Colorado’s special legislative session on property taxes has concluded, with the passage of a compromise bill to lower property tax rates and cap revenue growth.
The deal is a source of angst for many Democratic lawmakers, frustrated by both its content and how it was developed, but backers argue it is necessary to head off two ballot initiatives that would have cut taxes significantly more.
Gov. Jared Polis called the special session after he and others reached a deal with the groups running the measures: pass smaller property tax cuts at the Capitol and they would pull their larger proposals off the ballot.
House Bill 1001 permanently reduces property tax rates for homeowners by 2%. That’s a savings of about $50 for a $500,000 home in an area with average tax burden. It will have a greater impact on non-residential owners, reducing their rates by about 7% in the near term, and more in later years. That’s about $800 for a typical $1 million property.
While some lawmakers called the agreement “extortion,” legislative leaders said they didn’t want to roll the dice on an unpredictable outcome on election night. If passed, they worried the initiatives would bite deeply into funding for key public services like schools and fire protection.
The bill passed the Senate Thursday with only four no votes.
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