$700M Colorado property tax relief bill signed into law by Gov. Polis

Gov. Jared Polis signed a group of bills into law aimed at saving people money on various fees and taxes, a goal the governor has been adamant about in his reelection effort.

The largest measure inked on Monday is a $700 million cut to property taxes over two years in an effort to reduce how much homeowners owe as property values soar. It reduces the taxable value of homes by $15,000 and the value of some commercial properties by $30,000 and lowers assessment rates.

“We can make sure that for the next two years, we provide immediate relief, immediate money back for Coloradans to make sure nobody is priced out of the home they live in just because the value of that home has gone up,” Polis, a Democrat, said.

A person who owns a $500,000 home can expect a savings of $274 and a business owner with a $500,000 commercial property can expect a savings of $1,200 in 2023. The assessment rates drop from 6.95% to 6.765% for residential properties and from 29% to 27.9% for commercial properties.

The bipartisan bill was introduced as a compromise between Polis, the Legislature and a group called Colorado Concern that had been working to put a property tax cut on the 2022 ballot. After the bill passed last week, the group withdrew its proposed ballot measure.

The recently repealed Gallagher Amendment “constrained (the state’s) ability to properly manage property tax,” Sen. Chris Hansen, a Denver Democrat, said. This bill makes sure the state doesn’t rely on unresponsive constitutional formulas to dictate property taxes.

It passed with wide approval in both chambers towards the end of the legislative session.

“It’s probably no surprise to anyone that I hate taxes, but the worst kinds of taxes are property taxes, where you are literally paying the government rent on something that you bought that they didn’t help you pay for. And so this is the worst kind of taxes, and anything that we can do to provide relief on these taxes, I’m all on board for,” Rep. Patrick Neville, a Castle Rock Republican and bill sponsor, said.

Polis also signed House Bill 22-1351, which delays a 2-cent per gallon gas fee to next year, and House Bill 22-1416, which adjusts procedures for property tax assessment appeals.

“What this does also, is it backfills that revenue,” Polis said of the gas fee relief. “I want to be entirely clear that while Coloradans will be paying less at the pump and there will be no fee, every penny of that will be made up for our roads and bridges.”

Polis also signed the following bills on Monday as he begins a signing tour following the close of the 2022 legislative session:

• SB22-006, which allows small businesses to retain more sales tax reported as compensation
• SB22-146, which appropriates $25 million to the middle income access program
• HB22-1230, which modifies the Employment Support and Job Retention Services Program
• HB22-1004, which maintains the current driver license fee
• HB22-1001, which reduces business-related fees
• SB22-124, which revises the SALT Parity Act and makes provisions of the act retroactive to 2018