How will property tax savings compare to inflation?

DJ Summers

3 years ago

In this Feb. 12, 2020, file photo, a housing development stands in El Dorado Hills, Calif. California voters have rejected a proposal to partially dismantle the state’s cap on property taxes, a move that would have have raised taxes for many businesses in a pandemic-hobbled economy. Since 1978, California has limited tax increases to 2% a year until a property is sold. With prices climbing at a much higher rate, taxpayers who have held homes and businesses for many years pay far less than what the market value would determine. (AP Photo/Rich Pedroncelli, File)

DENVER (KDVR) — As inflation hampers spending power and property taxes continue to rise across the state from a booming market, the governor is outlining what lawmakers are doing to put more money back in Coloradans’ pockets.

The proposal is part of a package of delays, cancellations and reversals of taxes or fees that the governor is rolling out. These include the $400 or $800 TABOR tax refunds, lowering vehicle registration fees and suspending gasoline fees and payroll taxes.

The governor estimates that the property tax break will save an annual $274 for a $500,000 home.

The cost-saving measure puts record inflation in stark relief. At roughly $24 a month, the property tax savings are about half of the monthly increase in gasoline bills and one-third of the monthly increase in grocery bills, according to estimates based on U.S. Bureau of Labor Statistics data.