Colorado Property Tax Reform Signed Into Law
What Homeowners Need to Know
Colorado Property Tax Reform Signed Into Law: What Homeowners Should Know
Governor Jared Polis has signed a new law that aims to address the state’s rising property taxes, a growing concern for many homeowners. This bipartisan law will lower property taxes starting in 2025 and place limits on how quickly they can increase in the future.
Key Highlights of the New Law:
Lower Tax Rates: Beginning in the 2025 tax year, the new law will reduce property taxes statewide by about $255 million. This reduction applies to both homeowners and some businesses, providing immediate relief for many.
Growth Limits on Property Taxes: To prevent sudden tax spikes, the law introduces limits on how fast property taxes can grow. For example, property tax increases for school districts will be capped at 6% per year, and local governments will be limited to 5.25% per year. This ensures more predictability for taxpayers, as recent years saw property taxes jump sharply due to rising home values (Colorado Public Radio) (The Colorado Sun).
How Will This Affect Homeowners?
This law will result in about $70 in annual savings for the average Denver homeowner with a home worth $700,000. While the savings may not be drastic for everyone, they do help ease the financial burden on homeowners who have seen their property taxes rise significantly in recent years.
However, it’s important to note that while taxes will be reduced, many homeowners may still see slight increases in 2025 due to the expiration of temporary discounts put in place in previous years. The goal is to balance providing relief while ensuring the state can still fund critical services like schools and public safety. (The Colorado Sun).
Ballot Measures Removed
Two proposed ballot measures, Initiatives 50 and 108, were removed as part of this reform. These measures would have introduced even larger property tax cuts but raised concerns about how the state would continue to fund essential services like K-12 education. By passing this law, lawmakers hope to stabilize the property tax system and avoid deep cuts that could have jeopardized public services. (The Colorado Sun).
What’s Next?
This law is seen as a compromise between reducing taxes and maintaining necessary funding for schools and local governments. While homeowners will see relief, it’s important to stay informed about how future property assessments might impact your tax bill. Additionally, local voters can choose to override the limits set by the new law in special districts, so there may still be some variability depending on where you live (Colorado Public Radio).