Colorado property tax cuts benefit wealthy and divide Democrats
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House lawmakers debate property tax bills yesterday at the state Capitol. Photo: John Frank/Axios
The property tax relief authored earlier this year by Democratic leaders at the Capitol will deepen economic inequities in Colorado, a new analysis shows.
Why it matters: The findings undermine the landmark legislation approved in May and jeopardize additional tax cuts advancing in the current special session.
Driving the news: The property tax cuts included in Senate Bill 233, signed by Gov. Jared Polis in May, will most benefit white or Asian homeowners and those with above-average income, according to a demographic analysis published Monday.
- The report came just hours after lawmakers gathered to consider legislation that doubles down on the bill and provides another $255 million in property tax breaks.
The analysis, written by a nonpartisan legislative analyst, finds that property tax savings are not typically passed on to renters, meaning the property owner benefits most.
- The tax breaks are "expected to increase economic disparities by race, ethnicity, disability status, and socioeconomic status in the short term," the report states.
The other side: Earlier this year, lawmakers approved new measures to encourage the development of middle-income rental units, provide tax credits for renters and tighten eviction rules.
What they're saying: Advocates want to go further. Renters "are totally left out of the conversation here," state Rep. Javier Mabrey (D-Denver) told us.
Between the lines: Two bills sponsored by progressive Democrats sought to address the inequities by targeting the property tax cuts to homes worth less than $560,000 and allowing tax hikes on high-value properties, but both failed.
The intrigue: The split exacerbated tensions between Democratic leaders and more liberal lawmakers.
- Many resent being called to a special session designed to ward off ballot measures from wealthy special interest groups and plan to vote against the additional tax cuts.
- "It's undemocratic," Mabrey said, "for a few wealthy individuals and organizations to have the power to hold the Legislature hostage."
The bottom line: The ill-will combined with concerns about inequities are making it difficult for Democratic leaders to pass a bill with the additional tax cuts this special session.