DENVER, CO– The House today passed legislation by a vote of 42-23 to change the property tax categories and responsibly provide property tax relief to Coloradans without devastating local government revenue.
“Local governments, schools, fire districts, police and local libraries would be devastated by permanently losing nearly $1 billion in revenue every year,” said Majority Leader Daneya Esgar, D-Pueblo. “Today, we passed legislation that will responsibly reduce property tax rates and target assistance to the Coloradans and businesses that need it the most. We can’t allow rural Colorado to take a substantial hit as property values rise in more populated areas of the state.”
“Today, we passed legislation that will responsibly reduce property tax rates,” said Matt Gray, D-Broomfield. “By thoughtfully creating new categories for properties such as for agricultural properties or single family homes, we can direct relief where it’s needed the most.”
Sponsored by Majority Leader Daneya Esgar and Representative Matt Gray, SB21-293 would temporarily lower property tax assessment rates on several classes of residential and commercial property. The bill creates three new subclasses of non-residential property: agricultural, lodging, and renewable energy production property. It also establishes multi-family residential property as a new subclass of residential property. The bill applies new, lower assessment rates to these property classes.
The assessment rate on multi-family residences (apartment buildings, condominium buildings) would be lowered from 7.15 percent to 6.95 percent. The assessment rate on single family owner occupied primary residences would also drop from 7.15 percent to 6.95 percent. For second homes and short term rental properties, the assessment rate would remain the same. The bill also expands the property tax deferral program to allow homeowners whose tax bills grow by more than four percent over the last two years to defer the amount that exceeds the four percent growth, up to to $10,000. If a statewide measure passes to reduce residential property rates, it would only apply to multi-family properties.
For non-residential properties, agricultural and renewal energy production properties would see their rate reduced from 29 percent to 26.4 percent. If a statewide measure passes to reduce nonresidential property rates, it would only apply to lodging properties. Remaining commercial property rates would remain at 29 percent.