August 29th 2024.
On Wednesday, a major deal was reached in the Colorado legislature to avoid a potential battle over property taxes during the upcoming election. The bill, known as House Bill 1001, passed its first hurdle in the Senate with a unanimous vote, following a 45-18 vote in the House earlier in the day.
This bill is an extension of a property tax cut that was signed into law back in May. If passed, it would result in a statewide reduction of approximately $254 million in property tax collections, in addition to the $1.3 billion cut that was already passed earlier this year. This would be achieved by lowering the state's assessment rate, which is used to determine the amount of property tax owed by homeowners and other property owners.
According to an analysis by the Colorado Fiscal Institute, the average homeowner would see a savings of $62 for the upcoming tax year and $179 the following year. The bill also includes provisions to expand the commercial tax rates for nonresidential properties, which was originally passed in the spring under Senate Bill 233.
However, the main goal of this deal is to prevent two ballot initiatives, 50 and 108, from being voted on in November. These initiatives, if passed, would result in even deeper cuts to assessment rates and stricter caps on property tax revenue for local governments. The Speaker of the House, Julie McCluskie, stressed the importance of passing this bill in order to avoid the potential consequences of these initiatives.
The House also passed a proposed ballot measure that would require local voters to approve any future changes to property taxes through a statewide vote. This was seen as a way to prevent future conflicts over property taxes, but it ultimately failed to pass in the Senate due to opposition from Republicans.
Lawmakers involved in the deal also received a written promise from a conservative advocacy group, Advance Colorado, and other allies, including Colorado Concern, to not pursue similar property tax measures for at least six years if the bill is passed. Some lawmakers expressed frustration at being called back for a special session to pass a deal that had already been agreed upon by the governor, legislative leaders, and outside groups.
During the House debate, there were speeches from both Democrats and Republicans expressing concerns about the process and its potential impact on local services. Ultimately, the bill passed comfortably in the House, with most of the no votes coming from progressive Democrats. The Senate is expected to pass the bill on Thursday, with any changes needing to be reconciled with the House before it can be signed by Governor Jared Polis.
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