It’s been almost four years since the state legislature passed a tax hike on the highest-earning home buyers in the state, making it the second highest tax hike in the country.
The state legislature voted to increase property taxes on a whopping $2.5 billion increase to the state’s tax base.
The property tax increase, which took effect in 2017, will pay for $3.9 billion in state and local tax relief and will raise an average property tax rate of 7.9 percent.
The tax hike passed by the legislature also eliminated an exemption for first-time homebuyers and will take effect in 2020.
It’s a big jump, considering that real estate prices are up 4.7 percent over the last year and the median price of a home in Denver has risen by just 2.9% since the last time property taxes were raised in 2017.
Real estate tax increases have been a big part of state budget debates in Colorado over the years.
In 2016, then-Gov.
John Hickenlooper signed a $1.5 million tax increase that came into effect the same year.
That year, the tax rate was cut from 10 percent to 7.5 percent, and in 2017 the tax hike was cut again from 8.5 to 7 percent.
However, the most recent state budget passed in 2017 was a tax increase of $2 billion.
That is $2,000 more than what was approved in the 2017 budget.
The state’s legislature has also voted twice to extend tax credits for first time homebuyer buyers.
“It’s not like we’re going to be passing $2 million in new taxes on this group of people,” said Sen. Ed Yarbro, a Republican.
“They’re going into the state government, and the state is going to take care of them.
That’s just a fact of life.”
Yarbro said the biggest impact of the tax hikes will be on the middle class, who will see a significant reduction in their income.
“I would expect the median home value to drop by $2-3 million.
The middle class is going through a really tough time,” Yarbro said.
Some real estate owners are hoping to fight the tax increases in court.
One local real estate broker who’s a member of the Colorado Coalition for Fair Home Prices said that he’s concerned about the impact on property values in Denver.
Joe D’Ambrosio, who’s represented the real estate and tax association, said that while he supports the tax increase in the past, the state should focus on providing the services the homeowners need to remain in their homes.
“If the tax money is going towards helping those who need it the most, then we should be doing that,” D’Amrosio said.
However, some real estate experts say that the state could be doing a better job of helping its own citizens.
“We need to be more efficient,” said Mike Lachance, a Denver real estate agent.
“The way the legislature does things, you have a certain amount of revenue, but it’s not going to cover everything.”