CO HB1119

HB 26-1119: Authority for Different Mill Levy Rates

• Local taxing entities (counties, cities, towns, metropolitan districts, and certain special districts) may impose property taxes at different mill levy rates for land versus improvements, with the rate on improvements required to be equal to or lower than the rate on land, effective January 1, 2027.

• Split-rate taxation is prohibited for agricultural land, renewable energy production land, conservation easement property, oil and gas leaseholds, producing/nonproducing mines, and state-assessed property.

• Local taxing entities using split rates must certify both mill levy rates separately to the board of county commissioners and make this information publicly available.

• The legislative declaration cites Colorado's housing deficit of over 106,000 units and land values rising from 31% of home values in 2012 to 58% in 2024 as justification for enabling this policy tool.

• The bill references Pennsylvania's experience with split-rate taxation, including Harrisburg's 85% reduction in vacant structures over 20 years and Pittsburgh's 70% increase in building permits after increasing its land-to-building tax differential.