On or after January 1, 2026, but before February 1, 2026, an investor-owned electric utility (utility) with more than 500,000 customers must make at least 50 megawatts of inclusive community solar capacity available, and a utility with 500,000 or fewer customers must make at least 3.5 megawatts of inclusive community solar available. Before February 1, 2027, a utility with more than 500,000 customers must make an additional 50 megawatts of inclusive community solar capacity available, plus any unclaimed capacity left over from the previous allocation cycle, and a utility with 500,000 or fewer customers must make an additional 3.5 megawatts of inclusive community solar available. Under current law, a utility customer may subscribe to a portion of a community solar facility. The customer then receives a bill credit on the customer's monthly utility bill in an amount proportional to the customer's share of the community solar facility output. Current law establishes limits on the amount of output from community solar facilities that a utility may purchase. The act requires a utility to acquire the entire output of a community solar facility that is allocated capacity on or after January 1, 2026, (new facility) and apply community solar bill credits to that new facility's subscribers. The act requires a new facility to: Not exceed 5 megawatts of capacity, measured in alternating current; Interconnect with a utility's distribution system; Comply with applicable requirements of the "Colorado Energy Sector Public Works Project Craft Labor Requirements Act"; Reserve at least 51% of its capacity for income-qualified subscribers; Not allocate more than 40% of the new facility's capacity to a single subscriber; and Supply to a subscriber of the new facility no more than 120% of the expected average annual total consumption of electricity by the subscriber; except that no more than 200% of the expected annual total consumption of electricity may be provided to an income-qualified subscriber. The act affords certain protections for subscribers of new facilities. Subscriber organizations and subscription coordinators are prohibited from: Using credit scores, customer scores, or any utility deposit requirements to deny prospective residential subscribers; Charging a sign-up or termination fee to residential subscribers; Engaging in misleading conduct or making false representations toward prospective subscribers; and Preventing a subscriber from transferring a subscription within the utility's service territory if the subscriber moves residences. A subscriber organization shall provide an income-qualified subscriber of a new facility with a subscription discount of at least: 25% of the value of the community solar bill credit; 30% of the value of the community solar bill credit if the new facility receives federal tax credits from the federal "Inflation Reduction Act of 2022" for the specific purpose of being located in an energy community; and 50% of the value of the community solar bill credit if the new facility receives federal tax credits from the federal "Inflation Reduction Act of 2022" specifically for providing income-qualified households with utility bill assistance. The public utilities commission (commission) must also adopt a standardized form that contains relevant information and disclosures that subscriber organizations and subscription coordinators must provide to prospective subscribers. The act also directs a utility to: File with the commission information that establishes cost-sharing mechanisms for new facilities that are connecting to the utility's distribution system, in which the new facility is required to pay only for its proportional share of system upgrades; and Provide information to the commission related to the utility regarding cost-sharing mechanisms and the cost-effectiveness of the utility's interconnection of new facilities when submitting a distribution system plan. The act authorizes the commission to approve cost recovery for prudently incurred costs, including energy purchases, administrative costs, and information technology expenses, by a utility. The act also requires a utility with more than 500,000 customers to acquire 50 megawatts of distributed generation paired with energy storage by June 1, 2026, and an additional 50 megawatts of distributed generation paired with energy storage between January 1, 2027, and June 1, 2027. The act appropriates $116,505 for the 2024-25 state fiscal year to the department of regulatory agencies for use by the commission. The appropriation is from the public utilities commission fixed utility fund. APPROVED by Governor May 22, 2024 EFFECTIVE May 22, 2024(Note: This summary applies to this bill as enacted.)
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The act prohibits a property owner (owner) of a multiunit building, including a multidwelling and multitenant building and a mobile home park, from denying a broadband provider (provider) access to the property to install the necessary infrastructure to provide broadband service. The act specifies the legal obligations and rights of both broadband providers and owners regarding the deployment of broadband infrastructure. APPROVED by Governor May 22, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)
The act requires the office of future of work to create a grant program, in coordination with the Colorado energy office, for lineworker apprenticeship programs (grant program). In connection with the grant program, the office of future of work must create a competitive application process and select apprenticeship programs that meet certain training and matching requirements. On July 1, 2024, the state treasurer must transfer $800,000 from the general fund to the Colorado lineworker apprenticeship grant program cash fund, which is created in the act, for the purposes of the grant program. The act also requires an investor-owned electric utility that serves 500,000 customers or more in the state (qualifying retail utility) to upgrade the qualifying retail utility's distribution systems as necessary to support the: Achievement of the state's beneficial and transportation electrification and decarbonization goals; and Implementation of federal, state, regional, and local air quality and decarbonization targets, standards, plans, and regulations (decarbonization targets and standards). In connection with these goals and decarbonization targets and standards, a qualifying retail utility is required to: Commence a data collection process to inform future energization timelines; Adopt certain cost caps; Propose to the public utilities commission (commission) the use of an optional flexible interconnection or energization tariff or phased interconnection or energization agreement by a customer as an alternative to system upgrades that would otherwise be required for interconnection or energization; and Establish a procedure for customers with a hybrid facility to complete the interconnection and energization process through a single application. A qualifying retail utility is required to identify interconnection and load hosting capacity for distributed energy resources for disproportionately impacted communities within its service territory. Prior to the establishment of a grid modernization adjustment clause, a qualifying retail utility shall recover forecasted investments placed into service and costs incurred for certain capital investment and operations and maintenance expenses (distribution activities) for a period of time ending on December 31, 2025. Recovery of the costs associated with the distribution activities must occur through the transmission cost adjustment clause or another existing adjustment clause, subject to certain conditions. Current law requires certain utilities to file a distribution system plan (plan) with the commission. The act also requires the plans of a qualifying retail utility to create sufficient hosting capacity across the qualifying retail utility's electrical distribution system to support the implementation of the decarbonization targets and standards and certain other laws, rules, plans, and policies. In developing a plan, a qualifying retail utility must consult with and provide opportunities to engage disproportionately impacted communities. As part of a plan proceeding, a qualifying retail utility is required to present at least 2 future planning scenarios with corresponding investments to show future different states of the distribution system. In evaluating a qualifying retail utility's plans, the commission must evaluate whether the plan satisfies certain criteria. In addition, the plan must include a performance-based framework, which must consist of certain specified components. A qualifying retail utility must include in the qualifying retail utility's plan an analysis of current and future qualified staffing levels necessary to comply with state laws regarding distribution system planning (adequate staffing levels). The commission must review whether each qualifying retail utility's plan has adequate staffing levels before the qualifying retail utility's plan may proceed. A qualifying retail utility must ensure that, in any projects undertaken to implement a plan, all labor is performed by the employees of the qualifying retail utility or by a contractor that meets certain labor requirements. The commission must open a rule-making, for a qualifying retail utility, to consider and establish rules regarding energization timelines; interconnection; interconnection, energization, and electrification of end uses; and maximum individual customer cost caps or fees. Subject to commission review and approval, a qualifying retail utility is required to recover certain projected costs related to distribution activities as part of the qualifying retail utility's plans. If the commission finds that the distribution activities benefit or advance the decarbonization targets and standards or state energy policy goals, recovery of the costs must occur through the grid modernization adjustment clause. For distribution system activities that do not benefit or advance the decarbonization targets and standards or state energy policy goals, recovery of the costs may occur through the grid modernization adjustment clause if the qualifying retail utility meets the criteria established in the performance-based framework in the qualifying retail utility's approved plan. A qualifying retail utility is required to make an annual grid modernization adjustment clause advice letter filing with the commission no later than November 1 of each year with an effective date of January 1 of the subsequent year. No later than February 1, 2025, a qualifying retail utility is required to create and file with the commission an application to implement a virtual power plant program, including a tariff for performance-based compensation for a qualified virtual power plant. The virtual power plant program and tariff must include and implement certain requirements. A qualifying retail utility may apply to recover certain business costs to facilitate a virtual power plant program through the grid modernization adjustment clause. By January 1, 2025, a qualifying retail utility is required to file a plan with the commission to implement programs for the undergrounding of utility distribution infrastructure (undergrounding) in nonfranchised areas of the qualifying retail utility in the state using 1% of the area's gross electric revenues from the prior year. A qualifying retail utility must also consider the public benefit of undergrounding and other community benefit investments in its plans. For the 2024-25 state fiscal year, $420,500 is appropriated from the public utilities commission fixed utility fund to the department of regulatory agencies for use by the commission as follows: $382,670 for personal services; and $37,830 for operating expenses. APPROVED by Governor May 22, 2024 EFFECTIVE May 22, 2024(Note: This summary applies to this bill as enacted.)
The act expands the authority of the energy and carbon management commission (commission) to include the regulation of activities performed for the purpose of engaging in the injection and underground sequestration of injection carbon dioxide in pore space (geologic storage operations). The commission may: Reimpose any regulatory responsibility or financial assurance obligation imposed on a person that exercises the right to control the conduct of geologic storage operations (geologic storage operator) if the geologic storage operator makes a material misrepresentation or omission that causes the commission to approve a site closure; and Assess and collect regulatory and permitting fees from geologic storage operators. Current law requires the commission to promulgate rules that evaluate and address the cumulative impacts of oil and gas operations by April 28, 2024. The act changes current law by extending the deadline for the rule-making to September 30, 2024, and requiring the evaluation of cumulative impacts to address impacts from all operations regulated by the commission. Wells drilled for the exclusive purpose of obtaining subsurface data or information to support operations are not subject to a cumulative impact analysis. The act also allows the director of the commission to hire and designate employees of the commission as administrative law judges who have the authority to administer proceedings on behalf of the commission. Current law provides a statute of limitations of one year after the date of an alleged violation of energy and carbon management laws (violation). The act changes this statute of limitations to 3 years after the discovery of the alleged violation and provides that the 3-year statute of limitations period does not apply if information regarding the alleged violation is knowingly or willfully concealed by the alleged violator. The act also expands the following energy and carbon management law areas to include geologic storage operations: Enforcement and civil penalty procedures; Use of the energy and carbon management cash fund by the commission; Mitigation of adverse environmental impacts by the commission or an operator; and State agency and local government authority over oil and gas development. The act also establishes that: Ownership of a portion of a pore space necessary for geologic storage (sequestration estate) is vested in the owner of the overlying surface estate if the sequestration estate has not been separately severed, conveyed, or reserved; Any conveyance of the ownership of an overlying surface estate also conveys the grantor's ownership of any sequestration estate except in certain circumstances; and A conveyance of the ownership of a mineral estate does not convey the grantor's ownership in the sequestration estate unless the conveyance instrument provides for the conveyance. Upon application of any interested person, the commission must hold a hearing and enter an order (order) providing for the formation of a unit of one or more geologic storage resources (geologic storage unit) if the commission finds that the geologic storage unit is reasonably necessary to effectuate a geologic storage project. The order must include terms and conditions that are just and reasonable and establish a plan for operations of the geologic storage unit (plan). An order is effective only if the plan has been approved by those persons that collectively own at least 75% of the geologic storage resources included in the geologic storage unit area (required approval) and the commission makes a finding in the order of the required approval. The act also allows a local government to request that the director of the commission appoint a technical review board to assist the local government in analyzing and answering any technical questions regarding the local government's land use regulations. The act also requires the department of public health and environment (department) to develop carbon dioxide accounting procedures for geologic storage operations. The commission must compile relevant data to support the carbon dioxide accounting procedures and work collaboratively with the department in implementing the carbon dioxide accounting procedures. The commission and the department must also work collaboratively to address air emissions from geologic storage operations. APPROVED by Governor May 21, 2024 EFFECTIVE May 21, 2024(Note: This summary applies to this bill as enacted.)
The act requires the director of the energy and carbon management commission in the department of natural resources, at the request of a local government or tribal government, to provide technical support concerning: The development of local codes governing wind, solar, energy storage, and energy transmission projects (renewable energy projects); or The review of renewable energy projects for which a local government or a tribal government receives an application for land use approval after June 30, 2024. At the request of an owner or operator of a renewable energy facility (facility owner), a local government, or a tribal government, the division of parks and wildlife (division) must provide a set of best management practices to avoid, minimize, and mitigate wildlife impacts of renewable energy projects. The facility owner, local government, or tribal government may incorporate the best management practices into project plans, and the best management practices may be considered as conditions of approval by a local government or tribal government with land use authority over a renewable energy project. The division must also identify high-priority habitats based on the best available science, update the list of high-priority habitats at least annually, and make the list publicly available. A facility owner, local government, or tribal government may consider the high-priority habitats in planning, siting, permitting, and developing renewable energy projects. The act requires the Colorado energy office (office), in cooperation with the department of local affairs and the department of natural resources, to develop a repository of codes and ordinances that support renewable energy projects and commercial energy transmission facilities for the purpose of providing conceptual frameworks that local governments and tribal governments may consider and adapt to suit local circumstances and address local energy resources. On or before September 30, 2025, the office must submit to the general assembly a report that: Evaluates local government processes for the siting of commercially viable renewable energy projects and commercial energy transmission facilities; and Evaluates the impact of renewable energy projects and commercial energy transmission facilities on wildlife resources; the use of wildlife mitigation, decommissioning, and community benefit agreements; and the range of fees imposed by local governments. In preparing the report, the office must provide opportunities for stakeholders and the public to provide input before the final report is completed. For renewable energy projects for which a local government receives an application for land use approval after June 30, 2024, the act prohibits a local government from granting a development permit for the construction of a facility in any area that is included within the land relinquished and conveyed by the confederated bands of the Ute nation to the United States in the Brunot Agreement of September 13, 1873, unless the local government first consults with the tribal governments of the Ute Mountain Ute Tribe and the Southern Ute Indian Tribe concerning the potential impacts to hunting, fishing, and gathering rights related to the construction of the facility. For the 2024-25 state fiscal year, the act appropriates $307,991 to the department of natural resources from the wildlife cash fund. For the 2024-25 state fiscal year, the act appropriates $95,490 to the department of natural resources from the energy and carbon management cash fund for use by the energy and carbon management commission. APPROVED by Governor May 21, 2024 EFFECTIVE May 21, 2024(Note: This summary applies to this bill as enacted.)
Section 1 of the act creates the office of sustainability (office) in the department of personnel (department). The office is required to work with state agencies to implement environmentally sustainable practices. Section 1 also creates the state agency sustainability revolving fund (revolving fund) and directs the state treasurer to transfer $400,000 from the general fund to the revolving fund each year. The office may use the money in the revolving fund for the purposes of operating the office and replacing the state's gas- and diesel-powered equipment located in ozone nonattainment areas as designated by the U.S. environmental protection agency. Section 1 also requires the office to review and coordinate state agencies' applications for elective pay funding available under the federal "Inflation Reduction Act of 2022" (IRA). State agencies are required to submit elective pay applications directly to the office of the state controller. The inflation reduction act elective pay cash fund (cash fund) is created, and all money received by the state or state agencies pursuant to the elective pay provisions of the IRA must be deposited into the cash fund to be used for the purposes of the office. Subject to specified exceptions, section 3 requires, on and after January 1, 2025, recipients of state financial assistance for new building construction projects that include energy-consuming products covered by the Energy Star program (covered energy-consuming products) to use covered energy-consuming products certified by the Energy Star program (requirements). A state agency that provides or administers state financial assistance for a new building construction project (state agency) shall include certain requirements in the state agency's criteria for receiving state financial assistance and request an attestation signed by the recipient of the state financial assistance that declares that the requirements have been or will be followed or that the recipient is requesting a waiver from the requirements. A state agency may issue a waiver from the requirements based on certain evidence and an attestation from a licensed professional engineer or design professional. If the attorney general, by a preponderance of the evidence, believes that a recipient of state financial assistance has violated the requirements, the attorney general may bring a civil action to seek a civil penalty of up to the total amount of state financial assistance received by the violator. Section 4 amends the state efficiency standard for residential windows, residential doors, and residential skylights sold in Colorado on and after January 1, 2026 (standard). If the executive director of the department of public health and environment determines that the standard cannot reasonably be met by manufacturers, the executive director shall set an alternative standard which may be applied instead of the standard. Such an alternative standard, if set, must be displayed on the public website of the department of public health and environment no later than June 1, 2025. Section 6 clarifies law relating to the geothermal energy grant program within the CEO (grant program) by specifying that: The grant program applies to both heating-only and combined heating and cooling systems; At least 25% of the grant money must be awarded to projects in low-income, disproportionately impacted, or just transition communities; and The CEO may utilize grant program money to facilitate the growth of the geothermal sector and awareness of relevant state programs in Colorado. Section 7 allows money in the decarbonization tax credits administration cash fund to be used to repay administrative costs associated with administering the decarbonization tax credits, and specifies that all such administrative costs must be repaid on or before June 29, 2024. The amount of money that must remain in the fund after other unexpended and unencumbered money has been transferred to the general fund on June 30 of each year is increased from $100,000 to $300,000. Section 8 extends the deadline for the energy code board to develop a model low energy and carbon code from June 1, 2025, to September 1, 2025, and specifies that the model low energy and carbon code can include both appendices and resources to the international energy conservation code. Section 9 decreases the amount of money in the energy fund that the CEO is authorized to use to issue grants to local governments to support their adoption and enforcement of the 2021 international energy conservation code, an electric ready and solar ready code, and a low energy and carbon code from $2,000,000 to $1,875,000 and increases the amount of money that the treasurer is required to transfer into the energy fund for CEO to use to administer the energy code board from $150,000 to $275,000. Section 10 authorizes grantees to use money received through the CEO's high-efficiency electric heating and appliances grant program for equipment used to dry clothes and for other purposes as determined by the CEO. Section 13 requires the CEO, on or before August 1, 2024, to commence a study to explore how to accelerate adoption of heat pump technology in Colorado through a technical standard for applicable air conditioners. The CEO is required to provide to the general assembly a progress report, interim results and legislative recommendations, and, on or before June 1, 2025, a final study and final legislative recommendations. Section 14 repeals the requirement that a person using any portion of a transfer facility for the provision of retail or commercial goods or services or for the provision of residential uses pay rent at fair market value for such use. Section 15 clarifies that, for purposes of the industrial clean energy tax credit, an industrial study includes a pre-front-end or front-end engineering design study that meets or exceeds the standards established by the CEO or any other industrial studies as outlined in program standards and an owner includes a project developer. Section 15 also increases the amount of the credit that can be claimed from $5,000,000 to $8,000,000 and specifies that an owner that claims the industrial clean energy tax credit cannot, for the same greenhouse gas emission reduction improvements, claim the enterprise zone investment tax credit or receive grant money under the industrial and manufacturing operations clean air grant program. Section 16 clarifies several definitions related to the tax credit for expenditures made in connection with a geothermal energy project and adds several definitions. Section 16 also adds tribal governments as eligible taxpayers that may claim the tax credit. Section 17 adds tribal governments as qualified entities that may claim the geothermal electricity generation production tax credit, and requires the CEO to annually review and evaluate the effectiveness of the tax credit. Section 18 clarifies and adds several definitions related to the heat pump technology and thermal energy network tax credit, adds new standards for taxpayers to be eligible to claim the credit, and requires the CEO to substantiate that eligible taxpayers are meeting those standards periodically rather than annually. Section 20 repeals a provision that required the state treasurer to credit an amount of severance taxes to certain cash funds to repay costs associated with administering the decarbonization tax credits. Section 21 requires the CEO to prioritize high-efficiency homes and buildings when providing loans and grants from the sustainable rebuilding program to homeowners and business owners that are seeking to rebuild. Money from the sustainable rebuilding program may also be used to provide loans and grants through the disaster resilience rebuilding program which is administered by the department of local affairs. Section 22 extends the date by which the public utilities commission must determine mass-based greenhouse gas emission reduction targets for clean heat plans for 2035 from December 1, 2024, to December 1, 2025. Section 23 requires investor-owned utilities, on or before August 1, 2027, to submit to the public utilities commission a proposal for a voluntary rate or rates for energy supplied to residential customers who utilize a heat pump as their primary heating source, which, if cost-justified, are designed to lower the energy bills of those customers. Section 24 specifies that an appropriation made to the department of higher education and related to the biochar in oil and gas well plugging working advisory group for state fiscal year 2023-24 is further appropriated to the department for state fiscal year 2024-25 to the extent that it is not expended prior to July 1, 2024. To implement the act: Section 25 reduces state fiscal year 2024-25 appropriations from various cash funds to the department of revenue by an aggregate amount of $1,770,160 and offsets the decrease by increasing state fiscal year 2024-25 appropriations to the department of revenue from the decarbonization tax credits administration cash fund by $1,770,160; and Section 26 appropriates $1,058,596, of which $958,596 is from the decarbonization tax credits administration cash fund and $100,000 is from the general fund, to the office of the governor for use by the CEO. APPROVED by Governor May 17, 2024 EFFECTIVE May 17, 2024(Note: This summary applies to this bill as enacted.)
Property tax revenue limit. Beginning with the 2025 property tax year, section 1 of the act establishes a limit on qualified property tax revenue, as defined by the act, for local governments (limit). This limit does not apply to local governments that are home rule municipalities, school districts, have not received voter approval to exceed the statutory 5.5% property tax revenue limitation, or have not received voter approval to collect, retain, and spend the majority of their property tax revenue without regard to the limitations in section 20 of article X of the state constitution. The limit is equal to the local governmental entity's base year qualified property tax revenue increased by 5.5% for each year since the base year including the relevant property tax year. A local government may seek voter approval to waive the limit. A local governmental entity's base year qualified property tax revenue is: For a local governmental entity that had qualified property tax revenue for the 2023 property tax year, the local governmental entity's qualified property tax revenue for the 2023 property tax year, plus any money the local governmental entity received from the state to compensate the local governmental entity for reduced property tax revenue in the 2023 property tax year; For a local governmental entity that did not have qualified property tax revenue for the 2023 property tax year, the local governmental entity's qualified property tax revenue for the first year that the local governmental entity has property tax revenue; or If applicable, the local governmental entity's qualified property tax revenue for the most recent property tax year for which the local governmental entity's voters approved temporarily waiving the limit. If a local government's qualified property tax revenue would otherwise exceed the limit, the local government shall either establish a temporary property tax credit equal to the number of mills necessary to prevent the local government's qualified property tax revenue from exceeding the limit or temporarily reduce its mill levy. Nonresidential real property valuation reductions. Under current law, for nonresidential property, the valuation for assessment (valuation) is 29% of the actual value of the property. However, certain categories of nonresidential property had temporarily reduced valuations for property tax 2023. Section 2 extends these temporarily reduced valuations to property tax year 2024. Section 2 also permanently reduces the valuations for commercial and agricultural property as follows: For property tax year 2025, the valuation is 27% of the actual value of the property; and For property tax years commencing on or after January 1, 2026, the valuation is 25% of the actual value of the property. Residential real property valuation reductions. For the 2024 property tax year, section 4 makes 2 reductions to residential real property valuation by continuing the 2023 property tax year reductions to residential real property valuation: For multi-family residential real property, section 4 reduces the valuation from 6.8% of the actual value of the property to 6.7% of the amount equal to the actual value of the property minus the lesser of $55,000 or the amount that causes the valuation for assessment of the property to be $1,000 (alternate amount); and For all other residential real property, section 4 reduces the valuation from an estimated 7.06% of the actual value of the property to 6.7% of the amount equal to the actual value of the property minus the lesser of $55,000 or the alternate amount. For the 2025 property tax year, section 4 modifies residential real property valuation so that the valuation for all residential real property is: For the purpose of a levy imposed by a school district, 7.15% of the actual value of the property; and For the purpose of a levy imposed by a local governmental entity that is not a school district, 6.4% of the actual value of the property. For the 2026 property tax year and all future property tax years, section 4 also reduces the valuation for all residential real property from 7.15% of the actual value of the property. For all residential real property, the valuation is: For the purpose of a levy imposed by a school district, the lesser of 7.15% of the actual value of the property or a percentage of the actual value of the property determined by the property tax administrator pursuant to section 7; and For the purpose of a levy imposed by a local governmental entity that is not a school district, 6.95% of the amount equal to the actual value of the property minus the lesser of 10% of the actual value of the property or $70,000 as adjusted for inflation in the first year of each subsequent reassessment cycle. Qualified-senior primary residence residential real property. Senate Bill 24-111 created a new residential real property subclass: qualified-senior primary residence residential real property. In addition to the other reductions for resdiential real property made in section 4, section 4 makes the following valuation reductions for qualified-senior primary residence residential real property: For property tax year 2025, for the purpose of a levy imposed by a local governmental entity that is not a school district, 6.4% of the amount equal to the actual value of the property minus either 50% of the first $200,000 of that actual value plus the lesser of 10% of the actual value of the property or $70,000 or the alternate amount; For property tax year 2026, for the purpose of a levy imposed by a local governmental entity, 6.95% of the amount equal to the actual value of the property minus either 50% of the first $200,000 of that actual value plus the lesser of 10% of the actual value of the property or $70,000 or the alternate amount; and For property tax year 2025, for the purpose of a levy imposed by a school district, 7.15% of the amount equal to the actual value of the property minus either 50% of the first $200,000 of that actual value or the alternate amount. Adjustable residential real property valuation. Section 7 requires legislative council staff to notify the state board of equalization of the first year after 2026 in which the local share of total program is equal to or greater than 60% of the total program determined pursuant to the "Public School Finance Act". For every property tax year after that year, the valuation for assessment for all residential real property, for the purpose of a levy imposed by a school district, is equal to the lesser of: 7.15% of the actual value of the property; or The percentage of the actual value of the property necessary for statewide school district property tax revenue divided by weighted total program to equal 0.6. Reimbursement of local governments. The state reimbursed local governmental entities for property tax revenue lost as a result of the reductions in valuation enacted in Senate Bill 22-238 and Senate Bill 23B-001. Section 9 establishes a reimbursement mechanism for certain local governmental entities other than school districts to account for property tax revenue lost as a result of the reductions in valuation in the act for the 2024 property tax year. The reimbursement mechanism requires the state to reimburse local governments in an amount equal to the decrease, if any, in assessed value between the 2022 and 2024 property tax years multiplied by the local governments' mill levy rate from the 2022 property tax year. Section 9 creates a fund out of which the state makes the reimbursements and requires the state treasurer to transfer to the fund $10,311,233 from the sustainable rebuilding program fund. Property tax deferral program. The existing property tax deferral program allows any person to defer the payment of the portion of real property taxes on the person's homestead that exceeds the tax-growth cap, which is an amount equal to the average of the person's real property taxes paid for the preceding 2 property tax years for the same homestead, increased by 4%. Beginning with the 2025 property tax year, section 10 removes the 4% tax-growth cap. Accordingly, beginning with the 2025 property tax year, a person may defer the payment of the portion of real property taxes on the person's homestead that exceeds the average of the person's real property taxes paid for the preceding 2 property tax years for the same homestead. Appropriation for state share of districts' total program funding. Beyond the appropriations in the act necessary for the administration of this act as outlined in sections 12 and 13, section 11 appropriates $378,861,731 to the department of education from the state education fund to cover the increases in the state share of districts' total program funding resulting from the assessed value reductions set forth in the act. APPROVED by Governor May 14, 2024 EFFECTIVE upon the date of the official declaration by the governor NOTE: This act does not take effect if either or both of the following occur at the next general election: An initiative that reduces valuations for assessment is approved by the people; An initiative that requires voter approval for retaining property tax revenue that exceeds a limit is approved by the people. If this act takes effect then this act takes effect upon the date of the official declaration of the vote for the general election held on November 5, 2024; except that section 3 of this act takes effect only if Senate Bill 24-111 does not become law, sections 4 and 8 of this act take effect only if Senate Bill 24-111 becomes law, section 6 of this act takes effect only if House Bill 24-1448 does not become law, and section 7 of this act takes effect only if House Bill 24-1448 becomes law. Senate Bill 24-111 was signed by the governor May 14, 2024. House Bill 24-1448 was signed by the governor May 23, 2024.(Note: This summary applies to this bill as enacted.)
For property tax years commencing on or after January 1, 2025, the act creates a new subclass of residential real property called qualified-senior primary residence real property, which includes residential real property that as of the assessment date is used as the primary residence of an owner-occupier, as defined in the act, if: The owner-occupier applies to the county assessor for the classification in the manner required by the act; The owner-occupier previously qualified for the property tax exemption for qualifying seniors (exemption) for a different property for a property tax year commencing on or after January 1, 2020, and does not qualify for the exemption for the current property tax year; and The circumstances that qualify the property for the classification have not changed since the filing of the application. The act also: Classifies property that might otherwise be classified as multi-family residential real property that contains a unit that qualifies as qualified-senior primary residence real property as multi-family qualified-senior primary residence real property and treats such property as qualified-senior primary residence real property; For property tax years commencing on or after January 1, 2025, but before January 1, 2027, sets the valuation for assessment for qualified-senior primary residence real property at 7.15% of the amount equal to the actual value of the property minus the lesser of 50% of the first $200,000 of that actual value or the amount that causes the valuation for assessment of the property to be $1,000; Establishes the processes by which an owner-occupier of residential real property may apply to have the owner-occupier's primary residence classified as qualified-senior primary residence real property and by which such an application is approved or denied; For property tax years commencing on or after January 1, 2025, but before January 1, 2027, requires the state to reimburse local governmental entities that levy property taxes for total property tax revenue lost due solely to the reduced valuation for assessment of qualified-senior primary residence real property as compared to the valuation for assessment of other residential real property and specifies the process by which the proper amount of reimbursement is calculated and reimbursement is made; and For state fiscal years in which excess state revenues are required to be refunded pursuant to the Taxpayer's Bill of Rights, establishes the reimbursement to local governmental entities as a means of refunding such excess state revenues. APPROVED by Governor May 14, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)
For the 2024 income tax year through the 2026 income tax year, the bill creates a nonrefundable income tax credit (credit), which cannot be carried forward, for a taxpayer who: Rents the taxpayer's primary residence in the state; and Has a federal adjusted gross income (AGI) that is less than or equal to $75,000 if filing a single return, or less than or equal to $150,000 $125,000 if filing a joint return (qualifying taxpayer). The amount of the credit is: $2,000 for 2 qualifying taxpayers filing a joint return with a federal AGI that is $50,000 $75,000 or less. For every $500 of AGI above $50,000, the amount of the credit is reduced by $10 $20. $1,000 for a qualifying taxpayer filing a single return with a federal AGI that is $25,000 or less. For every $500 of AGI above $25,000, the amount of the credit is reduced by $10 $20 . Notwithstanding the income-based reductions in the allowable credit amount, a qualifying taxpayer who also qualifies for a rent or heat assistance grant during calendar year 2024, 2025, or 2026, as applicable, is eligible to receive the full credit amount. In addition, the bill specifies that, to the extent permitted by federal law, the credit is not income or resources for the purpose of determining eligibility for the payment of public assistance benefits and medical assistance benefits authorized under state law or for a payment made under any other publicly funded programs or for eligibility determinations made under any affordable housing program provided by local, state, federal, or quasi-governmental entities. The bill specifies that a qualifying taxpayer who is eligible to claim any other income tax credit that is allowed to a taxpayer who rents the taxpayer's primary residence and has a federal AGI that is less than or equal to $75,000 if filing a single return, or less than or equal to $150,000 $125,000 if filing a joint return, may claim the income tax credit allowed in the bill or the other income tax credit allowed for income-qualified renters, but not both. The bill makes appropriations to the department of revenue and the department of personnel for the implementation of the bill. (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)
Pension Review Commission. The bill creates a refundable income tax credit that is available for income tax years commencing on or after January 1, 2024, but prior to January 1, 2026, for a qualifying public employees' retirement association retiree, which means a full-time Colorado resident individual who: Is a retiree of the public employees' retirement association; Is 65 years of age or older at the end of the 2024 or 2025 income tax year; and Has an annual a federal adjusted gross income of no more than $38,000 as a single filer or $76,000 as a joint filer. (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)