On August 2, 2021, more than 190,000 signatures were submitted to the Colorado Secretary of State’s Office related to Amendment 27 with the intent to permanently drop assessment ratios for all residential properties to 6.5% and all commercial properties to 26.4%. The likelihood this will qualify for the November 2021 ballot is high, as only 124,000 valid signatures are needed to make the ballot.
The ballot language is as follows:
Shall there be a change to the Colorado Revised Statutes concerning property tax reductions, and, in connection therewith, reducing property tax revenue by an estimated $1.03 billion in 2023 and by comparable amounts thereafter by reducing the residential property tax assessment rate from 7.15% to 6.5% and reducing the property tax assessment rate for all other property, excluding producing mines and lands or leaseholds producing oil or gas, from 29% to 26.4% and allowing the state to annually retain and spend up to $25 million of excess state revenue, if any, for state fiscal years 2022-23 through 2026-27 as a voter-approved revenue change to offset lost revenue resulting from the property tax rate reductions and to reimburse local governments for revenue lost due to the homestead exemptions for qualifying seniors and disabled veterans?
This ballot initiative is in addition to SB21-293, which passed last June. The new legislation included a two-year tax cut on residential properties as well as agricultural land and properties used for renewable energy. SB21-293 was introduced as a strategy to try and get Initiative 27 from being filed and to restrict the loss of revenue. There are multiple reports that say SB21-293 will limit the reduction in tax revenue to only $200 million. Read more from Ryan on this legislation here.
There are still a number of moving parts involved with the Colorado assessment ratios. The local experts at Ryan are available to provide in-depth analysis of Initiative 27 and the newly enacted changes impacting businesses in the state.
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