Property tax cut survives tense vote at state Capitol

A much-touted but much-reviled measure to trim property taxes survived a key vote Wednesday at the state Capitol, despite opposition from progressive Democrats.

Why it matters: As designed, the legislation outlines how Colorado will levy property taxes for years to come and fills the gap left by the repeal of the Gallagher Amendment in 2020.

State of play: The House voted 45-18 in a special session to approve a $255 million cut in property taxes on top of the $1 billion cut signed into law in May.

• 15 Democrats objected to the measure, despite it being sponsored by their leader, House Speaker Julie McCluskie (D-Dillon).
• Without Republican support, the bill would have failed.

A companion bill that would make it harder to adjust property taxes in the future through a ballot measure needed two-thirds support and passed by a single vote, 44-19.

Between the lines: The governor has pledged to sign the tax cut into law if two conservative political groups remove competing tax plans with much deeper cuts from the 2024 ballot — the brokered deal that led to the special session.

The intrigue: Before Wednesday's votes, Democrats blasted the process and the fact that it most benefits wealthier homeowners and provides lower-value homes scant savings.

• A $250,000 home is expected to see a $25 tax break from the legislation, while a $500,000 home will get $50.

What they're saying: "This special session was set up under auspicious circumstances with a shadowy element which didn't dare show their face in committee to defend the deal," said Rep. Tammy Story, a Jefferson County Democrat, referring to the conservative groups behind the ballot measures.

The other side: Republican House leader Rose Pugliese, a sponsor of the tax bill, acknowledged lawmakers could have done more, but called it the "right policy at the moment."

What's next: The Senate is expected to vote and approve the legislation Thursday.