(1) (a) For property tax
years commencing before January 1, 2025, the valuation for assessment of all
taxable property in the state is twenty-nine percent of the actual value thereof as
determined by the assessor and the administrator in the manner prescribed by law,
and that percentage shall be uniformly applied, without exception, to the actual
value, so determined, of the real and personal property located within the territorial
limits of the authority levying a property tax, and all property taxes shall be levied
against the aggregate valuation for assessment resulting from the application of
that percentage.
(b) Notwithstanding subsection (1)(a) of this section, for the property tax
years commencing on January 1, 2023, and January 1, 2024, the valuation for
assessment of nonresidential property that is classified as lodging property is
temporarily reduced to twenty-seven and nine-tenths percent of an amount equal
to the actual value minus the lesser of thirty thousand dollars or the amount that
reduces the valuation for assessment to one thousand dollars.
(c) This subsection (1) only applies to nonresidential property that is
classified as lodging property.
(1.5) Repealed.
(1.6) (a) Hotels, motels, bed and breakfasts, and personal property located at
a hotel, motel, or bed and breakfast are classified as lodging property, which is a
subclass of nonresidential property for purposes of the valuation for assessment.
Classification as a lodging property does not affect a partial allocation as
residential real property if a lodging property is a mixed-use property.
(b) Real and personal property valued under section 39-4-102 (1)(e) or (1.5) or
section 39-5-104.7 is classified as renewable energy production property, which is a
subclass of nonresidential property for purposes of the valuation for assessment.
(c) Real and personal agricultural property is a subclass of nonresidential
property for purposes of the valuation for assessment.
(1.8) (a) For property tax years commencing before January 1, 2025, the
valuation for assessment of real and personal property that is classified as
agricultural property or renewable energy production property is twenty-nine
percent of the actual value thereof; except that, for property tax years commencing
on January 1, 2022, January 1, 2023, and January 1, 2024, the valuation for
assessment of this property is temporarily reduced to twenty-six and four-tenths
percent of the actual value thereof.
(b) For property tax years commencing before January 1, 2025, the valuation
for assessment of all nonresidential property that is not specified in subsection (1)
or (1.8)(a) of this section is twenty-nine percent of the actual value thereof; except
that, for the property tax years commencing on January 1, 2023, and January 1,
2024, the valuation for assessment of this property is temporarily reduced to:
(I) For all of the property listed by the assessor under any improved
commercial subclass codes, twenty-seven and nine-tenths percent of an amount
equal to the actual value minus the lesser of thirty thousand dollars or the amount
that reduces the valuation for assessment to one thousand dollars; and
(II) Twenty-seven and nine-tenths percent of the actual value of all other
nonresidential property that is not specified in subsections (1), (1.8)(a), and (1.8)(b)(I)
of this section.
(b.5) Repealed.
(c) The actual value of real and personal property specified in subsection
(1.8)(a) or (1.8)(b) of this section is determined by the assessor and the administrator
in the manner prescribed by law, and a valuation for assessment percentage is
uniformly applied, without exception, to the actual value, so determined, of the
various classes and subclasses of real and personal property located within the
territorial limits of the authority levying a property tax, and all property taxes are
levied against the aggregate valuation for assessment resulting from the
application of the percentage.
(d) As used in this section, unless the context otherwise requires,
nonresidential property means all taxable real and personal property in the state
other than residential real property, producing mines, or lands or leaseholds
producing oil or gas. Nonresidential property includes the subclasses of
agricultural property, lodging property, and renewable energy production property
for purposes of the ratio of valuation for assessment.
(1.9) (a) For the property tax year commencing on January 1, 2025, the
valuation for assessment for personal property and nonresidential real property is
twenty-seven percent of the actual value thereof.
(b) For the property tax year commencing on January 1, 2026, the valuation
for assessment for personal property and nonresidential real property is twenty-six
percent of the actual value thereof; except that, for all property listed by the
assessor under any improved commercial subclass codes and all real or personal
property that is classified as agricultural property, the valuation for assessment is
twenty-five percent of the actual value thereof.
(c) For property tax years commencing on or after January 1, 2027, the
valuation for assessment for personal property and nonresidential real property is
twenty-five percent of the actual value thereof.
(d) The actual value of real and personal property specified in this
subsection (1.9) is determined by the assessor and the administrator in the manner
prescribed by law, and a valuation for assessment percentage is uniformly applied,
without exception, to the actual value, so determined, of the various classes and
subclasses of real and personal property located within the territorial limits of the
authority levying a property tax, and all property taxes are levied against the
aggregate valuation for assessment resulting from the application of the
percentage.
(2) Repealed.
(3) Valuation for assessment, as used in this section and in articles 1 to 13
of this title, means the same as the term assessed valuation as that term may
appear in the laws of this state.
(4) Except as provided in section 39-7-109, nonproducing severed mineral
interests are to be valued at twenty-nine percent of actual value in the same
manner as other real property specified in subsection (1.8)(b) of this section. Such
valuation shall be determined by the assessing officer only upon preponderant
evidence shown by such officer that the cost approach, market approach, and
income approach result in uniform and just and equal valuation.
(5) to (10.1) Repealed.
(10.2) (a) Except as otherwise provided in subsection (12) of this section,
beginning with the property tax year which commences January 1, 1989, a
reassessment cycle shall be instituted with each cycle consisting of two full
calendar years. At the beginning of each reassessment cycle, the level of value to
be used during the reassessment cycle in the determination of actual value of real
property in any county of the state as reflected in the abstract of assessment for
each year in the reassessment cycle shall advance by two years over what was
used in the previous reassessment cycle; except that the level of value to be used
for the years 1989 and 1990 shall be the level of value for the period of one and
one-half years immediately prior to July 1, 1988; except that, if comparable
valuation data is not available from such one-and-one-half-year period to
adequately determine the level of value for a class of property, the period of five
years immediately prior to July 1, 1988, shall be utilized to determine the level of
value. Said level of value shall be adjusted to the final day of the data gathering
period.
(b) During the two years of each reassessment cycle, in preparation for
implementation in the succeeding reassessment cycle, the respective assessors
shall conduct revaluations of all taxable real property utilizing the level of value for
the period which will be used to determine actual value in such succeeding
reassessment cycle and the manuals and associated data published for the period
which will be used to determine actual value in such succeeding reassessment
cycle.
(c) Repealed.
(d) For the purposes of this article and article 9 of this title, level of value
means the actual value of taxable real property as ascertained by the applicable
factors enumerated in section 39-1-103 (5) for the one-and-one-half-year period
immediately prior to July 1 immediately preceding the assessment date for which
the administrator is required by this article to publish manuals and associated data.
Beginning with the property tax year commencing January 1, 1999, if comparable
valuation data is not available from such one-and-one-half-year period to
adequately determine such actual value for a class of property, level of value
means the actual value of taxable real property as ascertained by said applicable
factors for such one-and-one-half-year period, the six-month period immediately
preceding such one-and-one-half-year period, and as many preceding six-month
periods within the five-year period immediately prior to July 1 immediately
preceding the assessment date as are necessary to obtain adequate comparable
valuation data. Said level of value shall be adjusted to the final day of the data-gathering period.
(e) Repealed.
(10.3) Repealed.
(11) (a) (I) It is the intent of the general assembly, as manifested in subsection
(10.2) of this section, that, when a change occurs in reassessment cycles as
prescribed in said subsection, new manuals and associated data will be published
by the administrator, pursuant to section 39-2-109 (1)(e), and that said manuals and
associated data and the level of value for the year that said manuals and associated
data are published shall be utilized by assessors in the manner described in
subsection (10.2) of this section for determining the actual value of real property in
each county of the state.
(II) The general assembly hereby further finds and declares that it is the
intent of paragraph (b) of this subsection (11) to comply with the provisions of
section 3 of article X of the state constitution, including the provision which
requires the enactment of general laws, which shall prescribe such methods and
regulations as shall secure just and equalized valuations for assessments of all real
and personal property; to reduce the confusion of the owners of taxable property
within the state concerning assessment procedures and valuations of such
property; to achieve valuations for assessment which represent the current value of
such property to the extent which is equitably and practically possible; and to
minimize the costs associated with achieving such current valuations for
assessment.
(b) (I) The provisions of subsection (10.2) of this section are not intended to
prevent the assessor from taking into account, in determining actual value for the
years which intervene between changes in the level of value, any unusual
conditions in or related to any real property which would result in an increase or
decrease in actual value. If any real property has not been assessed at its correct
level of value, the assessor shall revalue such property for the intervening year so
that the actual value of such property will be its correct level of value; however, the
assessor shall not revalue such property above or below its correct level of value
except as necessary to reflect the increase or decrease in actual value attributable
to an unusual condition. For the purposes of this paragraph (b) and except as
otherwise provided in this paragraph (b), an unusual condition which could result in
an increase or decrease in actual value is limited to the installation of an on-site
improvement, the ending of the economic life of an improvement with only salvage
value remaining, the addition to or remodeling of a structure, a change of use of the
land, the creation of a condominium ownership of real property as recognized in the
Condominium Ownership Act, article 33 of title 38, C.R.S., any new regulations
restricting or increasing the use of the land, or a combination thereof, the
installation and operation of surface equipment relating to oil and gas wells on
agricultural land, any detrimental acts of nature, and any damage due to accident,
vandalism, fire, or explosion. When taking into account such unusual conditions
which would increase or decrease the actual value of a property, the assessor must
relate such changes to the level of value as if the conditions had existed at that
time.
(II) The creation of a condominium ownership of real property by the
conversion of an existing structure shall be taken into account as an unusual
condition as provided for in subparagraph (I) of this paragraph (b) by the assessor,
when at least fifty-one percent of the condominium units, as defined in section 38-33-103 (1), C.R.S., in a multiunit property subject to condominium ownership have
been sold and conveyed to bona fide purchasers and deeds have been recorded
therefor.
(c) Repealed.
(12) (a) For the property tax years commencing on or after January 1, 1987,
producing mines shall be valued for assessment solely pursuant to article 6 of this
title.
(b) For the property tax years commencing on or after January 1, 1987, oil
and gas leaseholds and lands shall be valued for assessment solely pursuant to
section 39-7-102.
(c) Repealed.
(12.1) Repealed.
(12.2) (a) Except as provided in subsection (12) of this section, for property
tax years commencing on or after January 1, 1987, the requirement stated in
subsections (10.2) and (11) of this section that the actual value of real property be
determined according to a specified year's level of value and manuals and
associated data published by the administrator for said specified year pursuant to
section 39-2-109 (1)(e) shall apply to the assessment of all classes of real property,
including but not limited to the following classes of real property:
(I) (Deleted by amendment, L. 87, p. 1390, � 2, effective April 1, 1987.)
(II) (Deleted by amendment, L. 87, p. 1392, � 2, effective April 1, 1987.)
(III) Operating property and plants of public utilities; and
(IV) Agricultural land.
(V) (Deleted by amendment, L. 87, p. 1385, � 1, effective June 20, 1987.)
(b) This subsection (12.2) shall take effect January 1, 1987.
(12.3) (a) (I) The actual value of personal property is determined by
appropriate consideration of such of the three approaches specified in section 39-1-103 (5)(a) as are applicable to the appraisal of such property and is based on the
property's value in use. Subject to review and approval pursuant to section 39-2-109 (1)(e), the administrator shall prepare and publish appraisal procedures and
instructions for the annual appraisal of such property that include a definition of
value in use and a factor or factors to adjust the actual value for the current year
of assessment to the level of value applicable to real property.
(II) In determining actual value, depreciation attributable to age shall not
exceed that for the actual age of the property on the assessment date. Physical,
functional, and economic obsolescence shall be considered in determining actual
value.
(b) Repealed.
(12.4) For property tax years commencing on and after January 1, 1987, the
requirement stated in subsections (10.2) to (11) of this section that the actual value
of real property be determined according to a specified year's level of value and
manuals and associated data published by the administrator for said specified year
pursuant to section 39-2-109 (1)(e) shall not apply to the assessment of producing
coal mines and other lands producing nonmetallic minerals.
(13) to (15) Repealed.
(16) (a) During each property tax year, the director of research of the
legislative council shall contract with a private person for a valuation for
assessment study to be conducted as set forth in this subsection (16). The study
shall be conducted in all counties of the state to determine whether or not the
assessor of each county has, in fact, used all manuals, formulas, and other
directives required by law to arrive at the valuation for assessment of each and
every class of real and personal property in the county. The person conducting the
study shall sample each class of property in a statistically valid manner, and the
aggregate of such sampling shall equal at least one percent of all properties in
each county of the state. The sampling shall show that the various areas, ages of
buildings, economic conditions, and uses of properties have been sampled. Such
study shall be completed, and a final report of the findings and conclusions thereof
shall be submitted to the state board of equalization, by September 15 of the year
in which the study is conducted.
(b) During each property tax year, beginning with the property tax year
which commences January 1, 1985, in addition to the requirements set forth in
paragraph (a) of this subsection (16), the study shall set forth the aggregate
valuation for assessment of each county for the year in which the study is
conducted.
(c) The person conducting any valuation for assessment study pursuant to
this subsection (16) and his employees shall, during the term of his contract, have
access to any document in the custody of the administrator or an assessor,
including, but not limited to, such documents as are held pursuant to sections 39-4-103, 39-5-120, and 39-14-102 (1)(c). The penalties in section 39-1-116 apply against
the divulging at any time of any confidential information obtained pursuant to this
paragraph (c).
(d) Repealed.
Source: L. 64: R&RE, p. 676, � 1. C.R.S. 1963: � 137-1-4. L. 65: p. 1096, � 2. L.
67: p. 946, � 5. L. 70: pp. 380, 388, �� 10, 28. L. 73: p. 1430 � 1. L. 75: (5) and (6)
added, pp. 863, 1474, �� 2, 1, effective July 1; (7) added, p. 1454, � 1, effective July
30. L. 76: (9) added, p. 755, � 5, effective July 1; (8) added, p. 755, � 4, effective
January 1, 1977. L. 77: (10) R&RE and (11) and (12) added, pp. 1731, 1732, �� 4, 5,
effective June 20. L. 79: (13) added, p. 1329, � 2, effective May 8; (6) R&RE and (14)
added, pp. 1403, 1327, �� 1, 4, effective July 1; (2) amended, p. 1402, � 1, effective
January 1, 1980. L. 80: (10) amended, p. 714, � 1, effective February 29; (9) amended,
p. 711, � 1, effective April 16. L. 81: (13)(b) amended, p. 1836, � 1, effective June 4;
(9)(a), (10)(a), (10)(b), and IP(12) amended, p. 1830, � 2, effective June 12; (12)(c),
(12)(d), (12)(g), and (12)(h) amended, pp. 1848, 1854, �� 4, 2, effective January 1, 1982;
(16) added, p. 1397, � 8, effective January 1, 1983. L. 82: (11)(b) amended, p. 553, � 1,
effective May 3; (16) amended, p. 457, � 2, effective January 1, 1983. L. 83: (2), (7),
and (12.3)(b) repealed and (12.3)(a)(I) and (16) amended, pp. 1485, 1482, �� 11, 3,
effective April 22; (10), (11)(a), (11)(b)(I), and (12)(h) amended and (10.1), (12.1), and
(12.2) added, pp. 1494, 1495, �� 1, 2, effective April 28; (5) repealed, p. 2081, � 1,
effective January 1, 1984. L. 84: (15) repealed, p. 999, � 3, effective January 1; (10),
(10.1)(a), (12)(h), (12.1), IP(12.2)(a), and (12.2)(b) amended, p. 988, � 1, effective
February 23. L. 85: (4) amended, p. 1212, � 8, effective May 9. L. 86: (16)(a)
amended, p. 1101, � 1, effective March 26. L. 87: (16)(c) added, p. 1417, � 1, effective
March 13; (12)(a) RC&RE and (12.2)(a) amended, p. 1390, �� 1, 2, effective April 1;
(12)(b) RC&RE and (12.2)(a) amended, p. 1392, �� 1, 2, effective April 1; (1.5) added, p.
1384, � 1, effective April 16; (6), (13), and (14) repealed, p. 1304, � 1, effective May 20;
(9)(a), (9)(b), and (10) repealed, (10.1) R&RE, (11)(b)(I) and (12.2)(a) amended, and
(12)(c) and (12.4) added, pp. 1388, 1386, 1385, �� 6(1), 3, 1, 5, 2, effective June 20; (1)
amended, p. 1383, � 1, effective July 10; (10.3) added, p. 1387, � 4, effective January 1,
1991; (9)(d) and (11)(c) added by revision, p. 1388, � 6(2). L. 88: (8) repealed, (9)(c),
(9)(d), (10.1)(b), (10.3)(a), (11)(a), (11)(b)(I), (11)(c), and (12.3)(a) amended, (10.1)(d) R&RE,
and (10.2) added, pp. 1275, 1269, 1273, 1270, �� 14, 5, 6, 5, effective May 29; (1.5)
R&RE, (16)(c) amended, and (16)(d) added, pp. 1279, 1282, �� 2, 5, effective January 1,
1989; L. 89: (11)(b)(I) amended, p. 1450, � 2, effective June 7; (10.3)(c) amended, p.
1644, � 8, effective January 1, 1991. L. 90: (16)(d) repealed, p. 1840, � 19, effective
May 31; (12)(c) repealed and (16)(a) and (16)(c) amended, pp. 1705, 1689, �� 41, 4,
effective June 9. L. 91: (10.2)(c), (10.3)(a), (11)(a)(I), (11)(b)(I), and (12.4) amended and
(10.2)(e) and (11)(c) repealed, pp. 2003, 2005, �� 1, 5, effective June 6. L. 92: (11)(b)(I)
amended, p. 2212, � 10, effective June 3. L. 93: (7) repealed, p. 1689, � 8, effective
June 6. L. 94: (11)(b)(I) amended, p. 309, � 1, effective March 22. L. 95: (10.2)(c) and
(10.3) repealed, p. 7, � 1, effective March 9. L. 96: (11)(a)(I), IP(12.2)(a), (12.3)(a)(I), and
(12.4) amended, pp. 1198, 1199, �� 1, 2, effective June 1. L. 99: (10.2)(d) amended, p.
202, � 1, effective August 4. L. 2002: (16)(a) amended, p. 861, � 1, effective August 7. L. 2005: (IP)(12.2)(a) amended, p. 781, � 72, effective June 1. L. 2020: (1.5) repealed,
(SB 20-223), ch. 291, p. 1436, � 2, effective January 1, 2021. L. 2021: (1) and (4)
amended and (1.6) and (1.8) added, (SB 21-293), ch. 301, p. 1806, � 2, effective June
23; (12.3)(a)(I) amended, (HB 21-1312), ch. 299, p. 1792, � 5, effective July 1. L. 2022: (1), (1.8)(a), and (1.8)(b) amended, (SB 22-238), ch. 157, p. 987, � 1, effective May 16. L. 2024: IP(1.8)(b) and (1.8)(c) amended and (1.8)(b.5) added, (SB 24-233), ch. 171, p.
911, � 2, effective October 1 (see editor's note). L. 2024, 2nd Ex. Sess.: (1)(a), (1)(b),
(1.8)(a), IP(1.8)(b), and (1.8)(c) amended, (1.8)(b.5) repealed, and (1.9) added, (HB 24B-1001), ch. 1, pp. 12, 13, �� 8, 9, effective October 1 (see editor's note).