Second Extraordinary Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. R24B-0021.01 Christy Chase x2008
HCR24B-1002
House Committees Senate Committees
Transportation, Housing & Local Government
HOUSE CONCURRENT RESOLUTION 24B-1002
S
UBMITTING TO THE REGISTERED ELECTORS OF THE STATE OF101
C
OLORADO AN AMENDMENT TO THE COLORADO CONSTITUTION102
CONCERNING THE VALUATION FOR ASSESSMENT USED TO103
DETERMINE PROPERTY TAXES , AND, IN CONNECTION104
THEREWITH, ESTABLISHING THE REQUIREMENT THAT THE105
GENERAL ASSEMBLY PERIODICALLY CHANGE THE VALUATION106
FOR ASSESSMENT FOR RESIDENTIAL REAL PROPERTY IN ORDER107
TO MAINTAIN THE STATEWIDE PROPORTION OF RESIDENTIAL108
REAL PROPERTY AS COMPARED TO ALL OTHER TAXABLE109
PROPERTY VALUED FOR PROPERTY TAX PURPOSES AND110
PERMANENTLY ESTABLISHING THE VALUATION FOR ASSESSMENT111
FOR NONRESIDENTIAL PROPERTY AS SPECIFIED IN LAW FOR THE112
2026
PROPERTY TAX YEAR.113
HOUSE SPONSORSHIP
Bradley,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. Resolution Summary
(Note: This summary applies to this resolution as introduced and
does not reflect any amendments that may be subsequently adopted. If this
resolution passes third reading in the house of introduction, a resolution
summary that applies to the reengrossed version of this resolution will be
available at http://leg.colorado.gov/
.)
Under a provision commonly known as the "Gallagher
Amendment", the state constitution previously required that the
percentage of the aggregate assessed value attributable to residential real
property remain the same as it was in the year immediately preceding a
new reassessment cycle. Under the Gallagher Amendment, the assessment
rate for most nonresidential property was fixed at 29% of actual value,
and over time, as residential property values increased, the assessment
rate for residential property was driven down, from 21% of actual value
in 1985, to 7.15% of actual value in 2019, in order to maintain the
required percentage of statewide assessed value attributable to residential
property.
In 2020, the general assembly adopted, and the voters approved,
an amendment to the state constitution to repeal the Gallagher
Amendment, thus eliminating the required proportion of statewide
assessed value attributable to residential real property and the
constitutionally fixed assessment rate for most nonresidential property.
The concurrent resolution amends the state constitution to
reestablish the essential components of the Gallagher Amendment by:
! Setting a new base year, which is the 2026 property tax
year, for determining the percentage of the aggregate
statewide assessed value that is attributable to residential
real property;
! Requiring that percentage of the aggregate statewide
assessed value attributable to residential real property to
remain the same as the percentage in the year immediately
preceding a new reassessment cycle;
! Requiring the general assembly to establish the valuation
for assessment for residential real property to ensure
compliance with the proportion required by the state
constitution; and
! Permanently fixing the valuation for assessment for
nonresidential property, other than producing mines and
lands or leaseholds producing oil or gas, to be as set forth
in state statute for the 2026 property tax year.
HCR24B-1002-2- WHEREAS, The clauses appearing before Section 1 of this1
measure express the intent of the general assembly in adopting the2
measure and are intended to be included as part of the text of the measure3
for purposes of publication pursuant to section 1-40-124, Colorado4
Revised Statutes, and the ballot information booklet pursuant to section5
1 (7.5) of article V of the state constitution and section 1-40-124.5,6
Colorado Revised Statutes; and7
WHEREAS, In 1982, Colorado voters approved an amendment to8
the state constitution, commonly referred to as the "Gallagher9
Amendment", that fixed in the constitution the valuation for assessment10
of most nonresidential taxable property at twenty-nine percent of actual11
value and required the general assembly to adjust the valuation for12
assessment of residential real property as necessary to comply with the13
requirement under the Gallagher Amendment that the percentage of14
aggregate assessed value attributable to residential real property remains15
the same as it was in the prior assessment cycle; and16
WHEREAS, The original intent of the Gallagher Amendment was17
to create a fairer balance between what homeowners were paying in18
property taxes compared to what commercial property owners were19
paying, but over time it had the effect of avoiding large property tax20
increases on residential real property; and 21
WHEREAS, As property values increased over time, the Gallagher22
Amendment resulted in a drop in the valuation for assessment of23
residential real property from twenty-one percent of actual value in 198524
to seven and fifteen one-hundredths percent of actual value in 2019; and25
WHEREAS, The significant drop in the valuation for assessment26
of residential real property over time resulted in an effective tax rate for27
HCR24B-1002
-3- nonresidential property owners that was approximately four times higher1
than the tax rate for residential real property owners; and 2
WHEREAS, Recognizing the disproportionate tax burden imposed3
on nonresidential property owners, and with the goal of devising a4
long-term solution to this issue, in 2020, the general assembly adopted5
and the voters approved a constitutional amendment to repeal the6
Gallagher Amendment; and7
WHEREAS, Since the repeal of the Gallagher Amendment in8
2020, residential real property owners have seen their property tax bills9
increase significantly; and10
WHEREAS, The general assembly has struggled to devise a11
comprehensive solution that protects residential real property owners12
from dramatic increases in their property tax burden and lessens the13
disproportionate burden on nonresidential property owners while also14
ensuring that local governments, school districts, and special districts,15
which derive the bulk of their revenue from property taxes, are not16
decimated; and17
WHEREAS, Until a comprehensive, long-term solution is18
achieved, the general assembly determines that the Gallagher Amendment19
should be restored in order to shield residential real property owners from20
continued dramatic increases in their property tax bills; now, therefore,21
Be It Resolved by the House of Representatives of the22
Seventy-fourth General Assembly of the State of Colorado, the Senate23
concurring herein:24
SECTION 1. At the election held on November 5, 2024, the25
secretary of state shall submit to the registered electors of the state the26
ballot title set forth in section 2 for the following amendment to the state27
HCR24B-1002
-4- constitution:1
In the constitution of the state of Colorado, section 3 of article X,2
amend (1)(b) as follows:3
Section 3. Uniform taxation - exemptions.4
(1) (b) (I) (A) Residential real property, which shall include all5
residential dwelling units and the land, as defined by law, on which such6
units are located, and mobile home parks, but shall not include hotels and7
motels, shall be valued for assessment.8
(B) F
OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,9
2026,
THE GENERAL ASSEMBLY SHALL DETERMINE THE PERCENTAGE OF10
THE AGGREGATE STATEWIDE VALUATION FOR ASSESSMENT THAT IS11
ATTRIBUTABLE TO RESIDENTIAL REAL PROPERTY . FOR EACH SUBSEQUENT12
YEAR, THE GENERAL ASSEMBLY SHALL AGAIN DETERMINE THE13
PERCENTAGE OF THE AGGREGATE STATEWIDE VALUATION FOR14
ASSESSMENT THAT IS ATTRIBUTABLE TO EACH CLASS OF TAXABLE15
PROPERTY, AFTER ADDING THE INCREASED VALUATION FOR ASSESSMENT16
ATTRIBUTABLE TO NEW CONSTRUCTION AND TO ANY INCREASED VOLUME17
OF MINERAL AND OIL AND GAS PRODUCTION . FOR EACH YEAR IN WHICH18
THERE IS A CHANGE IN THE LEVEL OF VALUE USED IN DETERMINING19
ACTUAL VALUE, THE GENERAL ASSEMBLY SHALL ADJUST THE VALUATION20
FOR ASSESSMENT FOR RESIDENTIAL REAL PROPERTY , AS SET FORTH IN LAW,21
AS NECESSARY TO ENSURE THAT THE PERCENTAGE OF THE AGGREGATE22
STATEWIDE VALUATION FOR ASSESSMENT THAT IS ATTRIBUTABLE TO23
RESIDENTIAL REAL PROPERTY REMAINS THE SAME AS THE PERCENTAGE IN24
THE YEAR IMMEDIATELY PRECEDING THE YEAR IN WHICH THE CHANGE IN25
THE LEVEL OF VALUE USED IN DETERMINING ACTUAL VALUE OCCURS . THE26
ADJUSTED VALUATION FOR ASSESSMENT APPLIES FOR RESIDENTIAL REAL27
HCR24B-1002
-5- PROPERTY FOR THOSE YEARS FOR WHICH SUCH NEW LEVEL OF VALUE IS1
USED. IN DETERMINING THE ADJUSTMENT TO BE MADE IN THE VALUATION2
FOR ASSESSMENT FOR RESIDENTIAL REAL PROPERTY , THE AGGREGATE3
STATEWIDE VALUATION FOR ASSESSMENT THAT IS ATTRIBUTABLE TO4
RESIDENTIAL REAL PROPERTY IS CALCULATED AS IF THE FULL ACTUAL5
VALUE OF ALL OWNER -OCCUPIED PRIMARY RESIDENCES THAT ARE6
PARTIALLY EXEMPT FROM TAXATION PURSUANT TO SECTION 3.5 OF THIS7
ARTICLE X WAS SUBJECT TO TAXATION.8
(II) F
OR THE PROPERTY TAX YEAR COMMENCING ON JANUARY 1,9
2026,
AND ALL PROPERTY TAX YEARS THEREAFTER , all other taxable10
property shall be valued for assessment
AS SPECIFIED IN LAW FOR THE11
PROPERTY TAX YEAR COMMENCING ON JANUARY 1, 2026. HOWEVER, the12
valuation for assessment for producing mines, as defined by law, and13
lands or leaseholds producing oil or gas, as defined by law, shall be a14
portion of the actual annual or actual average annual production15
therefrom, based upon the value of the unprocessed material, according16
to procedures prescribed by law for different types of minerals.17
Non-producing unpatented mining claims, which are possessory interests18
in real property by virtue of leases from the United States of America,19
shall be exempt from property taxation.20
SECTION 2. Each elector voting at the election may cast a vote21
either "Yes/For" or "No/Against" on the following ballot title: "Shall22
there be an amendment to the Colorado constitution concerning the23
valuation for assessment used to determine property taxes, and, in24
connection therewith, establishing the requirement that the general25
assembly periodically change the valuation for assessment for residential26
real property in order to maintain the statewide proportion of residential27
HCR24B-1002
-6- real property as compared to all other taxable property valued for property1
tax purposes and permanently establishing the valuation for assessment2
for nonresidential property as specified in law for the 2026 property tax3
year?"4
SECTION 3. Except as otherwise provided in section 1-40-123,5
Colorado Revised Statutes, if at least fifty-five percent of the electors6
voting on the ballot title vote "Yes/For", then the amendment will become7
part of the state constitution.8
HCR24B-1002
-7-