Gov. Polis, Legislative Leaders Announce Plan to Cut Property Taxes, Saving Coloradans Money

Building on over $1 billion in historic property tax relief for Coloradans, Polis administration in partnership with the legislature continues to provide real relief for hardworking Coloradans

DENVER -  Today, Governor Polis, Senate President Fenberg of Boulder, Senator Hansen of Denver, Representative deGruy Kennedy of Lakewood, and Representative Weissman of Aurora announced a proposal to provide historic property tax savings for homeowners and businesses while ensuring funding for schools and other local governments is protected. In addition to immediate relief, the proposal creates a long-term solution to prevent growing home values from raising property taxes and creates limits that protect homeowners and businesses from steep unexpected increases in their property taxes. This proposal, along with previous legislation, will save Colorado taxpayers $1 billion annually in property taxes, ensuring Colorado’s property taxes remain among the lowest in the nation.

“It is no secret that Colorado is a great place to live and work, and as our state grows, we must take action to ensure people can thrive in the community they love. This proposal will cut the average homeowners' tax increase in half and deliver long-term relief to protect people, especially seniors on a fixed income,  from being priced out of their homes,” said Governor Polis. “I appreciate the legislature's partnership to provide real relief on property taxes and save Coloradans money.” 

Coloradans will vote on this package in November, and should they choose to enact this proposal, it will provide major long-term reductions to property tax rates and deliver immediate savings on property taxes this year. This proposal, combined with reductions previously passed, will cut the average homeowner’s tax increase in half, saving $1,264 on average over the next two years. In total, this package would provide between $900 million and $1.6 billion annually in property tax relief for homeowners and businesses in Colorado.  

"Coloradans are about to get hit with painful property tax spikes, which is why we're taking action now to meet the moment and provide real relief for Colorado families," President Steve Fenberg, D-Boulder, said. "This transformative proposal delivers long-term reductions in property tax rates while providing immediate savings on this year’s property taxes, so we can better support our schools and our communities and build a Colorado everyone can afford to love." 

“We recognize that property tax reductions cannot be considered without also accounting for the impacts these cuts will have on local governments,” said Rep. Chris deGruy Kennedy, D-Lakewood. “This bill makes responsible reductions, unlike those proposed in recent ballot measures, and includes provisions to ensure we’re protecting school districts, fire districts, and county child welfare offices while we pass this important measure to help Colorado families keep up with the cost of living in our beautiful state.”

“The cost of housing in Colorado is incredibly high, and if we don't act, Coloradans will suffer record increases on their property taxes. This would be especially difficult for working families, and would hit folks on fixed incomes incredibly hard," said Senator Chris Hansen, D-Denver. "That's why we’re working to provide immediate property tax relief that will save families across our state more than a billion dollars and keep people in their homes. This proposal will also give voters an opportunity to protect sustainable funding for our schools and local services like hospitals and firefighters while addressing the urgent property tax situation. I'm proud to champion this legislation that will provide immediate relief and protect the critical services Coloradans depend on to thrive."'

“The cost of housing in Colorado is incredibly high, and if we don't act, Coloradans will suffer record increases on their property taxes. This would be especially difficult for working families, and would hit folks on fixed incomes incredibly hard," said Senator Chris Hansen, D-Denver. "That's why we’re working to provide immediate property tax relief that will save families across our state millions of dollars and keep people in their homes. This proposal will also give voters an opportunity to protect sustainable funding for our schools and local services like hospitals and firefighters while addressing the urgent property tax situation. I'm proud to champion this legislation that will provide immediate relief and protect the critical services Coloradans depend on to thrive."'

“I’m proud to partner with Governor Polis to help significantly reduce property tax increases,” said Rep. Mike Weissman, D-Aurora. “Property tax increases are driving up costs on families, and lower, and middle income Colorado families can least afford this.  This proposal will help Coloradans stay in their homes and communities and targets savings to homeowners who need it the most.” 

Other property tax relief and protections proposed in this plan include: 

• Reducing the residential assessment rate from 7.15% to 6.7% in 2023 and 2024, and continuing this reduction for primary residences (not second homes or investment properties) in future years.

• Reducing the taxable value of residences by $40,000 in 2023 and 2024, and continuing this reduction for primary residences (not second homes or investment properties) in future years.

• Capping the growth in district property tax collections excluding school districts at inflation and allowing local governments to override the cap after giving notice to property owners.

• Protecting funding for public education and backfill revenue to fire districts, water districts, ambulance and hospital districts in areas of the state that aren’t growing as fast by dedicating a portion of the state TABOR surplus to backfill.

• Providing seniors who currently receive the Homestead Exemption a larger reduction of $140,000 and allowing them to continue to receive this reduction if they move.

Governor Polis has called for immediate and long-term plans to reduce property taxes and save Coloradans money, and in partnership with the legislature, has delivered more than $1 billion in savings so far. Last year, the governor and the legislature passed a property tax relief package that provided $700 million to lower Coloradans' property tax rates and reduced rate increases over two years. In 2021, the Property Tax Deferral Program was created which allows Coloradans to defer a portion of their property tax if they increase over 4%. This deferral opportunity was expanded from previously only being offered to seniors and veterans to now be available to all Coloradans. For more information on the Property Tax Deferral Program and other savings opportunities, visit the Colorado Treasury website.