Earlier this week, Colorado Governor Jared Polis, along with the support of several key legislatures and members of the Colorado Senate, proposed a historic property tax relief plan for businesses and homeowners across the state. In addition to previously passed legislation, this proposal will save Colorado taxpayers $1 billion annually in property taxes, ensuring Colorado’s property taxes remain among the lowest in the nation.
In addition to protecting property owners from unexpected increases in taxes, this proposal also ensures that funding for schools and other local governments is protected. Taxpayers will vote on this package in November.
Property tax relief and protections proposed in this plan include:
- Reducing the residential assessment rate from 7.15% to 6.7% in 2023 and 2024 and continuing this reduction for primary residences (not second homes or investment properties) in future years.
- Reducing the taxable value of residences by $40,000 in 2023 and 2024 and continuing this reduction for primary residences (not second homes or investment properties) in future years.
- Capping the growth in district property tax collections (excluding school districts) at inflation and allowing local governments to override the cap after giving notice to property owners.
- Protecting funding for public education and backfill revenue to fire districts, water districts, ambulance, and hospital districts in areas of the state that aren’t growing as fast by dedicating a portion of the state TABOR surplus to backfill.
- Providing seniors who currently receive the Homestead Exemption a larger reduction of $140,000 and allowing them to continue to receive this reduction if they move.
Read the full press release here.
Ryan experts are available to answer questions regarding this new proposal. Learn more about our Colorado team, and contact one of us today about this new proposal.
TECHNICAL INFORMATION CONTACT:
Matt Poling
Principal
Ryan
matt.poling@ryan.com
720.524.0022
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.