Gov. Jared Polis is calling state lawmakers back to the Capitol this month for a special legislative session on property taxes — a subject that seems to have many Coloradans up in arms lately. But why?
What’s the Problem?
Conservatives have proposed two ballot measures (initiatives 50 and 108) to place caps on statewide property taxes, which spiked amid a surging real estate market during the pandemic. But opponents argue that limiting property taxes would devastate the public services that rely on that funding, including Medicaid, education, and fire districts.
What’s Polis Proposing?
Fearing Coloradans will vote for lower taxes if these two measures wind up on November ballots, the governor is hoping state legislators can reach a compromise that will satisfy the conservative leaders who proposed the initiatives in exchange for rescinding the measures from the ballot.
This Isn’t the First Time This Debate Has Come Up
Legislators held a special session to address the unexpected spike in property taxes last November, too, after voters rejected the governor’s first proposal to pay for cuts by reducing TABOR refunds. Lawmakers then passed a number of reforms and cuts in this year’s regular session as well. But the groups backing initiatives 50 and 108 say none of it has been enough. Despite last year’s tax cuts, The Colorado Sun reports property tax revenue still went up 21% statewide in the 2023 tax year.
How Did We Get Here?
For decades, property owners were protected from surprise tax increases thanks to the 1982 voter-approved Gallagher Amendment, which set strict limits on how much the state could tax homeowners. But it wasn’t a perfect solution, and some unintended consequences resulted in the amendment being repealed by voters in 2020.
What’s Next?
The session will begin Aug. 26 and must last at least three days before any bills can be sent to the governor’s desk. The deadline to finalize a deal and remove the initiatives from the ballot is Sept. 6.
