C.R.S. § 39-3-209 — State expenditure for property tax exemptions - mechanism for refunding of excess state revenue - legislative declaration

(1) The general assembly hereby finds and declares that: (a) Although the exemptions allowed by this part 2 are exemptions from local government property taxes, the state must reimburse local governments for the net amount of property tax revenues lost as a result of the exemptions and therefore bears the full cost of the exemptions; (b) Section 3.5 of article X of the state constitution authorizes the general assembly to raise or lower the maximum amount of actual value of residential real property of which fifty percent is exempt pursuant to this part 2; (c) In order to eliminate the cost of the exemption and fund other state needs, the general assembly, as authorized by section 3.5 of article X of the state constitution, has at times temporarily suspended the exemption for qualifying seniors allowed by this part 2 by lowering to zero the maximum amount of actual value of residential real property of which fifty percent is exempt; (d) The general assembly intends to allow seniors to rely on predictable and sustainable exemptions by fully funding the property tax exemption for qualifying seniors in the future, and it is more likely to be able to do so if the cost of the exemption, which exclusively benefits taxpayers who reside in Colorado, constitutes a refund of excess state revenues for state fiscal years for which such refunds are required; and (e) Section 20 of article X of the state constitution authorizes the state to use any reasonable method to make required refunds of excess state revenues, and the payment by the state of reimbursement to local governments for the net amount of property tax revenues lost as a result of the property tax exemptions allowed by this part 2, which exemptions directly reduce the tax liability of taxpaying Colorado residents throughout the state, is a reasonable method of making such refunds. (2) For any state fiscal year commencing on or after July 1, 2017, for which state revenues, as defined in section 24-77-103.6 (6)(c), exceed the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I)(C) or (6)(b)(I)(D), and are required to be refunded in accordance with section 20 of article X of the state constitution, the lesser of all reimbursement paid by the state treasurer to each treasurer as required by section 39-3-207 (4) for the property tax year that commenced during the state fiscal year or an amount of such reimbursement equal to the amount of excess state revenues for the state fiscal year that are required to be refunded is a refund of such excess state revenues. Source: L. 2017: Entire section added, (SB 17-267), ch. 267, p. 1467, § 24, effective May 30. Cross references: For the legislative declaration in SB 17-267, see section 1 of chapter 267, Session Laws of Colorado 2017. 39-3-210. Reporting of property tax revenue reductions - reimbursement of local governmental entities - definitions - local government backfill cash fund - creation - repeal. (Repealed) Source: L. 2022: Entire section added, (SB 22-238), ch. 157, p. 990, § 5, effective May 16. L. 2023 (1)(a.3) and (2.5) added, and (1)(e) amended, (SB 23-303), ch. 258, p. 1487, § 14, effective May 24. L. 2023, 1st Ex. Sess.: (1)(a.2), (1)(d.5), (1)(f.5), (2)(c), (2)(d), (2)(e), (4)(a.5), (4)(e), (4)(f), (4)(g), and (7) added, and (2)(a)(I), (2)(b)(I), (2)(b)(II), (3), IP(4)(a)(I), IP(4)(a)(II), (4)(a)(III), (4)(a)(IV), (4)(a)(V), (4)(b), and (5) amended, (SB 23B-001), ch. 1, p. 2, § 2, effective November 20. L. 2024: (4)(e) repealed, (HB 24-1302), ch. 340, p. 2300, § 2, effective June 3. Editor's note: Subsection (6) provided for the repeal of this section, effective July 1, 2025. (See L. 2022, p. 990.)