5.5% Property Tax Revenue Limit
... All statutory tax levies ... shall be so reduced as to prohibit the levying of a greater amount of revenue than was levied in the preceding year plus five and one-half percent (5.5%)...
The statutory "5.5%" Property Tax Revenue Limit, also known as the "Annual Levy Law" (Section 29-1-301, et seq., C.R.S.), applies to most statutory local governments that levy for property taxes. It does not apply to home-rule municipalities.
For subject governments, the "5.5%" limit restricts the amount of property tax revenue that may be collected each year.
Calculation of the Revenue Limit
A spreadsheet is available (form DLG 53a) to assist in calculating the statutory property tax revenue limitation, however, the Division of Local Government (DLG) also calculates the government's "5.5%" limit (form DLG 53). This is done in September and again in December following the county assessors’ re-certification of valuation. Local governments should compare the 5.5% limit with the TABOR property tax limit to determine which one is the most restrictive property tax revenue limitation.
The “5.5%” Property Tax Revenue Limit is not a TABOR limit found in Article X, Section 20 of the Colorado Constitution. The Division does not calculate or enforce TABOR limits.
- DLG 53a - Property Tax Limit Calculation Worksheet
- DLG 53a - Instruction sheet: What You Need to Calculate Property Tax Revenue Limits
DLG-53 Revenue Limit Calculations
The Division of Local Government calculates each "subject" local government's 5.5% Property Tax Limit Calculation (DLG 53) two times each year. In August a preliminary DLG53 calculation is done which corresponds to the "preliminary certification of value" for each local government which is completed by the county assessor. In December the assessors complete the "final certifications of value" and the Division then completes a second calculation utilizing those updated numbers. These reports will update each day with any changes processed by DLG staff.
Please Note: The 5.5% Property Tax Revenue Limit Calculations on the DLG 53 is NOT a TABOR calculation. It does not take into account any other limits that may apply to your property tax revenue, such as statutory mill levy caps, voter-approved limitations, the TABOR property tax revenue limit, or the TABOR prohibition against increasing the mill levy without voter authorization.
Assessor Certification of Valuation
The Certification of Valuation (Form DLG 57) is used by the county assessor to certify a local taxing entity's values for property taxation purposes.