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May 14, 2024

SIGNED! Bills to Save Coloradans Money on Housing Become Law

DENVER, CO – Governor Polis today signed a pair of bills into law that will save Colorado families millions of dollars a year on housing.

SB24-233, sponsored by the Chair of the bipartisan Commission on Property Tax Senator Chris Hansen, D-Denver, and Senator Barb Kirkmeyer, R-Weld County, as well as House Speaker Pro Tempore Chris deGruy Kennedy, D-Lakewood, and Representative Lisa Frizell, R-Castle Rock, ensures that Colorado homeowners won’t see an increase in their property taxes for tax year 2024 and reduces statewide local taxes by more than $1 billion.

"Coloradans are depending on us to meet the moment and provide responsible relief that works for them and their families," Hansen said. "These bills will help save Coloradans money by responsibly reducing property tax rates in a way that balances the needs of homeowners with protecting critical funding for schools, and by making the senior homestead exemption portable and giving older Coloradans the freedom to downsize or sell their homes without paying a tax penalty. I am excited about this opportunity to deliver relief for those who need it most."

“After months of hard work on the Commission on Property Tax, I’m proud that our long-term, bipartisan solution will be signed into law to save Colorado homeowners and small businesses money on property taxes,” said Speaker Pro Tempore Chris deGruy Kennedy, D-Lakewood. “This law will responsibly reduce property taxes in a meaningful way to save people money while protecting school funding. We delivered meaningful results for Coloradans and there is no reason for deep-pocketed special interests to move forward with ballot measures that would devastate our communities, school funding, and public safety resources.”

In 2025 and beyond, SB24-233 will reduce property taxes by seven to 10 percent compared to current law for homes valued at $700,000 or less. Annual savings will equal $300-$400 for a home valued at $700,000. Savings depend on local mills and any changes in assessed home values. SB24-233 also reduces the commercial property assessment rate to 25 percent by 2026.

To offset revenue loss resulting from property tax reductions, SB24-233 directs nearly $380 million from the State Education Fund to backfill school districts, ensuring public schools remain fully funded.

Finally, SB24-233 provides protection against future spikes in property taxes by capping an increase in local property taxes at 5.5 percent starting in 2025, creating more certainty for homeowners and businesses.

Polis also signed SB24-111, sponsored by Senators Chris Hansen and Chris Kolker, D-Centennial, alongside Representatives Sheila Lieder, D-Littleton, and Mary Young, D-Greeley, which saves older Coloradans money on their property taxes by making the savings from the senior homestead property tax exemption portable.

For 2025 and 2026, SB24-111 creates a new subclass of property, the "qualified-senior primary residence real property", for an individual that has previously qualified for a senior homestead exemption but has moved to a new home.

“Spiking housing prices are hitting Coloradans hard - and it’s particularly tough for seniors on fixed incomes,” Kolker said. “Our state is number one in the nation for housing instability among people over the age of 65. Allowing seniors to carry this important benefit with them when they move will save older Coloradans thousands of dollars on their property taxes and help them age in place with the dignity they deserve.”

“The Senior Homestead Exemption helps seniors, Gold Star families, and veterans afford housing on their fixed income, and our law would expand eligibility so more people save money,” said Rep. Sheila Lieder, D-Littleton. “We’re making the savings from this exemption portable so seniors have the freedom to move or downsize – without losing these important cost-saving benefits. This law is a major priority of mine and I am proud to pass this law that will help address the housing affordability crisis and make larger homes available for new families.”

“Seniors want to age at home, and this bill empowers them to do so in a space that works for them,” said Rep. Mary Young, D-Greeley. “This is a straightforward, commonsense law that saves seniors money and makes the benefits from the senior tax exemption portable, giving seniors the freedom to move closer to family or downsize without losing eligibility for tax relief.”

Starting in 2025, For this new subclass of property—qualified-senior primary residence real property—the bill sets the assessed value of the property as the actual value minus 50 percent of the first $200,000 of that actual value, which is consistent with the exemption under the senior homestead exemption. Under this law, eligible seniors will benefit from this relief during the 2025 and 2026 property tax years.

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