With just one day left in the legislative session, an eleventh-hour property tax deal has unanimously cleared two House committees and secured approval at its second reading on the floor. 

The bipartisan Senate Bill 233, announced the day before, marks the culmination of months of conversations between the governor, legislators and groups like Colorado Concern, Colorado Counties Inc. and the Bell Policy Center. 

It also modifies the valuation assessment system for residential properties beginning in 2025. One value applies to mill levies imposed by school districts, while the other is for all other local government entities. These rates stand at 7.15% and 6.95%, respectively.

Bill sponsor Rep. Lisa Frizell, R-Castle Rock, said the state has consistently had to come up with “Band-Aid” solutions since the repeal of the Gallagher Amendment in 2020. These temporary fixes include SB 23-303, which emerged from the 2023 special session on property taxes. 

With this bill, Frizell said, “we are coming with a bipartisan effort that’s not perfect, but it has been significantly stakeholded. We have had lots of great people who have worked on this, and we are very proud to be bringing this.”

House cosponsor Rep. Chris deGruy Kennedy, D-Lakewood, described the bill as a “responsible alternative” to a number of “reckless” ballot initiativies potentially facing voters in November. Importantly, he noted, the bill avoids tapping into TABOR surplus funds or introducing a new “BS factor” (budget stabilization) to the state’s education budget. 

Degruy Kennedy acknowledged that sacrifices had been made by all parties involved in order to reach a compromise on the bill, and commended the bipartisan efforts in both the House and the Senate. 

“This has been a really tough nut to crack, and the reality is that taxpayers and businesses across Colorado are struggling with high costs,” he said. “What we can do on the property tax side is a meaningful contribution to helping them afford the high cost of living and doing business in Colorado.”

The bill will receive its final vote on Wednesday, the final day of session. It is sponsored in the Senate by Sens. Barbara Kirkmeyer, R-Weld County, and Chris Hansen, D-Denver.