Colorado House Bill HCR1002

Colorado 2024 1st Special Session

• Introduced: 8/26/24
• Refer: 8/26/24
• Failed: 8/26/24

Caption

Restore Gallagher Amendment to Property Tax

Impact

The proposal comes in response to concerns about fairness in property tax assessments, particularly as residential properties have faced escalating tax bills compared to nonresidential properties which had a tax burden four times higher due to valuation discrepancies. By reestablishing the provisions of the Gallagher Amendment, the resolution aims to balance the tax obligations between residential and nonresidential property owners, protecting homeowners from excessive tax increases, while also guaranteeing that local governments and school districts retain revenue stability without drastic fiscal impacts.

Summary

HCR1002 is a House Concurrent Resolution aimed at restoring the Gallagher Amendment to the Colorado Constitution. The Gallagher Amendment previously required that the percentage of the aggregate assessed value attributable to residential real property remain consistent across assessment cycles. The resolution seeks to set a new base year for this valuation determiner at the 2026 property tax year while ensuring that the percentage of statewide assessed value is maintained as it was in the year prior to any reassessment. This change is motivated by the need to alleviate significant increases in property taxes for residential homeowners since the repeal of the Gallagher Amendment in 2020, which led to an escalation of tax burdens on these property owners.

Contention

Debate around HCR1002 has been marked by discussions over its timing and necessity, with some stakeholders arguing the legislation is essential for safeguarding residential homeowners. Others contend that while the intention is to provide balance, it may hinder local governments' ability to address their unique revenue needs. The bill reflects an ongoing struggle to find comprehensive tax policy solutions in a changing economic landscape and illustrates the complexities tied to property taxation in Colorado. If passed, it would permanently amend the valuation assessments as mandated in the 2026 tax year, potentially reshaping property tax structures moving forward.