§ 29-1-301 — Levies reduced - limitation

Colorado § 29-1-301

• Jurisdiction: Colorado
• Title 29: Government
• Art.: Budget and Services

Text

(1) (a) All statutory tax levies for
collection in 1989 and thereafter when applied to the total valuation for assessment
of the state, each of the counties, cities, and towns not chartered as home rule
except as provided in this subsection (1), and each of the fire, sanitation, irrigation,
drainage, conservancy, and other special districts established by law shall be so
reduced as to prohibit the levying of a greater amount of revenue than was levied in
the preceding year plus five and one-half percent plus the amount of revenue
abated or refunded by the taxing entity by August 1 of the current year less the
amount of revenue received by the taxing entity by August 1 of the current year as
taxes paid on any taxable property that had previously been omitted from the
assessment roll of any year, except to provide for the payment of bonds and
interest thereon, for the payment of any contractual obligation that has been
approved by a majority of the qualified electors of the taxing entity, for the
payment of expenses incurred in the reappraisal of classes or subclasses ordered
by 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, or for the payment of capital expenditures as
provided in subsection (1.2) of this section. For purposes of this subsection (1), the
amount of revenues received as taxes paid on any taxable property that had been
previously omitted from the assessment roll shall not include the amount of such
revenues received as taxes paid on oil and gas leaseholds and lands that had been
previously omitted from the assessment roll due to underreporting of the selling
price or the quantity of oil or gas sold therefrom. In computing the limit, the
following shall be excluded: The increased valuation for assessment attributable to
annexation or inclusion of additional land, the improvements thereon, and personal
property connected therewith within the taxing entity for the preceding year; the
increased valuation for assessment 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), C.R.S., within the taxing
entity for the preceding year; the increased valuation for assessment attributable
to increased volume of production for the preceding year by a producing mine if
said mine is wholly or partially within the taxing entity and if said increase in volume
of production causes an increase in the level of services provided by the taxing
entity; and the increased valuation for assessment attributable to previously legally
exempt federal property which becomes taxable if such property causes an
increase in the level of services provided by the taxing entity.

(b) For property tax years beginning on or after January 1, 1991, any taxing
entity may apply to the division of local government in the department of local
affairs for authorization to exclude the following from the computation of the
limitation set forth in paragraph (a) of this subsection (1): All or any portion of the
increased valuation for assessment attributable to new primary oil or gas
production for the preceding year from any producing oil and gas leasehold or land
if such oil and gas leasehold or land is wholly or partially within the taxing entity
and if such new primary oil or gas production has caused or will cause an increase
in the level of services provided by the taxing entity.

(c) Any application submitted by a taxing entity pursuant to paragraph (b) of
this subsection (1) shall contain the following information:

(I) An explanation of the causal relationship between the new primary oil or
gas production specified in paragraph (b) of this subsection (1) and the increase in
the level of services provided or to be provided by the taxing entity;

(II) The statutory mill levy and estimated amount of revenue that the taxing
entity would collect if said exclusion is authorized;

(III) The statutory mill levy and estimated amount of revenue that the taxing
entity would collect if said exclusion is not authorized;

(IV) The nature and amount of the expenditures which would be made from
any increased amount of revenues collected if said exclusion is authorized.

(d) Upon receipt of an application which complies with the provisions of
paragraph (c) of this subsection (1), the division of local government may grant or
deny authority to the taxing entity to exclude all or any portion of such increased
valuation for assessment specified in paragraph (b) of this subsection (1). Any
authorization granted pursuant to this paragraph (d) shall specify the amount of
such valuation for assessment which may be excluded. If said exclusion is
authorized by said division, the taxing entity shall deposit any increased amount of
revenues collected as a result of said exclusion into a fund created by the taxing
entity which shall consist solely of such revenues. Moneys in such fund shall be
used exclusively for any increase in the level of services provided by the taxing
entity which occurs as a result of the new primary oil or gas production specified in
paragraph (b) of this subsection (1).

(e) Upon receipt of an application which complies with the provisions of
paragraph (c) of this subsection (1), the division of local government shall provide a
copy of such application to the oil and gas operators of record wherein the taxing
jurisdiction the increased valuation from new primary oil and gas production has
occurred.

(f) Standing to challenge any determination made by the division of local
government pursuant to this subsection (1) shall be limited to the owners of taxable
property located wholly or partially within the taxing entity on the date the taxing
entity is granted or denied authorization to make an exclusion pursuant to this
subsection (1).

(1.2) (a) The limitation provided for in subsection (1) of this section shall not
apply for the purpose of raising revenue to pay for capital expenditures. Such
revenue shall not be included in determining the limitation in following years. For
the purposes of this paragraph (a), capital expenditure means an expenditure
made by a taxing entity for long-term additions or betterments, which expenditure,
under generally accepted accounting principles, is not properly chargeable as an
expense of operation and maintenance. This paragraph (a) shall apply to counties,
cities, and towns.

(b) If a county imposes an increased mill levy pursuant to paragraph (a) of
this subsection (1.2) for a one-time, nonrecurring expenditure for a county road or
bridge capital project or county road or bridge capital asset, the county may also
request that the division of local government waive application of the provisions of
section 43-2-202 (2), C.R.S., to the revenue received from that increased levy. In
that event, said division shall notify the governing body of each municipality in the
county of the request and of the period of time, not less than twenty days, during
which the division will receive comment on the request. In considering whether to
waive application of said section 43-2-202 (2), C.R.S., the division shall consider,
among other relevant matters, the benefit of the project or asset to the
municipalities in the county, the need for the project or asset, and alternative
methods of and timing for financing the project or asset. No approval for such
waiver shall be granted or continued until the division determines that the property
tax revenues in the road and bridge fund, excluding the revenues from such
increased levy, for the year for which the increase is imposed bear at least the same
proportion to all countywide property tax revenues as in the immediate prior year
budget.

(c) Any decision to exceed the limitation for the purpose of raising revenue
for capital expenditures pursuant to this subsection (1.2) shall conform with the
advertising and public hearing requirements of this paragraph (c). No taxing entity
may exceed the limitation to raise such revenue unless the governing board of such
taxing entity has advertised its intention to do so and unless such excess has been
approved by at least two-thirds of the members of such governing board voting at a
public hearing. The advertisement specified in this paragraph (c) shall be in a
newspaper published within the taxing entity, and, if there is no newspaper
published within the taxing entity, then by publication in a newspaper published
within the county which has general circulation within the taxing entity and shall
appear twice therein. The second such appearance shall not be more than eight
days prior to the date upon which the public hearing is to be held. The
advertisement shall be no less than one-quarter page in size and shall have a
caption in capital letters in a type no smaller than twenty-four-point stating a
public hearing shall be held to consider increasing your property taxes for capital
expenditures. Such advertisement shall be in a type no smaller than eighteen-point and shall not be placed in that portion of the newspaper in which legal notices
and classified advertisements appear. Such advertisement shall state that such
board will hold a public hearing, at a time and place fixed in the advertisement, and
the purpose of such hearing and shall apprise the general public of its right to
attend the hearing and make comments regarding the proposed matter. Such
advertisement shall also state what the property taxes would be without such
excess and what the property taxes will be with such excess and the percentage
difference between such property taxes. Any public hearing held pursuant to this
paragraph (c) shall be open to the general public. An opportunity shall be provided
for all persons to present oral testimony within such reasonable time limits as shall
be set by the board conducting the hearing. Prior to the conclusion of the public
hearing, the governing board of the taxing entity shall publicly announce the
percent by which the mill levy required to raise such excess exceeds the mill levy
computed without such excess.

(1.3) Repealed.

(1.5) All property tax revenues, except such revenues as are exempted in
subsection (1) of this section, raised from any property tax levied by a taxing entity
which is subject to this section, shall be combined for the purpose of determining
the total amount of property tax revenue which the taxing entity is allowed to raise
subject to the limitation imposed by this section. The limitation shall be applied to
such aggregate property tax revenues. However, such aggregate amount shall not
include any property tax revenue which is raised by or on behalf of a district,
authority, or area which is within but is not comprised of the entire taxing entity and
which is raised by a tax upon only property within such district, authority, or area;
such property tax revenue is subject to a limitation independent of the limitation
which is applied to the taxing entity within which such district, authority, or area is
located. No statute establishing a set mill levy or establishing a maximum mill levy
or authorizing an additional mill levy for a special purpose shall be construed as
authorizing the taxing entity to exceed the limitation imposed by this section.

(1.7) For property tax years commencing on or after January 1, 1988, any
taxing entity which is subject to the provisions of this section shall not levy any
property tax for purposes which are exempt from the limitation imposed by
subsection (1) of this section in an amount which is greater than the amount of
revenues required to be raised for such purposes during any year as specified by
the provisions of any contract entered into by such taxing entity or any schedule of
payments established for the payment of any obligation incurred by such taxing
entity. Where bonds, contractual obligations, or capital expenditures have been
approved, but actual revenues required for such purposes are not known at the time
the levy is set, the taxing entity may base its levy on the estimated revenues which
are so required for one year only and in subsequent years the levy shall be based on
the actual revenues which are so required. Nothing in this subsection (1.7) shall
preclude refunding of any obligation or contract.

(2) If an increase over said limitation is allowed by the division of local
government in the department of local affairs or voted by the electors of a taxing
entity under the provisions of section 29-1-302, the increased revenue resulting
therefrom shall be included in determining the limitation in the following year.
However, any portion of such increased revenue which is allowed as a capital
expenditure pursuant to section 29-1-302 (1.5) shall not be included in determining
the limitation in the following year.

(3) The limitations of this part 3 shall apply to home rule counties unless
provisions are included in the county home rule charter which are, as determined by
the division of local government, equal to or more restrictive than the provisions of
this part 3.

(4) In the event of a consolidation or merger, in whole or in part, of two or
more political subdivisions or taxing entities, the surviving entity or the entity
assuming service responsibilities shall use a direct proportion of the combined
entities' prior year property tax revenues as the base for computing the limitation in
the year first succeeding such consolidation or merger.

(5) Repealed.

(6) Where a taxing entity exceeds the limitation imposed by subsection (1) of
this section during any year, the division of local government shall order a reduction
in the authorized revenue of the taxing entity for the subsequent year in an amount
which offsets the excess revenues levied in the preceding year. Such order shall be
preceded by notice to the taxing entity of the proposed order and an opportunity
for the taxing entity to respond prior to issuance of the order.

Legislative History

Source: L. 13: p. 560, � 11. L. 15: p. 403, � 1. L. 17: p. 429, � 1. C.L. � 7214. L. 29: p. 546, � 1. L. 31: p. 701 � 1. CSA: C. 142, � 39. L. 52: p. 142, � 1. CRS 53: � 36-3-2. L. 55: p. 253, � 1. C.R.S. 1963: � 88-3-1. L. 69: p. 1053, � 24. L. 70: p. 378, � 3. L. 71: p. 957, � 1. L. 76: Entire section amended, p. 685, � 1, effective July 1. L. 80: (1) amended, p. 678, � 2, effective April 13. L. 81: (1) and (2) amended and (1.3) and (1.5) added, p. 1395, � 5, effective June 19; (1) amended, p. 1612, � 6, effective June 19. L. 83: (1) amended and (1.2) added, p. 1199, � 1, effective May 25; (1) amended, p. 1196, � 1, effective June 3; (1) amended, p. 2085, � 3, effective October 13. L. 85: (1.2)(c) amended, p. 1024, � 1, effective July 1. L. 86: (1), (1.2)(a), (1.2)(c), (1.5), and (2) amended and (1.3) R&RE, pp. 1021, 1023, �� 2, 3, effective May 16. L. 87: (1) amended, p. 1178, � 1, effective April 16; (1.2)(a), (1.5), and (4) amended, p. 1181, � 1, effective April 30; (1.2)(c) amended, p. 1184, � 1, effective May 1. L. 88: (1) and (1.3) amended and (1.7) and (6) added, p. 1279, � 3, effective May 23; (1) amended, p. 1099, � 1, effective May 29; (1.3) amended and (5) added, p. 1268, � 3, effective May 29. L. 89: (1) amended, p. 1467, � 35, effective June 7. L. 90: (1) amended, p. 1704, � 39, effective June 9. L. 91: (1) amended, p. 1969, � 1, effective April 19. L. 93: (1)(a) amended, p. 1281, � 1, effective June 6. L. 96: (1)(a) amended, p. 16, � 1, effective February 22.