2023 Colorado Revised Statutes › Title 38 - PROPERTY - REAL AND PERSONAL (§§ 38-1-101 — 38-53-110) › REAL PROPERTY (§§ 38-30-101 — 38-46-104) › CONVEYANCING AND EVIDENCE OF TITLE (§§ 38-35-101 — 38-36.5-109) › Article 35.7 - DISCLOSURES REQUIRED IN CONNECTION WITH CONVEYANCES OF RESIDENTIAL REAL PROPERTY (§§ 38-35.7-101 — 38-35.7-112) › Section 38-35.7-110 - Disclosure - estimated future property taxes for newly constructed residences within the boundaries of a metropolitan district - rules - definition

(1)
As used in this section, "newly constructed residence" means a residential improvement as defined in section
39-1-102
(14.3) that:
(a)
Has not been previously sold to its intended occupant as a place of residence; and
(b)
Is located within the territorial boundaries of a metropolitan district.
(2)
On and after January 1, 2022, each owner of real property that sells real property that includes a newly constructed residence, concurrently with or prior to the execution of a contract to sell the property, shall provide to the purchaser of the property:
(a)
A paper copy, electronic copy, or a website page link to the notice to electors required by section
32-1-809 (1)
as most recently prepared and filed by the metropolitan district;
(b)
A paper copy, electronic copy, or a website page link to the service plan or statement of purpose of the metropolitan district, including any amendments to the service plan, as filed with the division of local government in the department of local affairs;
(c)
A statement in writing disclosing that:
(I)
Pursuant to its service plan, the metropolitan district has authority to issue up to ____ dollars of debt and, if applicable, that the debt of the district may be repaid through ad valorem property taxes, from a debt service mill levy on all taxable property of the district, or any other legally available revenues of the district;
(II)
The maximum debt service mill levy the metropolitan district is permitted to impose under the service plan is ____ mills or, if no maximum debt service mill levy is specified in the service plan, a statement that there is no maximum debt service mill levy. If applicable, the statement must also disclose whether the debt service mill levy cap may be adjusted due to changes in the constitutional or statutory method of assessing property tax or in the assessment ratio, or by amendments to the service plan or voter authorizations.
(III)
In addition to imposing a debt service mill levy, the metropolitan district is also authorized to impose a separate mill levy to generate revenues for general operating expenses. If applicable, the statement must also disclose whether the amount of the general operating expenses mill levy may be increased as necessary, separate and apart from the debt service mill levy cap. In the alternative, if the service plan provides for the aggregate mill levy cap for debt service and general operating expenses combined, the statement must address the applicable aggregate mill levy cap.
(IV)
The metropolitan district may also rely upon various other revenue sources authorized by law to offset its expenses of capital construction and general operating expenses. Pursuant to Colorado law, the district may impose fees, rates, tolls, penalties, or other charges as provided in title 32. The statement must include that a current fee schedule, if applicable, is available from the metropolitan district.
(d)
(I)
An estimate of the property taxes levied by the metropolitan district that are applicable to the property for collection during the year in which the sale occurs, which estimate must include any debt service mill levies that are specified in subsection (2)(c)(II) of this section and any mill levies for general operating expenses that are specified in subsection (2)(c)(III) of this section, shown both as the total mill levy as well as the total dollar amount that could be collected based upon the purchase price of the property, the residential assessment rate, and mill levies that are in effect in the district at the time of the sale.
(II)
A seller has complied with subsection (2)(d)(I) of this section if the seller provides to the purchaser the mill levy, the residential assessment ratio, and a formula by which the purchaser may calculate the estimated property taxes on the property for the current year.
(e)
A copy of the most current certificate of taxes due or tax statement issued by the county treasurer that is applicable to the property as an estimate of the sum of additional mill levies levied by other taxing entities that overlap the property in which the newly constructed residence is located.
(3)
In disclosing an estimate of property taxes for purposes of satisfying subsection (2)(d)(I) of this section, the seller shall calculate the estimate based upon application of the following assumptions:
(a)
The purchase price is considered to be the value of the real property including the newly constructed residence as reflected in the contract to purchase the property;
(b)
The ratio of valuation for assessment is the same as the residential real property assessment ratio set forth in section
39-1-104.2
for the property tax year in which the sale occurs; and
(c)
The mill levies are the same as those levied by all taxing entities that are applicable to the property for the property tax year in which the sale occurs; except that, if the seller has actual knowledge that the total mill levies will change in the next property tax year, the seller shall use the updated information in making the calculation.
(4)
Along with the estimate required by subsection (2) of this section, the seller shall include, in bold-faced type that is clearly legible, the following statement:
This estimate only provides an illustration of the amount of the new property taxes that may be due and owing after the property has been reassessed and, in some instances, reclassified as residential property. This estimate is not a statement of the actual and future taxes that may be due. First year property taxes may be based on a previous year's tax classification, which may not include the full value of the property and, consequently, taxes may be higher in subsequent years. A seller has complied with this disclosure statement as long as the disclosure is based upon a good-faith effort to provide accurate estimates and information.
(5)
A seller is deemed to have complied with this section as long as the disclosures required by this section are based upon a good-faith effort to provide accurate estimates and information.
Amended by 2022 Ch. 155, § 1, eff. 5/6/2022.
Added by 2021 Ch. 368, § 6, eff. 9/7/2021.
L. 2021: Entire section added, (SB 21-262), ch. 2430, p. 2430, § 6, effective September 7.
2021 Ch. 368, was passed without a safety clause. See Colo. Const. art. V, § 1(3).