C.R.S.
Section 29-1-306
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(1)
As used in this section, unless the context otherwise requires:(a)
“Inflation” means the annual percentage change in the united states department of labor’s bureau of labor statistics consumer price index for Denver-Aurora-Lakewood for all items paid by all urban consumers, or its applicable successor index.(b)
“Local government” means a governmental entity authorized by law to impose ad valorem taxes on taxable property located within its territorial limits; except that the term excludes school districts and any county, city and county, city, or town that has adopted a home rule charter.(c)
“Property tax limit” means the limit established in subsection (2) of this section on a local government’s property tax revenue for a property tax year.(2)
Intentionally left blank —Ed.(a)
For property tax years commencing on and after January 1, 2023, a local government’s property tax revenue for a property tax year shall not increase by more than inflation from the local government’s property tax revenue for the prior property tax year, unless the governing body of the local government approves the increase in accordance with subsection (4) of this section. The governing body may enact a temporary property tax credit that is up to the number of mills necessary to prevent the local government’s property tax revenue from exceeding this property tax limit.(b)
The limit set forth in subsection (2)(a) of this section is based on the United States department of labor’s bureau of labor statistics most recently published estimate of inflation for the prior calendar year that is available as of December 15 of the property tax year for which the limit is being calculated.(3)
Intentionally left blank —Ed.(a)
For purposes of calculating the property tax limit, property tax revenue that is from the following sources or is used for the following purposes is excluded from property tax revenue for the property tax year:(I)
Property tax revenue from the increased valuation for assessment within the taxing entity for the preceding year that is attributable to new construction and personal property connected therewith, as defined by the property tax administrator in manuals prepared pursuant to section 39-2-109 (1)(e);(II)
Property tax revenue from the increased valuation for assessment attributable to a change in law for a property tax classification or to the annexation or inclusion of additional land, the improvements thereon, and personal property connected therewith within the taxing entity for the preceding year;(III)
Property tax revenue for property that had previously been omitted from the assessment roll;(IV)
Property tax revenue abated or refunded by the local government during the property tax year;(V)
Property tax revenue attributable to previously legally exempt federal property that becomes taxable if such property causes an increase in the level of services provided by the local government; and(VI)
Any amount for the payment of expenses incurred in the reappraisal of classes or subclasses ordered or conducted by the state board of equalization for the payment to the state of excess state equalization payments to school districts, which excess is due to the undervaluation of taxable property.(b)
For purposes of calculating the property tax limit, property tax revenue that is from the following sources or is used for the following purposes is excluded from property tax revenue for the property tax year and the prior property tax year:(I)
Property tax revenue from producing mines or lands or leaseholds producing oil or gas;(II)
An amount to provide for the payment of bonds and interest thereon, or for the payment of any other contractual obligation that has been approved by a majority of the local government’s voters voting thereon at any election held before, on, or after November 7, 2023; and(III)
Any revenue from a mill levy that has been approved by voters of the local government, without limitation as to rate or amount, at any election held before, on, or after November 7, 2023.(c)
A temporary property tax credit created under subsection (2)(a) of this section does not change the underlying mill levy imposed by a local government. Reducing or eliminating a temporary property tax credit does not require prior voter approval under section 20 (4)(a) of article X of the state constitution.(4)
A local government may impose a mill levy that would exceed the property tax limit if the following procedures are followed:(a)
The governing body of the local government must publish notice of its proposed intent to exceed the property tax limit in a newspaper in each county in which the local government is located and on the website of the governing body, if the governing body maintains a website, at least ten days in advance of the public hearing at which the mill levy is to be approved;(b)
The notice must include:(I)
The proposed mill levy if the governing body approves a mill levy that would exceed the property tax limit;(II)
Any temporary property tax credits; and(III)
The date, time, and location of the public hearing;(c)
The governing body of the local government must provide the public an opportunity to present oral testimony at an open meeting within reasonable time limits and without an unreasonable restriction on the number of individuals allowed to make public comment; and(d)
The governing body of the local government must adopt a resolution or ordinance to approve a mill levy that exceeds the property tax limit at the public hearing after the governing body has heard from interested taxpayers.(5)
The final decision by a governing body to impose a mill levy that exceeds the property tax limit in accordance with the procedures set forth in subsection (4) of this section is deemed to be final and conclusive and is not subject to appeal to court.(6)
If a local government exceeds the property tax limit for a property tax year and does not comply with subsection (4) of this section, then the local government shall refund to taxpayers any property taxes collected above the property tax limit.
Source:
Section 29-1-306 — ], https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-29.pdf (accessed Oct. 20, 2023).
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