Residential real property - valuation for assessment - legislative declaration - definitions

(a) Inflation means the annual percentage change in the United States department of labor's bureau of labor statistics consumer price index, or a successor index, for Denver-Aurora-Lakewood for all items paid by urban consumers.

(a.5) Local governmental entity means a governmental entity authorized by law to impose ad valorem taxes on taxable property located within its territorial limits; except that the term excludes school districts.

(b) Multi-family residential real property means residential real property that is a duplex, triplex, or multi-structure of four or more units, all of which are based on the class codes established in the manual published by the administrator. Multi-family residential real property is a subclass of residential real property for purposes of the ratio of valuation for assessment.

(c) Qualified-senior primary residence real property means property that is classified as such under section 39-1-104.6.

(c.5) Statewide actual value growth means, as determined pursuant to subsection (8) of this section, an estimate by the administrator based upon the information reported by county assessors pursuant to section 39-2-115 on August 25, 2025, of the difference in the total statewide actual value from the property tax year commencing on January 1, 2024, and the total statewide actual value from the property tax year commencing on January 1, 2025.

(d) Target percentage means the percentage of aggregate statewide valuation for assessment represented by the valuation for assessment which is attributable to residential real property in the year immediately preceding the year in which a change in the level of value occurs.

(2) After careful consideration of all available information, the general assembly hereby finds and declares that the action of the first session of the fifty-sixth general assembly which set the ratio of valuation for assessment for residential real property at eighteen percent has produced a deviation from the intent of section 3 of article X of the state constitution which ensures that the percentage of the aggregate statewide valuation for assessment which is attributable to residential real property shall remain the same as it was in the year immediately preceding the year in which a change occurs in the level of value used in determining actual value. Therefore, the general assembly finds that legislation is necessary for the following purposes: To adjust the residential rate for 1988; to ensure that deviations from the constitutional mandate set forth in section 3 of article X of the state constitution shall not be perpetuated into this or any future year; and to provide a process for future adjustments in the ratio of valuation for assessment for residential real property.

(3) (a) The general assembly, pursuant to the authority granted in section 3 of article X of the state constitution, finds and declares that, for the property tax years commencing on or after January 1, 1987, but before January 1, 1989, the percentage of aggregate statewide valuation for assessment which is attributable to residential real property fails to remain as it was in the property tax year commencing January 1, 1986, when the aggregate statewide valuation for assessment was based on the 1985 aggregate statewide valuation for assessment plus the increased valuation for assessment attributable to new construction and to increased volume of mineral and oil and gas production which occurred during 1986. Therefore, for the property tax year commencing January 1, 1988, the ratio of valuation for assessment for residential real property shall be sixteen percent of actual value.

(b) The general assembly, pursuant to the authority granted in section 3 of article X of the state constitution, finds and declares that, for the property tax years commencing on or after January 1, 1989, but before January 1, 1991, the percentage of aggregate statewide valuation for assessment which is attributable to residential real property fails to remain as it was in the property tax year commencing January 1, 1988, when the aggregate statewide valuation for assessment was based on the 1987 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 44.51 percent, for the property tax years commencing on or after January 1, 1989, but before January 1, 1991, the ratio of valuation for assessment for residential real property shall be fifteen percent of actual value.

(c) The general assembly, pursuant to the authority granted in section 3 of article X of the state constitution, finds and declares that, for the property tax years commencing on or after January 1, 1991, but before January 1, 1993, the percentage of aggregate statewide valuation for assessment which is attributable to residential real property fails to remain as it was in the property tax year commencing January 1, 1990, when the aggregate statewide valuation for assessment was based on the 1989 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 44.57 percent, for the property tax years commencing on or after January 1, 1991, but before January 1, 1993, the ratio of valuation for assessment for residential real property shall be 14.34 percent of actual value.

(d) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 1993, but before January 1, 1995, the percentage of aggregate statewide valuation for assessment which is attributable to residential real property will fail to remain as it was in the property tax year commencing January 1, 1992, when the aggregate statewide valuation for assessment was based on the 1991 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 44.73 percent, the ratio of valuation for assessment for residential real property shall be 12.86 percent of actual value for the property tax years commencing on or after January 1, 1993, but before January 1, 1995.

(e) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 1995, but before January 1, 1997, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will fail to remain as it was in the property tax year commencing January 1, 1994, when the aggregate statewide valuation for assessment was based on the 1993 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 45.29 percent, the ratio of valuation for assessment for residential real property shall be 10.36 percent of actual value for the property tax years commencing on or after January 1, 1995, but before January 1, 1997.

(f) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 1997, but before January 1, 1999, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will fail to remain as it was in the property tax year commencing January 1, 1996, when the aggregate statewide valuation for assessment was based on the 1995 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 46.17 percent, the ratio of valuation for assessment for residential real property shall be 9.74 percent of actual value for the property tax years commencing on or after January 1, 1997, but before January 1, 1999.

(g) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 1999, but before January 1, 2001, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will fail to remain as it was in the property tax year commencing January 1, 1998, when the aggregate statewide valuation for assessment was based on the 1997 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 46.49 percent, the ratio of valuation for assessment for residential real property shall be 9.74 percent of actual value for the property tax years commencing on or after January 1, 1999, but before January 1, 2001.

(h) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 2001, but before January 1, 2003, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will fail to remain as it was in the property tax year commencing January 1, 2000, when the aggregate statewide valuation for assessment was based on the 1999 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 46.61 percent, the ratio of valuation for assessment for residential real property shall be 9.15 percent of actual value for the property tax years commencing on or after January 1, 2001, but before January 1, 2003.

(i) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 2003, but before January 1, 2005, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will not remain as it was in the property tax year commencing January 1, 2002, when the aggregate statewide valuation for assessment was based on the 2001 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 47.08 percent, the ratio of valuation for assessment for residential real property shall be 7.96 percent of actual value for the property tax years commencing on or after January 1, 2003, but before January 1, 2005.

(j) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 2005, but before January 1, 2007, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will not remain as it was in the property tax year commencing January 1, 2004, when the aggregate statewide valuation for assessment was based on the 2003 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 47.22 percent, the ratio of valuation for assessment for residential real property shall be 7.96 percent of actual value for the property tax years commencing on or after January 1, 2005, but before January 1, 2007.

(k) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 2007, but before January 1, 2009, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will not remain as it was in the property tax year commencing January 1, 2006, when the aggregate statewide valuation for assessment was based on the 2005 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 47.43 percent, the ratio of valuation for assessment for residential real property shall be 7.96 percent of actual value for the property tax years commencing on or after January 1, 2007, but before January 1, 2009.

(l) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 2009, but before January 1, 2011, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will not remain as it was in the property tax year commencing January 1, 2008, when the aggregate statewide valuation for assessment was based on the 2007 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 46.82 percent, the ratio of valuation for assessment for residential real property shall be 7.96 percent of actual value for the property tax years commencing on or after January 1, 2009, but before January 1, 2011.

(m) Pursuant to the authority granted in section 3 of article X of the state constitution, the general assembly finds and declares that, for the property tax years commencing on or after January 1, 2011, but before January 1, 2013, the percentage of aggregate statewide valuation for assessment that is attributable to residential real property will not remain as it was in the property tax year commencing January 1, 2010, when the aggregate statewide valuation for assessment was based on the 2009 aggregate statewide valuation for assessment. Therefore, the administrator having determined pursuant to subsection (4) of this section that the target percentage is 46.53 percent, the ratio of valuation for assessment for residential real property shall be 7.96 percent of actual value for the property tax years commencing on or after January 1, 2011, but before January 1, 2013.

(n) Based on the determination by the administrator that the target percentage is 45.86 percent, the ratio of valuation for assessment for residential real property is 7.96 percent of actual value for the property tax years commencing on or after January 1, 2013, but before January 1, 2015.

(o) Based on the determination by the administrator that the target percentage is 45.67 percent, the ratio of valuation for assessment for residential real property is 7.96 percent of actual value for the property tax years commencing on or after January 1, 2015, but before January 1, 2017.

(p) Based on the determination by the administrator that the target percentage is 45.76 percent, the ratio of valuation for assessment for residential real property is 7.2 percent of actual value for property tax years commencing on or after January 1, 2017, but before January 1, 2019.

(q) For property tax years commencing on or after January 1, 2019, and before January 1, 2025, the valuation for assessment for multi-family residential real property is 7.15 percent of the actual value of the property; except that the valuation for assessment of this property is temporarily reduced as follows:

(I) For the property tax year commencing on January 1, 2022, the valuation for assessment for multi-family residential real property is temporarily reduced to 6.8 percent of the actual value of the property; and

(II) For the property tax years commencing on January 1, 2023, and January 1, 2024, the valuation for assessment for multi-family residential real property is temporarily reduced to 6.7 percent of the amount equal to the actual value of the property minus the lesser of fifty-five thousand dollars or the amount that causes the valuation for assessment of the property to be one thousand dollars.

(r) For property tax years commencing on or after January 1, 2022, and before January 1, 2025, the valuation for assessment for all residential real property other than multi-family residential real property is 7.15 percent of the actual value of the property; except that the valuation for assessment of this property is temporarily reduced as follows:

(I) For the property tax year commencing on January 1, 2022, the valuation for assessment for all residential real property other than multi-family residential real property is temporarily reduced to 6.95 percent of the actual value of the property; and

(II) For the property tax years commencing on January 1, 2023, and January 1, 2024, the valuation for assessment for all residential real property other than multi-family residential real property is 6.7 percent of the amount equal to the actual value of the property minus the lesser of fifty-five thousand dollars or the amount that causes the valuation for assessment of the property to be one thousand dollars.

(III) Repealed.

(s) (I) For property tax years commencing on or after January 1, 2025, but before January 1, 2027, the valuation for assessment for qualified-senior primary residence real property, including multifamily qualified-senior primary residence real property, is:

(A) For the property tax year commencing on January 1, 2025, if the state board of equalization determines that the statewide actual value growth is less than or equal to five percent, for the purpose of a levy imposed by a local governmental entity, 6.25 percent of the amount equal to the actual value of the property minus the lesser of fifty percent of the first two hundred thousand dollars of that actual value or the amount that causes the valuation for assessment of the property to be one thousand dollars;

(A.5) For the property tax year commencing on January 1, 2025, if the state board of equalization determines that the statewide actual value growth is greater than five percent, for the purpose of a levy imposed by a local governmental entity, 6.15 percent of the amount equal to the actual value of the property minus the lesser of fifty percent of the first two hundred thousand dollars of that actual value or the amount that causes the valuation for assessment of the property to be one thousand dollars;

(B) For the property tax year commencing on January 1, 2026, if the state board of equalization determines that the statewide actual value growth is less than or equal to five percent, for the purpose of a levy imposed by a local governmental entity, 6.8 percent of the amount equal to the actual value of the property minus either fifty percent of the first two hundred thousand dollars of that actual value plus the lesser of ten percent of the actual value of the property or seventy thousand dollars as increased for inflation in the first year of each subsequent reassessment cycle or the amount that causes the valuation for assessment of the property to be one thousand dollars;

(B.5) For the property tax year commencing on January 1, 2026, if the state board of equalization determines that the statewide actual value growth is greater than five percent, for the purpose of a levy imposed by a local governmental entity, 6.7 percent of the amount equal to the actual value of the property minus either fifty percent of the first two hundred thousand dollars of that actual value plus the lesser of ten percent of the actual value of the property or seventy thousand dollars as increased for inflation in the first year of each subsequent reassessment cycle or the amount that causes the valuation for assessment of the property to be one thousand dollars;

(C) For the property tax years commencing on January 1, 2025, and January 1, 2026, if the state board of equalization determines that the statewide actual value growth is less than or equal to five percent, for the purpose of a levy imposed by a school district, 7.05 percent of the amount equal to the actual value of the property minus the lesser of fifty percent of the first two hundred thousand dollars of that actual value or the amount that causes the valuation for assessment of the property to be one thousand dollars; except that the valuation for assessment for the purpose of a levy imposed by a school district may be temporarily reduced for a property tax year as set forth in section 29-1-1702.5; and

(D) For the property tax years commencing on January 1, 2025, and January 1, 2026, if the state board of equalization determines that the statewide actual value growth is greater than five percent, for the purpose of a levy imposed by a school district, 6.95 percent of the amount equal to the actual value of the property minus the lesser of fifty percent of the first two hundred thousand dollars of that actual value or the amount that causes the valuation for assessment of the property to be one thousand dollars; except that the valuation for assessment for the purpose of a levy imposed by a school district may be temporarily reduced for a property tax year as set forth in section 29-1-1702.5.

(II) (A) For the property tax year commencing on January 1, 2025, if the state board of equalization determines that the statewide actual value growth is less than or equal to five percent and if it is administratively infeasible to calculate two different valuations for assessment for the same property based on two different percentages of actual value, an assessor may determine the value of a property under subsection (3)(s)(I)(C) of this section by calculating 112.8 percent of an amount equal to 6.25 percent of the amount equal to the actual value of the property minus the lesser of fifty percent of the first two hundred thousand dollars of that actual value or the amount that causes the valuation for assessment of the property to be one thousand dollars.

(B) For the property tax year commencing on January 1, 2025, if the state board of equalization determines that the statewide actual value growth is greater than five percent and if it is administratively infeasible to calculate two different valuations for assessment for the same property based on two different percentages of actual value, an assessor may determine the value of a property under subsection (3)(s)(I)(D) of this section by calculating 113.00813 percent of an amount equal to 6.15 percent of the amount equal to the actual value of the property minus the lesser of fifty percent of the first two hundred thousand dollars of that actual value or the amount that causes the valuation for assessment of the property to be one thousand dollars.

(III) The general assembly finds and declares that any modification to the valuation for assessment established in this subsection (3)(s), exclusive of the termination of any temporary reduction pursuant to section 29-1-1702.5, that would result in a property tax increase would require prior voter approval under section 20

(4)(a) of article X of the state constitution.

(t) (I) For the property tax year commencing on January 1, 2025, if the state board of equalization determines that the statewide actual value growth is less than or equal to five percent, the valuation for assessment for all residential real property other than qualified-senior primary residence real property is:

(A) For the purpose of a levy imposed by a local governmental entity, 6.25 percent of the actual value of the property; and

(B) For the purpose of a levy imposed by a school district, 7.05 percent of the actual value of the property; except that the valuation for assessment for the purpose of a levy imposed by a school district may be temporarily reduced for a property tax year as set forth in section 29-1-1702.5.

(II) If it is administratively infeasible to calculate two different valuations for assessment for the same property based on the same actual value, but with two different percentages of that actual value, an assessor may determine the value of a property under subsection (3)(t)(I)(B) of this section by calculating 112.8 percent of an amount equal to 6.25 percent of the actual value of the property.

(III) The general assembly finds and declares that any modification to the valuation for assessment established in this subsection (3)(t), exclusive of the termination of any temporary reduction pursuant to section 29-1-1702.5, that would result in a property tax increase would require prior voter approval under section 20

(4)(a) of article X of the state constitution.

(t.5) (I) For the property tax year commencing on January 1, 2025, if the state board of equalization determines that the statewide actual value growth is greater than five percent, the valuation for assessment for all residential real property other than qualified-senior primary residence real property is:

(A) For the purpose of a levy imposed by a local governmental entity, 6.15 percent of the actual value of the property; and

(B) For the purpose of a levy imposed by a school district, 6.95 percent of the actual value of the property; except that the valuation for assessment for the purpose of a levy imposed by a school district may be temporarily reduced for a property tax year as set forth in section 29-1-1702.5.

(II) If it is administratively infeasible to calculate two different valuations for assessment for the same property based on the same actual value, but with two different percentages of that actual value, an assessor may determine the value of a property under subsection (3)(t.5)(I)(B) of this section by calculating 113.00813 percent of an amount equal to 6.15 percent of the actual value of the property.

(u) (I) For property tax years commencing on or after January 1, 2026, if the state board of equalization determines that the statewide actual value growth is less than or equal to five percent, the valuation for assessment for all residential real property other than qualified-senior primary residence real property is:

(A) For the purpose of a levy imposed by a local governmental entity, 6.8 percent of the amount equal to the actual value of the property minus the lesser of ten percent of the actual value of the property, seventy thousand dollars as increased for inflation in the first year of each subsequent reassessment cycle, or the amount that causes the valuation for assessment of the property to be one thousand dollars; and

(B) For the purpose of a levy imposed by a school district, 7.05 percent of the amount equal to the actual value of the property; except that the valuation for assessment for the purpose of a levy imposed by a school district may be temporarily reduced for a property tax year as set forth in section 29-1-1702.5.

(II) For reassessment cycles commencing on or after January 1, 2027, the property tax administrator shall publish the inflation adjusted value used to calculate the valuation for assessment pursuant to subsection (3)(u)(I)(A) of this section.

(III) The general assembly finds and declares that any modification to the valuation for assessment established in this subsection (3)(u), exclusive of the termination of any temporary reduction pursuant to section 29-1-1702.5, that would result in a property tax increase would require prior voter approval under section 20

(4)(a) of article X of the state constitution.

(v) (I) For property tax years commencing on or after January 1, 2026, if the state board of equalization determines that the statewide actual value growth is greater than five percent, the valuation for assessment for all residential real property other than qualified-senior primary residence real property is:

(A) For the purpose of a levy imposed by a local governmental entity, 6.7 percent of the amount equal to the actual value of the property minus the lesser of ten percent of the actual value of the property, seventy thousand dollars as increased for inflation in the first year of each subsequent reassessment cycle, or the amount that causes the valuation for assessment of the property to be one thousand dollars; and

(B) For the purpose of a levy imposed by a school district, 6.95 percent of the amount equal to the actual value of the property; except that the valuation for assessment for the purpose of a levy imposed by a school district may be temporarily reduced for a property tax year as set forth in section 29-1-1702.5.

(II) For reassessment cycles commencing on or after January 1, 2027, the administrator shall publish the inflation-increased value used to calculate the valuation for assessment pursuant to subsection (3)(v)(I)(A) of this section.

(III) The general assembly finds and declares that any modification to the valuation for assessment established in this subsection (3)(v), exclusive of the termination of any temporary reduction pursuant to section 29-1-1702.5, that would result in a property tax increase would require prior voter approval under section 20

(4)(a) of article X of the state constitution.

(3.7) to (7) Repealed.

(8) (a) As soon as practicable upon receiving the information described in section 39-2-115 (1)(a.5), the administrator shall determine the statewide actual value growth and report that determination to the state board of equalization, and the state board of equalization shall certify the statewide actual value growth, whether that growth is less than or equal to five percent, and determine which of the valuations for assessment described in subsection (3) of this section apply in property tax years commencing on or after January 1, 2025.

(b) Upon the state board of equalization determining which of the valuations for assessment determined pursuant to this section apply in property tax years commencing on or after January 1, 2025, the state board of equalization shall notify the administrator, and the administrator shall publish those valuations for assessment on the website maintained by the division of property taxation in the department of local affairs.

(c) The general assembly finds and declares that any modification to the valuations for assessment that the state board of equalization determines are applicable in property tax years commencing on or after January 1, 2025, pursuant to this subsection (8) that would result in a property tax increase would require prior voter approval under section 20 (4)(a) of article X of the state constitution.