In the aftermath of the failed Proposition HH, Colorado finds itself at a legislative crossroads as lawmakers convene for a special session. Two divergent property tax relief plans have emerged, championed by Democrats and Republicans. Democrats, controlling both legislative chambers, propose a measured approach, replicating HH’s promised relief but refraining from fully compensating local governments and special districts for revenue loss. Instead, they plan to draw $200 million from the general fund, directing it toward schools and distributing any surplus to eligible local entities.
In stark contrast, Republicans advocate for a more substantial $1.4 billion property tax relief, drawing from both the general fund and state reserves. This proposal, however, has drawn criticism from Democrats, particularly State Senate President Steve Fenberg, who deems it fiscally irresponsible, warning of potential consequences during economic downturns. Republican State Representative Rose Pugliese counters, asserting the urgency of alleviating property tax burdens on Colorado’s struggling families and advocating for the prudent use of reserves for immediate relief.
Property Tax Relief Plans in Colorado: Will Lawmakers Save You Money?
Beyond the property tax debate, Democrats also intend to address broader issues, including bills for $30 million in rental assistance, a $5 million summer school lunch program, and an augmented earned income tax credit. These legislative endeavors underscore the multifaceted challenges facing Colorado and the nuanced policy responses under consideration.
The proposed legislation revolves around temporary adjustments to real property taxation exclusively for the 2023 and 2024 tax years. The key provisions include the reduction of assessment rates for specific categories of nonresidential and all residential properties in 2023. Additionally, for the year 2024, the bill aims to set fixed assessment rates for all multi-family residential real properties, while allowing the property tax administrator to determine reduced rates for other residential real properties, excluding multi-family units. The overarching objective is to collectively reduce statewide property tax revenue for the specified years by a predetermined amount.
Furthermore, the bill outlines measures to decrease assessment rates for real and personal property designated as agricultural or renewable energy production property in 2024. A crucial aspect of the proposal involves the state’s commitment to reimbursing local governments (excluding school districts) in 2024 for any reduction in property tax revenue incurred in 2023 due to the stipulations outlined in the legislation.
2024 Tax Reliefs Proposals in Colorado: Saving Homeowners Money
Looking ahead to the 2024 property tax year, the legislative framework continues its focus on refining property valuations.
Section 1: The valuation for assessment of real and personal property classified as agricultural or renewable energy production property remains consistent at 26.4% of the actual property value.
Section 2: A novel approach is introduced for residential real property other than multi-family residential real property. The valuation for assessment is now determined as a percentage of the actual property value, with the specific calculation delegated to the property tax administrator, as mandated by section 4.
Section 2 (Continued): Multi-family residential real property undergoes a distinct valuation adjustment, now set at 6.8% of the actual property value, reflecting the legislature’s nuanced consideration for different property categories.