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DENVER, CO – The House Appropriations Committee today passed HB24B-1001, sponsored by Speaker Julie McCluskie and Minority Leader Rose Pugliese, that will reduce property taxes while protecting critical community institutions like public schools, health care, fire response, libraries, water infrastructure, and municipal parks, playgrounds and recreation centers. HB24B-1001 passed by a vote of 8-3.
“Making Colorado more affordable is our top priority, and we’re back at work to reduce property taxes in a responsible way that protects our future and the critical institutions that make our communities run,” said Speaker Julie McCluskie, D-Dillon. “We believe that from our littlest learners to working families and eldest Coloradans, everyone deserves an opportunity to thrive. However, irresponsible ballot measures from wealthy special interests jeopardize the Colorado we love and disproportionately impact those facing the brunt of the high cost of living. This proposal is a win for Colorado communities and I’m proud that stakeholders and from across the political spectrum have come together to support this path forward.”
Democrats have stepped up to avoid steep property tax hikes and are leading a multi-year effort to deliver meaningful relief while protecting critical funding for schools and local services. In May, the General Assembly passed SB24-233 by a vote 92-8 to responsibly reduce statewide local taxes by more than $1 billion, prevent future spikes in property taxes, and protect critical services that Coloradans rely on. HB24B-1001 makes minor adjustments to SB24-233 in order to avoid devastating ballot measures from wealthy special interests.
Irresponsible ballot measures would reduce revenue for public schools, fire departments, health care, libraries, water infrastructure, and public outdoor recreation by nearly $3 billion. They would risk the major strides Colorado Democrats have made to boost public education funding and eliminate the Budget Stabilization Factor. If these measures were to pass, they would lead to draconian cuts to fire response and public safety.
HB24B-1001 reduces property taxes in a responsible way while protecting funding for crucial institutions, especially Colorado’s K-12 public schools. Using SB24-233 as the baseline, the bipartisan proposal would reduce assessment rates and the local government revenue cap.
Residential Assessment Rates (RARs)
Depending on the growth in assessed valuation (AV) between property tax years 2024 and 2025, there are two options for adjustments to RARs:
*RARs and value exemptions would apply to and stack with the Senior Homestead Exemption.
Nonresidential and Personal Property Assessment Rates
Nonresidential assessment rates and exemptions are for both schools and local governments. Oil and gas and producing mines remain excluded from this classification.
Colorado Democrats have passed legislation in recent years to reduce the cost of housing, health care, and child care. In the 2024 legislative session, Colorado Democrats passed new laws that will provide two years of free college, reduce evictions, and boost the incomes of hardworking families with new tax credits.