Colorado lawmakers are currently considering a potential compromise to address a looming property tax battle that could result in deep tax cuts and significant revenue loss for local governments. The compromise would involve reducing property taxes by $255 million in 2025 and $295 million by 2027 compared to the status quo under Senate Bill 24-233. The plan also includes changes to assessment rates for residential, commercial, and agricultural properties, as well as capping revenue growth for schools and local governments.
While many committee members seem amenable to the compromise framework, concerns linger about the long-term impact of future tax cuts and the need for assurances that similar discussions won’t recur in subsequent years. If a deal is reached, a special session may be called to address the proposed changes. The proposal has garnered support from a bipartisan group of organizations and mayors, who are worried about the potential effects of ballot initiatives seeking further tax cuts.
Both Propositions 108 and 50 aim to reduce assessment rates and cap tax revenue growth, with advocates arguing for more meaningful relief for residents. The compromise takes into account these concerns while aiming to protect local government services and state budget priorities. Ultimately, the goal of the compromise is to find a balance between property tax relief and fiscal responsibility, ensuring that both homeowners and businesses benefit while maintaining essential services at the local and state levels.
Source
Photo credit denvergazette.com