Summary: Property tax assessment for residential property. The bill lowers assessment rates and extends value reductions beginning in the 2024 property tax year. Property tax year 2024. For the 2024 property tax year, the bill carries over temporary assessment rates and actual value subtractions from the 2023 property tax year. This includes: for multifamily residential property, a 6.7 percent assessment rate applied to the actual value of the property minus $55,000 or the amount that reduces assessed value to $1,000, down from 6.8 percent with no subtraction under current law; for other residential property, a 6.7 percent assessment rate applied to the actual value of the property minus $55,000 or the amount that reduces assessed value to $1,000, down from an estimated 7.06 percent rate with no subtraction under current law. Property tax years 2025 and after.
Beginning with the 2025 property tax year, the bill creates two assessed values for each residential property: one that is used for mill levies assessed by school districts, and one that is used for all other local government entities. Local government entities. For local government entities other than school districts, the bill reduces the assessment rate for all residential property to 6.7 percent for property tax year 2025 only. For property tax year 2026 and all later years, the residential assessment rate is 6.95 percent applied to the actual value of the property minus 10 percent of the property’s actual value, up to $70,000, or an amount that reduces assessed value to $1,000. Beginning with the 2027 property tax year, the $70,000 maximum is increased annually by inflation. School districts. For school district mill levies, the bill sets the assessment rate for all residential property to 7.15 percent, equal to the permanent residential assessment rate under current law. If the local share of total program funding for school finance reaches 60 percent in 2026 or a later property tax year, then for subsequent property tax years, the residential assessment rate for school districts is adjusted annually so that the local share equals 60 percent of total program funding. The
bill specifies that this adjustment cannot cause the rate to exceed 7.15 percent. Property tax assessment for improved commercial property. For the 2024 property tax year, the bill carries over the temporary assessment rates and actual value subtractions so that they apply to improved commercial property for the 2023 property tax year. This includes a 27.9 percent assessment rate applied to the actual value of the property minus $30,000 or the amount that reduces assessed value to $1,000, down from 29 percent with no subtraction under current law. Read more about this bill here.
Status: Governor Signed May 14th 2024
See also SB24-228: TABOR Refund Mechanisms, which restructures how Colorado residents will get the TABOR refunds.
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