Lawmakers and business groups welcomed the governor's decision to convene a special session in order to pass a compromise that offers more property tax relief in exchange for pulling from the ballot two ballot initiatives that seek deeper cuts than what the Colorado General Assembly earlier adopted.
To preserve the integrity of the agreement, Gov. Jared Polis said he will not sign any legislation out of the special session until Propositions 108 and Initiative 50 are pulled from the ballot.
It's the second time in less than a year that Polis has convened the legislature for a special session on property tax.
In giving his blessings to the compromise, the governor rejected pleas from an association representing special taxing districts and the state's biggest teachers' union, which argued against negotiating with Advance Colorado and other proponents of Propositions 108 and 50.
Colorado Concern President and CEO Dave Davia applauded the governor's decision and the imminent compromise legislation.
"It’s time to make Colorado more affordable — and focusing on the rising property tax issue is a critical first step for homeowners and small businesses across our state,” Davia said.
Michael Fields of Advance Colorado, which is behind the two tax initiatives, said the compromise, which includes a property tax cut and growth cap, provides "permanent tax relief that Coloradans have been demanding and will prevent future spikes in property tax bills going forward."
“This is the result of two years of consistent pro-taxpayer advocacy to ensure that we can solve the current property tax crisis for the benefit of Colorado families and businesses,” he said.
The groups behind the two initiatives said the compromise means nearly $1.6 billion in annual tax savings to Coloradans.
Lawmakers from both sides of the political aisle agreed the special session is the right step, though they offered different reasons for supporting it.
To Democrats, the two ballot initiatives pose risks to an array of public services.
To Republicans, the compromise offers an opportunity for the state to provide a more meaningful relief to soaring property taxes, though it won't completely erase people's "pain."
Sen. Barbara Kirkmeyer, R-Brighton, who has been one of the strongest advocates for a compromise, said the deal will benefit Coloradans.
“While this doesn’t erase all the pain people across the state are feeling, this will provide immediate financial relief to families in Colorado,” she said. “This framework will also put safeguards in place to ensure 20, 30, or 40% increases in property tax bills do not happen again."
She added: "I am proud to have led this compromise that will make sure our schools and communities remain strong. Schools will remain funded. Higher Education will remain funded. Firefighters, Sheriffs, police and EMS, will remain funded and our state will continue to grow. But most importantly people will get relief.”
Democrats, meanwhile, advanced a similar message — the two ballot measures undercut their vision for Colorado.
House Speaker Julie McCluskie, D-Dillion, said Democrats envision a Colorado that provides "a place where everyone, from the youngest learner to working families and older Coloradans, can thrive and afford a good life."
"Initiatives 50 and 108 would do the opposite and risk our state’s future by defunding public schools, fire response, health care, libraries, water infrastructure, and municipal parks and recreation centers," she said in a statement.
McCluskie said she's grateful for the input of the Property Tax Commission and the "growing consensus" that the state should pursue "further property tax reductions with guarantees that will protect the Colorado we love and the future of our state.”
Senate President Steve Fenberg, Senate Majority Leader Robert Rodriguez and House Majority Leader Monica Duran echoed the sentiment. Fenberg called the ballot proposals "reckless and irresponsible," adding they pose an "existential threat to critical state and local services."
Like the House Speaker, they, too, welcomed the special session.
"After years of bipartisan work to address Colorado’s property tax and affordability challenges, we now face another opportunity to step up, govern responsibly, and ensure that additional property tax cuts are delivered in a way that does not jeopardize Colorado’s financial future," Fenberg said.
Sen. Chris Hansen, D-Denver, who chaired the special meeting of the property tax commission, said the compromise's framework "builds upon the substantial, responsible property tax relief delivered in Senate Bill 233. We now have the opportunity to make minor adjustments without gutting community services like schools, hospitals, and fire departments."
Meanwhile, Ann Terry, the CEO of the Special District Association of Colorado, said her organization remains "skeptical."
"We remain skeptical of governor and legislative leadership's official explanation of how a promise to remove 108 and 50 from the ballot will be ensured," Terry said. “However, we will be vigilant in protecting all of our special districts."
The group represents the interests of special districts, which rely on property taxes for their operations. Local governments are poised to see a big windfall from the dramatic rise in property values. Some, like Douglas County, have decided to unilaterally cut their residents' tax liabilities.
“We think there needs to be details to the outlined framework presented by the Governor’s State Budget Director during the Property Tax Commission meeting this past Monday," Terry said. “This feels like death by a thousand cuts.”
Denver Metro Chamber President and CEO J.J. Ament earlier said that a previous legislative response to soaring valuations, while "better than nothing, missed the mark on real relief."
Ament said the governor "deserves great credit for bringing groups together to forge a compromise.”
He stressed that more than 85% of the chamber’s members are small businesses, many of which use their homes as the capital backstop for their enterprises.
“That’s in part,” Ament said, “why residential property tax relief is so important for small businesses and entrepreneurs, and why the Chamber has fought so hard for this special session.”
House Minority Leader Rose Pugliese said the special session is an opportunity to address the property tax burden that Colorado families face.
"Our goal is to provide effective solutions for property tax relief, while ensuring that local governments can balance their budgets and continue providing essential services," she said. "It’s crucial that we work together to get this right."
House Assistant Minority Leader Ty Winter, R-Trinidad, said the state should not have been in this position to begin with.
"The majority party has had multiple opportunities to work with us on a solution," he said. "Instead, their delays and dysfunction have led to a rushed process that could have been avoided with proper planning and bipartisan cooperation. Last special session devolved into theatrics. Let's hope that does not happen again."
This special session, which will be limited in scope and focus on reducing Coloradans’ property tax burden starting in 2025, will begin at 10 a.m. on Aug. 26.
Marissa Ventrelli contributed to this story.
