Advance Colorado withdrew Initiative 50 and Initiative 108, two property tax measures, from the Nov. 2024 ballot on Sept. 4, 2024.
Initiative 50 would have limited property tax revenue growth to 4% annually, requiring statewide voter approval for any revenue retention above the cap. Initiative 108 would have lowered property tax valuation assessment rates for residential property to 5.7% and 24% for commercial property.
Both initiatives were sponsored by Advance Colorado Institute, a think tank and issue advocacy organization that describes its mission as “supporting policies that increase economic opportunity and greater government transparency.” Advance Colorado said, “Colorado has been in the midst of a property tax crisis since the repeal of the Gallagher Amendment, and for years, the Governor and Legislature have been unable to craft a deep and permanent solution. … Colorado taxpayers have demanded real tax relief, and Advance Colorado has been on the frontlines fighting for it.”
2024 special session and compromise legislation
Governor Jared Polis (D) called the Colorado State Legislature into a special session, which ran from Aug. 26 to Aug 29., to pass compromise legislation addressing property taxes in exchange for Advance Colorado withdrawing its two initiatives from the Nov. ballot.
House Bill 24B-1001 was passed by a vote of 58-3 in the House and 30-4 in the Senate. Of 46 Democratic Representatives, 41 voted in favor, two were opposed, and three were absent. Of 19 Republican Representatives, 17 voted in favor, one was opposed, and one was absent. Of 23 Democratic Senators, 19 voted in favor, three were opposed, and one was absent. Of 12 Republican Senators, 11 voted in favor and one was opposed.
Advance Colorado withdrew the initiatives on Sept. 4 and Gov. Jared Polis signed House Bill 24B-1001 into law the same day. HB 1001 was designed to reduce property tax rates and limit revenue growth for local governments and school districts.
The bill reduces residential property tax rates from 6.4% to between 6.15% and 6.25%, depending on assessment growth, and lowers commercial property tax rates from 29% to 27% starting in 2025. The bill also continues to provide state backfill funds to local governments, reimbursing them for revenue losses caused by property tax reductions, and caps local property tax revenue growth at 5.25%.
According to the Colorado Sun, HB 1001 will reduce property tax revenues by $769 million in 2025, compared to the $2.4 billion reduction that would have resulted from the ballot initiatives.
Reactions to the compromise deal
Gov. Jared Polis (D) said, “This is really an example of bringing folks together, who may not see eye to eye on every issue, on a path forward that’s better for Colorado, taxpayers, schools, fire districts — and better for everyone than taking great risks.”
House Speaker Julie McCluskie (D-13), said “It is unfortunate that we had to play defense — that we had to come forward and provide yet additional relief because wealth interests in this state continue to bring forward ballot measures that would ultimately undermine the stability of our communities.”
State Sen. Barbara Kirkmeyer (R-23) said, “Since 2020 and the repeal of the Gallagher Amendment, unpredictability has burdened our state’s property tax system. The people of Colorado deserve certainty.”
Michael Fields, president of Advance Colorado, said, “Today, Colorado taxpayers are the winners. Coloradans across the political spectrum have made it clear that they need substantial and meaningful property tax relief. Today, that is what this new law delivers.”
Advance Colorado said, “For the first time in Colorado history, conservatives were able to compel a Democratic near-super majority to provide $1.6 billion in relief for taxpayers.”
As part of the compromise deal, Advance Colorado said it would not pursue property tax measures for at least six years.
Colorado to have more ballot measures than any other state in 2024
After the withdrawal of the initiatives, Colorado voters will decide on 14 ballot measures on Nov. 5, making Colorado the state with the most number of statewide measures on the ballot this year. Seven of the measures are citizen initiatives and seven were referred to the ballot by the state legislature. Arizona will have the second-most measures on the ballot after Colorado, which will see 13 measures on the ballot.
Over the last two decades, Colorado voters have decided on 94 ballot measures during even-numbered election years, approving 46 (48.94%) of the measures and rejecting 48 (51.06%). The annual average of measures appearing on the even-year ballot since 2004 was between nine and ten, with a minimum of three and maximum of 14 measures on the ballot. The last time Colorado had 14 measures on the ballot was 2008.
Recent Colorado property tax ballot measures and legislation
In 2020, Colorado voters approved Amendment B, which repealed the Gallagher Amendment of 1982. The Gallagher Amendment had set property tax assessment rates to maintain a 45%-55% ratio between residential and non-residential properties. Amendment B eliminated the fixed 29% assessment rate for non-residential properties and froze the residential rate at 7.15%. Advance Colorado opposed Amendment B of 2020.
In 2021, Advance Colorado successfully qualified Proposition 120 for the ballot, which was designed to reduce the residential property tax assessment rate from 7.15% to 6.5% and the non-residential property tax assessment rate from 29% to 26.4%. The initiative was rejected with 57% of voters opposed.
In 2021, the state legislature passed legislation temporarily lowering property tax rates for 2022 and 2023. In 2022, another bill further reduced the assessment rates to 6.765% for residential properties and 27.9% for non-residential properties for 2023 and 2024.
The state legislature referred Proposition HH to the 2023 ballot which would have reduced property tax rates and allowed the state to retain and spend revenues that would otherwise be refunded to residents under TABOR. Proposition HH was defeated with 59% of voters opposed. Advance Colorado also opposed Proposition HH.
Following the rejection of Proposition HH, legislation was passed to reduce the residential property tax assessment rate from 6.765% to 6.7% and increase the amount of home value that is exempt from taxation from $15,000 to $55,000.
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