A bill that could have allowed Colorado to offer less tax relief to secondary residences died Monday in its first committee hearing during a special session of the Legislature. 

“I understand the intention here, and I think it’s a potentially good idea … I don’t think it’s been vetted enough,” said Rep. Judy Amabile, a Boulder Democrat, when voting against the bill. “I look forward to you bringing it back next session.” 

House Bill 1002 would have referred a question to the 2025 ballot asking voters to create a new residential property class for owner-occupied residences. It was one of nine defeated bills on the first day of the special session, losing In a 7-3 vote. 

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The ballot measure would have allowed only owner-occupied residences to receive a 10% exemption, up to $70,000, on property tax bills. 

The Appropriations Committee heard concerns about House Bill 1002 during the testimony and comment phase, including from Realtors and a representative from the Colorado Assessors’ Association. 

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Shannon Bird, a Westminster Democrat who voted against the bill, said she was worried it would have unintended consequences and possibly discourage people from investing in rental properties, constraining that part of the housing market. 

“I think in the long run, we would wind up passing the cost to renters,” she said. 

The concept of taxing primary homeowners differently than those who own multiple homes has been considered by the Legislature multiple times. It was also included in Proposition HH, which voters resoundingly rejected in 2023.

Gov. Jared Polis called the special session in an attempt to head off a battle at the ballot box over property taxes this November. If approved by voters, Initiatives 50 and 108 would slash property taxes in the state, cutting funding for schools and local governments. 

The two conservative groups that brought the measures, Advance Colorado and Colorado Concern, have promised to withdraw them if lawmakers approve a pre-discussed compromise during the special session. 

The bill including the compromise was also introduced Monday as House Bill 1001. It builds off a bipartisan bill that passed earlier this year. 

The deal proposes a relatively modest increase in the property tax cuts from the earlier-passed Senate Bill 233 and a slightly stronger limit on tax growth. SB 233 promised to cut property taxes by an estimated $1.3 billion per year. The new deal adds $260 million to those cuts. 

But lawmakers are feeling frustrated over how that compromise was developed — in meetings of a select few lawmakers, Polis’ administration and the proponents of the ballot measures. 

HB 1001 was approved by the Appropriations Committee with an 8-3 vote. It was scheduled to be considered Tuesday by all of the members of the House.

​​Rep. Elizabeth Velasco, a Glenwood Springs Democrat and member of the Appropriations Committee, joined one other Democrat in voting against House Bill 1001.

“I really hope that I can get to a yes,” she said. “I think there’s a lot of concerns from many community members.” 

Velasco voted yes on House Bill 1002. 

Proponents of initiatives 108 and 50 have threatened that they won’t withdraw their measures if any other bills are approved during the special session that they see as damaging property tax negotiations in the future. 

Rep. Mike Weissman, D-Aurora, and Sen. Chris Hansen, D-Denver, introduced a resolution that would refer a constitutional amendment to the ballot that, if approved by voters, would prevent statewide ballot measures on property taxes from taking effect without support from local communities. 

Sen. Barbara Kirkmeyer, a Brighton Republican who has been part of the property tax negotiations, said if a bill with that concept was approved, it would end the current deal with the supporters of initiatives 108 and 50.

That resolution was approved in its first committee hearing and was also to be debated on the floor Tuesday. 

The special session is scheduled to last until at least Thursday.