JOINT RELEASE: Bipartisan Bill to Responsibly Reduce Property Taxes and Protect Colorado’s Future Signed Into Law
DENVER, CO – Today Governor Jared Polis signed into law bipartisan legislation sponsored by Speaker of the House Julie McCluskie, D-Dillon, and Chair of the Commission on Property Tax, Senator Chris Hansen, D-Denver, to responsibly reduce property taxes while protecting critical community institutions like public schools, health care, libraries, water infrastructure, municipal parks, playgrounds and recreation centers.
Using SB24-233 as the baseline, HB24B-1001 reduces assessment rates and lowers revenue caps. Also sponsored by House Minority Leader Rose Pugliese, R-Colorado Springs, and Senator Barb Kirkmeyer, R-Weld County, the new law also preserves flexibility for school districts and local governments by allowing them to carry forward unused growth capacity into the next assessment cycle while shielding taxpayers from dramatic spikes in value growth.
“We are committed to making Colorado a more affordable place to live, and with this new law we’re delivering additional property tax relief to homeowners and small businesses in a responsible way while protecting funding for our schools, parks, libraries and community institutions,” said McCluskie. “Two initiatives from wealthy special interests on the November ballot would de-fund schools, lengthen emergency response times, and strip health care away from our most vulnerable Coloradans. Stopping these measures with small changes to the bipartisan property tax package from last session is a win for Colorado, our schools and local governments.”
“Building on the bipartisan success of SB24-233, this legislation represents the culmination of more than six years of work to craft sustainable, responsible property tax reform in the wake of the Gallagher repeal,” said Hansen. “This new law is the product of partnership, compromise, and a shared commitment to the people of Colorado. The Commission on Property Tax, local governments, schools, and countless other stakeholders all have been involved in a public discussion of an extremely complicated problem – resulting in policy that provides both meaningful relief to taxpayers and stability for essential community services. In recent years, we have been able to secure a stronger future for Colorado by ending the negative factor for education funding, establishing sustainable funding paths for higher education and Medicaid providers, and now with this policy, we can avoid the devastating impacts of Initiatives 50 and 108 and protect the progress we’ve already made.”
Additionally, the new law:
Reduces the local government revenue cap from 5.5 percent to 5.25 percent annual growth, or 10.5 percent over one assessment cycle;
Changes the school revenue sharing ratio to a 6 percent annual growth cap, or 12 percent over one assessment cycle;
Allows voters to override the local government revenue cap at the ballot box and school districts to override the cap at the state-wide level; and
Extends the backfill mechanism in SB24-233 for local government entities most impacted by this measure for one more year, through 2025.
The law also directs the Commission on Property Tax to evaluate the property tax changes made in SB24-233 and HB24B-1001 and report on how Colorado’s tax code does or does not deliver relief to the people who need it the most.
Importantly, the governor, in partnership with legislative leadership, has directed state departments to develop and recommend new ways to provide sustainable funding to fire districts, many of which are struggling to keep pace with increasing costs and demands on their services.
In May, the General Assembly passed SB24-233 to reduce statewide local taxes by more than $1 billion, prevent future spikes in property taxes, and protect critical services that Coloradans rely on. HB24B-1001 makes minor adjustments to SB24-233 in order to avoid devastating ballot measures from wealthy special interests.
Irresponsible ballot measures threatened to reduce revenue for public schools, fire departments, health care, libraries, water infrastructure, and public outdoor recreation by nearly $3 billion. They risked the major strides Colorado Democrats have made to boost public education funding and eliminate the Budget Stabilization Factor, and could have led to deep cuts to emergency services.