Colorado governor orders special session on property taxes

For the second time in less than a year, Colorado lawmakers will return to the Capitol for a special session to address rising property taxes.

Why it matters: The high-stakes showdown that starts Aug. 26 is designed to limit major tax cuts that could gut state and local budgets.

State of play: Gov. Jared Polis, lawmakers and business interests failed to reach a deal in the regular session that ended in May. As a result, competing plans to lower property taxes may head to the November ballot.

• If a conservative group cancels their ballot questions — Initiatives 108 and 50 — the governor and Democratic legislative leaders have agreed to additional cuts and limits on property tax growth in the future that go beyond the measure they crafted earlier this year.

Zoom in: The fear motivating lawmakers to act now is Initiative 50, a proposed constitutional change that would limit property tax growth to 4% statewide. Initiative 108 would cut property taxes on homeowners and businesses by an estimated $2.4 billion.

• State and local leaders say those tax cuts are too deep and would curtail spending on schools and essential services at both levels.

What they're saying: "The cost of inaction is too high. We refuse to gamble with our schools, our economy, our future," Polis said in a statement ordering the special session on Thursday.

By the numbers: The special session is expected to last at least three days and will cost about $30,000 per day.

What's next: The additional tax cuts lawmakers plan to draft are still being negotiated.