Colorado § 29-1-1702.5 - School district property tax limit imposition - temporary residential valuation for assessment adjustment - correction - definitions.

§ 29-1-1702.5. School district property tax limit imposition - temporary residential valuation for assessment adjustment - correction - definitions.

(1) As used in this section, unless the context otherwise requires:

(a) "Balancing percentage" means the valuation for assessment of all residential real property, for the purpose of a levy imposed by a school district, necessary for school district qualified local share property tax revenue to equal the school district property tax limit.

(b) "Correction percentage" means the difference between the counterfactual percentage and the valuation for assessment of all residential real property for the purpose of a levy imposed by a school district for the immediately preceding property tax year.

(c) "Counterfactual percentage" means the valuation for assessment of all residential real property for the immediately preceding property tax year for the purpose of a levy imposed by a school district that would have resulted in school district qualified local share property tax revenue equaling the school district property tax limit.

(2) For property tax years commencing on or after January 1, 2025, qualified local share property tax revenue for all school districts from a property tax year must not increase by more than the school district property tax limit.

(3) (a) If the qualified local share property tax revenue for school districts from a property tax year commencing on or after January 1, 2025, would otherwise exceed the school district property tax limit, the valuation for assessment for all residential real property, for the purpose of a levy imposed by a school district, is temporarily reduced for that property tax year to the total of the balancing percentage calculated by the state board of equalization pursuant to subsection (4)(d) of this section and, if the school district qualified local share property tax revenue exceeded the school district property tax limit in the immediately preceding property tax year, the correction percentage.

(b) If the qualified local share property tax revenue for school districts from a property tax year commencing on or after January 1, 2025, is not projected to exceed the school district property tax limit, the valuation for assessment for all residential real property, for the purpose of a levy imposed by a school district, is temporarily reduced, as calculated by the state board of equalization pursuant to subsection (4)(d) of this section, for that property tax year by the correction percentage if the school district qualified local share property tax revenue exceeded the school district property tax limit in the immediately preceding property tax year.

(c) A temporary reduction in the valuation for assessment that applies to that residential real property for the purpose of a levy imposed by a school district pursuant to subsection (3)(a) of this section does not change the underlying valuation for assessment that applies to that residential real property for the purpose of a levy imposed by a school district. Therefore, reducing the amount of the temporary reduction in the valuation for assessment that applies to residential real property for the purpose of a levy imposed by a school district pursuant to subsection (3)(a) or (3)(b) of this section, or removing such a temporary reduction, from one property tax year to the next does not require prior voter approval under section 20 (4)(a) of article X of the state constitution.

(d) (I) Notwithstanding subsections (3)(a) and (3)(b) of this section, the valuation for assessment established pursuant to subsection (3)(a) of this section must not exceed the valuation for assessment established in section 39-1-104.2 that applies to residential real property for the purpose of a levy imposed by a school district.

(II) Notwithstanding subsection (2) of this section and section 29-1-1703 (3), qualified local share property tax revenue may exceed the school district property tax limit for a property tax year if doing so is a result of establishing the valuation for assessment pursuant to subsections (3)(a) and (3)(b) of this section.

(4) (a) (I) Repealed.

(II) No later than August 25, 2025, and each August 25 thereafter, an assessor shall report to the property tax administrator in the division of property taxation in the department of local affairs the information that the administrator determines necessary to determine the amount of qualified local share property tax revenue for purposes of section 29-1-1701 (2.5)(a)(I) to (2.5)(a)(VII) for the relevant property tax year.

(b) (I) Repealed.

(II) No later than October 31, 2025, and each October 31 thereafter, the property tax administrator in the division of property taxation in the department of local affairs shall report to legislative council staff the information that the legislative council staff determines necessary to determine the amount of qualified local share property tax revenue for purposes of section 29-1-1701 (2.5)(a)(I) to (2.5)(a)(VII) for the relevant property tax year.

(c) No later than January 15, 2025, and each January 15 thereafter, legislative council staff shall provide the state board of equalization with the information necessary to calculate the balancing percentage and correction percentage for the relevant property tax year and the counterfactual percentage for the immediately preceding property tax year.

(d) No later than twenty-one days after receiving the information provided by legislative council staff pursuant to subsection (4)(c) of this section, the state board of equalization shall meet and submit a report to the general assembly that calculates, as applicable, the total of the balancing percentage and the correction percentage for the relevant property tax year or the total of the valuation for assessment that applies to that residential real property for the purpose of a levy imposed by a school district and the correction percentage for the relevant property tax year.

Source: L. 2024, 2nd Ex. Sess.: Entire section added, (HB 24B-1001), ch. 1, p. 5, § 4, effective October 1 (see editor's note).

Editor's note: (1) Section 19 of chapter 1 (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session, provides that the act adding this section takes effect only if SB 24-233 takes effect and takes effect upon the effective date of SB 24-233. SB 24-233 took effect on October 1, 2024, due to an amendment to the effective date of SB 24-233 by section 18 of chapter 1 (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session.

(2) Subsections (4)(a)(I)(B) and (4)(b)(I)(B) provided for the repeal of subsections (4)(a)(I) and (4)(b)(I), respectively, effective July 1, 2025. (See L. 2024, 2nd Ex. Sess., p. 5.)