Colorado lawmakers reach deal aimed at halting property tax hikes

State lawmakers wrapped up a four-day special session Thursday by passing a bill that will save Coloradans hundreds of dollars in property taxes.

In exchange, the proponents of two ballot measures that would have made deeper cuts, say they'll pull them.

The bill is the fifth property tax relief measure in four years and the second in just four months. The cuts will save homeowners and small businesses about $1.6 billion a year and prevent the kind of spikes many homeowners saw last year from happening again.

The measure passed with wide bipartisan support.

State Sen. Barb Kirkmeyer was among those who cheered its passage.

"I just want to say, 'Yes!' This is a great day!'" 

She says the additional property tax relief is a win for people like her 94-year-old neighbor.

"Today, is the day I get to go home and tell my neighbor, my 94-year-old friend, that, yes, she'll probably get to stay in her home because we got additional property tax relief for her and for all Coloradoans and for small businesses."

Kirkmeyer and State Sen. Chris Hansen are among the architects of the bill, which is the product of a compromise forged by proponents of two ballot measures.

"This is very significant relief when you add up everything that we've done and have done it in a very targeted and responsible way," said Hansen. 

The Office of State Planning and Budget says the compromise -- combined with another bill passed in the spring -- will cut taxes $200-$300 a year depending on where you live.

Homeowners will save $233 on average next year in Denver, $324 in Adams County, $188 in Garfield County and $173 in Pueblo. The savings go up in 2026. 

Taxes will also drop for commercial and industrial property owners, including utilities that are required to pass the savings on to ratepayers. Maybe most importantly, the compromise bill caps future increases at 5% to 6% going forward.

"We do think that it's a win for taxpayers," says Michael Fields, President of Advance Colorado. The conservative group, along with the business group Colorado Concern, were pushing the ballot measures.

Fields says he would have liked deeper cuts but the cap on future increases was non-negotiable.

"There's nothing that was in place that would stop another huge spike like that without this bill passing or without our measures passing. So, we didn't want to risk getting no relief for people, getting no cap for people," Fields said. 

The legislature held up its end of the bargain. Fields says he will do the same by pulling his ballot measures and not bringing any new property tax measures for six years.

"We don't have any credibility if we don't follow through with our word, but it works both ways. If they don't follow through with their word and they change the deal or go back and try to change stuff, we still have the ability to move forward."

Gov. Jared Polis says a deal is a deal.

"This is a real win for Colorado and I'm excited. It will make Colorado more competitive, put more money in people's pockets and give people the confidence that their rates won't go up too much in the future."

Polis says he won't sign the bill until the ballot measures are pulled. The deadline to remove a measure from the ballot is Sept. 6.