Photo: Democratic Sen. Chris Hansen of Denver and Republican Sen. Barbara Kirkmeyer of Weld County speak on the Senate floor on August 29, 2024. (Sara Wilson/Colorado Newsline)
This story by Sara Wilson appeared on Colorado Newsline on August 29, 2024.
The Colorado Legislature gave final approval on Thursday morning to a property tax deal bill that will give some relief to homeowners and prevent a pair of consequential initiatives from heading to voters in November.
The state Senate voted 30-4 in favor of the bill. It cleared the House on Wednesday morning with a 45-18 vote. Both votes were largely bipartisan.
Sen. Mark Baisley, a Woodland Park Republican, and Democratic Sens. Nick Hinrichsen of Pueblo, Sonya Jaquez Lewis of Longmont and Lisa Cutter of Littleton voted against it.
Shortly after the Senate vote, both chambers adjourned the four-day special session. The bill now heads to Governor Jared Polis’ desk to be signed into law, but he has pledged not to do so until Initiatives 108 and 50 are withdrawn from the ballot.
Advance Colorado and Colorado Concern promised they would pull the initiatives if the Legislature passed the deal. Those initiatives, if passed by voters, would sharply reduce residential assessment rates and put a 4% annual growth cap on property tax revenue. The resulting cuts would have provided savings to homeowners, but also would have jeopardized funding for public schools, fire districts and other local taxing bodies.
Polis called the special session to pass legislation that would satisfy initiative supporters and provide additional property tax relief to the state’s homeowners, who are facing spiking tax bills as home values rise. Initiatives 108 and 50 would result in a $2.4 billion tax cut, compared to the $255 million cuts the deal bill provides.
“Let’s get what I believe to be the best deal that we can do right now for homeowners, seniors, small businesses, for all property owners and local governments,” Sen. Barbara Kirkmeyer, a Weld County Republican who sponsored the bill, said ahead of the final Senate vote. “I am not willing to roll the dice and still not willing to gamble people’s future.”
The bill builds off a $1.3 billion tax cut that lawmakers approved during their regular session earlier this year. It trims residential assessment rates, extends rate cuts to some non-residential properties and puts two-year revenue growth caps on local governments and school districts.
The state sets assessment rates for property taxes, but city and county governments, school districts and special jurisdictions like fire or sewer districts determine local rates by setting mill levies. The effect of the bill will vary on where a homeowner lives and how much their property is worth.
An analysis from the left-leaning Bell Policy Center predicts that an average Denver County homeowner will save an additional $72 annually because of the special session bill, on top of $343 in savings from the regular session bill. An average Pueblo County homeowner will see another $39 reduction and a Weld County homeowner will get $47 off.
“Today’s vote marks a huge win for Colorado taxpayers who have been hit with 30 percent average property tax increases,” Advance Colorado President Michael Fields said in a statement. “For two years, we have said the solution taxpayers need is to cut taxes significantly and then put a cap in place so Colorado can avoid this crisis in the future. This bill gets that job done.”
Representatives from Advance Colorado and Colorado Concern helped negotiate the deal ahead of the special session, but no one from either organization publicly testified during committee hearings for the bill this week.
Initiative proponents say they are coordinating with the governor’s office for the timing of a bill signing and initiative withdrawal. They have until September 6 to do so.
Opposition to the bill was primarily over the circumstance of the session — to appease those conservative groups over their desire for further property tax relief — and a lack of legislative focus for owners of low-value homes, renters and people with lower incomes. Lawmakers who voted against it were also concerned with how further property tax cuts would impact special districts, especially fire districts.
Lawmakers also approved a bill that would make a property tax exemption for agricultural equipment permanent.
The Legislature will reconvene for its 2025 regular session in January. Its makeup will be determined by November elections, but Democrats are favored to hold on to the majority in both chambers.