Property Tax Relief Signed By Colorado Governor Polis

In 2020, Colorado voters repealed the Gallagher Amendment, a 30-year-old constitutional provision that determined residential and commercial property assessment rates. The Colorado Legislature procrastinated for three years, and then residential property owners were hit with an average 30 percent property tax increase. In response to the outcry, Governor Polis, his fellow Democrats in charge at the Legislature, put Proposition HH on the ballot, which went down in a substantial defeat last November. The proposition was an end run around the Tabor Amendment disguised as property tax relief. Colorado voters did not buy it, and Governor Polis met a rare defeat.

Advance Colorado and Colorado Concern collected enough signatures to place Initiative 50 and Proposition 108 on the ballot for real property tax relief.  In August, Polis and the Legislature responded by calling a special session to work on property tax relief.  Advance Colorado and Colorado Concern agreed to withdraw their measures so long as the Governor and his fellow Democrats passed the tax relief provisions the two sides had negotiated. It took much wrangling to overcome the political establishment’s state of denial — about how high property taxes crush Coloradans who own their homes.

Colorado House Bill 1001 lowers taxes and limits government growth in the following ways.

Property Tax Reductions:

1. Local government residential property assessment rates are 6.15% in 2025 and 6.8% in 2026.
2. The bill provides a 10% exemption on the home’s taxable value, capped at $70,000.
3. Commercial property taxes will be reduced from 29% to 25% by 2027.

Revenue Growth Caps:

1. The bill caps local government revenue growth at 10.5% over two years and school districts’ revenue growth at 12% over two years, preventing significant year-to-year tax increases.
2. Voters do have the right to override these caps through local referenda.

Advance Colorado and Colorado Concern successfully used their ballot measures to force Colorado lawmakers to act. Politicians of all stripes hoped the deal would end the political tug-of-war over property taxes. Tax bills vary greatly depending on home location and market value, but for the typical Denver homeowner with a house worth $700,000, the annual savings will amount to around $70. The effort’s biggest win is capping state government growth.

DenCO Property Management likes to keep its owners updated on new legislation signed into law. Owners who are considering putting their rentals under professional management should call DenCO. We have been in business since 1999 and manage 150 rentals in the DU, Washington Park, and other Denver neighborhoods. Call us at 303-722-9688 or click here to complete a Contact Us form.