Colorado Changes Property Tax Escrow Requirements to Match Federal Law and Regulations
By Paul McSheffrey, J.D.
With Senate Bill 15-142, the Colorado legislature has recently adopted changes to state property tax escrow requirements. The bill aligns Colorado law with the Federal Real Estate Settlement Procedures Act (RESPA).
Colorado Revised Statutes, 39-1-119(1) now requires that all funds held in escrow for the payment of property taxes in excess of the amount permitted to be held by RESPA shall be refunded to the property owners as required by federal law and regulations. This requirement applies to funds held for payment of property taxes on property located in Colorado. It is important to note that the new Colorado changes require the use of federal law whether or not federal law would apply in the absence of 39-1-119(1).
These changes become effective immediately.
Paul McSheffrey, J.D. is Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Northeastern University and earned his Juris Doctor at the New England School of Law. Paul is admitted to the Bar in Massachusetts and New York. He can be reached at Paul@bankersadvisory.com
Paul McSheffrey, JD, is a senior regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at the New England School of Law. He is admitted to the Bar in both Massachusetts and New York.
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