The Colorado Senate recently passed a bill to repeal the
Gallagher Amendment. The Gallagher Amendment was passed in 1982 as a way to keep residential property tax rates lower than rates paid by commercial property owners. Currently under this amendment, residential properties pay 45% of the share of taxes and commercial properties pay 55% of the share. The Gallagher Amendment set the assessment rate for all commercial properties at 29% and originally set residential assessment rates at 21%. As of 2020, the assessment rate for residential properties has dropped to 7.15% due to increasing home values and more supply, whereas the assessment rate on businesses has remained at 29%.