Bill > HB1289

This bill modifies property tax exemption rules for real property leased to public entities, with a specific focus on metropolitan districts. The bill requires metropolitan districts that are party to a lease or rental agreement effective as of January 1, 2025, or later, to file additional documentation with the county assessor's office. This documentation must describe the district's use of the leased property, its legal authority to use the property, any private use of the property, and any conflict of interest disclosures by board members. If a conflict of interest disclosure is included, the county assessor must submit the statement to the governing body that approved the district's service plan within 14 days. The governing body must then review the statement and issue a written decision within 63 days determining whether the leased property is being used for a public purpose. If the governing body determines the property is not being used for a public purpose, the property will lose its tax exemption. The bill also clarifies that a leasehold interest in property owned by a private person and leased to a public entity, but then leased back to a private person, remains taxable to the owner. These changes aim to increase transparency and ensure that property tax exemptions are appropriately applied to public entities' leased properties.

Budget and Finance

https://leg.colorado.gov/bills/hb25-1289