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Matters Related To Tax Relief For Tax Year 2023

Concerning tax relief, and, in connection therewith, providing temporary property tax reductions for the 2023 property tax year, providing temporary income tax reductions for the 2023 income tax year, and establishing a temporary task force to make recommendations concerning property taxation.
2023 Extraordinary Session
Fiscal Policy & Taxes
Local Government
State Government
State Revenue & Budget
Bill Summary

Section 2 of the bill, for property tax year 2023, reduces the valuation for assessment to 25% for lodging property and non-residential property that is not lodging, agricultural, or renewable energy production property, producing mines, or lands or leaseholds producing oil and gas. Additionally, the valuation of assessment for lodging property and improved commercial property is 25% of an amount equal to the actual value minus the lesser of $60,000 or the amount that reduces the valuation for assessment to $1,000. Sections 3 and 4 , for property tax year 2023, reduce the valuation for assessment for multi-family residential real property and residential real property that is not multi-family to 6.5% of the amount equal to the actual value of such property minus the lesser of $80,000 or the amount that causes the valuation for assessment of the property to be $1,000. Section 5 makes a conforming amendment. Sections 6 and 7 modify the backfill mechanism established by Senate Bill 22-238 to offset reductions in local governmental entities' property tax revenue in order to require the backfill to be paid with unrestricted money in the general fund, including money that would otherwise have been required to be retained as a reserve to the unrestricted general fund year-end balance for the state fiscal year 2022-23. Additionally, the process established by Senate Bill 22-238 requires that the state treasurer issue a warrant to county treasurers for disbursement to local governmental entities no later than April 15, 2024. Section 6 also allows the warrant to be expedited if a county treasurer completes the reporting requirements regarding property tax revenue lost to local governmental entities on or before February 15, 2024. Section 8 creates the property tax task force (task force). The task force consists of both members of the general assembly and individuals who are not members of the general assembly. The purpose of the task force is to develop a permanent and sustainable tax structure for the state of Colorado. The task force is required to:

  • Convene by December 1, 2023;
  • Meet as many times as necessary in 2023; and
  • Submit a report by December 31, 2023 to the finance committees of the house of representatives and the senate.

After the task force makes its report the task force is disbanded.

Sections 9, 10, and 11 , for the income tax year commencing on January 1, 2023, reduce both the individual and the corporate state income tax rates from 4.40% to 4% and exempt the rate reductions from the existing statutory requirements that tax expenditure legislation include a tax preference performance statement in a statutory legislative declaration. Sections 12, 15, 16, 17, 18, and 19 delay several property tax deadlines for the 2023 property tax year. Sections 13 and 14 modify provisions in the "Local Government Budget Law of Colorado" for the 2024 fiscal year to account for impacts on a local government's budget due to changes to the assessed valuation of property within the local government's boundaries pursuant to the bill. Section 22 waives the accrual of interest on delinquent property tax payments for the first payment of property taxes for the 2023 property tax year if a payment is made within 10 days after the mailing by the county treasurer of the property taxpayer's tax statement or notification of an electronic statement.
(Note: This summary applies to this bill as introduced.)




Bill Text

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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details