Saving Coloradans Money on Their Taxes: Governor Polis Signs Historic Tax Reform Bills Into Law

Tuesday, May 14, 2024

DENVER - Today, Governor Polis signed historic bills into law to cut the income tax rate and help Coloradans keep more of their hard-earned money.

“I am thrilled to sign bills that cut the income and sales tax rates, reduce Coloradans’ property tax bills, allow older Coloradans to downsize without risking their tax exemptions, and expand and streamline tax credits that help families thrive. These tax cuts help Coloradans hold on to more of their hard-earned money. Every year as Governor I have called for income tax cuts and I am happy to deliver on that promise with a rate reduction from 4.4% to 4.25% along with much more today. These responsible tax cuts will help turbo-charge Colorado’s economic growth and success,” said Governor Polis.

Governor Polis signed the following bills into law during a ceremony at the Governor’s Residence to cut the income and sales tax and save people money on property taxes:

  • SB24-228 - TABOR Refund Mechanisms, sponsored by Senators Kyle Mullica and Paul Lundeen, and Representatives Chris deGruy Kennedy and Rose Pugliese.
  • SB24-233 - Property Tax, sponsored by Senators Chris Hansen and Barbara Kirkmeyer, and Representatives Chris deGruy Kennedy and Lisa Frizell.

Through this bipartisan legislation to cut property taxes, the average homeowner will save roughly $500. This legislation provides a permanent solution to ensure Coloradans are protected from future property tax spikes with a cap of 5.5% for most local property taxes.

Here’s what Colorado leaders have been saying about the bipartisan property tax bill:

“In representing the statewide business community on the property tax commission, it was critical to ensure that reductions in both residential and nonresidential property rates were included in the final recommendations. Businesses and individuals across Colorado have faced historic rate increases that threaten our economic growth on a broad scale, from driving up the cost of doing business to exacerbating the housing affordability crisis. This solution is a balanced approach for critical property tax relief while protecting voter-approved bonds for housing and infrastructure needs across the state,” Loren Furman, President & CEO, the Colorado Chamber of Commerce.

“The Colorado Education Association applauds the bipartisan effort to find a responsible legislative solution to rising property tax costs and hope that this compromise will preclude continued ballot brinkmanship. CEA is particularly grateful for the prioritization and protection of public education funding in SB 24-233. Schools are the cornerstone of our society, and CEA remains deeply committed to the cause of ensuring that every child in Colorado has access to the resources and supports they need for a high-quality public education,” said Amie Baca-Oehlert, Colorado Education Association President.

“The Colorado Association of REALTORS applauds the legislative commitment to providing long-term property tax relief, especially meaningful relief on commercial properties. This bill is good for Coloradans and provides critical stability for property owners,” said the Colorado Association of REALTORS.

“I am pleased with the bipartisan tax bill being introduced today. Involving county commissioners as part of the task force and CCI early on giving local leaders a seat at the table early in the process has resulted in a workable tax bill that will benefit all Coloradans and is a step in the right direction,” said Commissioner Dan Williams, Teller County.

“This new bipartisan law will put the brakes on property taxes throughout Colorado while also ensuring the state budget is protected so other critical state priorities, like higher education, are protected. That’s a win-win for Coloradans. As I have said before, this is an excellent example of the Colorado way. Thanks to the leaders who rolled up their sleeves and stayed at the table to construct a thoughtful solution for our great state,” said Todd Saliman, President, University of Colorado.

“The hard work of finding common ground is the basis of our system. A deal that can find support on both sides of the aisle, with property tax relief and funding for essential public services is something we are delighted to endorse,” said Dr. Tony Frank, Chancellor of CSU System.

“As the Community College Chancellor, I am proud to express my full support and appreciation for this bipartisan property tax relief package that has emerged from extensive months of listening and discussion. This effort and thoughtful process plays a crucial role in protecting our local districts, including our k-12 education systems, thereby alleviating the strain on the state General Fund in future years that higher education institutions often compete for,” said Colorado Community College System Chancellor Joe Garcia.

“CCI is proud to have worked closely with the Property Tax Commissioners, legislators, and the Governor's office to provide meaningful property tax relief for Coloradans. While we recognize this may not be the perfect plan, we appreciate the teamwork and the effort to reach a bipartisan solution. It truly is the Colorado Way to bring all parties to the table to work together to solve complex problems,” said Don Suppes, President of CCI Board of Directors (Delta County).

The Governor also signed the following bills to protect tax exemptions for older Coloradans, save Coloradans money, and provide credits to help more Coloradans thrive:

  • SB24-111 - Senior Primary Residence Prop Tax Reduction, sponsored by Senators Chris Kolker and Chris Hansen, and Representatives Sheila Lieder and Mary Young.

“As part of the overall housing solution to reduce housing costs, it’s important that our seniors aren’t penalized for downsizing if they choose to. From now on, it won’t cost seniors a valuable tax benefit if they choose to sell their home to a growing young family and downsize to an apartment or smaller home. I’m confident that this portability will help increase the homes available to families and make living in Colorado more affordable for both seniors and those who are looking to purchase a home,” Governor Polis said regarding SB24-111.

  • HB24-1134 - Adjustments to Tax Expenditures to Reduce Burden, sponsored by Representatives Mike Weissman and Manny Rutinel, and Senators Nick Hinrichsen and Chris Hansen.
  • HB24-1288 - Earned Income Tax Credit Data Sharing, sponsored by Representatives Manny Rutinel and Emily Sirota, and Senator Chris Hansen.