How much will Colorado homeowners save under property tax bills versus ballot measures? (2024)

Colorado lawmakers gave initial approval to a bill aimed at lowering property taxes Tuesday as they wrapped up day two of a special legislative session.

Gov. Jared Polis called lawmakers back to work after striking a deal with proponents of two ballot measures, who've agreed to pull the measures if the bill passes.

The legislation -- combined with another bill lawmakers passed in May -- would provide $1 billion per year in property tax relief. The savings for individual homeowners depends on several factors. Property taxes are based on the value of your property, the state assessment rate, and your local mill levy.

The Office of State Planning and Budget calculated the average savings from the two bills for different parts of the state:

• Denver County -- median home price of $709,920 -- average savings of $233.47 (5.64% savings) on property tax bill in 2025 and $259.91 (6.27% savings) in 2026. (Total Mills 81.617)
• Adams County -- median home price of $556,660 -- average savings of $324.22 (7.03% savings) on a property tax bill in 2025 and $366.42 (7.94% savings) in 2026. (Total Mills 115.884)
• Garfield County -- median home price of $540,700 -- average savings of $188.52 (8.37% savings) on the property tax bill in 2025 and $214.03 (9.50% savings) in 2026. (Total Mills 58.276)
• Pueblo County -- median home price of $326,260 -- average savings of $173.26 (7.79% savings) on property tax bill in 2025 and $196.36 (8.83% savings) in 2026. (Total Mills 95.346)
• Xcel, Tri-State, and Black Hills Energy customers are also expected to save $100 per household over the next five years on their utility bills as a result of the compromise bill.

Economists at the non-partisan Legislative Council also broke down the savings in the two bills versus the two ballot measures.

They say the owner of a $550,000 home who lives in an area with 80 mill levies would save $220 a year under the two bills and $638 a year under the two ballot measures.

But there's a trade-off. Property taxes fund local governments and schools and the ballot measures would mean $630 million per year less for K-12 which, according to the Office of State Planning and Budget, equates to an $858 reduction in per-pupil funding in FY 2025-26 compared to current law.

The Budget Office says Denver Public Schools would lose $67 million, Adams 12 Five Star Schools would lose $30 million, Roaring Fork RE-1 would lose $5 million and Pueblo City would lose $11 million.

While the State of Colorado is required to backfill the lost revenue to schools, that isn't the case for local governments, including special districts. Several lawmakers say they are especially worried about fire districts that are entirely funded with property taxes.

Colorado State Fire Chiefs say the revenue at many districts hasn't kept pace with inflation for years. Grand Fire Protection District Chief Brad White says some departments are barely keeping their doors open now.

"We're hearing from our East Plains fire chiefs that they're out of volunteers; they're super close to locking doors as it is," White said. "Further cuts in revenue mean they got no equipment for the few volunteers they have. We're hearing from our West Slope fire chiefs that the oil and gas money they once relied on is no longer there and they're still not back to the revenue levels that they were pre-recession."

Democratic State House Speaker Julie McCluskie says she is working with Polis on a stable funding source for fire districts: "I am committed to making sure that we as a state find a better path forward in how we resource and fund fire districts. So many of our local communities have grappled with the extraordinary rise in demands for services, they don't have the local resources to meet those needs and we need to step up as a state."

The State House is expected to give final approval to the compromise bill Wednesday and then it heads to the State Senate.