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Following the 2024 legislative session, two ballot propositions known as Proposition 50 and Proposition 108 were both certified for the ballot of the Statewide November 2024 election. As part of a negotiation to have the propositions removed from the ballot, Governor Polis called the Second Extraordinary Session of the 74th General Assembly which convened on August 24, 2024 and concluded on August 29, 2024. Below is a summary of the property tax legislation which builds on SB24-233, and was passed during the special session. As a result of the legislation below, Proposition 50 and Proposition 108 were both pulled from the November 2024 ballot.
SPECIAL DISTRICT LEGISLATION
HB24B-1001 Concerning Property Tax
Property Tax Limits
The law modifies the annual property tax revenue limit for local governments (excluding school districts) from 5.5% to 5.25% multiplied by the number of property tax years in the reassessment cycle (two years x 5.25% = 10.5%). The property tax revenue limit takes effect starting in Property Tax Year 2025.
Under the law a local governmental entity’s property tax revenue limit for a property tax year is equal to the base amount of the qualified property tax revenue increased by the total of the growth rate percentage, and then increased by the carryover amount.
“Base amount” is defined as the amount of qualified property tax revenue collected and lawfully retained from whichever property tax year in a previous reassessment cycle was the property tax year for which a local governmental entity collected and lawfully retained the most property tax revenue.
“Carryover amount” is defined as the difference between the base amount of the qualified property tax revenue that was applicable for the most recent reassessment cycle increased by the growth rate percentage for that reassessment cycle, and the qualified property tax revenue from the year with the greatest qualified property tax revenue from the most recent reassessment cycle.
“Growth rate percentage” is defined as 5.25% multiplied by the number of property tax years in the current reassessment cycle.
The law also clarifies provisions of SB24-233 related to revenues that are included and excluded from qualified property tax revenue for purposes of calculating the property tax limit.
The law also authorizes a local governmental entity’s governing body to submit to the local governmental entity’s electors the question of whether the entity may waive the property tax limit established by the law for a single year, period of years, or all future years. Prior election questions waiving property tax limits are not sufficient to waive the property tax limits established by the law.
Assessment Rates
The law amends certain provisions of SB 24-233 related to calculation of assessed valuation related to special districts[1].
Nonresidential Rates
i. The assessment rate for personal property and nonresidential real property at 27% of the actual value thereof for property tax year commencing on January 1, 2025, at 26% commencing on January 1, 2026, and at 25% commencing on or after January 1, 2027;
ii. The assessment rate for property listed by the County Assessor under any Improved Commercial Subclass Codes and Agricultural Property at 26% of the actual value thereof for property tax year commencing on January 1, 2026;
Residential Rates
i. For property tax years commencing on or after January 1, 2025, if the Statewide Actual Value Growth is less than or equal to 5%, the assessment rate for all residential real property other than qualified-senior primary residence real property is 6.25%;
ii. For property tax year commencing on January 1, 2025, if the Statewide Actual Value Growth is greater than 5%, the assessment rate for all residential property (other than qualified-senior primary residence real property) is 6.15% of the amount equal to the actual value of the property; and
iii. For property tax years commencing on or after January 1, 2026, if the Statewide Actual Value Growth is less than or equal to 5%, the assessment rate for all residential real property (other than qualified-senior primary residence real property) is 6.8% of the actual value thereof minus the lesser of 10% of the actual value of the property, $70,000 as increased for inflation in the first year of each subsequent reassessment cycle, or the amount that causes the valuation for assessment to be $1,000; and
iv. for property tax years commencing on or after January 1, 2026, if the Statewide Actual Value Growth is greater than 5%, the assessment rate for all residential real property (other than qualified-senior primary residence real property) is 6.7% of the actual value thereof minus the lesser of 10% of the actual value of the property, $70,000 as increased for inflation in the first year of each reassessment cycle or the amount that causes the valuation for assessment of the property to be $1,000.
Impact on Existing Obligations
The law states that none of its provisions impair following:
i. The obligations of any bonds or other indebtedness, or the refunding thereof, that are outstanding as of November 5, 2024;
ii. The existing voted authorization of a local governmental entity approved by a majority of its voters as of November 5, 2024;
iii. The authority of a local governmental entity from submitting to its electors the question of whether to increase the total number of mills levied, and if approved, increasing the total number of mills levied.
Revenue Backfill
The law extends revenue backfills created under SB24-233 for the property tax year starting January 1, 2024 to the property tax year starting January 1, 2025, but only to cover decreases in assess value attributable to the law.
HB24B-1001 became law on September 4, 2024 and will go into effect on October 1, 2024.
This year’s Legislative Session officially wrapped up on May 8, 2024. As in past years we are providing a summary of the pertinent legislation impacting special districts and community associations. Each law listed below is linked to the Colorado General Assembly website and can be accessed by clicking the individual titles. Updated information related to laws that have not been signed as of the date of this memorandum or which do not officially become effective until after the referendum period runs will be provided on our website at www.whitebearankele.com. If you would like more detailed information on any of the information contained herein or on bills which were introduced but not passed, please let us know.
Special District Legislation
View the text of HB24-1267
The law requires a metropolitan district engaging in covenant enforcement and design review services to comply with certain procedural requirements, including adopting written policies governing the imposition and collection of fines, governing how disputes between the metropolitan district and a resident are addressed, and refraining from prohibiting residents from certain activities on their property, similar to requirements and restrictions applicable to homeowners associations in the Colorado Common Interest Ownership Act.
The law also prohibits a metropolitan district from foreclosing on any lien based on a resident’s delinquent fees or other charges owed to the metropolitan district.
The law was signed by the Governor on April 19, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of HB24-1302
The law requires all taxing authorities to submit, with their annual certification of levies, the following information:
- The rate of the levy;
- The prior year levy and revenue collected from the levy;
- The maximum levy that may be levied without further voter approval;
- The allowable annual growth in revenue collected from the levy;
- The actual growth in revenue collected from the levy over the prior year;
- Whether revenue from the levy is allowed to be retained and spent as a voter-approved revenue change pursuant to Section 20(7)(b) of article X of the State Constitution;
- Whether revenue from the levy is subject to the limit on annual revenue growth in Section 29-1-301(1)(a)
- Whether revenue from the levy is subject to any other limit on annual revenue growth enacted by the taxing authority or other local government;
- Whether the levy must be adjusted, or whether a mill levy credit must be allowed, to collect a certain amount of revenue for the tax year and, if applicable, that amount of revenue;
- Any other information determined necessary by the Department of Local Affairs
The board of county commissioners or other body authorized by law to levy taxes must provide this information, along with the identity of the entity that fixes each levy rate, with its annual certification of levies. The counties are required to ensure that this information is publicly available.
The law was signed by the Governor on June 3, 2024, and takes effect immediately.
View the text of HB24-1454
The law provides for a one-year grace period for public agencies to comply with digital accessibility standards. During this time, a public agency will be immune from liability for non-compliance if the public agency demonstrates a good faith effort toward compliance. The language does not define what constitutes good faith efforts toward compliance means, but in order to be eligible for immunity, a public entity must post an accessibility statement and a quarterly progress report on the public entity’s accessibility efforts on all front-facing pages of its website.
The law was signed by the Governor on May 24, 2024, and takes effect immediately.
View the text of SB24-005
The law prohibits, as of January 1, 2026, local governments, including metropolitan districts, from allowing the installation, planting or placing of nonfunctional turf, artificial turf or invasive plant species on commercial, institutional or industrial property, common interest community property, or a street, parking lot, median, or transportation corridor.
The law was signed by the Governor on March 15, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of SB24-025
The law harmonizes the separate statutes that govern the state administration of local sales or use taxes and specifies that the Department of Revenue is the entity that collects, administers and enforces a local government sales or use tax in the same manner as it collects, administers and enforces the state sales tax.
The law was signed by the Governor on May 1, 2024, and takes July 1, 2025, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of SB24-037
The law requires the Division of Administration in the Department of Public Health and Environment to conduct a feasibility study of the use of green infrastructure, to adopt three pilot projects to demonstrate the use of green infrastructure, green financing mechanisms, or both, and, by February 1, 2027, to present a report to the water resources and agricultural review committee on the progress on various efforts to promote the use of green infrastructure and green financing mechanisms for water quality management in the State.
The law was signed by the Governor on May 25, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of SB24-129
The law prohibits public agencies (defined as any state or local government unit, including special districts) from taking certain actions relating to the collection and disclosure of data that may identify persons connected to nonprofit entities. There are civil penalties of not less than $2,500 for each violation and not less than $7,500 for each intentional violation.
The law was signed by the Governor on May 28, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of SB24-131
The law prohibits a person from carrying a firearm, both openly and concealed, in certain government buildings including state legislative buildings, buildings of a local government’s governing body, and courthouses. The law also prohibits a person from carrying a firearm, both openly and concealed, on the property of specified public or private schools. The law includes exceptions for law enforcement officers, members of the United States armed forces or Colorado National Guard, security personnel, and certain other specified situations.
The law was signed by the Governor on May 31, 2024, and takes effect July 1, 2024.
View the text of SB24-160
The law allows public inspection of records of an employer of written and oral complaints of discriminatory or unfair employment practices that pertain to a sexual harassment complaint or investigation against an elected official found culpable of sexual harassment.
The law was signed by the Governor on June 2, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of SB24-233
Property Tax Revenue Limit – The law limits specified property tax revenue for local governments beginning with the 2025 property tax year (the “Limit”). The Limit does not apply to local governments that are home rule local governments, school districts, have not received voter approval to exceed the statutory 5.5% property tax revenue limitation, or have not received voter approval to collect, retain, and spend revenue without regard to the limitations in section 20 of article X of the state constitution. The Limit is equal to the local governmental entity’s base year qualified property tax revenue increased by 5.5% for each year since the base year including the relevant property tax year. A local government may seek voter approval to waive the limit. A local governmental entity’s base year is:
- For a local governmental entity that had qualified property tax revenue for the 2023 property tax year, the local governmental entity’s qualified property tax revenue for the 2023 property tax year, plus any money the local governmental entity received from the state to compensate the local governmental entity for reduced property tax revenue in the 2023 property tax year;
- For a local governmental entity that did not have qualified property tax revenue for the 2023 property tax year, the local governmental entity’s qualified property tax revenue for the first year that the local governmental entity has property tax revenue; and
- The local governmental entity’s qualified property tax revenue for the most recent property tax year for which the local governmental entity’s voters approved temporarily waiving the limit.
A temporary property tax credit shall be established to prevent the local government’s property tax revenue from exceeding the limit.
Commercial Property Valuation Reductions – The law reduces the valuation of commercial property from 29% as follows:
- Tax year 2024: 27.9% of the amount equal to the actual value of the property minus the lesser of $30,000 or the amount that causes the valuation for assessment of the property to be $1,000 (alternate amount);
- Tax year 2025: 27% of the actual value of the property;
- Tax years commencing on or after January 1, 2026: 25% of the actual value of the property minus the lesser of 10% of the actual value of the property or $70,000 as increased for inflation.
Residential Real Property Valuation Reductions – The law makes reductions for property tax years as follows:
Tax Year 2024: The law reduces residential real property valuation by continuing the 2023 property tax year reductions to residential real property valuation:
- Multi-Family Residential Real Property: The law reduces the valuation from 6.8% of the actual value of the property to 6.7% of the amount equal to the actual value of the property minus the lesser of $55,000 or the alternate amount; and
- All Other Residential Real Property: The law reduces the valuation from an estimated 7.06% of the actual value of the property to 6.7% of the amount equal to the actual value of the property minus the lesser of $55,000 or the alternate amount.
Tax Year 2025: The law modifies residential real property valuation so that the valuation for all residential real property is:
- For the purpose of a levy imposed by a school district, 7.15% of the actual value of the property; and
- For the purpose of a levy imposed by a local governmental entity that is not a school district, 6.7% of the actual value of the property.
Tax Year 2026 and All Future Tax Years: The law reduces the valuation for all residential real property from 7.15% of the actual value of the property. For all residential real property, the valuation is:
- For the purpose of a levy imposed by a school district, the lesser of 7.15% of the actual value of the property or a percentage of the actual value of the property determined by the property tax administrator pursuant to section 6; and
- For the purpose of a levy imposed by a local governmental entity that is not a school district, 6.95% of the amount equal to the actual value of the property minus the lesser of 10% of the actual value of the property or $70,000 as adjusted for inflation in the first year of each subsequent reassessment cycle.
Adjustable Residential Real Property Valuation – The law requires legislative council staff to notify the property tax administrator of the first year after 2026 in which the local share of total program is equal to or greater than 60% of the total program determined pursuant to the “Public School Finance Act” (act). For every property tax year after that year, the valuation for assessment for all residential real property, for the purpose of a levy imposed by a school district, is equal to the lesser of:
- 7.15% of the actual value of the property; or
- The percentage of the actual value of the property necessary for the local share of total program to equal 60% of the total program determined pursuant to the act, based on the best available information when the property tax administrator determines the percentage of actual value.
Reimbursement of Local Governments – The law establishes a reimbursement mechanism for certain local governmental entities other than school districts to account for property tax revenue lost as a result of the reductions in valuation in the law for the 2024 property tax year. The reimbursement mechanism requires the state to reimburse local governments in an amount equal to the decrease, if any, in assessed value between the 2022 and 2024 property tax years multiplied by the local governments’ mill levy rate from the 2022 property tax year and establishes a fund to make such reimbursements.
Property Tax Deferral Program – Beginning with the 2025 property tax year, the law removes the existing 4% tax-growth cap applicable to property tax deferrals. Beginning with the 2025 property tax year, a person may defer the payment of the portion of real property taxes on the person’s homestead that exceeds the average of the person’s real property taxes paid for the preceding 2 property tax years for the same homestead.
The law was signed by the Governor on May 14, 2024. The law will not take effect if one or both of the following occurs:
- An initiative that reduces valuation for assessment is approved at the November 5, 2024 general election;
- An initiative that requires voter approval for retaining property tax revenue that exceeds a limit is approved at the November 5, 2024 general election is approved.
If the law takes effect after an official declaration of the vote of the November 5, 2024 general election the following exceptions apply:
- Section 3 takes effect only if Senate Bill 24-111 does not become law;
- Section 4 and 8 take effect only if Senate Bill 24-111 becomes law;
- Section 6 takes effect only if House Bill 24-1448 does not become law; and
- Section 7 takes effect only if House Bill 24-1448 becomes law.
Community Association Legislation
View the text of HB24-1233
The law modifies procedural requirements with which a unit owners’ association must comply when seeking payment of delinquent amounts owed by a unit owner, including:
- Removing a requirement that an HOA physically post notice of a unit owner’s delinquent account on the unit owner’s unit;
- In addition to sending notice of a delinquency by certified mail, requiring that an HOA contact a unit owner about the unit owner’s delinquent account by two of the following means: by telephone, by text, or by e-mail; and
- Allowing an HOA to charge a unit owner for the cost of sending notices or documentation by certified mail.
The law was signed by the Governor on June 3, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of HB24-1313
The law creates a new category of local government – a transit-oriented community defined as a local government that is either (1) entirely within a metropolitan planning organization; has a population of 4,000 or more; and contains at least 75 acres of certain transit-related areas OR (2) the local government is a county, contains either a part of a transit station area that is both in an unincorporated part of the county and within ½ mile of a station that serves a commuter rail service or light rail or a transit corridor area that both is an unincorporated part of the county and is fully encompassed by one or more municipalities. Per the statute, transit-oriented communities to reach housing opportunity goals, which are density related. Owner’s associations are prohibited from adopting or enforcing policies restricting the development of housing more than the local law that applies within a transit-oriented community.
The law was signed by the Governor on May 13, 2024, and takes effect immediately.
View the text of HB24-1337
This law relates to the rights of an owner in a common interest community relative to the collection of amounts owed by the owner in the common interest community. Notably:
- In relation to the collection of assessments or other money owed to the association, without a lawsuit, the reimbursement an owner will be required to make to the association for attorney fees are limited to the lesser of $5,000 or 50% of the amount of assessments or other money owed.
- In relation to covenant enforcement, without a lawsuit, the reimbursement the association could seek and be entitled to for reimbursement from the owner for attorney fees is limited to the lesser of $5,000 or 50% of the actual costs incurred by the association or the unit owner for the failure to obey.
- If a lawsuit is filed for collection of any money owed to the association, and the association prevails, the amount the association can be awarded for attorney fees are limited to the lesser of $5,000 or 50% of the actual costs incurred by the association. The law provides an exception to this limitation if the court finds that the unit owner was financially, physically, and reasonably able to comply but willfully failed to do so.
- The dollar limit on attorney fees in the statute are subject to adjustment for inflation.
- Associations are not be able to bring a foreclosure action for a lien on an owner-occupied unit unless (1) the association has obtained a personal judgment against the owner; (2) the association has attempted to bring a personal action against the owner, but is prevented from doing so by the death or incapacity of the owner; (3) the association attempted to bring a personal action against the owner but is unable to serve the owner within 180 days; or (4) the owner is in bankruptcy.
- Prior to initiating a foreclosure, an association must provide the unit owner with 30 days’ written and electronic notice that the unit owner has the right to engage in mediation prior to litigation.
- The law prevents an association from foreclosing on its lien if an owner is in compliance with the payment plan the association is required to offer.
- The law creates a right of redemption for 180 days following a foreclosure sale, with an order of priority of those with a right to redeem.
The law was signed by the Governor on June 5, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of HB24-1383
The law clarifies who is to sign a declaration that forms a common interest community and any amendment to a declaration that adds real estate to the community.
The law was signed by the Governor on May 15, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
Content
View the text of SB24-021
The law exempts a cooperative or planned community created on or after July 1, 1992 that either contains only units restricted to nonresidential use or contains no more than twenty (20) units and is not subject to any developer rights OR a planned community with a declaration that provides the annual average common expense liability of each unit restricted to residential purposes must not exceed $400 (as adjusted since July 1, 1999 for changes in the CPI) from the Colorado Common Interest Ownership Act, with the exception of a limited number of provisions.
The law was signed by the Governor on April 11, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of SB24-134
The law provides that unit owners associations cannot prohibit the operation of a home-based business in a common interest community.
The law was signed by the Governor on April 19, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
Other Noteable Legislation
View the text of HB24-1007
The law prevents local governments, defined as a home rule or statutory city, home rule or statutory county, town, territorial charter city, city and/or county, from limiting the number of people who may live together in a single dwelling based on familial relationship.
The law was signed by the Governor on April 14, 2024, and takes effect July 1, 2024
View the text of HB24-1051
The law modifies HB-22-1314 Towing Carrier Nonconsensual Tows passed in 2022 to allow the public utilities commission additional authority to deny new carrier permits as well as refuse renewal or suspend current carrier permits. The law additionally revises the steps required to be carried out by the tow carrier at the time of a tow and while storing a vehicle, and prohibits a towing carrier from patrolling or monitoring a property to enforce parking policies on behalf of the property owner. The provisions of this law apply exclusively to tows conducted on private property.
The law was signed by the Governor on May 30, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of HB24-1091
The law prohibits covenants and other restrictions that do not allow the installation, use or maintenance of fire-hardened building materials in residential properties, including in common interest communities. The common interest community may adopt reasonable standards as to the design, dimensions, placement or external appearance of the fire-hardened building materials used for fencing within the community, with the limitation that the standards may not increase the cost of fencing by more than ten percent or require a review period of more than sixty days.
The law was signed by the Governor on March 12, 2024, and takes effect immediately.
View the text of HB24-1152
The law requires municipalities and counties of a certain size, residing within a metropolitan planning organization, to allow for one accessory dwelling unit of a certain size as an accessory use to a single-unit detached dwelling, where single-unit detached dwellings are currently allowed. The same jurisdictions are prohibited from enacting or enforcing certain local laws restricting the construction or conversion of an ADU or requiring that an ADU be occupied by the property owner.
The law also establishes criteria for a jurisdiction to qualify as a supportive jurisdiction by adhering to specific filings and by implementing strategies to encourage and facilitate construction or conversion of ADUs and a program for the Colorado Housing and Finance Authority to provide direct loans for the construction and conversion of an ADU.
The law was signed by the Governor on May 13, 2024, and takes effect immediately.
View the text of HB24-1172
The law creates a process for the establishment of a county revitalization authority. The authority is a corporate body that may use tax increment and private financing to conduct a county revitalization projects in a revitalization area in accordance with a county revitalization plan.
The law was signed by the Governor on June 4, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of HB24-1173
This law establishes an expedited permitting process for counties and municipalities for the approval of electric vehicle charging stations.
The law was signed by the Governor on May 21, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of HB24-1269
The law creates a flat fee for recording certain documents with county clerks and recorders rather than a per-page fee. The documents associated with the flat fee includes: filing bonds and licenses; recording plats; entering subsequent taxes paid in tax sale records; entering certificates of redemption in tax sale records and recording all certificates, affidavits, deeds or other documents containing the name of one or more mining claims.
The law was signed by the Governor on June 4, 2024, and takes effect July 1, 2025, unless a referendum is filed. If a referendum is filed, then it will be on the November 2024 ballot.
View the text of SB24-058
The law provides that, under the Colorado Recreational Use Statute, an owner does not commit a “willful or malicious failure to guard or warn against a known dangerous condition, use, structure or activity likely to cause harm” if the owner (1) posts a specific warning sign at the primary access point where the individual entered the land; (2) maintains photographic or other evidence of the sign; and (3) the dangerous condition, use, structure or activity that caused the injury or death is described by the sign. The definition of an “owner” includes any public entity as defined in the Colorado Governmental Immunity Act that has an interest in land.
The law was signed by the Governor on May 15, 2024, and takes effect 90 days after the end of the legislative session, August 7, 2024, unless a referendum is filed. If a referendum is filed, then it will be on the November 202