Five new laws aim to help save Coloradans money on taxes - Coloradoan
Thomas Clayton
Five new laws aim to help save Coloradans money on taxes
Natasha LovatoThese five new laws, spanning from refunds to property tax appropriations, are slated to help save Coloradans money on taxes.
On May 14, Gov. Jared Polis signed five new bills into law that are aimed at saving Coloradans money — SB24-228: TABOR Refund Mechanisms, SB24-111: Senior Primary Residence Prop Tax Reduction, SB24-233: Property Tax, HB24-1134: Adjustments to Tax Expenditures to Reduce Burden and HB24-1288: Earned Income Tax Credit Data Sharing.
Here's what you need to know about each bill:
SB24-228: TABOR Refund Mechanisms
Under this new law, if the state exceeds its constitutional fiscal year spending limit, it is required by the Taxpayer's Bill of Rights (TABOR) to refund the excess state revenues, also known as TABOR Refunds. Although there are currently a couple of active mechanisms for TABOR refunds, this bill creates a fourth TABOR refund mechanism so that the reimbursement to local governments offsets the reduction in property taxes.
SB24-111: Senior Primary Residence Prop Tax Reduction
This bill creates a new subclass called Qualified-Senior Primary Residence Real Property. For property tax years after Jan. 1, 2025, this new subclass will be included for some qualifying Coloradans.
The purpose of the bill is to allow seniors to downsize without tax penalty, according to Polis.
"From now on, it won’t cost seniors a valuable tax benefit if they choose to sell their home to a growing young family and downsize to an apartment or smaller home," Polis said in a news release. "I’m confident that this portability will help increase the homes available to families and make living in Colorado more affordable for both seniors and those who are looking to purchase a home."
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SB24-233: Property Tax
This bill states that starting in 2025, property taxes will reduce by 7% to 10% for homes valued at $700,000 or less. Savings depend on local mills and any changes in assessed home values, but to offset revenue loss resulting from property tax reductions, SB24-233 states that nearly $380 million would be directed from the State Education Fund to backfill school districts, ensuring public schools remain fully funded.
HB24-1134: Adjustments to Tax Expenditures to Reduce Burden
Beginning this year, this bill creates the refundable Family Affordability Tax Credit. This credit is available to qualifying parents with children 16 and younger. The maximum credit amount is slated at $3,200 per child.
HB24-1288: Earned Income Tax Credit Data Sharing
This new law requires the department of revenue to share the contact information of individuals who claimed the earned income tax credit or the child tax credit. The information is required to be shared with multiple departments including the Department of Health Care Policy and Financing and the Department of Labor and Employment for the purpose of sharing additional benefits with qualifying Coloradans.
The bill states that the information disclosed remains confidential, and the recipient departments may only use it for the purpose of sharing information about how to enroll, the information necessary to enroll and, when possible, assisting with the application process.
The bill appropriates $167,585 from the general fund to the Department of Revenue.
 | Tom Clayton Communication and Media Specialist, Public Affairs |
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