Rates Set by Commissioner
Pursuant to Sections 39-12-103, 39-12-111, and 39-21-110.5, Colorado Revised Statutes, the Colorado State Bank Commissioner is responsible for setting certain interest rates.
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Tax Delinquencies
2004 Memorandum
2005 Memorandum
2006 Memorandum
2007 Memorandum
2008 Memorandum
2009 Memorandum
39-12-103. Redemption
made - interest. (1) Real property for which a tax lien was
sold under the provisions of article 11 of this title as a result
of delinquent taxes may be redeemed by the owner thereof or his
agent, assignee, or attorney, or by any person having a legal or
equitable claim therein, or by a holder of a tax sale certificate;
except that such holder may redeem such real property from any sale
of a tax lien thereof made subsequent to the time of the issuance
of the tax sale certificate upon which he is relying, and the amount
paid for the redemption of the subsequent certificate of purchase
shall be endorsed as subsequent taxes paid on the certificate upon
which he is relying.
(2) An undivided interest may be
redeemed upon payment of a ratable share of the sum required to
redeem the whole even though a tax lien for the whole has been sold.
In case a tax lien on any tract of land sold for delinquent taxes
under the provisions of article 11 of this title belongs to two
or more separate and distinct parties in severalty, the treasurer,
when satisfied of the fact and upon application of any one of the
parties or his agent, assignee, or attorney and upon payment of
the proper proportional amount, shall issue a certificate of redemption
for such party's interest in said land.
(3) The redemption may be made at
any time before the execution of a treasurer's deed to the purchaser
or his heirs or assigns upon payment to the treasurer, to be held
by him subject to the order of the purchaser, of the amount of taxes,
delinquent interest, and costs for which the tax lien on the property
was sold, with redemption interest thereon from the date of sale
at the rate which is determined as provided in this subsection (3),
together with the amount of all taxes accruing on such real property
after the sale, paid by the purchaser and endorsed on his certificate
of purchase, with redemption interest at the rate which is determined
as provided in this subsection (3) on such taxes so endorsed on
the certificate of purchase. Any payment under this section shall
be deemed received by the treasurer on the date that it is actually
received in the treasurer's office. The annual rate of redemption
interest shall be nine percentage points above the discount rate,
which discount rate shall be the rate of interest a commercial bank
pays to the federal reserve bank of Kansas City using a government
bond or other eligible paper as security, and shall be rounded to
the nearest full percent. The commissioner of banking shall establish
the annual rate of redemption interest based upon the computation
specified immediately above. Such annual rate of redemption interest
shall be so established as of September 1, 1981, to become effective
October 1, 1981. Thereafter, on September 1 of each year, the annual
rate of redemption interest shall be established in the same manner,
to become effective on October 1 of the same year.
(4) If subsequent taxes are paid
before the time when they would become delinquent, interest shall
be computed only from the time of their delinquency. Such taxes
shall bear interest at the annual rate set forth in subsection (3)
of this section, and no more, from the time when the purchaser becomes
entitled to a deed up to the time of issuance of such deed.
(5) All statutory fees paid by
the purchaser in connection with such certificate shall bear the
same rate of interest as the original amount for which the tax lien
on the property was sold, the same to be prorated among the several
tracts described in said certificates.
(6) In computing the amount of
interest due, portions of months shall be counted as whole months.
Wrongfully Sold Tax Liens
2004 Memorandum
2005 Memorandum
2006 Memorandum
2007 Memorandum
2008 Memorandum
2009 Memorandum
39-12-111. Land wrongfully sold -
repayment. (1) When, by mistake or error of the treasurer,
county clerk and recorder, or assessor or from double assessment,
a tax lien has been sold on land upon which no tax was due at the
time, the county shall reimburse the purchaser in the amount paid
by him in connection with the purchase of the tax lien on such land,
together with interest from the date of purchase at the rate which
is determined as provided in this section. Reimbursement shall be
made from the various funds to which the tax was originally distributed;
except that interest shall be paid from the county general fund.
The treasurer, county clerk and recorder, or assessor, as the case
may be, and his sureties on his official bond shall be liable to
the county for such amounts reimbursed as a result of sales made
only through willful misconduct.
(2)(a) The annual rate of interest
shall be two percentage points above the discount rate, which discount
rate shall be the rate of interest a commercial bank pays to the
federal reserve bank of Kansas City using a government bond or other
eligible paper as security, and shall be rounded to the nearest
full percent.
(b) Notwithstanding any other provision
of this subsection (2), the rate of interest shall be no lower than
eight percent per annum compounded annually.
(3) The commissioner of banking
shall establish the annual rate of interest based upon the computation
specified in subsection (2) of this section. Such annual rate of
interest shall be so established as of September 1, 1981, to become
effective October 1, 1981. Thereafter on September 1 of each year,
the annual rate of interest shall be established in the same manner,
to become effective on October 1 of the same year.
Overpayment of Certain Taxes
2004 Memorandum
2005 Memorandum
2006 Memorandum
2007 Memorandum
2008 Memorandum
2009 Memorandum
39-21-110.5. Rate of interest to be
fixed. (1) When interest is required or permitted to
be charted under any provision of articles 20 to 29 of this title
in connection with interest on underpayment, nonpayment, extension
of time for payment, or overpayment, or when interest is required
to be paid pursuant to section 8-20.5-104, C.R.S., in connection
with an application for reimbursement from the petroleum storage
tank fund, such interest shall be computed at the annual rate which
has been established pursuant to this section.
(2) The annual rate of interest
shall be the prime rate, as reported by the "Wall Street Journal",
plus three points, rounded to the nearest full percent. In the event
that more than one rate is so reported, the highest rate shall be
utilized.
(3) The commissioner of banking
shall establish an adjusted annual rate of interest based upon the
computation specified in subsection (2) of this section and rounded
to the nearest full percent. The adjusted annual rate of interest
shall be so established by the commissioner of banking as of July
2, 1990, to become effective January 1, 1991. Thereafter, on July
1, or the next succeeding business day, of each year, the adjusted
annual rate of interest shall be established in the same manner,
to become effective on January 1 of the next succeeding year.
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