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Temp Decrease Statutory Prop Tax Revenue Limits

Concerning a temporary decrease in the statutory limits on the amount of property tax revenue that a taxing entity is allowed to raise.

HB26-1209 2026 Regular Session Postponed Indefinitely Fiscal Policy & Taxes Local Government

Cost estimates

At the first note read
$86,413
FACT March 4, 2026
At the last note read
$86,413
FACT August 4, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The bill requires money it does not carry — the note says an appropriation is required and does not say the bill includes one.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: For FY 2026-27, the bill would have required an appropriation of $84,344 to the Department of Local Affairs.

Bill summary

Current law restricts the annual amount of property tax revenue that a local government or a special district may collect to the amount of property tax revenue collected in the previous year plus 5.5%, with certain adjustments. This statutory limit does not apply to school districts or home rule municipalities. The limit may be waived by voter approval of the voters of the taxing entity (waived jurisdictions).

Current law also restricts the annual amount of property tax revenue that a waived jurisdiction may collect to the greatest amount of qualified property tax revenue collected by the taxing entity in a previous property tax year increased by 5.25% multiplied by the number of property tax years in a reassessment cycle. Similarly, the annual amount of property tax revenue that a school district may collect is limited to the greatest amount of the local share of statewide total program property tax revenue collected by a school district in a previous property tax year increased by the greater of 6% multiplied by the number of property tax years in a reassessment cycle or the sum of the percentage by which the general assembly annually increases the statewide base per pupil funding for public education from kindergarten through twelfth grade and the percentage increase in pupil enrollment for both the relevant property tax year and the other property tax year in the same reassessment cycle. Both of these statutory property tax revenue limits may also be waived by voters, except that individual school districts are not able to locally waive their individual property tax limits and, instead, must seek statewide voter approval to waive the school district limit.

The bill temporarily reduces the operative percentage adjustments in these 3 statutory property tax revenue limits to 4% for property tax years beginning on or after January 1, 2027, but before January 1, 2033.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)