HB 25-1289: Metropolitan District Leases & Property Tax Exemptions

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

The act requires a metropolitan district that is a party to a lease or rental agreement that was effective as of January 1, 2025, or later and was filed with the county assessor's office in support of a claim for a property tax exemption based on the use of the property for purposes of the metropolitan district to file with the county assessor's office a statement (statement) describing: The metropolitan district's use of the leased property; The metropolitan district's authority to use the leased property for the metropolitan district's purposes; Any use of the leased property by a private person for private purposes; and Any disclosure filed by a member of the board of directors of the metropolitan district in accordance with certain laws that govern disclosures of conflicts of interest. If the statement includes a disclosure that relates to the leased property and is filed by a member of the board of directors of the metropolitan district in accordance with certain laws that govern disclosures of conflicts of interest, the county assessor shall, within 14 days of receipt of the statement, submit the statement to the metropolitan district's governing body. Within 63 days of receipt of the statement, the governing body shall issue a written decision including findings of fact and a conclusion as to whether the leased property is used for a public purpose. If the governing body concludes that the leased property is not used for a public purpose, the leased property is not exempt from taxation, and the county assessor shall implement the governing body's decision. The decision of the governing body is not subject to appeal and does not give rise to any private right of action. The act clarifies that a leasehold interest in real or personal property that is owned by a private person and that has been leased to the state or a political subdivision of the state, the use and possession of which has been leased back to a private person for private purposes, is taxable to the owner. (Note: This summary applies to this bill as enacted.)

Sponsors

Sponsors by party (alphabetical): Democratic 20 · Republican 7

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 3, 2025Governor Signed
2. May 12, 2025Signed by the Speaker of the House
3. May 12, 2025Signed by the President of the Senate
4. May 12, 2025Sent to the Governor
5. April 22, 2025Senate Third Reading Passed - No Amendments
6. April 21, 2025Senate Second Reading Passed - No Amendments
7. April 15, 2025Senate Committee on Finance Refer Unamended - Consent Calendar to Senate Committee of the Whole
8. April 1, 2025Introduced In Senate - Assigned to Finance
9. March 26, 2025House Third Reading Passed - No Amendments
10. March 25, 2025House Second Reading Special Order - Passed with Amendments - Committee
11. March 20, 2025House Committee on Finance Refer Amended to House Committee of the Whole
12. February 28, 2025Introduced In House - Assigned to Finance