Although the 2025 General Assembly is not set to convene for another 150 days, recommendations are coming in for bills to kick off that session. Of course, we will likely see activity under the Gold Dome even sooner assuming the Special Session on property tax occurs the final week in August. We understand that legislators have been asked to hold their calendars open for the final days of August to reconvene and work on legislation to amend SB 24-233 to incorporate additional cuts in property taxes. Although the Governor has not yet issued the Call for legislators to reassemble, bi-partisan organizations and a special Property Tax Commission have signaled that amendments to SB 24-233 could result in withdrawal of two tax-cutting initiatives from the November ballot.
Why the concern?
Initiative 50, which would limit yearly growth in property tax revenue to 4%, is already on the ballot, while Initiative 108, to reduce residential and non-residential assessment rates and require the state to backfill local government and school losses, is undergoing signature review. Those two initiatives could result in almost 3 billion dollars in impact and program cuts due to requirements for backfilling schools and other local revenue losses. Hence, there is eagerness from the administration, the legislature, and others to compromise with initiative proponents and avert a fiscal train wreck through a more modest set of property tax limitations. The conceptual framework for the amendment would reduce taxes for residential property and non-residential property (commercial land, industrial, vacant land, natural resources, and state-assessed property). It would NOT affect the rates for producing mines, oil and gas, agricultural, and improved commercial properties. We understand personal property (such as equipment) would be included in the rate reductions although actual legislative language is not yet available.
Interim Committees recommend legislation
Interim committees are wrapping up their presentations and requesting bill drafts in preparation for January. Among bills of potential interest to mining is a proposed new reclamation-only permit being discussed by the Division of Reclamation, Mining and Safety. The purpose of the permit is to provide a more streamlined and less expensive process for entities that would remove waste, potentially ore-bearing, rock from abandoned mine sites to reduce the potential for impacts to streams due to run-off. No language is yet available for review, and CMA is meeting with the Division for more clarification before the draft is presented to the Water and Agricultural Resources Review Committee.
That committee also requested a bill to create a Task Force to discuss the future of severance tax, in view of the extreme volatility of severance tax as a funding mechanism for a wide range of natural resource programs in Colorado. Numerous other bills, primarily affecting agriculture, were also requested for drafting. Bills will be voted on by the committee September 18 at its final meeting for the year.
The Oversight Committee on Tax Policy is considering changes to the Income Tax credit for Business Personal Property following an evaluation by the State Auditor’s office. How that could interplay with the amendments to the Property Tax statutes remains to be seen as the Committee will meet again August 15, before the anticipated Special Session on property tax amendments. More to come on this issue!
Committee on American Indian Affairs
This committee continues to meet and hear requests for legislation from the Southern Ute and Ute Mountain Ute tribal leadership. Among issues raised was the revenue received by the state from state-owned lands that were transferred in violation of various treaties. More will come from this committee at a later date
Campaigns and New Faces in 2025
The two-year campaign cycle for the House means all 65 members must run for re-election unless they are term-limited or opt not to return, as has been the case with several during the past year. In the Senate, with four-year terms, there are 18 seats up for election, with nine of those Senators hoping to return and several other seats potentially filled by House members hoping to move up. That ensures there will be many new faces when the General Assembly gavels in on January 8 to swear in new members. CMA will host its annual Legislative Reception on January 9 to encourage members to greet new legislators and begin to educate them about Colorado’s mining industry.
Dianna Orf
CMA Lobbyist
