By Jesse Paul and Brian Eason | The Colorado Sun
Democrats in the Colorado legislature are preparing this week to introduce a measure that would overhaul the state’s property tax system to limit future spikes in businesses’ and homeowners’ tax bills, with an eye toward providing more relief to people who own lower-value homes.
The legislation would let people exempt 10% of their primary residence’s value from taxation, up to $75,000. In most communities, that would represent a maximum savings of around $450 a year, though tax bills can vary greatly depending on local mill levy rates.
Sen. Chris Hansen, a Denver Democrat and main sponsor of the measure, said the new homestead exemption would effectively lower the property assessment rate for most homeowners to 6.4% for taxes owed next year from 7.06%, though the actual rate, a key factor in determining property tax bills, won’t go down.