HB 14-1074 Summary

• Changes Colorado law to allow nonprofit owners of tax-exempt charitable, religious, and educational properties to receive payment for reasonable operating and maintenance expenses from third-party users without jeopardizing the property's tax-exempt status.

• Permits payments up to $1 per year plus an equitable portion of reasonable expenses, excluding payments to shareholders, members, or controlled organizations.

• Expands definition of "reasonable expenses" to include depreciation, long-term maintenance expenses under generally accepted accounting principles, capital expenses for property refurbishment, and energy/water conservation expenses.

• Continues to exclude from allowable expenses any amounts expended to reduce debt.

• Applies to property tax years beginning January 1, 2014 and forward.