Senate Bill 24-233: Property Tax Summary

• Establishes a property tax revenue limit of 5.5% annual growth for most local governmental entities (excluding schools, home-rule municipalities, and entities with voter approval to exceed limits), effective January 1, 2025.

• Reduces residential property valuation for assessment to 6.4% for local government levies and 7.15% for school district levies starting January 1, 2025, with further reductions to 6.95% for local levies beginning January 1, 2026.

• Reduces commercial and agricultural property valuation to 27% of actual value for 2025 and 25% for 2026 onwards.

• Creates a $10.3 million backfill fund to reimburse local governmental entities (excluding schools) for property tax revenue losses based on assessed value decreases between 2022 and 2024.

• Appropriates $378.9 million to the Department of Education and $260.5 million to other departments to offset reduced property tax revenue for schools and local services; takes effect only if specific 2024 ballot initiatives pass.