Colorado's special legislative session to address rising property taxes could help people without property too

Gov. Jared Polis may have called a special session of the state legislature to address property taxes, but Democrats are stopping there.

They've introduced legislation that impacts Coloradans who have no property including bills to double state rental assistance to $65 million, double the earned income tax credit for lower-income Coloradans to $150 million, and change how TABOR refunds are doled out so that everyone gets the same amount.

As for Democrats' plan for property tax relief, it looks a lot like Prop HH.

"We are doing our best to make lemonade here," said Sen. Chris Hansen, the co-sponsor of democrats' property tax relief bill. 

He insists Democrats are providing the most property tax relief possible given limited resources.

Republican Sen. Barb Kirkmeyer said, not true.

"I believe the people of this state have said, 'you guys need to get off your butts and work together and get us property tax relief,'" she said.

Democrats plan calls for dropping the state assessment from 6.76% to 6.7% and raising the amount a homeowner can deduct from the taxable value of their home to $50,000 from $15,000.

Republicans say the state can afford more. Their plan would drop the assessment to 6.5% and raise the deduction to $80,000. They also proposed dipping into the state's emergency reserve, which Polis said he too would support.

"And ladies and gentlemen... we would not be here in a special session being called if there wasn't an emergency that is why we're here," said Republican Sen. Jim Smallwood.

But Democrats say using the emergency reserve for tax relief is irresponsible. They would rely on $200 million already set aside from the general fund for backfill to local governments and special districts.

"I think we are taking the $200 million that we have available and stretching it as far as we possibly can," said Hansen.

Among those supporting the democrats' plan are fire districts which would be reimbursed for all lost revenue. They rely entirely on property taxes that fire chiefs say haven't kept up with call volume.

"You know, I run an agency that 15 years ago was a small volunteer agency running 60, 70 calls a year because the county ran an EMS service and we're tapping 300 now and neighbors tapping 500 and so it's been big growth here in the last 10 years," said Brad White, Chief of Grand Fire Protection District.

Bob Olme, West Metro Fire Division Chief says many fire districts have been using reserves for years to make ends meet.

"We're to that critical point where we can't go into reserves anymore, there will be a reduction in services and it's not just me, many districts, some districts would never survive... they'd have to close their doors," he said. 

In addition to fire districts, schools are also fully reimbursed under democrats plan, but there is very little backfill for local governments and no tax relief for commercial property owners.

All republican bills failed in committee Friday, including one that would have changed a 2022 law to use reserve funds instead of tabor refunds for earlier property tax relief. The law remains in effect.

While democrats are not using tabor refunds for their latest tax relief plan, some of the other bills they've introduced may cut into those refunds.