House Bill 24B-1001 awaiting Governor Polis’s approval represents a significant reform in Colorado’s property tax system by reducing tax rates and addressing rising property values.
Colorado Property Tax Reform
According to the report of The Center Square, House Bill 24B-1001 which is currently awaiting approval from Governor Jared Polis, represents a significant shift in Colorado’s property tax system. This legislation emerging from a special legislative session, received broad bipartisan backing, passing the House with a vote of 58-3 and the Senate with 30-4. The bill proposes reducing the property tax rate on homes from 6.4% to 6.25%, with a further potential decrease to 6.1% if statewide property values increase by more than 5%. Additionally, it aims to lower the school district tax rate from 7.15% to 7.05% with a possible reduction to 6.95% under the same condition.
The bill was negotiated in response to conservative groups such as Advance Colorado and Colorado Concern who agreed to withdraw two contentious ballot measures—Initiative 50 and Initiative 108—in exchange for this legislative compromise. Initiative 50 sought to cap annual property tax revenue increases at 4%, while Initiative 108 aimed to slash property tax revenue by $3 billion in 2025. Michael Fields, president of Advance Colorado lauded the bill as a positive step for taxpayers facing an average 30% increase in property taxes over recent years.
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(photo: 9News)
A Compromise Solution Amid Ongoing Debate
Despite its broad support, the bill has faced criticism from some lawmakers. Senator Mark Baisley argues that it fails to address the core issues related to fluctuating property values and rising assessments. Meanwhile, Senator Rachel Zenzinger, a Democrat acknowledged that while the bill is not flawless, it represents a necessary compromise to address property tax concerns. Governor Polis has indicated that this bipartisan effort will benefit Colorado taxpayers supports small businesses and ensure funding for schools.
House Bill 24B-1001 reflects a major compromise in the ongoing debate over property taxes in Colorado. While it offers some relief from escalating property taxes, critics argue that it does not fully resolve the issues surrounding property values and assessments. The decision to withdraw more extreme ballot initiatives was pivotal in securing the bill’s approval highlighting the complexities involved in crafting effective tax policy.
