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Colorado Legislature Agrees on Additional Property Tax Cuts

A SPECIAL SESSION BEGINS TO INCORPORATE ADDITIONAL RELIEF WITHIN SENATE BILL 233 OF 2024

Redacción El Comercio de Colorado

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Colorado legislators will enter a special session on Monday, August 26, convened to discuss an agreement related to reducing residential and commercial property taxes. This agreement, negotiated over the summer, aims to provide additional tax relief for homeowners and businesses in the state. Democratic Senator Chris Hansen explained that the purpose of this special session is to implement minor changes to Senate Bill 233, which was passed during the regular session.

This bill had already provided approximately $1.3 billion in property tax relief for both residential and commercial property owners. However, during the summer negotiations, additional relief was agreed upon as part of a deal with the proponents of Initiatives 50 and 108, who will withdraw their proposals from the November ballot in exchange for these legislative changes.

“We are here to implement a deal that provides additional tax relief without jeopardizing essential services in our state,” said Hansen. The Democratic senator continued, “This agreement is a compromise that both sides reached after polls showed that Initiatives 50 and 108 did not have the necessary support to be approved by voters”.

Four-Day Session

The special session, expected to last between three and four days, also aims to ensure that voters do not approve tax cuts so deep that they threaten state and local budgets. Republican legislators, who initially supported the initiatives proposed for the November 2024 election, changed their stance after realizing that these measures did not have sufficient popular support.

The low likelihood of Colorado voters approving the initiatives opened the door to renewed negotiations with Democrats to reach a legislative agreement that reduces taxes without compromising essential public services such as education and healthcare. Governor Jared Polis, who called this special session, has indicated that he will not sign any legislation until Initiatives 50 and 108 are officially withdrawn from the ballot.

Additional Tax Reduction

Polis explained that “this is an agreement that balances the need to reduce property taxes and protect our public services,” commented the governor. The proposed changes by the legislature include an additional $255 million tax reduction for next year, as well as a cap on tax growth in school districts. These changes aim to prevent future sudden spikes in property taxes, which has been a constant concern for Colorado residents.

Local analysts emphasize that the special session is also happening in a complicated political context, with elections around the corner and both parties looking to solidify their positions ahead of the polls. Republicans will try to prevent Democrats from securing a supermajority in the Senate. Meanwhile, experts also suggest that some Democratic legislators may use the session to introduce amendments that could complicate the debate.