Colorado § 31-20-101.7 - Property tax incentive programs for areas of specific local concern - definitions.

§ 31-20-101.7. Property tax incentive programs for areas of specific local concern - definitions.

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

(a) (I) "Area of specific local concern" means a use of real property in a municipality that is determined by the governing body of the municipality to be diminishing or unavailable based on verifiable data and which use the governing body of the municipality finds and declares necessary for the preservation of the health, safety, or welfare of the residents of the municipality, including as to matters of equity, access to housing, and access to education.

(II) "Area of specific local concern" does not include a use of real property in a municipality that harms or may reasonably be expected to harm a disproportionately impacted community as defined in section 24-4-109 (2)(b)(II).

(III) "Area of specific local concern" does not include a use of real property in a municipality that prevents or may reasonably be expected to prevent meeting the minimum greenhouse gas emission reduction goals and deadlines established in section 25-7-102 (2)(g).

(b) "Governing body" has the same meaning as set forth in section 31-1-101 (4).

(c) "Incentive program" means a property tax credit or rebate program intended and designed to directly incentivize improvement in an area of specific local concern as specified in an ordinance adopted by a governing body of a municipality.

(d) "Municipal property tax credit or rebate" means a partial or full credit or refund of municipal property taxes owed or paid by a program participant in accordance with a municipal property tax levy.

(e) "Municipality" has the same meaning as set forth in section 31-1-101 (6).

(f) "Program participant" means an owner of real property in the municipality that has applied and meets the criteria set forth by ordinance adopted by the governing body of a municipality to participate in an incentive program and that in fact participates in the incentive program.

(2) Notwithstanding any law to the contrary, a municipality may offer an incentive, in the form of a municipal property tax credit or rebate, to a property owner that is a program participant in an incentive program established in accordance with this section.

(3) (a) An incentive program must be established by ordinance adopted by a governing body of a municipality at a hearing that is open to the public and that includes an opportunity for public testimony. The municipality must notify the clerk and recorder of each county that includes all or any portion of the municipality and that may be impacted by the incentive program of the hearing at least thirty days in advance. The notice must describe the specific area of local concern, including the use of real property, addressed by the incentive program and the proposed municipal property tax credit or rebate. Each county must have an opportunity to submit written comments and provide testimony at the hearing.

(b) An ordinance adopted by a governing body of a municipality must include:

(I) The governing body's findings and determinations regarding the diminishment or unavailability of a use of real property in the municipality that gives rise to an area of specific local concern that is the basis for the incentive program; and

(II) Specific criteria for the qualification of program participants.

(4) The opportunity to be a program participant must be equally available to all owners of the same class of real property located in the municipality whose use of their property is an area of specific local concern.

(5) (a) The governing body of a municipality shall, on an annual basis, evaluate each incentive program established pursuant to this section to determine its effectiveness in improving each area of specific local concern identified in the ordinance creating the incentive program.

(b) The governing body of a municipality shall, on an annual basis, publicize the results of the evaluation of each incentive program established pursuant to this section at a hearing that is open to the public and that includes an opportunity for public testimony.

(c) The governing body of a municipality may renew an incentive program for not more than one year if the governing body of the municipality determines that the incentive program has been and is likely to continue to be effective in addressing each area of specific local concern identified in the ordinance creating the incentive program.

Source: L. 2024: Entire section added, (SB 24-002), ch. 25, p. 75, § 5, effective August 7.

Cross references: For the legislative declaration in SB 24-002, see section 1 of chapter 25, Session Laws of Colorado 2024.