Less than two weeks after voters rejected Proposition HH — the ballot measure that aimed to hit the brakes on skyrocketing property taxes — a bill to reduce property taxes cleared Colorado’s Senate Finance Committee today.

“Colorado homeowners are facing steep property tax increases that are unaffordable for many working families and folks on fixed incomes,”said Sen. Chris Hansen (D-Denver), one of the bill’s sponsors. “Over the past week we’ve worked hard to maximize the amount of property tax relief we can offer, given the resources we have.” 

SB23B-001 would provide property tax relief for the 2023 tax year while protecting funding for schools and local services.

Sponsored by Senate President Steve Fenberg (D-Boulder) and Hansen, it would increase the property value exemption for multifamily and single family residential properties from $15,000 to $50,000, and decrease the residential assessment rate from 6.765 percent to 6.7 percent for the 2023 tax year. 

“We have an obligation as the majority party to govern responsibly, which means making tough decisions to solve problems and deliver solutions responsive to the moment that we’re living in,” Fenberg said in a news release from Colorado State Senate Democrats. 

“With the limited tools available to us, we’ve now set our sights on providing immediate property tax relief to those who are most vulnerable to the rising cost of living, while ensuring local governments — especially schools and fire districts — don’t face budget cuts. With this bill — as well as others moving forward — we’re committed to providing the support Coloradans need.”

“While we continue to work on a long term solution,” Hansen said, “our short term bill is a responsible path forward that prioritizes relief for those who need it most while protecting funding for schools and fire districts.”

As the Colorado Springs Independent, the Business Journal‘s sister publication, previously reported, Proposition HH aimed to reduce property taxes along with changing the amount of money the state would refund under the Taxpayer’s Bill of Rights through 2032. The measure stemmed from a surge in property values in the biennial reappraisal, based on values as of June 2022, conducted by county assessors across the state.

By contrast, to offset revenue loss resulting from property tax reductions, SB23B-001 would transfer $135 million of general fund dollars to the State Education Fund to be used to backfill school districts’ budgets, and would appropriate $65 million of general fund dollars to be used to backfill local governments and services.

SB23B-001 now moves to the Senate Appropriations Committee for further consideration.