One of the most important financial decisions the lawmakers in Colorado are debating about concerns the cut in property taxes all over the state. The legislation was not able to make a decision in time therefore they have decided that the issue will be tackled in the summer sessions. The property tax cut in question will reach 15 per cent for next year. Those planning to benefit from this new legislation should get Colorado tax ID number especially those entering the real estate market.
Last month, a bipartisan coalition was developed and comprised of 42 lawmakers. They got the authorization to do in-depth study of the policy which is considered a complicated topic. They will start an interim committee this coming summer as they aim to create a reform package to be presented to voters for their 2020 vote.
The Gallagher Amendment was adopted in 1982 which limits the provision of Colorado’s taxes. This is also the reason why the rates of residential assessment have decreased to 7.2 per cent from the previous 21 per cent of the value of a home. This is also the same amendment that provided relief to homeowners as they are protected from spending over 45 pr cent of the property tax base set by the state. As a compromise, it has also eliminated a number of local government services including fire protection which is dependent on the revenue of the property taxes.
School districts have also noticed a decrease in their property tax revenue therefore the state government is shouldering more of the costs of education since they are responsible in filling all the lacking in revenue.
According to a broad bipartisan, staying at the existing trajectory is not a sustainable model and could result to complication especially in the political front. The state is now shouldering 64 per cent of the funding required by the schools which are higher compared to the 80s where they only cover 43 per cent.
Democrats have fewer complaints with regards to increase in taxes but those with Colorado tax ID number are currently worried that they might be affected with the upcoming decisions.