Summary of HB08-1277
Short Title: Improper Use Of Property For Collections

Sponsors: Bruce

Prohibits any private or governmental entity from including any charge or claim, other than a yearly property tax, delinquent property tax from prior years, and interest and penalties on such tax, on a property owner's property tax bill that was mailed after 1992. Specifies that any past or existing charge or claim included on a property tax bill that was mailed after 1992 is void and shall be removed from the bill. By a specified date, requires all recipients of past charges to make a good faith effort to refund all past charges included on a property tax bill after 1992 that are not a property tax or interest or penalties related to the property tax (nonproperty tax charge) to any property owner who still owns the property for which the property tax bill was generated. Specifies that the refund shall be made at the legal rate of interest, compounded annually from the month the charge was paid. Requires that, upon the written request of any property owner who either owns or no longer owns the property for which the property tax bill was generated after 1992, the recipient of past charges shall refund the charge to the property owner. Authorizes any property owner who has been charged a nonproperty tax charge to receive, without charge, copies of all of the property owner's available past property tax bills mailed after 1992. States that, if a property owner does not receive a refund of the nonproperty tax charge, the property owner may file suit against the recipient of past charges by a specified date. States that the property owner shall not be required to comply with the provisions of the "Colorado Governmental Immunity Act" in filing the suit. Requires that property tax notices sent for the 2008 and 2009 property tax years include a notice of a property owner's right to file suit against the recipient of past charges. If the property owner files suit against a governmental entity, the property owner shall receive costs and reasonable attorney fees in addition to any judgment for past payment obtained against the governmental entity. If a property owner files suit against a private entity, specifies that the property owner shall receive costs, but not attorney fees, in addition to any judgment for past payment obtained against the private entity. States that no monetary lien shall be recorded unless a final judgment has been obtained in a state or federal court. Authorizes a public notice of a potential lien to be recorded only if the lien arises from that specific property. Specifies that any lien inappropriately recorded is void from the date it was recorded. Specifies that recorded liens shall be in priority order based on the recording date of the lien, subject only to the automatic prior lien for existing and future value-based property taxes and interest and penalties resulting from the property tax. Prohibits a private or governmental entity from seizing or attaching any property without a court order after notice to the property owner and a court hearing thereon for any reason except for the nonpayment of value-based property taxes and interest and penalties on the taxes. Allows the recipients of past charges to pursue the collection of the charges in a court of competent jurisdiction. If the statute of limitations has not expired or if there is not a statute of limitations, requires the recipient of past charges to commence court action to pursue collection of the charges within one year of the date of the event that gave rise to the charges. Specifies that the statute of limitations to file a case to correct an error in taxes that may become a judgment recorded as a lien on property shall be one year from the date the alleged back taxes were due. Makes legislative findings and declarations.

Status
01/31/2008 Introduced In House - Assigned to Finance
02/19/2008 House Committee on Finance Postpone Indefinitely

Fiscal Notes Status: No fiscal impact for this bill

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