Tax Collection Mineral Rights County Treasurers

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED SENATE BILL 26-044 LLS NO. 26-0286.01 Jed Franklin x5484 SENATE SPONSORSHIP Pelton B., HOUSE SPONSORSHIP (None), Senate Committees House Committees Finance A BILL FOR AN ACT CONCERNING THE COLLECTION OF TAXES ON MINERAL RIGHTS BY COUNTY TREASURERS.

Bill Summary (Note: This summary applies to this bill as introduced and does 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 board of county commissioners to cancel any taxes that have been levied on a severed mineral account 5 years after the date the taxes become delinquent. The bill establishes certain requirements for when a county may convey a tax lien on a severed mineral account to a grantee or surface owner of record after a period of 5 years. 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.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 39-10-114, add (2)(c) as follows:

39-10-114. Abatement - cancellation of taxes.

(2) (c) ANY TAXES LEVIED ON A SEVERED MINERAL ACCOUNT THAT ARE DETERMINED TO BE UNCOLLECTIBLE FIVE YEARS AFTER THE DATE THE TAXES BECOME DELINQUENT MAY BE CANCELED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY THAT LEVIED THE TAXES, AND THE MINERAL ACCOUNT SHALL BE DISTINGUISHED AND CONVEYED TO THE GRANTEE OR SURFACE OWNER OF RECORD BY MEANS OF RECORDED TAX DEED, AT NO COST TO THE GRANTEE OR SURFACE OWNER OF RECORD, OR CONVEYED TO THE TREASURER'S OFFICE.

SECTION 2. In Colorado Revised Statutes, 39-11-128, add (3) as follows:

39-11-128. Condition precedent to deed - notice - exception.

(3) SUBSECTION (1) OF THIS SECTION DOES NOT APPLY TO TAXES ON A SEVERED MINERAL ACCOUNT THAT HAVE BEEN CANCELED BY A BOARD OF COUNTY COMMISSIONERS PURSUANT TO SECTION 39-10-114 (2)(c). TAXES ON SEVERED MINERAL ACCOUNTS THAT HAVE BEEN CANCELED BY THE BOARD OF COUNTY COMMISSIONERS SHALL BE DISTINGUISHED AND CONVEYED TO THE GRANTEE OR SURFACE OWNER OF RECORD BY MEANS OF RECORDED TAX DEED, AND NO FEE IS REQUIRED FOR THE PROCESSING OR RECORDING OF SUCH TAX DEED.

SECTION 3. In Colorado Revised Statutes, 39-11-142, amend (6)(a) as follows: 39-11-142. Disposition of certificates held by counties.

(6) (a) (I) Before July 1, 2024, in all cases where EXCEPT AS PROVIDED IN SUBSECTION (6)(a)(II) OF THIS SECTION, IF a tax lien on real property has been struck off to the county at a tax sale and the county has held the certificate of sale for thirty FIFTEEN years or more without obtaining a tax deed as provided in this section, then such certificate may be declared void and of no effect.

(II) IN ALL CASES WHERE A TAX LIEN ON A SEVERED MINERAL ACCOUNT HAS BEEN STRUCK OFF TO THE COUNTY AT A TAX SALE AND THE COUNTY HAS HELD THE CERTIFICATE OF SALE FOR FIVE YEARS OR MORE WITHOUT OBTAINING A TAX DEED AS PROVIDED IN THIS SECTION, THEN SUCH CERTIFICATE MAY BE DECLARED VOID AND OF NO EFFECT, AND THE SEVERED MINERAL ACCOUNT MAY BE CONVEYED TO THE GRANTEE OR SURFACE OWNER OF RECORD BY MEANS OF RECORDED TAX DEED.

SECTION 4. In Colorado Revised Statutes, 39-11-148, amend

(1) and (3) as follows:

Limitations on tax certificates - special improvement liens.

(1) (a) No EXCEPT AS PROVIDED IN SUBSECTIONS (1)(b) AND (3) OF THIS SECTION, A lien upon real property created by a tax certificate or a certificate of purchase issued by a treasurer on account of any delinquent property taxes or any special assessment of any kind or nature shall NOT remain a lien thereon for a period longer than fifteen years after the original issuance thereof. except as provided in subsection (3) of this section. This section shall DOES not apply to any tax certificate or certificate of purchase issued to and held by the county, city, city and county, or district levying such tax or special assessment; except that, in the event of an assignment of such tax certificate or certificate of purchase so issued to and held by such county, city, city and county, or district, the lien of such tax certificate or certificate of purchase shall cease fifteen years after the date of its issuance subject only to the provisions of subsection (3) of this section.

(b) EXCEPT AS PROVIDED IN SUBSECTION (3) OF THIS SECTION, A LIEN UPON A SEVERED MINERAL ACCOUNT CREATED BY A TAX CERTIFICATE OR A CERTIFICATE OF PURCHASE ISSUED BY A TREASURER ON ACCOUNT OF ANY DELINQUENT PROPERTY TAXES OR ANY SPECIAL ASSESSMENT OF ANY KIND OR NATURE SHALL NOT REMAIN A LIEN THEREON FOR A PERIOD LONGER THAN FIVE YEARS AFTER THE ORIGINAL ISSUANCE THEREOF. THIS SUBSECTION (1)(b) DOES NOT APPLY TO ANY TAX CERTIFICATE OR CERTIFICATE OF PURCHASE FOR A SEVERED MINERAL ACCOUNT THAT IS ISSUED TO AND HELD BY THE COUNTY, CITY, CITY AND COUNTY, OR DISTRICT LEVYING SUCH TAX OR SPECIAL ASSESSMENT; EXCEPT THAT, IN THE EVENT OF AN ASSIGNMENT OF SUCH TAX CERTIFICATE OR CERTIFICATE OF PURCHASE SO ISSUED TO AND HELD BY SUCH COUNTY, CITY, CITY AND COUNTY, OR DISTRICT, THE LIEN OF SUCH TAX CERTIFICATE OR CERTIFICATE OF PURCHASE SHALL CEASE FIVE YEARS AFTER THE DATE OF ITS ISSUANCE SUBJECT ONLY TO THE PROVISIONS OF SUBSECTION (3) OF THIS SECTION.

(3) (a) EXCEPT AS PROVIDED IN SUBSECTION (3)(b) OF THIS SECTION, in the event of an assignment of a tax certificate or certificate of purchase FOR REAL PROPERTY THAT IS held by a county, city, city and county, or district levying such tax wherein such certificate is fifteen years old at the time of assignment or will become fifteen years old within one year from the date of such assignment, the assignee thereof shall be IS entitled to a tax deed in the manner provided by law if such assignee or other legal holder of such certificate institutes proceedings to procure a tax deed by making a demand upon the treasurer for THE same, as provided by law, within one year from the date of such assignment by the county, city, city and county, or district levying such tax.

(b) IN THE EVENT OF AN ASSIGNMENT OF A TAX CERTIFICATE OR CERTIFICATE OF PURCHASE FOR A SEVERED MINERAL ACCOUNT THAT IS HELD BY A COUNTY, CITY, CITY AND COUNTY, OR DISTRICT LEVYING SUCH TAX WHEREIN SUCH CERTIFICATE IS FIVE YEARS OLD AT THE TIME OF ASSIGNMENT OR WILL BECOME FIVE YEARS OLD WITHIN ONE YEAR FROM THE DATE OF SUCH ASSIGNMENT, THE ASSIGNEE THEREOF IS ENTITLED TO A TAX DEED IN THE MANNER PROVIDED BY LAW IF SUCH ASSIGNEE OR OTHER LEGAL HOLDER OF SUCH CERTIFICATE INSTITUTES PROCEEDINGS TO PROCURE A TAX DEED BY MAKING A DEMAND UPON THE TREASURER FOR THE SAME, AS PROVIDED BY LAW, WITHIN ONE YEAR FROM THE DATE OF SUCH ASSIGNMENT BY THE COUNTY, CITY, CITY AND COUNTY, OR DISTRICT LEVYING SUCH TAX.

SECTION 5. In Colorado Revised Statutes, 39-11-151, add (4) as follows: 39-11-151. County officials and employees may not acquire a tax lien or property by sale of a tax lien - exception.

(4) THIS SECTION DOES NOT APPLY TO THE CONVEYANCE OF A SEVERED MINERAL ACCOUNT IN ACCORDANCE WITH SECTION 39-11-142 (6)(a)(II).

SECTION 6. 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.