A Colorado commission on property tax policy wants lawmakers to consider tax relief to low-income renters next session, following years of policy changes aimed at helping homeowners.

The bipartisan commission, created during a 2023 special session on property taxes and made up of four lawmakers and local government officials, approved three recommendations last week for the Legislature to consider next year. The recommendations, unlike interim bills considered by committees between sessions, are not binding or attached to any lawmaker.

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The commission wants the Legislature to provide tax relief to low-income renters, though it did not define “low-income,” as it could vary based on city, and it suggested two methods of relief: an income tax credit for qualified renters and a modification of the state’s Property Tax, Rent, Heat (PTC) Rebate program.

The PTC rebate is currently available to older or disabled Coloradans who pay property tax, rent or heating bills and make less than a certain income. In 2023, that threshold was about $18,000. The rebate amount can be up to $1,112 per year. The commission’s recommendation is to modify the income eligibility requirements and amount of the benefit.

There were a record number of evictions in Denver this year, and Colorado renters increasingly spend more than one-third of their income on rent.

The commission voted against a recommendation to give landlords a tax credit if they have affordable units, with the idea that landlords would then pass savings to their renters.

“I don’t necessarily believe that adequate relief will then be passed down to renters in the way that we expect it to. If we’re looking at how to specifically support our renters, then we should focus and target the relief directly to the renters and not to the landlords,” Democratic Representative Lorena Garcia, an Adams County Democrat, said.

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The commission also voted to recommend to lawmakers to make permanent the portability of valuation adjustments for senior homeowners. Certain senior homeowners can now chop off part of the value of their home used to calculate property taxes if they have lived there for 10 years. A two-year pilot program lets the homeowner bring the adjustment with them if they move. Permanent portability has support among legislative leaders, but a tight budget year could make it difficult to pass.

“Even though it is not a huge benefit to seniors, it is one of the largest — that I have encountered —- stopping points from people downsizing into a smaller home, because they feel that they’re losing out on this benefit,” real estate agent and commission member Sean Dougherty said.

Republican Representative Lisa Frizell said that even though the budget could make such a policy challenging to pass, it is important for the commission to be on record that portability is a priority.

Finally, the commission recommended that the Legislature increase awareness of existing exemptions and a property tax deferral program, though it was not specific about how to do so.

Members voted down a recommendation to allow counties to offer quarterly property tax payments.

The Colorado Legislature reconvenes January 8. The property tax commission will meet through June.

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