The 2024 legislative session began on Wednesday, January 10. It is expected that this session will be overshadowed by a tense political environment. Over the interim, members of the majority party sued leadership, and during the special session we saw a breakdown in decorum and political tensions flared. Further, 2024 will be an election year, so legislators will engage in a lot of political posturing to win elections. We anticipate a divisive environment under the gold dome.
Issues that will generate a lot of debate include renewed conversations on property tax. The special session did provide property tax relief, but is it temporary. The legislature created a Property Tax Task Force during the special session to recommend long-term solutions; they are instructed to report back to the legislature by March 15.
We also expect land use policy and affordable housing to be hot topics after Governor Polis’ large land use bill was defeated last year. We will see multiple bills introduced aimed at pushing for more density and funding for transit projects. The legislature will also propose to expand the affordable housing tax credit and pass real estate transfer fee bill as ways to increase affordable housing stock.
The Polis administration is preparing to release the first Climate Preparedness Roadmap which will lay out action steps and efforts to reduce greenhouse gases in various sectors, including the agriculture sector. We will likely see climate policies aimed at improving air quality and shifting to more electrification play out this session.
Colorado legislators will face a much more constrained budget and thus bills that have a General Fund fiscal impact will face increased scrutiny. Consequently, we will likely see many bills introduced that create or extend tax credits for certain sectors and industries to reduce the TABOR revenue cap instead of requiring new General Fund appropriations. Because of this, the Department of Agriculture is running legislation to create tax credits for agriculture producers to implement practices with environmental benefits, leasing or selling agriculture assets to beginning farmers, and incentivizing veterinarians to practice in rural areas.
An issue of importance will be the reintroduction of a pesticide bill that will grant local governments the ability to regulate the sale and use of pesticides. This year, agriculture is exempt; however, what actually falls under that exemption is unknown. Further, this draft includes the sale of pesticides, which is something we have not seen in the past. Once introduced, the bill will be opposed by many groups and the large coalition, Coloradans for Responsibility Pesticide Application, even though the major industries are exempt – agriculture, marijuana, water, and utilities. The coalition has been able to push back against this legislation every year, and we are hoping for the same this year. More information to come!