SCR20-001 (Tate & Hansen / Esgar & Soper) Repeal Property Tax Assessment Rates
This concurrent resolution submits a question to voters to repeal the Gallagher Amendment from the state Constitution, including the non-residential assessment rate of 29 percent, the calculation of the target percentage (45 percent of property tax revenue from residential property, 55 percent from non-residential property), and the requirement that the residential assessment rate be set to achieve the target percentage. Over time, the measure is expected to result in higher property tax revenue for local governments and reduce the state aid requirement for school finance. The measure will be on the 2020 ballot.
The Children’s Campaign supports the bill. If no action is taken, estimates show that in next year’s assessment cycle residential assessment rates for property could drop from the current 7.15 percent to 5.88 percent, which would mean a $490 million annual cut to schools statewide and a $204 million cut for county governments. The Gallagher Amendment’s interaction with TABOR has over time contributed to an automatic, permanent property tax cut on homes that neither voters nor lawmakers approved. Stopping the ratchet-down of residential assessment rates that occurs every two years is necessary for the long-term fiscal health of our state.
Passed out of the House on a vote of 51-14 and now heads to the governor’s desk for signature.
June 12, 2020
The bill passed 2nd reading in the House with Amendment L.003, which revises the language of the measure that will be referred to voters. It awaits 3rd reading and final passage.