Polis signs tax cut bills, reducing income and sales tax rates

(COLORADO) — Governor Jared Polis has signed historic bills that will cut the income tax rate.

Coloradans can expect to save more money with the new tax rate reduction from 4.4% to 4.25%. SB24-228 and SB24-233 will not only reduce the income tax rate but also cut the sales tax and property tax.

“I am thrilled to sign bills that cut the income and sales tax rates, reduce Coloradans’ property tax bills, allow older Coloradans to downsize without risking their tax exemptions, and expand and streamline tax credits that help families thrive,” said Governor Polis. “These tax cuts help Coloradans hold on to more of their hard-earned money.”

Through the new law, homeowners will be able to save an average of $500 on property taxes. The legislation also provides a solution to ensure that residents are protected from future tax spikes with a cap of 5.5% for most local property taxes.

Governor Polis also signed bill SB24-111 , which will protect tax exemptions for older Coloradans.

“As part of the overall housing solution to reduce housing costs, it’s important that our seniors aren’t penalized for downsizing if they choose to. 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. “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.”

Other recent bills that Governor Polis signed Tuesday, May 14 include HB24-1134, a bill that concerns corporate income tax, and HB24-1288, which concerns the means of increasing the number of claims for certain tax credits that support children.

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