Gov. Jared Polis calls 2nd Special Session to address high property taxes

State lawmakers will head back to the capitol on Aug. 26 to consider a compromise reached with the proponents of two ballot measures that Gov. Jared Polis says would risk deep cuts to schools and local government services.

CBS Colorado's Political Reporter Shaun Boyd spoke with the governor about the compromise. He says it has the backing of a broad coalition of groups from the left and right and he's optimistic it will pass the legislature.

"We need predictability. We need stability. Homeowners need it. You don't want to see this spiking in how much you pay. We need it for our schools. We need to know how much they're getting. We need it for our fire districts. I'm confident we can get this done here and save homeowners some money going forward," said Polis.

Advance Colorado and Colorado Concern – the two groups pushing Initiatives 50 and 108 – have agreed to pull them if the deal passes.

The compromise would cap increases in property tax revenue for local governments at 5.25% a year and school district revenue growth at 6% a year. Local governments could ask voters to opt out of the cap. The residential assessment rate would drop from 6.7% to 6.3% or 6.4% depending on assessment growth for the 2025 tax year. The commercial rate would be 25% starting in the 2027 tax year.

The governor's office says the deal will save property owners an estimated $270 million next year. Polis says he will not sign the legislation until the ballot measures are pulled.