Financial Tools

Colorado – Colorado became the first state to address the effects of the One Big Beautiful Bill. In a six-day special session, the legislature enacted a few measures to offset the projected budget deficit attributable in part to the OBBA. These measures include: H.B. 25B-1001, which removed the sunset date for the qualified business deduction add back; H.B. 25B-1002, which added five countries to the tax-haven list and amended foreign-derived deduction-eligible income; and H.B. 25B-1005, which eliminates the sales tax vendor’s fee beginning January 1, 2026. To review the bills, see Colorado 2025 Special Session Bills.

In our last two updates, we discussed how state legislatures throughout the country have felt pressure to address the ongoing property tax revolt that has resulted from surging residential values, local budget concerns, and ultimately higher property tax bills. We also discussed how taxpayers have the right and the opportunity to directly address their property valuation with the local appraiser/assessor via the open property roll review and appeal process. With current year property values now more or less set, local jurisdictions are nearing final calculations regarding the current year millages/tax rates needed to fund local budgets, given the tax base and to hold formal hearings to discuss those budgets and millages/tax rate adjustments.