Colorado lawmakers have again approved property tax cuts during a special session of the legislature, but this time they’re hoping the changes will stick around longer than just a few months.

As property values in the state have ballooned over the past few years, there have been at least three bills approved by the legislature aimed at delivering short-term property tax relief. The latest special session, which ended Thursday, represents the third attempt at finding a long-term solution. 

“We’re never going to be done,” said Sen. Barbara Kirkmeyer, a Brighton Republican who sponsored the main bill approved during the special session. 

---

---

But if a deal approved during the special session between Democrats and Republicans holds, the new property tax mechanism approved this week should be in place for at least six years. 

That’s the amount of time two conservative groups have agreed to not bring initiatives threatening massive property tax cuts to the ballot. After the bill was approved by the legislature Thursday, the two groups, Advance Colorado and Colorado Concern, said they were working to withdraw their initiatives from the upcoming ballot.

---

---

Initiatives 108 would have lowered the assessment rate used to calculate both residential properties and commercial properties, decreasing property taxes by an estimated $3 billion in 2025. Initiative 50 would have imposed a 4% annual statewide cap on property tax revenue growth. 

“They would absolutely decimate our public schools, our local governments and so many of the services that Coloradans rely on,” McCluskie said. 

Gov. Jared Polis indicated he would sign the bill passed Thursday into law once the initiatives were withdrawn. 

How does this impact homeowners? 

The changes approved in the special session build on property tax relief already created by lawmakers in the spring under Senate Bill 233. That bipartisan bill cut property taxes statewide by $1.3 billion. The special session bill, House Bill 1001, added another $254 million to that.

The cuts in SB 233 triggered a nearly $400 decrease in the average homeowners’ bill in 2025. HB 1001 added about $60 to that reduction, according to an analysis from the Colorado Fiscal Institute. 

Property taxes, which are collected and used by local governments, vary widely but are generally calculated based on local mill levies, the state assessment rate and home values. 

Who won the special session? 

About two-thirds of the additional property tax cuts approved during the special session will benefit commercial properties, according to the Colorado Fiscal Institute. Lawmakers were proud of that impact.

“I think they deserve to have a property tax cut,” Kirkmeyer said. “Let’s think about these small businesses.”

Sen. Dylan Roberts, a Frisco Democrat, said he was glad to see the cuts for businesses. 

“Lowering commercial rates has always been a goal of mine,” he said. “That got done in 233 and now in this bill too.”

The bill passed with overwhelming support in both chambers, with only progressive Democrats and far-right Republicans voting against it. 

How did school districts fare?

School districts, which are funded by local property taxes, didn’t see immediate cuts to their funding source during the special session.

The new property tax mechanism approved in SB 233 and HB 1001 sets separate rates for school districts and all other local districts, like fire departments. HB 1001 did create $100 million in additional cuts to school funding, an amount that budget experts say can be easily made up by the state budget. 

The bill also created a 12% cap on property tax revenue for schools every two years. 

State lawmakers this year approved a budget for the first time in over a decade this year that meets their constitutional requirements for school funding. While some advocates were worried the special session could impact that promise, lawmakers are confident that won’t happen in the immediate future.

Taggart, a Grand Junction Republican member of the powerful Joint Budget Committee, said he’s optimistic the state will continue to be able to meet its obligation.

“I think we can continue to live within our means,” Taggart said. “We just have to prioritize properly.” 

Okay, but it’s politics, so who is unhappy?

To put it simply: lots of people were frustrated with the special session. 

During the four-day special session, Democratic lawmakers, who hold large majorities in both chambers, expressed anger over how the additional property taxes were approved. Many said they felt like they were being forced to the negotiating table by the aggressive ballot measures proposed by Initiatives 108 and 50. 

They also complained that the deal between their party’s leadership and the conservative groups was done largely without them. Many said they wanted to see more of the additional property tax cuts going to low-income Coloradans, such as renters and those with lower-value homes. Several bills introduced that would have attempted to do that were killed on the first day of the special session. 

Meanwhile, some Republicans argued they wanted to give voters the chance to decide on initiatives 108 and 50, saying the cuts in the deal still weren’t enough. 

Representatives from fire districts also complained that the additional cuts would deeply damage their budgets. 

Remind us how we got here?

Colorado lawmakers have battled over property taxes for the past few years after in 2020 voters repealed the Gallagher Amendment, a constitutional amendment that prevented property taxes from growing too rapidly. Property values have soared since then, increasing by an average of 40% over the most recent assessment period. 

That triggered the cascade of short-term property tax patches. After several years of one-year fixes, Democrats, including the governor, proposed Proposition HH, which would have offered long-term property tax relief but also reduced the dollars available for annual refunds through the Taxpayer’s Bill of Rights by using that money to backfill local services impacted by the cut.

Proposition HH was soundly rejected by voters in 2023. Polis called a special session in response and the legislature delivered more short-term relief and created the state’s property tax commission. 

Following recommendations by that commission, bipartisan lawmakers at the legislature approved Senate Bill 233 this spring, but Advance Colorado and Colorado Concern said the cuts it proposed didn’t go far enough and said they would push forward with their more aggressive measures. This summer, they began negotiations over the special session compromise. 

Did anything else happen at the special session?

There were 13 measures introduced but ultimately, only two bills passed. Beyond HB 1001, House Bill 1003, which made a property tax exemption for certain agriculture equipment permanent, was approved. 

Lawmakers also sought to limit the control state ballot measures like 108 and 50 can have over property taxes in the future. A resolution that would have allowed voters to approve a new requirement for statewide ballot initiatives to receive local approval died in its first committee hearing. 
A bill that would have treated property taxes differently between primary and secondary homeowners also died during the special session.