Senate Approves Bipartisan Legislation to Reduce Property Taxes, Provide Relief to Coloradans

Legislation would save taxpayers nearly $200 million collectively

DENVER, CO – Today, the Senate approved a bill with bipartisan support to lower property tax rates for single-family and multifamily housing units, renewable-energy property, and agricultural land over the next two years. 

“Property values are rising across Colorado, and it’s imperative that we act this session to mitigate the impact for hardworking families,” said Senator Chris Hansen (D-Denver). “This bill will reduce certain property tax rates over the next two years, allowing us to address the rapidly changing property market in our state and provide substantial relief to the people who need it most.” 

SB21-293 would lower the current 7.15% tax assessment rate on residential properties to 6.95% for single-family homes and 6.8% for multifamily properties over the next two years. In addition, it would lower the 29% assessment rate to 26.4% for agricultural property and for property used to produce renewable energy. The bill would also allow property owners to delay payment of up to $10,000 of the growth in their property tax bills until they sell their homes.

Lower tax assessment rates only for property tax years 2022 and 2023 would give the state time to study the effect of the reductions to determine if they should be adjusted or extended. The bill would also expand the optional tax deferral system – currently only available to seniors and active-duty military members – to anyone whose property-tax liability grows by more than 4% from the average amount owed over the previous two years.

SB21-293 now moves to the House for further consideration. Track the progress of the bill here.