DENVER – Today, the Colorado Senate passed a historic property tax bill that will reduce property taxes by $1.3 billion and make permanent tax cuts on both residential and commercial property taxes.
Led by Ranking Joint Budget Committee Member Senator Barbara Kirkmeyer (R – Weld County), Senate Bill 24-233 represents just one of the numerous bills offered by the Senate Republicans to bring real economic relief for the people of Colorado. The bill will deliver real property tax relief without raiding TABOR or crippling the state’s budget.
“This is a huge property tax cut and we are proud to be bringing the largest property tax reduction in our state’s history,” Senator Kirkmeyer said. “This will provide $1.3 billion in relief in the first year and $1 billion in ongoing relief to hard working Coloradans. This immediate financial relief will foster economic growth across our state and provide stability in local communities. I want to thank all of the legislators, local governments and advocates who came together to get this deal done, the people of Colorado will be better off for it.”
The Colorado Senate Republicans have long fought to bring property tax relief for the people of Colorado. During last year’s special legislative session, the Democrats killed both of the Senate Republicans’ efforts to cut property taxes, Senate Bill 23B-004 and Senate Bill 23B-006. Senate Bill 23B-006 would have simply capped growth at 6%, while SB 23B-004 would have decreased the taxable value of property and reduced both the residential and commercial assessment rates.
The Senate Republicans’ latest effort, Senate Bill 233, will make several changes to bring meaningful property tax relief to the people of Colorado. First, the bill will institute a local district revenue growth cap at 5.5%. Revenues collected over this cap will be refunded through temporary property tax credits or temporarily reduced mill levies.
Next, the bill will reduce assessment rates for both residential and commercial properties. Homeowners can expect to see residential rates decrease over the next two years, ultimately resting in 2026 at 6.95% after a 10% reduction on the first $700,000 of actual value. Homeowners in school districts can expect their assessment rate to be capped at 7.15% after a $55,000 reduction of actual value. The assessment rate for commercial property taxes will be capped at 27% in 2025, 26% in 2026, and 25% in 2027 and beyond.
Senate Bill 233 was passed in the Senate this morning. The bill will now be considered in the House, where it is expected to pass tomorrow.
Last week the Senate Republicans also introduced the largest income tax cut in Colorado’s history with the introduction of Senate Bill 228, which was passed in the Senate late last night.
###