Centennial State News

After Governor Jared Polis signed bipartisan property tax relief into law, the National Federation of Independent Business (NFIB) State Director Tony Gagliardi expressed approval for the legislation. This new law aims to lower property taxes in Colorado without affecting the Taxpayer Bill of Rights (TABOR) refunds.

"As the foundation of Colorado’s economy, small business owners are grateful to Governor Polis and the General Assembly for coming together to provide greater predictability in our property tax system, while protecting Coloradans’ TABOR refunds," Gagliardi stated. He emphasized that by reducing the current tax assessment rate and capping its annual growth, this agreement offers essential relief to job creators, homeowners, and working families.

Gagliardi also noted that while this legislative action is a significant step toward managing Colorado's property tax burden, further efforts are necessary. "Pushing this issue off for another six years or until another tax debacle arises would be wrongheaded," he said. He urged lawmakers to focus on additional reductions in Coloradans' tax bills before the next regular session.

The background context reveals that during the 2023 regular session, NFIB Colorado successfully opposed ballot Proposition HH. This proposition was seen as a threat to TABOR refunds under the guise of providing property tax relief.

The compromise reached during a special session involved collaboration between Gov. Polis, Sen. Barbara Kirkmeyer, Sen. Chris Hansen, Rep. Julie McCluski, Rep. Rose Pugliese, and members of the business community. It ensures property taxes are reduced without impacting TABOR refunds.

According to reports from The Colorado Sun: "In the 2025 tax year, most nonresidential property taxes will begin falling from 29% today to the 25% commercial tax rates found in Senate Bill 233 by the 2027 tax year." This change is expected to benefit small business owners starting in 2025.