This property tax bill has two major provisions:
- A reduction in the Residential Assessment Rate from 6.765% to 6.7%
- A value reduction of $55,000 for each residential property
Currently, there are temporary reductions in the valuation for assessment (valuation) of multi-family residential real property and all other residential real property. For the 2023 property tax year, the valuation for these properties is 6.765% of the amount equal to the actual value minus the lesser of $15,000 or the amount that causes the valuation to be $1,000. Section 1 of the bill further reduces the valuation for these properties for the 2023 property tax year by reducing the valuation for these properties to 6.7% of the amount equal to the actual value minus the lesser of $50,000 or the amount that causes the valuation to be $1,000. Reimbursement of local governments. The state is currently required to reimburse local governmental entities for property tax revenue lost as a result of the reductions in valuation enacted in Senate Bill 22-238. The bill maintains this backfill mechanism. Section 2 provides an additional backfill mechanism to reimburse local governmental entities for property tax revenue lost as a result of the additional reductions in valuation enacted in the bill.
Other Related Legislation:
- Special Session Legislation
- SB 23B-002: Summer Electronic Benefits Program. This will allow Colorado to participate in a federally funded summer nutrition program for at risk children.
- SB 23B-003: Identical TABOR refund. This will provide equal TABOR refunds in 2023 to all taxpayers for 2023 – rather than tiered refunds based on income.
- HB 23B-1001: Emergency Rental Assistance Grant Program. This bill provides $30 million in a rental assistance through the Department of Local Affairs.
- HB 23B-1002: Increased Earned Income Tax Credit 2023. This bill expands the Colorado EITC from 25 to 50 percent of the federal EITC. It is estimated to result in tax credits of approximately $180 million.
- HB 23B-1003: Property Tax Task Force. This creates a 19-member task force, with representatives from local governments, statewide organizations, and two legislators. All appointments shall be made by December 4 and requires a final report back to the legislature by March 15, 2024.
- HB 23B-1008: Appropriation for the Department of the Treasury. This appropriation of $88,000 General Fund will assist the property tax deferral program in the State Treasurer’s Office.