Local Taxes on Vacant Residential Property

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED HOUSE BILL 26-1036 LLS NO. 26-0427.01 Rebecca Bayetti x4348 HOUSE SPONSORSHIP Titone and Velasco, SENATE SPONSORSHIP (None), House Committees Senate Committees Finance A BILL FOR AN ACT CONCERNING AUTHORIZATION FOR A LOCAL GOVERNMENT TO IMPOSE TAXES CONNECTION THEREWITH, ALLOWING A LOCAL GOVERNMENT TO LEVY AN EXCISE TAX BASED ON THE CHARACTERISTICS OF A RESIDENTIAL PROPERTY, ALLOWING A LOCAL GOVERNMENT TO CREATE A NEW PROPERTY TAX CLASSIFICATION FOR VACANT RESIDENTIAL PROPERTIES AND LEVY AN ADDITIONAL PROPERTY TAX GOVERNMENTS TO CONTRACT TO FORM A LOCAL HOUSING TAX AUTHORITY.

ON ON VACANT THOSE RESIDENTIAL PROPERTIES, PROPERTIES, AND ALLOWING AND, IN LOCAL Bill Summary (Note: This summary applies to this bill as introduced and does Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.

Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law.

not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) The bill authorizes a county or municipality (local government), after approval by the electors of the local government, to impose an excise or a property tax, or both, on vacant residential properties within the boundaries of the local government (local taxes on vacant residential properties) (sections 1 and 3 of the bill). A local government may use the revenues collected from either tax only for affordable, attainable, or workforce housing. A county assessor has no duty in implementing local taxes on vacant residential properties, but in an assessor's discretion, the assessor may assist by providing data and information to a local government or local housing tax authority, and may enter into an intergovernmental agreement that provides for compensation in exchange for the assessor's assistance. The bill also creates a process for the creation of a local housing tax authority (authority) by intergovernmental agreement to allow 2 or more counties, cities and counties, or municipalities to form a joint taxing authority to collectively establish, levy, collect, and enforce local taxes on vacant residential properties within the boundaries of the authority (section 2).

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 29-2-117 as follows: 29-2-117. Authority to levy excise tax on vacant residential units - county - municipality - election - definitions. (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) "SHORT-TERM RENTAL UNIT" MEANS A BUILDING THAT:

(I) IS LICENSED AS A SHORT-TERM RENTAL UNIT WITHIN THE COUNTY, MUNICIPALITY, OR LOCAL HOUSING TAX AUTHORITY IMPOSING A TAX PURSUANT TO THIS SECTION; OR

(II) (A) IS DESIGNED FOR USE PREDOMINANTLY AS A PLACE OF RESIDENCY BY A PERSON, A FAMILY, OR FAMILIES; AND

(B) IS AVAILABLE TO BE LEASED FOR ONE OR MORE SHORT-TERM STAYS.

(b) "SHORT-TERM STAY" MEANS OVERNIGHT LODGING THAT IS PROVIDED TO AN INDIVIDUAL OR BUSINESS FOR LESS THAN THIRTY CONSECUTIVE DAYS IN EXCHANGE FOR MONETARY PAYMENT.

(c) "VACANT RESIDENTIAL UNIT" MEANS A BUILDING THAT:

(I) IS DESIGNED FOR USE PREDOMINANTLY AS A PLACE OF RESIDENCY BY A PERSON, A FAMILY, OR FAMILIES;

(II) IS UNOCCUPIED AND NOT USED AS A RESIDENCE FOR A SPECIFIED AMOUNT OF TIME, AS DETERMINED BY THE COUNTY, MUNICIPALITY, OR LOCAL HOUSING TAX AUTHORITY IMPOSING A TAX PURSUANT TO THIS SECTION; AND

(III) IS NOT A SHORT-TERM RENTAL UNIT.

(2) (a) EACH COUNTY IN THE STATE IS AUTHORIZED TO LEVY, COLLECT, AND ENFORCE A COUNTY EXCISE TAX ON ALL VACANT RESIDENTIAL UNITS WITHIN THE COUNTY, OR ANY SUBSET THEREOF, AS PROVIDED IN THIS SUBSECTION (2); EXCEPT THAT A COUNTY IS NOT AUTHORIZED TO LEVY, COLLECT, AND ENFORCE A COUNTY EXCISE TAX PURSUANT TO THIS SUBSECTION (2) WITHIN A MUNICIPALITY UNLESS AN AGREEMENT EXISTS BETWEEN THE COUNTY AND MUNICIPALITY TO IMPOSE THE TAX WITHIN THE MUNICIPAL BOUNDARIES. A COUNTY IS AUTHORIZED TO LEVY, COLLECT, AND ENFORCE AN EXCISE TAX PURSUANT TO THIS SUBSECTION (2) IN UNINCORPORATED AREAS OF THE COUNTY. A COUNTY IS AUTHORIZED TO LEVY, COLLECT, AND ENFORCE AN EXCISE TAX PURSUANT TO THIS SUBSECTION (2) AS A FLAT RATE ON ALL VACANT RESIDENTIAL UNITS WITHIN THE COUNTY, OR ANY SUBSET THEREOF, OR BASED ON THE UNIT TYPE, NUMBER OF BEDROOMS, OR SQUARE FOOTAGE OF THE UNIT.

(b) A COUNTY SHALL NOT LEVY AN EXCISE TAX PURSUANT TO THE PROVISIONS OF SUBSECTION (2)(a) OF THIS SECTION UNTIL THE PROPOSAL HAS BEEN REFERRED TO AND APPROVED BY THE ELIGIBLE ELECTORS OF THE COUNTY IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE X,

SECTION 20 OF THE STATE CONSTITUTION. THE ADOPTION PROCEDURES FOR A COUNTYWIDE SALES TAX, USE TAX, OR BOTH, AS SPECIFIED IN THIS ARTICLE 2, APPLY TO THE REFERRAL AND APPROVAL OF AN EXCISE TAX PURSUANT TO THIS SUBSECTION (2). A PROPOSAL FOR A COUNTY EXCISE TAX PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION MUST CONTAIN A DESCRIPTION OF THE PROPOSED TAX, MUST STATE THE AMOUNT TO BE IMPOSED, AND MUST DESCRIBE THE AREA WITHIN THE COUNTY IN WHICH THE TAX WILL BE IMPOSED.

(3) (a) EACH MUNICIPALITY IN THE STATE IS AUTHORIZED TO LEVY, COLLECT, AND ENFORCE A MUNICIPAL EXCISE TAX ON ALL VACANT RESIDENTIAL UNITS WITHIN THE MUNICIPALITY, OR ANY SUBSET THEREOF, AS PROVIDED IN THIS SUBSECTION (3). A MUNICIPALITY IS AUTHORIZED TO LEVY, COLLECT, AND ENFORCE AN EXCISE TAX PURSUANT TO THIS SUBSECTION (3) AS A FLAT RATE ON ALL VACANT RESIDENTIAL UNITS WITHIN THE MUNICIPALITY, OR ANY SUBSET THEREOF, OR BASED ON THE UNIT TYPE, NUMBER OF BEDROOMS, OR SQUARE FOOTAGE OF THE UNIT.

(b) A MUNICIPALITY SHALL NOT LEVY AN EXCISE TAX PURSUANT TO THE PROVISIONS OF SUBSECTION (3)(a) OF THIS SECTION UNTIL THE PROPOSAL HAS BEEN REFERRED TO AND APPROVED BY THE ELIGIBLE ELECTORS REQUIREMENTS OF ARTICLE X, SECTION 20 OF THE STATE CONSTITUTION.

OF THE MUNICIPALITY IN ACCORDANCE WITH THE A PROPOSAL FOR A MUNICIPAL EXCISE TAX PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION MUST CONTAIN A DESCRIPTION OF THE PROPOSED TAX AND THE AMOUNT TO BE IMPOSED.

THE DEPARTMENT OF REVENUE SHALL NOT COLLECT, ADMINISTER, OR ENFORCE AN EXCISE TAX IMPOSED BY A COUNTY OR MUNICIPALITY PURSUANT TO THIS SECTION AND, INSTEAD, THE COUNTY OR MUNICIPALITY IMPOSING THE TAX SHALL COLLECT, ADMINISTER, AND ENFORCE THE EXCISE TAX. A MUNICIPALITY MAY COLLECT, ADMINISTER, AND ENFORCE THE EXCISE TAX ACCORDING TO PART 1 OF ARTICLE 20 OF TITLE 31, INCLUDING CERTIFYING DELINQUENT CHARGES, ASSESSMENTS, OR TAXES TO THE TREASURER OF THE COUNTY PURSUANT TO SECTION

(5) ONE OR MORE COUNTIES OR MUNICIPALITIES MAY FORM A LOCAL HOUSING TAX AUTHORITY PURSUANT TO PART 13 OF ARTICLE 4 OF THIS TITLE 29 TO COLLABORATE ON A COORDINATED ELECTION TO APPROVE THE LEVY OF AN EXCISE TAX PURSUANT TO THIS SECTION AND ON THE COLLECTION, ADMINISTRATION, AND ENFORCEMENT OF AN APPROVED TAX.

(6) (a) A COUNTY OR MUNICIPALITY IN WHICH THE ELIGIBLE ELECTORS HAVE APPROVED THE LEVY OF AN EXCISE TAX PURSUANT TO THIS SECTION MAY CREDIT THE REVENUES COLLECTED FROM THE TAX TO THE GENERAL FUND OF THE COUNTY OR MUNICIPALITY OR TO ANY SPECIAL FUND CREATED IN THE COUNTY'S OR MUNICIPALITY'S TREASURY.

(b) A COUNTY OR MUNICIPALITY MAY USE THE REVENUES COLLECTED FROM AN EXCISE TAX IMPOSED PURSUANT TO THIS SECTION ONLY FOR AFFORDABLE, ATTAINABLE, OR WORKFORCE HOUSING, AS DEFINED BY THE COUNTY OR MUNICIPALITY. TO THE EXTENT THAT A COUNTY OR MUNICIPALITY IS REQUIRED TO CONDUCT A HOUSING NEEDS ASSESSMENT PURSUANT TO PART 37 OF ARTICLE 32 OF TITLE 24, THE REVENUES COLLECTED FROM THE TAX MUST BE USED TO SUPPORT A DEMONSTRATED NEED IDENTIFIED IN THE COUNTY'S OR MUNICIPALITY'S MOST RECENT HOUSING NEEDS ASSESSMENT.

(7) A COUNTY ASSESSOR HAS NO DUTY IN IMPLEMENTING A TAX ASSESSED AND LEVIED BY A COUNTY OR MUNICIPALITY PURSUANT TO THIS SECTION. IN AN ASSESSOR'S DISCRETION, THE ASSESSOR MAY ASSIST BY PROVIDING DATA AND INFORMATION TO A COUNTY, MUNICIPALITY, OR LOCAL INTERGOVERNMENTAL AGREEMENT THAT PROVIDES FOR COMPENSATION IN EXCHANGE FOR THE ASSESSOR'S ASSISTANCE.

HOUSING TAX AUTHORITY, AND MAY ENTER INTO AN

(8) NOTHING IN THIS SECTION SHOULD BE CONSTRUED TO LIMIT THE POWERS OF HOME RULE MUNICIPALITIES ORGANIZED UNDER THE PROVISIONS OF ARTICLE XX OF THE STATE CONSTITUTION.

SECTION 2. In Colorado Revised Statutes, add part 13 to article 4 of title 29 as follows:

PART 13 LOCAL HOUSING TAX AUTHORITIES

29-4-1301. Definitions.

AS USED IN THIS PART 13, UNLESS THE CONTEXT OTHERWISE REQUIRES:

"GOVERNING BODY" MEANS THE BOARD OF COUNTY COMMISSIONERS OF A COUNTY OR THE CITY COUNCIL OF A CITY, THE BOARD OF TRUSTEES OF A TOWN, OR ANY OTHER BODY BY WHATEVER NAME KNOWN THAT IS GIVEN LAWFUL AUTHORITY TO ADOPT ORDINANCES FOR A SPECIFIC MUNICIPALITY.

"LOCAL GOVERNMENT" MEANS ANY COUNTY, CITY AND COUNTY, OR MUNICIPALITY.

(3) "LOCAL HOUSING TAX AUTHORITY" OR "AUTHORITY" MEANS A CORPORATE BODY ORGANIZED PURSUANT TO THIS PART 13.

29-4-1302. Local housing tax authority - formation - powers and purpose - intergovernmental agreement.

(1) (a) GOVERNMENTS BOUNDARIES MAY ENTER INTO AN INTERGOVERNMENTAL AGREEMENT TO CREATE AN AUTHORITY THAT IS AUTHORIZED TO EXERCISE THE FUNCTIONS CONFERRED BY THE PROVISIONS OF THIS PART 13.

THE GOVERNING BODY OF TWO OR MORE LOCAL THAT SHARE TERRITORY OR HAVE CONTIGUOUS

(b) THE PURPOSE OF THIS PART 13 IS TO ALLOW TWO OR MORE LOCAL GOVERNMENTS TO FORM A JOINT TAXING AUTHORITY TO COLLECTIVELY ESTABLISH, LEVY, COLLECT, AND ENFORCE TAXES ON VACANT RESIDENTIAL PROPERTY, AS PROVIDED IN SECTIONS 29-2-117 AND 39-1-104.8, WITHIN THE BOUNDARIES OF AN AUTHORITY.

(c) A LOCAL GOVERNMENT SHALL NOT ENTER INTO AN INTERGOVERNMENTAL AGREEMENT TO CREATE AN AUTHORITY WITHOUT HOLDING AT LEAST TWO PUBLIC HEARINGS THEREON, IN ADDITION TO OTHER REQUIREMENTS IMPOSED BY LAW FOR PUBLIC NOTICE. THE LOCAL GOVERNMENT SHALL GIVE NOTICE OF THE TIME, PLACE, AND PURPOSE OF THE PUBLIC HEARING BY PUBLICATION IN A NEWSPAPER OF GENERAL CIRCULATION IN THE LOCAL GOVERNMENT OR ON A PUBLICLY ACCESSIBLE WEBSITE AT LEAST TEN DAYS PRIOR TO THE DATE OF THE PUBLIC HEARING.

(2) AN INTERGOVERNMENTAL AGREEMENT THAT CREATES AN AUTHORITY MUST INCLUDE:

(a) THE NAME AND PURPOSE OF THE AUTHORITY;

(b) PROVISIONS FOR THE LEVY, COLLECTION, ENFORCEMENT, AND APPORTIONMENT OF REVENUE OF AN EXCISE OR PROPERTY TAX AUTHORIZED PURSUANT TO THIS SECTION;

(c) THE ESTABLISHMENT AND ORGANIZATION OF A BOARD OF DIRECTORS IN WHICH ALL LEGISLATIVE POWER OF THE AUTHORITY IS VESTED, INCLUDING:

(I) THE NUMBER OF DIRECTORS;

(II) THE MANNER OF THE ELECTION OR APPOINTMENT, THE QUALIFICATIONS, AND THE COMPENSATION, IF ANY, OF THE DIRECTORS AND THE PROCEDURE FOR FILLING VACANCIES;

(III) THE OFFICERS OF THE DISTRICT, THE MANNER OF THEIR APPOINTMENT, AND THEIR DUTIES; AND

(IV) THE VOTING REQUIREMENTS FOR ACTION BY THE BOARD;

EXCEPT THAT, UNLESS SPECIFICALLY PROVIDED OTHERWISE IN THE INTERGOVERNMENTAL AGREEMENT, A MAJORITY OF THE DIRECTORS OF THE BOARD CONSTITUTES A QUORUM AND IS NECESSARY FOR ACTION BY THE BOARD;

(d) INCLUDE:

THE BOUNDARIES OF THE AUTHORITY, WHICH MAY NOT

(I) TERRITORY WITHIN THE BOUNDARIES OF A MUNICIPALITY THAT IS NOT A MEMBER OF THE LOCAL GOVERNMENTS FORMING THE AUTHORITY, AS THE BOUNDARIES OF THE MUNICIPALITY EXIST ON THE DATE THE AUTHORITY IS CREATED, WITHOUT THE CONSENT OF THE GOVERNING BODY OF THE MUNICIPALITY; OR

(II) TERRITORY WITHIN THE UNINCORPORATED BOUNDARIES OF A COUNTY THAT IS NOT A MEMBER OF THE LOCAL GOVERNMENTS FORMING THE AUTHORITY, AS THE UNINCORPORATED BOUNDARIES OF THE COUNTY EXIST ON THE DATE THE AUTHORITY IS CREATED, WITHOUT THE CONSENT OF THE GOVERNING BODY OF THE COUNTY;

(e) THE CONDITIONS FOR ADDING OR REMOVING A LOCAL GOVERNMENT PARTY TO THE INTERGOVERNMENTAL AGREEMENT;

(f) THE TERM OF THE AUTHORITY, WHICH MAY BE FOR A DEFINITE TERM OR UNTIL DISSOLVED, AND THE METHOD, IF ANY, BY WHICH IT MAY BE DISSOLVED;

(g) PROVISIONS FOR AMENDMENT OF THE INTERGOVERNMENTAL AGREEMENT; AND

(h) THE LIMITATIONS, IF ANY, ON THE POWERS GRANTED BY THIS SECTION THAT MAY BE EXERCISED BY THE AUTHORITY.

(3) AN AUTHORITY CREATED PURSUANT TO THIS PART 13 IS A SEPARATE LEGAL ENTITY AND HAS THE POWERS DESCRIBED IN SECTIONS 29-1-203 AND 29-1-203.5 AND ALL THE POWERS NECESSARY OR CONVENIENT TO CARRY OUT AND EFFECTUATE THE PURPOSES OF THIS PART 13, INCLUDING THE POWER TO:

(a) SUE AND TO BE SUED;

(b) ADOPT AND ALTER A SEAL;

(c) HAVE PERPETUAL SUCCESSION;

(d) MAKE, AND FROM TIME TO TIME AMEND AND REPEAL, BYLAWS, ORDERS, RULES, AND REGULATIONS TO EFFECTUATE THE PROVISIONS OF THIS PART 13;

(e) MAKE LOANS, WHICH MAY BE SECURED BY LOAN AND SECURITY AGREEMENTS, LEASES, OR ANY OTHER INSTRUMENTS UPON THE TERMS AND CONDITIONS DETERMINED BY THE BOARD OF DIRECTORS OF THE AUTHORITY;

(f) ISSUE BONDS, NOTES, OR OTHER FINANCIAL OBLIGATIONS PAYABLE SOLELY FROM REVENUES OR OTHER AVAILABLE MONEY OF THE AUTHORITY. THE TERMS, CONDITIONS, AND DETAILS OF THE BONDS, NOTES, OR OTHER FINANCIAL OBLIGATIONS, AS DETERMINED BY THE BOARD OF DIRECTORS OF THE AUTHORITY, MUST BE SET FORTH IN THE SECURITY AGREEMENT UNDER WHICH THE BONDS, NOTES, OR OTHER FINANCIAL OBLIGATIONS ARE ISSUED.

(g) COORDINATE AN ELECTION TO APPROVE A LOCAL EXCISE TAX ON VACANT RESIDENTIAL UNITS, AS PROVIDED IN SECTION 29-2-117, WITHIN THE BOUNDARIES OF THE AUTHORITY;

(h) LEVY, COLLECT, AND ENFORCE A LOCAL EXCISE TAX ON VACANT RESIDENTIAL UNITS, AS PROVIDED IN SECTION 29-2-117, WITHIN THE BOUNDARIES OF THE AUTHORITY ACCORDING TO THE TERMS OF AN INTERGOVERNMENTAL GOVERNMENTS;

AGREEMENT AMONG THE MEMBER LOCAL

(i) COORDINATE AN ELECTION TO APPROVE A LOCAL AD VALOREM PROPERTY TAX ON VACANT RESIDENTIAL PROPERTY, AS PROVIDED IN

SECTION 39-1-104.8, WITHIN THE BOUNDARIES OF THE AUTHORITY;

(j) ASSESS, LEVY, COLLECT, AND ENFORCE A LOCAL AD VALOREM PROPERTY TAX ON VACANT RESIDENTIAL PROPERTY, AS PROVIDED IN

SECTION 39-1-104.8, WITHIN THE BOUNDARIES OF THE AUTHORITY ACCORDING TO THE TERMS OF AN INTERGOVERNMENTAL AGREEMENT AMONG THE MEMBER LOCAL GOVERNMENTS;

(k) CAUSE DELINQUENT TAXES MADE OR LEVIED BY THE AUTHORITY TO BE CERTIFIED TO A TREASURER OF A COUNTY AND BE COLLECTED AND PAID OVER BY THE TREASURER OF THE COUNTY IN THE MANNER PROVIDED FOR IN THE INTERGOVERNMENTAL AGREEMENT; AND (l) MAKE AND EXECUTE ANY AND ALL CONTRACTS, INTERGOVERNMENTAL AGREEMENTS, AND OTHER INSTRUMENTS THAT IT MAY DEEM NECESSARY OR CONVENIENT TO THE EXERCISE OF ITS POWERS PURSUANT TO THIS PART 13.

(4) ARTICLES 10.5 AND 47 OF TITLE 11 APPLY TO THE MONEY OF AN AUTHORITY.

(5) (a) IN THE EVENT THAT PROPERTY WITHIN THE BOUNDARIES OF THE AUTHORITY MUST BE EXCLUDED FROM THE AUTHORITY DUE TO THE PROPERTY'S ANNEXATION TO A LOCAL GOVERNMENT THAT IS NOT A PARTY TO AUTHORITY, THE AUTHORITY'S BOARD OF DIRECTORS SHALL CREATE A PLAN TO EXCLUDE THAT PROPERTY FROM THE BOUNDARIES OF THE AUTHORITY. THE BOARD OF DIRECTORS SHALL INCLUDE IN THE PLAN:

(I) A DESCRIPTION OF THE PROPERTY TO BE EXCLUDED;

(II) THE EFFECTIVE DATE OF THE EXCLUSION OF THE PROPERTY;

THE INTERGOVERNMENTAL AGREEMENT THAT FORMED THE AND (III) ANY OTHER CONDITIONS AND OBLIGATIONS, ON THE AUTHORITY OR THE LOCAL GOVERNMENT THAT IS NOT A PARTY TO THE INTERGOVERNMENTAL AGREEMENT THAT FORMED THE AUTHORITY, THAT ARE NECESSARY TO PERMIT THE EXCLUSION OF THE PROPERTY FROM THE AUTHORITY.

(b) PROPERTY EXCLUDED FROM THE BOUNDARIES OF AN AUTHORITY PURSUANT TO THIS SUBSECTION (5) IS SUBJECT TO THE LEVY OF TAXES BY THE AUTHORITY FOR THE PAYMENT OF THE PROPERTY'S PROPORTIONATE SHARE OF ANY INDEBTEDNESS OF THE AUTHORITY AND THE INTEREST THEREON THAT EXISTED IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THE EXCLUSION.

(c) THE CHANGE OF BOUNDARIES OF AN AUTHORITY CAUSED BY AN EXCLUSION OF PROPERTY PURSUANT TO THIS SUBSECTION (5) DOES NOT IMPAIR OR AFFECT THE AUTHORITY'S ORGANIZATION OR ANY EXISTING CONTRACT, OBLIGATION, LIEN, OR CHARGE.

AN AUTHORITY THAT COORDINATES AN ELECTION AS AUTHORIZED BY THIS SECTION SHALL CONDUCT THE ELECTION IN SUBSTANTIALLY THE SAME MANNER AS MUNICIPAL OR COUNTY ELECTIONS, AS APPROPRIATE, AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION. THE MUNICIPAL OR COUNTY CLERK AND RECORDER OF EACH LOCAL GOVERNMENT IN WHICH THE ELECTION IS CONDUCTED SHALL ASSIST THE AUTHORITY IN CONDUCTING THE ELECTION.

(7) ANY PUBLIC BODY, FOR THE PURPOSE OF AIDING AN AUTHORITY WHOSE BOUNDARIES ARE SITUATED IN WHOLE OR IN PART WITHIN THE AREA IN WHICH THE PUBLIC BODY IS AUTHORIZED TO ACT, UPON TERMS AS THE PUBLIC BODY DETERMINES, MAY:

(a) DO EVERYTHING NECESSARY TO AID OR COOPERATE WITH THE AUTHORITY IN CONNECTION WITH THE PLANNING OR UNDERTAKING OF ANY ACTIVITIES IN FURTHERANCE OF THE PURPOSES OF THIS PART 13; AND

(b) ENTER INTO AGREEMENTS WITH THE AUTHORITY RESPECTING ACTION TO BE TAKEN PURSUANT TO ANY OF THE POWERS SET FORTH IN THIS PART 13.

SECTION 3. In Colorado Revised Statutes, add 39-1-104.8 as follows:

39-1-104.8. Authority to levy and assess additional ad valorem tax on vacant residential real property - county - municipality - election - legislative declaration - definitions.

THE GENERAL ASSEMBLY FINDS AND DECLARES THAT A COUNTY OR MUNICIPAL AD VALOREM TAX DESCRIBED IN THIS SECTION THAT IS ASSESSED AND LEVIED ON REAL PROPERTY CLASSIFIED AS VACANT RESIDENTIAL PROPERTY DOES NOT VIOLATE THE UNIFORMITY CLAUSE OF ARTICLE X, SECTION 3 (1)(a) OF THE STATE CONSTITUTION BECAUSE IT IS A REASONABLE CLASSIFICATION BASED ON THE NATURE OF THE PROPERTY AND ALL PROPERTIES WITHIN THIS CLASS ARE UNIFORMLY TAXED WITHIN THE TAXING JURISDICTION, AS DESCRIBED IN SENIOR CORP. V. BOARD OF ASSESSMENT APPEALS, 702 P.2d 732, 738 (COLO. 1985), AND JENSEN V.

DENVER, 806 P.2d 381, 384 (COLO. 1991).

(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) "SHORT-TERM RENTAL PROPERTY" MEANS PROPERTY THAT:

(I) IS LICENSED AS A SHORT-TERM RENTAL UNIT WITHIN THE COUNTY, MUNICIPALITY, OR LOCAL HOUSING TAX AUTHORITY IMPOSING A TAX PURSUANT TO THIS SECTION; OR

(II) (A) IS DESIGNED FOR USE PREDOMINANTLY AS A PLACE OF RESIDENCY BY A PERSON, A FAMILY, OR FAMILIES; AND

(B) IS AVAILABLE TO BE LEASED FOR ONE OR MORE SHORT-TERM STAYS.

(b) "SHORT-TERM STAY" MEANS OVERNIGHT LODGING THAT IS PROVIDED TO AN INDIVIDUAL OR BUSINESS FOR LESS THAN THIRTY CONSECUTIVE DAYS IN EXCHANGE FOR MONETARY PAYMENT.

(c) "VACANT RESIDENTIAL PROPERTY" MEANS PROPERTY THAT:

(I) IS DESIGNED FOR USE PREDOMINANTLY AS A PLACE OF RESIDENCY BY A PERSON, A FAMILY, OR FAMILIES;

(II) IS UNOCCUPIED AND NOT USED AS A RESIDENCE FOR A SPECIFIED AMOUNT OF TIME, AS DETERMINED BY THE COUNTY, MUNICIPALITY, OR LOCAL HOUSING TAX AUTHORITY IMPOSING A TAX PURSUANT TO THIS SECTION; AND

(III) IS NOT SHORT-TERM RENTAL PROPERTY.

(3) (a) EACH COUNTY IN THE STATE IS AUTHORIZED TO ASSESS, LEVY, COLLECT, AND ENFORCE AN AD VALOREM TAX ON RESIDENTIAL REAL PROPERTY THAT IS CLASSIFIED BY THE COUNTY AS VACANT RESIDENTIAL PROPERTY.

SUBSECTION (3) IS IN ADDITION TO ANY AD VALOREM TAX ASSESSED ON RESIDENTIAL REAL PROPERTY IN THE COUNTY.

A TAX AUTHORIZED PURSUANT TO THIS

(b) A COUNTY SHALL NOT ASSESS OR LEVY AN AD VALOREM PROPERTY TAX PURSUANT TO THE PROVISIONS OF SUBSECTION (3)(a) OF THIS SECTION UNTIL THE PROPOSAL HAS BEEN REFERRED TO AND APPROVED BY THE ELIGIBLE ELECTORS OF THE COUNTY IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE X, SECTION 20 OF THE STATE CONSTITUTION.

(4) (a) EACH MUNICIPALITY IN THE STATE IS AUTHORIZED TO ASSESS, LEVY, COLLECT, AND ENFORCE AN AD VALOREM TAX ON RESIDENTIAL REAL PROPERTY THAT IS CLASSIFIED BY THE MUNICIPALITY AS VACANT RESIDENTIAL PROPERTY. A TAX AUTHORIZED PURSUANT TO THIS SUBSECTION (4) IS IN ADDITION TO ANY AD VALOREM TAX ASSESSED ON RESIDENTIAL REAL PROPERTY IN THE MUNICIPALITY.

(b) A MUNICIPALITY SHALL NOT ASSESS OR LEVY AN AD VALOREM PROPERTY TAX PURSUANT TO THE PROVISIONS OF SUBSECTION (4)(a) OF THIS SECTION UNTIL THE PROPOSAL HAS BEEN REFERRED TO AND APPROVED BY THE ELIGIBLE ELECTORS OF THE MUNICIPALITY IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE X, SECTION 20 OF THE STATE CONSTITUTION.

(5) (a) A COUNTY OR MUNICIPALITY THAT ASSESSES AND IMPOSES AN AD VALOREM PROPERTY TAX PURSUANT TO THIS SECTION SHALL COLLECT, ADMINISTER, AND ENFORCE THE TAX. A MUNICIPALITY MAY COLLECT, ADMINISTER, AND ENFORCE THE TAX ACCORDING TO PART 1 OF ARTICLE 20 OF TITLE 31, INCLUDING CERTIFYING DELINQUENT CHARGES, ASSESSMENTS, OR TAXES TO THE TREASURER OF THE COUNTY PURSUANT TO SECTION 31-20-105.

(b) A COUNTY OR MUNICIPALITY THAT ASSESSES AND IMPOSES AN AD VALOREM PROPERTY TAX PURSUANT TO THIS SECTION MAY ESTABLISH GUIDELINES FOR THE CLASSIFICATION OF REAL PROPERTY AS VACANT RESIDENTIAL PROPERTY.

(6) ONE OR MORE COUNTIES OR MUNICIPALITIES MAY FORM A LOCAL HOUSING TAX AUTHORITY PURSUANT TO PART 13 OF ARTICLE 4 OF TITLE 29 TO COLLABORATE ON A COORDINATED ELECTION TO APPROVE THE ASSESSMENT AND LEVY OF AN AD VALOREM PROPERTY TAX PURSUANT TO THIS SECTION AND ON THE COLLECTION, ADMINISTRATION, AND ENFORCEMENT OF AN APPROVED TAX.

(7) (a) A COUNTY OR MUNICIPALITY IN WHICH THE ELIGIBLE ELECTORS HAVE APPROVED THE LEVY OF AN AD VALOREM PROPERTY TAX PURSUANT TO THIS SECTION MAY CREDIT THE REVENUES COLLECTED FROM THE TAX TO THE GENERAL FUND OF THE COUNTY OR MUNICIPALITY OR TO ANY SPECIAL FUND CREATED IN THE COUNTY'S OR MUNICIPALITY'S TREASURY.

(b) A COUNTY OR MUNICIPALITY MAY USE THE REVENUES COLLECTED FROM A TAX IMPOSED PURSUANT TO THIS SECTION ONLY FOR AFFORDABLE, ATTAINABLE, OR WORKFORCE HOUSING, AS DEFINED BY THE COUNTY OR MUNICIPALITY.

TO THE EXTENT THAT A COUNTY OR MUNICIPALITY IS REQUIRED TO CONDUCT A HOUSING NEEDS ASSESSMENT PURSUANT TO PART 37 OF ARTICLE 32 OF TITLE 24, THE REVENUES COLLECTED FROM THE TAX MUST BE USED TO SUPPORT A DEMONSTRATED NEED IDENTIFIED IN THE COUNTY'S OR MUNICIPALITY'S MOST RECENT HOUSING NEEDS ASSESSMENT.

(8) A COUNTY ASSESSOR HAS NO DUTY IN IMPLEMENTING A TAX ASSESSED AND LEVIED BY A COUNTY OR MUNICIPALITY PURSUANT TO THIS SECTION. IN AN ASSESSOR'S DISCRETION, THE ASSESSOR MAY ASSIST BY PROVIDING DATA AND INFORMATION TO A COUNTY, MUNICIPALITY, OR LOCAL INTERGOVERNMENTAL AGREEMENT THAT PROVIDES FOR COMPENSATION IN EXCHANGE FOR THE ASSESSOR'S ASSISTANCE.

HOUSING TAX AUTHORITY AND MAY ENTER INTO AN

(9) NOTHING IN THIS SECTION SHOULD BE CONSTRUED TO LIMIT THE POWERS OF HOME RULE MUNICIPALITIES ORGANIZED UNDER THE PROVISIONS OF ARTICLE XX OF THE STATE CONSTITUTION.

SECTION 4. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.