Bill Tracker

The bill requires that a petitioner or their agent must comply with the uniform standards of professional appraisal practice (USPAP) when appealing to the BAA, district court, or arbitration. These are the same standards that licensed appraisers must comply with. This bill applies only to appeals of taxes for property that is nonresidential real property and that is not agricultural property. The bill also adds to the required disclosures that a petitioner must provide to the county for an appeal to the BAA concerning rent-producing commercial real property. In these cases, the petitioner must provide additional disclosures.  

1. full copies of all leases that are in place as of the date of the valuation of the property, and  

2. any market data that the petitioner has relied on to determine the value they are requesting for their property instead of the valuation that's been set by the county assessor.

The bill modifies property tax exemptions for certain homeowners, starting with reassessment cycles on or after January 1, 2025. It changes the exemption for qualifying seniors, disabled veterans, and eligible surviving spouses from 50% of the first $200,000 of a home's value to 50% of 50% of the estimated state median home value. If the median home value declines, the exemption remains based on the prior cycle's value. Additionally, if voters approve a constitutional amendment in the 2026 general election, the bill would allow seniors and surviving spouses who previously qualified for the exemption (since 2016) to apply it to a new residence without meeting the 10-year ownership requirement.

The bill introduces a four-installment payment option for property taxes starting in the 2025 tax year. Currently, property taxes must be paid in full by April 30 or in two equal installments (February and June). Under the new option, eligible taxpayers—those owing more than $25 on residential or certain improved commercial properties and not paying through a mortgage escrow—can pay in four equal installments: February 28 April 30 July 15 September 15 However, at least half of the total tax must be paid by April 30 to remain eligible for the installment plan. Taxpayers can also choose to pay in full at any time before a tax lien sale.  If a taxpayer misses the July 15 installment, interest accrues at 1% per month starting July 16. If the September 15 installment is missed, interest accrues at 1% per month from September 16. Additionally, the bill extends the deadline for tax lien sale notices from September 1 to October 15 to accommodate the new installment schedule. County treasurers must include information about this option with tax statements.

The bill states that on and after January 1, 2026, a local government that has enacted a code or an ordinance imposing a minimum wage that exceeds the state minimum wage: may increase the amount of the tip offset associated with the local minimum wage; except that a local government shall not impose a tip offset in an amount that allows a tipped employee to earn less than the state minimum wage minus $3.02.

Increased Lodging Tax Rate: The bill increases the maximum allowable county lodging tax rate from 2% to 6%, subject to local voter approval.

Expanded Use of Revenue: The current law allows lodging tax revenue to be used for: Advertising and marketing local tourism. Housing and childcare for the tourism-related workforce. Facilitating and enhancing visitor experiences. The bill expands the allowable uses to include:

• Public infrastructure maintenance and improvements.
• Enhancing public safety, including funding for local law enforcement, fire departments, and emergency medical services.

Protection of Voter-Approved Allocations: If a county received voter approval before January 1, 2025, to allocate lodging tax revenue to specific purposes, those allocations remain preserved. Any new revenue from a tax rate increase may be allocated to additional allowable uses as permitted under this bill. Voter Approval Requirements: Any proposal to increase the tax rate or expand the use of revenue must be approved by local voters in a general or special election.

Current law allows a property tax exemption for portions of real property leased by a public entity, such as the state, a local government, or a public university, if the property is used for public purposes. Public entities must submit a copy of the lease to the county assessor to claim this exemption.

HB-1289 Changes: Requires metropolitan districts (a type of local government) to submit additional information to the county assessor when they lease property for public use. The district must file a statement detailing: How the property is being used for the district’s purposes. The district’s authority to use the property for these purposes. Any private use of the leased property. Any conflicts of interest disclosed by members of the district’s board regarding the leased property. Review Process If a board member discloses a conflict of interest related to the lease, the assessor must forward this information to the district’s governing body. The governing body must issue a decision within 180 days on whether the property is being used for a public purpose. If the governing body determines the property is not used for a public purpose, it loses its tax-exempt status. This decision is final, meaning it cannot be appealed or challenged in court.

Additionally, the bill clarifies that if a private owner leases property to a public entity but then subleases it back for private use, the property remains taxable to the private owner.

The bill makes the following tax credit, exemption, and revenue changes, with a net positive impact on General Fund revenue starting in FY 2025-26:
Enterprise Zone Investment Tax Credit:
New cap: Limits lifetime claims to $2 million per taxpayer beginning in tax year 2026 (waivers possible via EDC).
Industry exclusions: Oil/gas extraction, hard rock mining, aviation, fuel retail, and wireless infrastructure ineligible.
Fiscal impact: Increases revenue by $10.5 million/year starting in FY 2026-27.
Interstate Telecommunication Services:
Now included in the state sales tax base.
Offers a credit if also taxed by another state.
Fiscal impact: Adds ~$2.4 million/year in new General Fund revenue.
Child Care Center Investment Tax Credit:
Extended through tax year 2028 (previously expired after 2025).
Fiscal impact: Costs ~$200,000/year starting in FY 2026-27.
Business Personal Property Tax Credit:
Repealed beginning tax year 2026.
Fiscal impact: Saves ~$178,600/year by FY 2027-28.
Care Worker Tax Credit (FFN workers):
Expanded to include those providing care outside their own home.
Fiscal impact: Reduces revenue by ~$1.6 million/year starting FY 2026-27.
Fertilizer and Spray Adjuvants (Cannabis):
Now exempt from sales and use tax for marijuana cultivation (previously excluded).
Fiscal impact: Reduces revenue by ~$0.5 million/year starting FY 2026-27.
Medical Marijuana for Indigent Patients:
Easier documentation process using an EBT card instead of tax return.
Fiscal impact: Reduces sales tax revenue by ~$0.5 million/year by FY 2027-28.
Medical Marijuana Registry Fee Waiver:
Allows use of federal (uncertified) tax returns to qualify.
Minimal fiscal impact due to offsetting fee adjustments.
Preservation of Historic Structures Credit:
Removes disaster-area bonus (5% extra credit).
No net impact to state revenue due to existing caps.
Alternative Transportation Options Credit:
Expanded to include counties (previously local governments excluded counties).
Minimal fiscal impact.
Overtime Pay Addition to Income:
Adds federal overtime exclusions (if ever enacted) back into Colorado taxable income.
No current impact (federal law does not exclude overtime pay yet).
Withholding Tax Authority:
DOR can require withholding on non-wage compensation.
Administrative flexibility, no fiscal impact listed.
Insurance Reporting of Exempt Entities:
Insurers must report total premiums collected from tax-exempt entities.
No revenue impact but enhances transparency.

Under current law, sports betting operators are allowed to deduct free bets placed by players when calculating their net sports betting proceeds, the amount on which the sports betting tax is assessed. The amount of free bets that may be deducted is capped under current law at:  2.25 percent of all bets during FY 2024-25;  2.00 percent of all bets during FY 2025-26; and  1.75 percent of all bets beginning in FY 2026-27. On January 1, 2026, the bill reduces the deduction for free bets placed by players to 1 percent of all bets. Beginning in FY 2026-27, the bill ends the deduction for free bets placed by players.

The bill authorizes the State Treasurer to invest up to $50 million in bonds issued by quasi-governmental agencies in order to create or finance new affordable, income-restricted, for-sale housing in the state that, without such investment, would not otherwise be available at similar rates and terms. The terms of the investment may be up to 45 years, and the treasurer must reinvest principal proceeds. The housing created with proceeds of the bonds must remain affordable long-term, and be available to borrowers earning no more than 140 percent of the statewide area median income. The bill allows these investments to be made at a below-market rate of interest, and allows the treasurer to reinvest money received from redemption of any investment.

The bill directs the Department of Revenue (DOR) to allow a sales and use tax license and a sales and use tax exemption certificate to be searchable by the name and identification number of the sales and use tax licensee or the sales and use tax exemption certificate holder.

Under current law, all local governments must conduct an audit of financial statements each fiscal year. However, a local government with revenues or expenditures under $100,000 may apply to be exempted from such an audit, and local governments with revenues or expenditures between $100,000 and $750,000 may apply for an exemption if the application is prepared by an independent accountant with knowledge of government accounting. For any fiscal year beginning on or after January 1, 2025, the bill increases the thresholds from $100,000 to $200,000 and from $750,000 to $1 million.

Requires the executive director of the Department of Labor & Employment to annually expend money credited to the local government severance tax fund in the following manner: (1) for the loss of property tax revenue resulting from the deduction of severance taxes paid in the valuation for assessment of producing mines, or incurred by coal transition communities created due to the closure of coal-fires power plants; (2) for grants to communities socially or economically impacted by development of minerals subject to severance taxation and used for public facilities and public services; and (3) for annual distribution based on community needs, as determined in consultation with local government associations.

Currently, 70% of the money credited to the local government severance tax fund must be distributed to political subdivisions that are socially or economically impacted by the development, processing, or energy conversion of minerals and mineral fuels subject to taxation and used for the planning, construction, and maintenance of public facilities and for the provision of public services, and to compensate political subdivisions for loss of property tax revenue resulting from the deduction of severance taxes paid in the determination of the valuation for assessment of producing mines. 

Senate Bill 25-040 establishes a task force to study the future of severance taxes and water funding in Colorado amid declining severance tax revenue. A third party will conduct the study, and the task force will review and contribute to the findings. A final report with recommendations is due by July 2026 and will be presented during the legislative interim. 

Senate Bill 25-046 establishes uniform confidentiality standards for taxpayer information during local sales and use tax investigations conducted by third-party auditors. It restricts unauthorized disclosure of taxpayer data, with specific exceptions such as providing information to authorized officials or the taxpayer. Violations result in penalties. The bill also clarifies the Colorado Department of Revenue's authority to share taxpayer information with local governments to facilitate coordination and dispute resolution.

This bill creates a new tax exemption aimed at supporting regional transportation authorities. It allows contractors and subcontractors to avoid paying sales tax when they buy construction or building materials that will be used to build, renovate, or repair facilities specifically meant to house employees or contractors working for a regional transportation authority. It also includes a use tax exemption for those same materials—meaning there’s no tax when the materials are stored, used, or consumed for these projects. Finally, the bill gives the transportation authority—or its board—the explicit ability to construct or modify these types of facilities to support their workforce.