There is an old saying generally attributed to the 1800s German statesman Otto von Bismarck: “Laws are like sausages. Better not to see them being made.”  

Last week, Gov. Jared Polis summoned the Democrat-controlled state legislature into special session to pass legislation, House Bill 24B-1001, that theoretically caps Colorado property tax rates over the next six years. The governor’s urgency was fueled by the pending printing deadline for ballot measures. The special session embodied a handshake deal between Polis and the proponents of Initiatives 50 and 108, in exchange for a statutory property tax limit deal over the next six years. Under the agreement, the proponents of the ballot measures, Advance Colorado and Colorado Concern, agreed to withdrawal Initiatives 50 and 108 from the statewide ballot this fall in exchange for public law that sets maximum property tax rates.

Initiative 50 would have capped local government property tax revenue growth at 4% annually, and Initiative 108 would have lowered residential assessment rates. The initiatives would have required 55% of the vote to pass and would have provided constitutional protection from legislative meddling, but they also would have reignited the opposition from fire districts, school districts and other local special districts that led to the repeal of the Gallagher Amendment in 2020.

No doubt, Summit County’s state representative, Speaker of the House Julie McCluskie, had to burn political capital to push the deal through, as lawmakers were called back to the state Capitol to pass a tax deal that had been prearranged by the leadership. By joining with Republican legislators, Gov. Polis and Speaker McCluskie were able to overcome the vociferous objections of the progressive members of the state legislature to pass the brokered deal.  Exactly how much the final product will benefit specific taxpayers is a bit murky. It appears the adopted legislation will provide approximately $254 million in additional tax cuts in 2025 and set residential tax rates at between 7.05% and 6.25% depending upon the tax district. Commercial tax rates will decrease from 27.9% in 2024 to 27% in 2025 and down to 25% by 2027.

The formal enactment of the compromise deal resembled a prisoner of war transfer. The governor said he would only sign the bill once he received a letter from Advance Colorado withdrawing the ballot measures. I’m sure the ballot initiative proponents wanted to make sure Gov. Polis had pen to paper as they handed the letter over. In this case, the integrity of the agreement between the governor and the Democrat-controlled state legislature, and the tax-limitation proponents, will only be as strong as the integrity of each signatory and their successors.

I have no insight regarding the internal polling for or against Initiatives 50 and 108, but the proponents were likely unsure enough of their adoption on the November ballot to seek a deal. The bigger government advocates, and Gov. Polis, were likely unsure enough of the two initiatives’ defeat that all but the most progressive legislators felt a political imperative to strike a deal to punt the statewide property tax issue down the road.

On average, Coloradans have experienced a more than 30% increase in property taxes over the past year, combined with huge spikes in insurance rates, corresponding homeowner association fees and inflation across the board. As an example, my total mortgage and escrow expenses have increased $500 per month. That’s $6,000 per year that could have been used for other more beneficial purposes, and I certainly do not live in one of Summit County’s larger homes. California-sized property taxes do not happen all at once. They are a few more dollars here and there, and over time the tax burden becomes stifling.

The witchery of the latest property tax deal out of Denver is that few, if any, of the participants will still be in office toward the end of the agreed-upon property tax truce. So, will it survive, or will the insatiable desire for government to grow, combined with taxpayer apathy as they adjust to the new normal, lead to an early abandonment of the property tax growth limits? Consider me skeptical that future legislators will uphold the handshake agreement. Only time will tell, but pay close attention over the next few years and watch your wallet.

Bruce Butler's column "Common Sense Conversations" publishes biweekly on Tuesdays in the Summit Daily News. Butler is a former mayor and council member in Silverthorne, where he has lived for 20 years. Contact him at butlerincolorado@gmail.com.