If you lease or own commercial property in Colorado, tax relief may be ahead

During Colorado's recent special legislative session in August 2024, significant changes were made to the state's commercial property tax system. The session was called in response to rising property taxes and aimed to provide relief while avoiding more drastic measures that were set to appear on the November ballot.

The newly passed legislation reduces the assessment rates for commercial properties, gradually lowering them from 29% to 25% by 2027. Additionally, the bill introduces a cap on how much property tax revenue can grow each year—limiting local government revenue increases to 5.25% annually and school district revenue increases to 6%. However, local governments and school districts can ask voters to exceed these caps if necessary.

This compromise was reached to prevent the passage of ballot measures that would have significantly reduced property taxes, but at the cost of state-funded services like education and emergency response. The new law offers more modest savings compared to the proposed ballot initiatives but ensures more fiscal stability for public services.

While the assessment ratio does not impact the assessesed value of your property, it does reduce the tax burden if the assessesed value remains unchanged. Need help understanding the assessed value of your commercial property? Visit https://www.peakscre.com/building-valuation to get started, and plan ahead for your tax bill next year.