§ 29-4-727 — Property taxation - exemption of bonds from taxation

(1) In any
instance where a proposed housing facility or project, whether owned by the
authority or by another sponsor, would qualify for a property tax exemption under
the laws of Colorado, the board may require that, as a condition for a loan or other
assistance under this part 7, any such property shall be subject to an agreement
between the taxing authorities and the authority or the sponsor for payments in lieu
of taxes; except that, in the case of a housing facility, such payments shall not
exceed ten percent of the rentals of such housing facility.

(2) Any bonds issued by the authority under the provisions of this part 7, their
transfer, and the income therefrom, including any profit made on the sale thereof,
shall at all times be free from taxation by the state or any political subdivision or
other instrumentality of the state.

(3) Except where an agreement for payments in lieu of taxes has been
entered into as provided in subsection (1) of this section, where property of the
authority would qualify for a property tax exemption under the laws of this state
and unless property of the sponsor would qualify for a property tax exemption
under the laws of this state, the authority shall annually pay, solely from the
revenues from the project and not from any other source, to this state and to the
city, town, school district, and any other political subdivision or public body
authorized to levy taxes in the jurisdiction in which the project is located, a sum
equal to the amount of tax which the taxing entity would annually receive if title to
the property were held directly by the sponsor, any other law to the contrary
notwithstanding. In addition to the requirements of section 29-4-710.5, the
authority, before entering into a financing agreement for a project pursuant to this
part 7, shall make a prior determination of the sufficiency of revenues for the
purposes of subsection (1) of this section or this subsection (3), and each financing
agreement shall provide for revenues sufficient to meet the payments required by
this subsection (3).

(4) If and to the extent the proceedings under which the notes or bonds
issued to finance the project so provide, the authority may agree to cooperate with
the sponsor of a project in connection with any administrative or judicial
proceedings for determining the validity or amount of any such payments and may
agree to appoint or designate and reserve the right in and for such sponsor to take
all action which the authority may lawfully take in respect of such payments and all
matters relating thereto, but such sponsor shall bear and pay all costs and
expenses of the authority thereby incurred at the request of such sponsor or by
reason of any such action taken by such sponsor in behalf of the authority.

(5) Any sponsor which has made payments in lieu of taxes in accordance
with subsection (1) of this section or paid the amounts required by subsection (3) of
this section to be paid by the authority shall not be required to pay taxes on such
property to the state or to any county, city, town, school district, or other political
subdivision, any other law to the contrary notwithstanding. In the event title to the
project is held directly by a private person or corporation, the financing agreement
shall require such private person or corporation to pay the taxes which such taxing
entity or entities are entitled to receive from such private person or corporation
with respect to the project.

Legislative History

Source: L. 73: p. 814, � 1. C.R.S. 1963: � 69-11-22. L. 82: (1) R&RE, p. 469, �� 11, 12, effective April 23. L. 2007: (1) amended, p. 710, � 13, effective May 3.