On November 2, 2021, voters in Colorado rejected Proposition 120, with Douglas, El Paso, and Mesa counties leading the opposition to the measure. Proposition 120 would have reduced the property tax assessment rates for multifamily residential properties to 6.5% from 7.15% starting in 2022. It also would have dropped the rate for lodging properties to 26.4% from 29%.
Rates will now be as follows:
- Commercial: 29%
- Ag Property or Renewable Energy Production Property: 26.4% for 2022 and 2023, reverting to 29% thereafter
- Single-Family Residential: 6.95% for 2022 and 2023, reverting to 7.15% thereafter
- Multifamily: 6.8% for 2022 and 2023, reverting to 7.15% thereafter
Many lawmakers and voters were opposed to the reduction in rates, citing spending cuts would affect government services, including for schools and fire departments that rely on property tax revenue to operate.
The local experts at Ryan are recommending taxpayers who own commercial property in Colorado contact our team to ensure they are taking advantage of tax minimization prior to ratios increasing.
TECHNICAL INFORMATION CONTACT:
Matt Poling
Principal
Ryan
303.222.1845
matt.poling@ryan.com
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.