If you are a property owner, you might be happy to hear that the state has decided to lower your Colorado property tax and even allow some homeowners to actually delay a portion of the taxes owed – at least temporarily.
And while this may seem like a big win for those who own homes in the state of Colorado, there is also a part of the SB-293 bill that has some wondering if it really is such a good thing.
It seems the new Colorado property tax bill may have been created in an effort to hinder voters from having a chance to head to the polls to cut property taxes and assessment ratios by an even greater percentage during the 2021 November election…and many people are not happy.
Currently, in Colorado, the demand for housing is still surpassing the supply, causing home prices to soar. Obviously, along with increased property prices comes higher tax bills for homeowners. Colorado Senators have said that they are simply trying to give homeowners in the area some relief from the higher taxes with the new legislation.
The new bill temporarily lowers tax assessment ratios from 7.15% to 6.8% for apartments, from 7.15% to 6.95% for single-family homes, and reducing the assessment ratio for agricultural/renewable energy properties from 29% to 26.4% for the 2022 and 2023 tax years only.
Bill SB-293 would also allow a permanent option for reduced assessment ratio and is designed to assist those with dramatic property tax increases. In these cases, Colorado homeowners have the option of delaying a portion of the tax due (up to $10,000) until they sell the home.
Meanwhile, another proposal by Colorado Rising Action has plans for even larger tax cuts for those who own Colorado homes. Their proposed Initiative 27, which gained approval in May from the state Supreme Court, is gaining support via signatures gathered to put the measure on the Colorado November ballot.
The problem is that Initiative 27 is in jeopardy due to the way sponsors have purposely worded the new SB-293 bill, which would change the potential effects of Initiative 27. In fact, the approval of this new bill would actually only reduce the tax rates for family buildings and lodging, not all properties like Initiative 27 included.
Voters have already made it clear exactly how they feel about halting the rural Colorado property tax base from suffering by their repeal of the Gallagher Amendment. The property owners of Colorado want solid management that does not allow for a quick depletion of property taxes that will drastically affect the funding models of local districts.
It looks like Colorado homeowners will have to utilize their voting power this November to decide what is best for their situation. Meanwhile, bipartisan sponsors of the new bill want residents to see their effort to compromise so that important goals such as reducing taxes can happen without affecting the budgets that pay for much needed (and wanted) services in each city and town they live in.