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DENVER, CO – The House today advanced on a preliminary vote 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.
“Colorado Democrats are dedicated to making our state more affordable, which is why we’re back at the Capitol to responsibly reduce property taxes for Coloradans while protecting the progress we’ve made to invest in our future and boost school funding,” said Speaker Julie McCluskie, D-Dillon. “Two initiatives from wealthy special interests on the November ballot would have catastrophic impacts on Coloradans. I’m proud that through additional negotiations with the proponents of these measures, I secured a significant win for our schools and local governments by providing greater flexibility in the revenue cap, which will do more to preserve the local services we all rely on and protect our future.”
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.
The House today adopted two amendments. Amendment L042 provides additional flexibility to school districts and local governments by allowing them to retain revenue above the growth cap if in the prior assessment cycle they did not reach the cap. This will allow districts to keep additional funding in years that follow low-growth cycles, letting revenue catch back up to the long-term trendline. The House also adopted an amendment to direct the Property Tax Commission to evaluate the property tax changes made in SB24-233 and HB24B-1001 and report back on how Colorado’s tax code does or does not deliver relief to the people who need it the most.
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.