The Gallagher Amendment: Colorado's Lost Shield Against Property Tax Hikes

If you're a Colorado homeowner staring down a bigger property tax bill in 2026, you can thank the quiet repeal of one of the strongest taxpayer protections in state history: the Gallagher Amendment. What started as a voter-approved bulwark against runaway taxes in 1982 was cleverly dismantled in 2020, sold to the public as a harmless "fix" during the chaos of COVID. Five years later, the consequences are hitting wallets hard—and they're only getting worse.

What Was the Gallagher Amendment?

Passed by Colorado voters in November 1982, the Gallagher Amendment (named after its sponsor, Democratic state Sen. Dennis Gallagher) was a direct response to the wild property tax spikes of the late 1970s and early 1980s. Home values were exploding, especially along the Front Range, and homeowners were getting crushed as their taxes soared right alongside.

Gallagher fixed that with a simple, ironclad rule baked into the state constitution:

• Residential property had to make up exactly 45% of the total statewide property tax base.
• Commercial and other non-residential property (fixed at a 29% assessment rate) covered the other 55%.
• As homes grew in value faster than businesses (which they always do in a booming state), the residential assessment rate automatically dropped to maintain that 45/55 split.

The result? The residential rate started at 21% in the mid-1980s and steadily fell—to 7.96% by 2003, then all the way down to 7.15% by 2019-2020. Gallagher kept Colorado's effective residential property tax rates among the lowest in America, shifting more of the burden to businesses and protecting families, retirees, and fixed-income homeowners from Denver's endless spending appetite.

It wasn't perfect—rural areas with slower commercial growth felt pinched—but it worked exactly as intended: forcing governments to live within their means instead of treating homeowners like an unlimited revenue source.

How Voters Were Sold Out in 2020

Fast-forward to the pandemic recession. Politicians in Denver—bipartisan this time, with Gov. Jared Polis leading the charge—panicked. Without Gallagher's formula, the residential rate was projected to drop even further (possibly below 6%), which would have meant automatic tax relief for homeowners but revenue shortfalls for schools and local governments already reeling from COVID lockdowns.

Their solution? Amendment B on the November 2020 ballot: a full repeal of Gallagher.

Here's how they pitched it to voters:

• "This is just a technical adjustment—no one's taxes go up right away!"
• "We're saving rural schools and fire districts from collapse!"
• "COVID makes this urgent—we can't afford those automatic tax cuts in 2021!"

The Blue Book (the official voter guide mailed to every household) downplayed the long-term risks, and proponents flooded the airwaves with feel-good ads about "stabilizing funding" without pain. Opponents warned it was a permanent tax increase in disguise—removing the constitutional brake on residential rates—but they were outspent and drowned out.

Coloradans bought it. Amendment B passed with about 57.5% of the vote.

What voters weren't told clearly (or at all in many cases):

• Repeal handed politicians total control over assessment rates—no more automatic homeowner relief.
• The "temporary" relief packages that followed (2021, 2023, 2024) were always set to expire, deliberately timed to kick the pain past election cycles.
• Once Gallagher was gone, nothing stopped rates from creeping (or jumping) back up as home values recovered post-pandemic.

It was a classic bait-and-switch: Scare people with short-term budget horror stories, promise no immediate harm, then quietly restore the pre-Gallagher status quo once the crisis passed.

The Consequences Hitting Home in 2026 (And Beyond)

Fast-forward to today. With Gallagher dead and buried:

• Temporary cuts from bills like SB 24-233 are sunsetting.
• Residential assessment rates are climbing back toward pre-Gallagher levels (around 6.8-7.15% depending on the levy).
• Even if your home value stays flat, most homeowners will see bills jump hundreds of dollars in 2026—thousands in high-value areas like Denver, Boulder, or the mountains.

This isn't "unforeseen." It's exactly what opponents predicted. Lawmakers now have free rein to let spending balloon while homeowners foot the bill. And with TABOR still requiring voter approval for big hikes, they hide behind complicated "split rates" and deductions that sound like relief but are just smoke and mirrors.

Gallagher saved Colorado families an estimated $35+ billion over nearly four decades. Repealing it didn't fix rural funding problems (those persist); it just removed the one mechanism forcing fiscal discipline on Denver and local governments.

The Bottom Line

Coloradans didn't vote to repeal Gallagher because it was "broken"—they were told it was an emergency patch during a crisis. Instead, they handed politicians a blank check at the exact moment home values were about to explode again.

If your 2026 tax bill stings, remember: This wasn't inevitable. It was engineered. The only real fix now? Demand lawmakers restore real, permanent protections—hard revenue caps, spending limits, and maybe even a Gallagher 2.0—before the next "temporary" band-aid peels off and the bleeding starts all over again.

Homeowners deserve better than being the perpetual fallback for government overspending. The Gallagher repeal proves what happens when voters let their guard down: The taxman always comes collecting.