JOINT RELEASE: Signed! Legislation to Reduce Property Taxes and Save Families and Businesses Money

DENVER, CO – Governor Jared Polis today signed SB22-238 and HB22-1416, which will reduce property taxes and improve the assessment process, saving the average homeowner $275 and preventing tax increases on many small businesses.

“The cost of housing is at an all-time high here in Colorado and people are feeling the pain, which is why we’re working to provide immediate property tax relief that will help families all across the state save money,” said Senator Chris Hansen, D-Denver. “This property tax relief package delivers help to homeowners and businesses as property values continue to rise, and will help more families to stay in their homes, all without cutting education funding or the critical services Coloradans depend on to thrive.”

“From sending every taxpayer an early $500 or $100 refund check to lowering the cost of housing, health care and prescription drugs, we worked to save Coloradans money everywhere we could,” said Rep. Mike Weissman, D-Aurora. “This legislation builds on our earlier work to lower property taxes for homeowners and businesses and will save the average homeowner $274 on their property taxes.”

Property Tax Relief: SB22-238, sponsored by Senators Chris Hansen and Bob Rankin and Representatives Mike Weissman and Patrick Neville, will provide $700 million in property tax relief over two years for homeowners and businesses, helping save families money on housing and cutting costs for businesses statewide.

The law allocates $500 million to reduce the residential property tax rate from 6.95 percent to 6.76 percent and the nonresidential property tax rate from 29 percent to 27.9 percent for the 2023 tax year. It also reduces the taxable value for residential properties by $15,000 and commercial properties by $30,000. The law provides these savings while mitigating the impact to schools and local governments from the reduction in revenue.

Further, SB22-238 provides an additional $200 million to extend the property tax relief enacted last year by SB21-293 through tax year 2024. These savings combined will reduce property taxes for homeowners by an average of $275 in 2023, and will provide significant savings for every business in the state.

“Coloradans are feeling the pressures of rising costs and home values, and the increases in property taxes that come as a result,” said Majority Leader Daneya Esgar, D-Pueblo. “Today, we are delivering significant savings to businesses and homeowners by reducing property taxes and making it easier to navigate the assessment process. These savings build on our work to save people money, which include sending Coloradans early refund checks this September of at least $500 or $1000 for joint filers, supporting small restaurants and retailers by letting them keep some of the taxes they collect and significantly expanding our supply of housing to save families money.”

“With pandemic-induced inflation putting a pinch on Coloradans’ wallets, we’re doing everything we can to provide relief,” said Senator Chris Kolker, D-Centennial. “This bill reforms the assessment process and arms property owners with the tools and information they need to appeal valuations that impact how much they pay, and lengthens the window in which to do so. This more transparent assessment process will make it easier to address mistakes, and ultimately save people money.”

Assessment Process Reforms: HB22-1416, sponsored by Majority Leader Daneya Esgar, Representative Patrick Neville and Senators Chris Kolker and Bob Rankin, reforms the property tax assessment process. The law provides taxpayers with more information about their valuations and a longer period of time to appeal their values.

Under the new law, the timeline to appeal property values is extended by one week to give property owners more time. It also requires county assessors to provide property owners an estimate of their tax liability as well as information about how they can protest their assessed property values.

Property owners have the opportunity to fast track their appeal if the assessor is provided all the necessary information. Additionally, the new law requires property tax administrators to publish an assessors’ handbook, which includes appraisals procedures, and allow for public comment and review on the handbook and proposed changes. For commercial properties, the law improves transparency in how they are valued by requiring the notice of valuation to include a notice to property owners that they can obtain details from their assessor about how their property was valued.