Bill to Reduce Property Taxes, Protect Funding for Schools and Local Services Earns Initial Senate Sign Off

SB23B-001 would provide property tax relief for the 2023 tax year while protecting funding for local services

DENVER, CO – The Senate today gave initial approval on second reading to legislation to cut property taxes for the 2023 tax year while protecting funding for essential local services like schools, fire districts, and ambulance and health districts.

SB23B-001, sponsored by Senate President Steve Fenberg, D-Boulder, and Senator Chris Hansen, D-Denver, would increase the property value exemption for multifamily and single family residential properties from $15,000 to $55,000, and decrease the residential assessment rate from 6.765 percent to 6.7 percent for the 2023 tax year. 

“We have an obligation as the majority party to govern responsibly, which means making tough decisions to solve problems and deliver solutions responsive to the moment that we’re living in,” said Fenberg. “With the limited tools available to us, we’ve now set our sights on providing immediate property tax relief to those who are most vulnerable to the rising cost of living, while ensuring local governments – especially schools and fire districts – don’t face budget cuts. With this bill – as well as others moving forward – we’re committed to providing the support Coloradans need.”

“Colorado homeowners are facing steep property tax increases that are unaffordable for many working families and folks on fixed incomes,” Hansen said. “Over the past week we’ve worked hard to maximize the amount of property tax relief we can offer, given the resources we have. While we continue to work on a long term solution, our short term bill is a responsible path forward that prioritizes relief for those who need it most while protecting funding for schools and fire districts.”

To offset revenue loss resulting from property tax reductions, SB23B-001 would transfer $146 million of general fund dollars to the State Education Fund to be used to backfill school districts’ budgets, and would appropriate $54 million of general fund dollars to be used to backfill local governments and services.

SB23B-001 will next be heard on third and final reading before moving to the House for further consideration. Track the bill’s progress HERE.