In 2020, Colorado voters made a significant decision to repeal the state's "Gallagher Amendment," which had been implemented in 1982 and named after its author, Dennis Gallagher, a legislator. The amendment had gained support due to its mechanism of adjusting the property tax rates based on the fluctuation of home values within the state. As home values increased, the amendment effectively lowered the rate used to calculate property taxes owed by homeowners, garnering favor among its proponents. The Gallagher Amendment was repealed in 2020. Continue reading to find out what may be changing again with your Property Taxes.
Your Colorado Property Taxes
Looking ahead to 2023, state lawmakers have introduced a plan aimed at alleviating the burden of property taxes throughout the state. As part of this proposal, there is a provision to decrease the residential assessment rate to 6.7% for the years 2023 and 2024. It is important to note that this reduction would be applicable solely to single-family homes designated as primary residences, excluding investment properties or second homes. The intention behind this measure is to provide relief specifically to homeowners residing in their primary dwellings, offering them potential financial respite in the form of reduced property tax obligations.
Additionally, the proposed plan includes provisions to offer greater benefits to seniors who are currently beneficiaries of the Homestead Exemption. Under this plan, eligible seniors would receive a more substantial reduction of $140,000. Furthermore, this reduction would be transferrable, allowing seniors to maintain the benefit even if they choose to relocate—a privilege they would otherwise forfeit under existing regulations. By extending these enhanced benefits to seniors, the plan seeks to acknowledge and support this particular demographic, ensuring they can enjoy continued financial relief and flexibility in their living arrangements.