C.R.S. § 39-3-211 — Reporting of assessed value reductions - reimbursement of local governmental entities - local governmental entity backfill cash fund - creation - legislative declaration - definitions - repeal

(1) The general assembly finds and declares that: (a) Most school districts rely on a combination of state and local sources of revenue to pay for total program funding; (b) State revenue makes up the difference between the full amount of a school district's total program funding and the amount of a school district's total program funding that the school district pays for with its property tax revenue; (c) The amount of state revenue necessary to make up the difference between the full amount of a school district's total program funding and the amount of a school district's total program funding that the school district pays for with its property tax revenue is annually determined by the general assembly in the annual public school finance act; (d) Therefore, it is the general assembly's expectation and intent that, although school district property tax revenue is reduced by Senate Bill 24-233, the general assembly will increase the amount of state revenue that it annually distributes to school districts in order to maintain or increase school district total program funding; (e) The general assembly will reimburse local governmental entities that rely on property tax revenue other than school districts, at least in part, through the reimbursement described in this section; and (f) It is the intent of the general assembly to review both the impact of the property tax revenue reductions in Senate Bill 24-233 and the reimbursement described in this section on local governmental entities to ensure that local governmental entities can maintain the current level of critical services they provide. (2) As used in this section, unless the context otherwise requires: (a) County includes a city and county. (b) Fund means the local governmental entity backfill cash fund created in subsection (7)(a) of this section. (c) Local governmental entity 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. (3) For the property tax year commencing on January 1, 2024, each assessor shall: (a) Calculate the decrease, if any, in the total assessed value of real property for each local governmental entity within the assessor's county between the property tax year commencing on January 1, 2022, and the property tax year commencing on January 1, 2024; and (b) Determine each local governmental entity's mill levy for the property tax year commencing on January 1, 2022, excluding any mills levied 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 governmental entity's voters voting thereon. (3.5) For the property tax year commencing on January 1, 2025, each assessor shall: (a) Calculate the decrease, if any, in the total assessed value of real property for each local governmental entity within the assessor's county between the property tax year commencing on January 1, 2024, and the property tax year commencing on January 1, 2025, as a result of House Bill 24B-1001; and (b) Determine each local governmental entity's mill levy for the property tax year commencing on January 1, 2024, excluding any mills levied 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 governmental entity's voters voting thereon. (4) No later than March 1, 2025, an assessor shall report the amounts calculated pursuant to subsection (3)(a) of this section, as applicable, the basis for the amounts, and the mill levies determined pursuant to subsection (3)(b) of this section to the administrator. No later than March 1, 2026, an assessor shall report the amounts calculated pursuant to subsection (3.5)(a) of this section, as applicable, the basis for the amounts, and the mill levies determined pursuant to subsection (3.5)(b) of this section to the administrator. The administrator may require an assessor to provide additional information as necessary to evaluate the accuracy of the amounts reported. The administrator shall confirm that the reported amounts are correct or rectify the amounts if necessary. The administrator shall then forward the correct amounts for a county to the state treasurer to enable the state treasurer to issue a reimbursement warrant to a treasurer in accordance with subsection (5) of this section. (5) (a) No later than April 15, 2025, the state treasurer shall issue a warrant, to be paid upon demand from the fund, to each treasurer that is equal to the total reimbursement amounts set forth in subsection (6) of this section for all local governmental entities within the treasurer's county. (a.5) No later than April 15, 2026, the state treasurer shall issue a warrant, to be paid upon demand from the fund, to each treasurer that is equal to the total reimbursement amounts set forth in subsection (6.5) of this section for all local governmental entities within the treasurer's county. (b) Each treasurer shall distribute the total amount received from the state treasurer to the local governmental entities, excluding school districts, within the treasurer's county as if the amount had been regularly paid as property tax so that the local governmental entities receive the amounts determined pursuant to subsections (6) and (6.5) of this section. If the total amount received from the state treasurer is reduced pursuant to subsections (6)(b) and (6.5)(b) of this section, each treasurer shall proportionally reduce the amount distributed to each local governmental entity. When distributing the total amount received from the state treasurer, each treasurer shall provide each local governmental entity with a statement of the amount distributed to the local governmental entity that represents the reimbursement received under subsections (6) and (6.5)(b) of this section. (6) (a) For each local governmental entity that had a decrease in total assessed value of real property from the property tax year commencing on January 1, 2022, to the property tax year commencing on January 1, 2024, the amount of reimbursement is an amount equal to that decrease in total assessed value multiplied by the local governmental entity's mill levy for the property tax year commencing on January 1, 2022, excluding any mills levied 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 governmental entity's voters voting thereon. (b) Notwithstanding subsection (6)(a) of this section, if there is insufficient money in the fund for the state treasurer to issue warrants pursuant to subsection (5)(a) of this section in the amounts determined pursuant to subsection (6)(a) of this section, the amounts of the warrants issued by the state treasurer must be proportionally reduced. (c) The reimbursement amounts set forth in this section are based on the amounts that the administrator reports to the treasurer in accordance with subsection (4) of this section. (6.5) (a) For each local governmental entity that had a decrease in total assessed value of real property from the property tax year commencing on January 1, 2024, to the property tax year commencing on January 1, 2025, as a result of House Bill 24B-1001, the amount of reimbursement is an amount equal to that decrease in total assessed value multiplied by the local governmental entity's mill levy for the property tax year commencing on January 1, 2024, excluding any mills levied 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 governmental entity's voters voting thereon. (b) Notwithstanding subsection (6.5)(a) of this section, if there is insufficient money in the fund for the state treasurer to issue warrants pursuant to subsection (5)(a.5) of this section in the amounts determined pursuant to subsection (6.5)(a) of this section, the amounts of the warrants issued by the state treasurer must be proportionally reduced. (c) The reimbursement amounts set forth in this section are based on the amounts that the administrator reports to the treasurer in accordance with subsection (4) of this section. (7) (a) The local governmental entity backfill cash fund is hereby created in the state treasury. The fund consists of money transferred to the fund in accordance with subsection (7)(b) of this section. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the local governmental entity backfill cash fund to the fund. (b) On April 1, 2025, the state treasurer shall transfer from the sustainable rebuilding program fund created in section 24-38.5-115 (7) to the local governmental entity backfill cash fund ten million three hundred eleven thousand two hundred thirty-three dollars. (c) The money in the fund is available for the state treasurer to pay the warrants required to be issued in accordance with subsection (5) of this section. (d) After issuing every warrant required pursuant to subsection (5)(a.5) of this section, the state treasurer shall credit any unexpended and unencumbered money remaining in the fund at that time to the sustainable rebuilding program fund created in section 24-38.5-115 (7). (8) This section is repealed, effective July 1, 2027. Source: L. 2024: Entire section added, (SB 24-233), ch. 171, p. 921, § 9, effective October 1 (see editor's note). L. 2024, 2nd Ex. Sess.: (3.5), (5)(a.5), and (6.5) added and (4), (5)(b), (7)(d), and (8) amended, (HB 24B-1001), ch. 1, p. 20, § 15, effective October 1 (see editor's note). Editor's note: (1) Section 18 of chapter 1, (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session, amended section 14 of chapter 171, (SB 24-233), Session Laws of Colorado 2024, to change the effective date of SB 24-233 to October 1, 2024, if both an initiative that reduces valuations for assessment and an initiative that requires voter approval for retaining property tax revenue that exceeds a limit are withdrawn pursuant to § 1-40-134 from the statewide ballot for the general election held on November 5, 2024. On September 4, 2024, the secretary of state announced both an initiative that reduces valuations for assessment and an initiative that requires voter approval for retaining property tax revenue that exceeds a limit were withdrawn from the 2024 general election ballot. (2) Section 19 of chapter 1 (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session, provides that the act changing this section takes effect only if SB 24-233 takes effect and takes effect upon the effective date of SB 24-233. SB 24-233 took effect on October 1, 2024, due to an amendment to the effective date of SB 24-233 by section 18 of chapter 1 (HB 24B-1001), Session Laws of Colorado 2024, Second Extraordinary Session. Deferrals ARTICLE 3.5 Tax Deferral for the Elderly and Military Personnel Law reviews: For article, Survey of Colorado Tax Liens, see 14 Colo. Law. 1765 (1985); for article, An Update of Appendices from Collecting Pre- and Post-Judgment Interest in Colorado, see 15 Colo. Law. 990 (1986).