On Monday, Colorado Governor Jared Polis was joined by Senator Chris Hansen, Senator Bob Rankin, Majority Leader Daneya Esgar and community leaders in announcing a new property tax relief package, which is aimed at allocating $700 million in property tax relief over two years for Colorado homeowners and businesses.
In a study conducted by the Lincoln Institute of Land Policy in June 2021, Colorado was found to have some of the lowest residential property tax rates in the country. A similar study conducted in 2020 compared property taxes on median-valued homes for the largest city in each state. The Lincoln Institute of Land Policy found that the average median-valued home in Denver owed 0.52% of the average residential tax paid by homeowners nationwide.
Also in 2020, the effective tax rate on a commercial property worth $1 million averaged 1.953% in tax rates across the largest cities in each state. According to the study, Denver placed above the nationwide average with commercial property tax values falling at 2.07%.
Although Colorado’s residential and commercial property taxes fared relatively well compared to other states in 2020, in today’s rapidly increasing real estate market, the Governor’s office hopes that its property tax relief package, combined with other property tax reductions passed in Colorado last year, “will reduce property taxes for homeowners by an average of $274 in 2023 on a $500,000 home and will provide significant savings for every business in the state,” according to a news release.
Savings from the property tax relief package, the press release added, “will help families stay in their homes and remain in the neighborhoods they’ve lived in for decades, and will reduce costs for businesses statewide.”
“I want to make sure we leave no stone unturned to ensure Coloradans can hold on to more of their hard-earned money. This property tax relief builds on our work to save people money including healthcare savings, free preschool, and sending out $400 rebates as quickly as possible,” Gov. Polis said. “We are acting now to provide immediate relief to homeowners and business owners, help people stay in their homes, and save you money.”
