Between the ongoing influence of TABOR, the legacy of the Gallagher Amendment, and a variety of other political idiosyncrasies, Colorado has a property tax system rife with inefficiencies and unintended consequences (for instance, CO currently ranks 48th in the country for per-student property tax spending). But despite our state’s relatively low property taxes, skyrocketing property values (40% average increase) are putting financial pressure on many households. So, after the failure of Prop HH to address this during the most recent election, Colorado convened a “Special Legislative Session” to evaluate how to address these issues. This session resulted in the 2023 Property Tax Relief Bill (SB23B-001). This bill, though temporary, shares some similarities with Prop HH – it reduces the valuation of all residential property for 2023 by $55,000 and allows local governments to provide temporary property tax relief.
However, since this is just a temporary fix to the issue, Legislators also voted to convene a Property Tax Commission to come up with long-term solutions to rising property values. This commission (which NDC is a member of) will work to create a more equitable and functional property tax system in CO. The commission will balance the following factors in their recommendations:
- Expiration of bills like Special Session bill SB23B-1 and SB22-238 which temporarily reduced assessment rates and taxable land value
- The ongoing impact of the repeal of the Gallagher Amendment
- The interplay between local property tax revenue and state revenue backfill on school funding
- The impact of rising taxes on low or fixed income renters and homeowners
We’ll be sure to keep you updated as the commission continues to convene and eventually makes recommendations in the first quarter of 2024.