Annual financial report - certification of excess
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1 state revenues. (1) (a) For each fiscal year, the controller shall prepare
2 a financial report for the state for purposes of ascertaining compliance
3 with the provisions of this article. Any financial report prepared pursuant
4 to this section shall include, but shall not be limited to, state fiscal year
5 spending, reserves, revenues, revenues that the state is authorized to
6 retain and spend pursuant to voter approval of section 24-77-103.6 OR
7 PURSUANT TO PART 2 OF THIS ARTICLE 77, and debt. Such THE financial
8 report shall be audited by the state auditor.
9 (b) Notwithstanding section 24-1-136 (11)(a)(I), based upon the
10 financial report prepared in accordance with subsection (1)(a) of this
11 section for any given fiscal year, the controller shall certify to the
12 governor, the general assembly, and the executive director of the
13 department of revenue no later than September 1 following the end of a
14 fiscal year the amount of state revenues in excess of the limitation on
15 state fiscal year spending imposed by section 20 (7)(a) of article X of the
16 state constitution, if any, for such fiscal year and the state revenues in
17 excess of such limitation that the state is authorized to retain and spend
18 pursuant to voter approval of section 24-77-103.6 OR PURSUANT TO PART
19 2 OF THIS ARTICLE 77.
20 SECTION 6. In Colorado Revised Statutes, add 29-1-306 as
21 follows:
22 29-1-306. Limitation on property tax revenue - temporary
23 property tax credit - governing body override - notice - definitions.
24 (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
25 REQUIRES:
26 (a) "INFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE
27 UNITED STATES DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS
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1 CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL
2 ITEMS PAID BY ALL URBAN CONSUMERS, OR ITS APPLICABLE SUCCESSOR
3 INDEX.
4 (b) "LOCAL GOVERNMENT" MEANS A GOVERNMENTAL ENTITY
5 AUTHORIZED BY LAW TO IMPOSE AD VALOREM TAXES ON TAXABLE
6 PROPERTY LOCATED WITHIN ITS TERRITORIAL LIMITS; EXCEPT THAT THE
7 TERM EXCLUDES SCHOOL DISTRICTS AND ANY COUNTY, CITY AND COUNTY,
8 CITY, OR TOWN THAT HAS ADOPTED A HOME RULE CHARTER.
9 (c) "PROPERTY TAX LIMIT" MEANS THE LIMIT ESTABLISHED IN
10 SUBSECTION (2) OF THIS SECTION ON A LOCAL GOVERNMENT'S PROPERTY
11 TAX REVENUE FOR A PROPERTY TAX YEAR.
12 (2) (a) FOR PROPERTY TAX YEARS COMMENCING ON AND AFTER
13 JANUARY 1, 2023, A LOCAL GOVERNMENT'S PROPERTY TAX REVENUE FOR
14 A PROPERTY TAX YEAR SHALL NOT INCREASE BY MORE THAN INFLATION
15 FROM THE LOCAL GOVERNMENT'S PROPERTY TAX REVENUE FOR THE PRIOR
16 PROPERTY TAX YEAR, UNLESS THE GOVERNING BODY OF THE LOCAL
17 GOVERNMENT APPROVES THE INCREASE IN ACCORDANCE WITH
18 SUBSECTION (4) OF THIS SECTION. THE GOVERNING BODY MAY ENACT A
19 TEMPORARY PROPERTY TAX CREDIT THAT IS UP TO THE NUMBER OF MILLS
20 NECESSARY TO PREVENT THE LOCAL GOVERNMENT'S PROPERTY TAX
21 REVENUE FROM EXCEEDING THIS PROPERTY TAX LIMIT.
22 (b) THE LIMIT SET FORTH IN SUBSECTION (2)(a) OF THIS SECTION
23 IS BASED ON THE UNITED STATES DEPARTMENT OF LABOR'S BUREAU OF
24 LABOR STATISTICS MOST RECENTLY PUBLISHED ESTIMATE OF INFLATION
25 FOR THE PRIOR CALENDAR YEAR THAT IS AVAILABLE AS OF DECEMBER 15
26 OF THE PROPERTY TAX YEAR FOR WHICH THE LIMIT IS BEING CALCULATED.
27 (3) (a) FOR PURPOSES OF CALCULATING THE PROPERTY TAX LIMIT,
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1 PROPERTY TAX REVENUE THAT IS FROM THE FOLLOWING SOURCES OR IS
2 USED FOR THE FOLLOWING PURPOSES IS EXCLUDED FROM PROPERTY TAX
3 REVENUE FOR THE PROPERTY TAX YEAR:
4 (I) PROPERTY TAX REVENUE FROM THE INCREASED VALUATION FOR
5 ASSESSMENT WITHIN THE TAXING ENTITY FOR THE PRECEDING YEAR THAT
6 IS ATTRIBUTABLE TO NEW CONSTRUCTION AND PERSONAL PROPERTY
7 CONNECTED THEREWITH, AS DEFINED BY THE PROPERTY TAX
8 ADMINISTRATOR IN MANUALS PREPARED PURSUANT TO SECTION 39-2-109
9 (1)(e);
10 (II) PROPERTY TAX REVENUE FROM THE INCREASED VALUATION
11 FOR ASSESSMENT ATTRIBUTABLE TO A CHANGE IN LAW FOR A PROPERTY
12 TAX CLASSIFICATION OR TO THE ANNEXATION OR INCLUSION OF
13 ADDITIONAL LAND, THE IMPROVEMENTS THEREON, AND PERSONAL
14 PROPERTY CONNECTED THEREWITH WITHIN THE TAXING ENTITY FOR THE
15 PRECEDING YEAR;
16 (III) PROPERTY TAX REVENUE FOR PROPERTY THAT HAD
17 PREVIOUSLY BEEN OMITTED FROM THE ASSESSMENT ROLL;
18 (IV) PROPERTY TAX REVENUE ABATED OR REFUNDED BY THE
19 LOCAL GOVERNMENT DURING THE PROPERTY TAX YEAR;
20 (V) PROPERTY TAX REVENUE ATTRIBUTABLE TO PREVIOUSLY
21 LEGALLY EXEMPT FEDERAL PROPERTY THAT BECOMES TAXABLE IF SUCH
22 PROPERTY CAUSES AN INCREASE IN THE LEVEL OF SERVICES PROVIDED BY
23 THE LOCAL GOVERNMENT; AND
24 (VI) ANY AMOUNT FOR THE PAYMENT OF EXPENSES INCURRED IN
25 THE REAPPRAISAL OF CLASSES OR SUBCLASSES ORDERED OR CONDUCTED
26 BY THE STATE BOARD OF EQUALIZATION FOR THE PAYMENT TO THE STATE
27 OF EXCESS STATE EQUALIZATION PAYMENTS TO SCHOOL DISTRICTS, WHICH
-16- 303
1 EXCESS IS DUE TO THE UNDERVALUATION OF TAXABLE PROPERTY.
2 (b) FOR PURPOSES OF CALCULATING THE PROPERTY TAX LIMIT,
3 PROPERTY TAX REVENUE THAT IS FROM THE FOLLOWING SOURCES OR IS
4 USED FOR THE FOLLOWING PURPOSES IS EXCLUDED FROM PROPERTY TAX
5 REVENUE FOR THE PROPERTY TAX YEAR AND THE PRIOR PROPERTY TAX
6 YEAR:
7 (I) PROPERTY TAX REVENUE FROM PRODUCING MINES OR LANDS OR
8 LEASEHOLDS PRODUCING OIL OR GAS;
9 (II) AN AMOUNT TO PROVIDE FOR THE PAYMENT OF BONDS AND
10 INTEREST THEREON, OR FOR THE PAYMENT OF ANY OTHER CONTRACTUAL
11 OBLIGATION THAT HAS BEEN APPROVED BY A MAJORITY OF THE LOCAL
12 GOVERNMENT'S VOTERS VOTING THEREON AT ANY ELECTION HELD
13 BEFORE, ON, OR AFTER NOVEMBER 7, 2023; AND
14 (III) ANY REVENUE FROM A MILL LEVY THAT HAS BEEN APPROVED
15 BY VOTERS OF THE LOCAL GOVERNMENT, WITHOUT LIMITATION AS TO
16 RATE OR AMOUNT, AT ANY ELECTION HELD BEFORE, ON, OR AFTER
17 NOVEMBER 7, 2023.
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