Governor Polis has called a special session of the General Assembly to address the pressing need for enhanced property tax relief in Colorado, especially considering the potential adverse effects of Proposition 108 and Initiative 50. Initiative 50 aimed at providing tax relief to homeowners or capping the growth of property taxes to avoid significant increases that could make housing unaffordable. In contrast, Initiative 108 may impose restrictions on state funding mechanisms that risk undermining local governments’ ability to collect revenue, which could ultimately affect funding for essential services such as education and infrastructure considering rising property values and tax burdens. If these measures are enacted, they could jeopardize funding for critical state services and destabilize municipal bonds, threatening vital projects like housing and schools. The session is set to begin on August 26, 2024.
The proposed legislation aims to expand upon previous initiatives that established a foundation for property tax relief in Colorado, particularly SB24-233, by further reducing assessment rates and adjusting caps for local governments and school districts. This new proposal is anticipated to provide an additional $270 million in tax savings for property owners in 2025, with further savings expected in subsequent years. However, for this agreement to move forward, supporters of Proposition 108 and Initiative 50 must consent to withdraw their measures from the November ballot and commit not to introduce similar initiatives in the future.
Governor Polis emphasized the critical nature of this initiative, cautioning against the risks of inaction, which could harm school funding, higher education, and the state’s economic competitiveness. He expressed hope that bipartisan cooperation could effectively tackle the ongoing property tax challenges, referencing previous successful resolutions between environmental groups and the oil and gas sector.
Our team of experts is available to address any questions regarding this initiative and to provide in-depth insights into how the proposed changes may affect property owners, businesses, and local government financing. If you have inquiries about the potential effects of Proposition 108 and Initiative 50 on commercial property taxes in Colorado, please contact Ryan’s tax specialists. They can provide customized guidance to help you stay informed and prepared as legislative discussions unfold.
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.
- Sujet
- Matthew W. Poling