COLORADO SPRINGS — The City of Colorado Springs is moving forward with plans to place a cap on local property tax rates as many homeowners have been hit with huge increases in property taxes.
The plan would set the 2023 mill levy for taxes payable in 2024 to 3.579 mills, which consists of a mill levy of 4.279 mills and a temporary tax credit of 0.70 mills. The City of Colorado Springs said because of high property assessment values, the city has exceeded the TABOR property tax limit by $6.2 million.
A city spokesperson said the city could either ask voters if it could keep the money or give the $6.2 million back to residents through refunds. The city is choosing the latter.
When all the funds are divided up, a city spokesperson said a homeowner with a $400,000 home will get an $18 credit and someone with a $750,000 home will get around $33 in credits.
Bryan Cortez, a local mortgage banker and homeowner, said the refund is better than nothing, but will not have a huge effect on homeowners.
“It basically boils down to maybe a third a tank of gas," he said.
Cortez said he is seeing many families struggling to buy a home because they can't qualify for a loan.
“A lot of people can’t get into the house they want or they can’t qualify at all," he said.
Colorado Springs City Council is expected to give its final approval on the ordinance at its regular meeting on Tuesday, Dec. 12.
Read the ordinance before city council on the matter.
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