The Colorado House of Representatives has passed a bill aimed at reducing property tax burdens for homeowners and businesses.
The measure, which gained approval on Wednesday, is part of a compromise deal designed to address rising property tax concerns and potentially lead to the withdrawal of two ballot initiatives.
According to Colorado Politics, the bill passed with a vote of 45-18 after extensive debate. The legislation, known as House Bill 24B-1001, was crafted through negotiations between legislative leaders, Governor Jared Polis, and representatives from conservative groups Advance Colorado and Colorado Concern.
These groups had previously placed Propositions 50 and 108 on the November ballot, which lawmakers argued could result in significant budget cuts if passed. The compromise bill aims to provide property tax relief while avoiding the potential fiscal impacts of the ballot measures.
The approved bill includes several provisions to address property tax concerns. It proposes to reduce the effective residential property tax rate to either 6.3% or 6.4%, depending on assessment growth. For commercial properties, the tax rate would be lowered to 25%. Additionally, the bill introduces caps on revenue growth for local governments and school districts.
These measures are designed to provide relief to property owners facing substantial tax increases, particularly in urban counties where some have seen hikes as high as 50%. The bill also aims to ensure stability for local government budgets while offering protection for programs such as the Homestead Exemption for seniors, disabled individuals, and veterans.
The legislation includes provisions for "clear and non-biased ballot language" in cases where local entities seek to opt out of the imposed caps through a vote of the people. This aspect of the bill addresses concerns about transparency and fairness in local tax-related ballot measures.
The passage of the bill was not without controversy, as evidenced by the split in votes and heated debate on the House floor. Progressive Democrats expressed strong opposition to the deal, accusing the governor and their colleagues of negotiating with "oligarchs" and prioritizing wealthy interests over those of average constituents.
Representative Stephanie Vigil, a Democrat from Colorado Springs, voiced her concerns about the negotiation process:
The decision was made to negotiate with oligarchs. This is a very small number of unelected, unaccountable individuals with extremely deep pockets and boundless capacity to run ballot measures. They don't operate with public scrutiny.
On the other side, supporters of the bill argued that it represents a wise compromise and demonstrates responsiveness to public concerns about rising property taxes.
They emphasized the importance of providing certainty and stability in the face of potential budget cuts that could result from the ballot initiatives.
With the House approval secured, the bill now moves to the state Senate for consideration. If passed by the Senate and signed into law by Governor Polis, the compromise could lead to the withdrawal of Propositions 50 and 108 from the November ballot. The groups behind these initiatives have until September 6 to remove their measures.
The passage of this bill represents a significant step in addressing property tax concerns in Colorado. It aims to provide relief to property owners while balancing the needs of local governments and school districts. The legislation's progress through the House reflects the complex negotiations and diverse viewpoints involved in tackling the state's property tax challenges. As the bill moves to the Senate, its final form and ultimate impact on Colorado's property tax landscape remain to be seen.
