Report on 2025 Property Tax Balancing Percentage

Passed in August 2024, House Bill 24B-1001 created a property tax limit for school districts beginning with the 2025 property tax year (PTY), for which taxes are payable in 2026. The bill’s provisions limit statewide qualified local share property tax revenue, or local share total program revenue excluding certain sources or uses, by adjusting the residential assessment rate applied to school district mill levies temporarily downward if qualified revenue is expected to exceed the limit. Section 29-1-1702.5 (4)(c) C.R.S. requires Legislative Council Staff to provide the State Board of Equalization with the information necessary to calculate the balancing percentage that will lower assessed values to a level where qualified local share property tax revenue equals the limit.

For PTY 2025, qualified local share property tax revenue is not projected to exceed the limit. Therefore, a balancing percentage below the currently projected 7.05 percent residential assessment rate for school district mill levies is not required. The following tables detail the amount of qualified local share property tax revenue that is projected for the 2025 PTY, applicable exclusions, and the limit for this qualified revenue.