The bill establishes that a residential storage condominium unit is a residential improvement. This allows the unit to be assessed as residential real property, which currently has an assessment ratio of 7.96%, instead of as nonresidential property, which has an assessment ratio of 29%.
A residential storage condominium unit is defined to mean a building that is:
- A unit under the 'Colorado Common Interest Ownership Act';
- Used by its owner to store items from or related to the owner's Colorado residence; and
- Not used for storage related to a business.
For a property to qualify as a residential storage condominium unit, the owner of the building unit must submit an affidavit of intended use. The property tax administrator is required to establish the form of the affidavit and to prepare and publish standards for assessors to determine whether a property qualifies as a residential storage condominium unit. The bill establishes penalties for a person that knowingly provides false information on the affidavit.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)