Democratic Senator Chris Hansen said it was very likely that lawmakers would return to the Statehouse later this month for a special session on the property tax.

Policymakers hope to pass enough tax cuts to avert two ballot measures that would significantly reduce property tax rates and cap total property tax revenues statewide.

“I think there’s a great appetite to see if we can find a compromise at the legislative level to remove this from the ballot,” said Hansen. The Denver lawmaker chairs the House’s property tax committee and said he would be the lead sponsor of any deal lawmakers consider if they return to the Capitol.

The window for lawmakers to act is extremely narrow; the last day to withdraw an initiative is Sept. 6. Hansen said he expects any special session to take place after the Democratic convention next week and to last the minimum three days.

It is unclear whether Governor Jared Polis would use his power to recall lawmakers to their jobs or whether the legislature would take that step itself, which can be done upon a request from two-thirds of the lawmakers in each chamber.

Hansen said he has been working with other lawmakers and key stakeholders over the past few weeks to see if they can come to a good deal. Hansen said the biggest sticking point at this stage is making sure any agreement can hold up over the long term.

“So if we reach a compromise in the near future, it will mean that the groups involved in Initiatives 50 and 108 and their allies will not bring us back to this point year after year as they have done in the past,” Hansen explained.

On Monday, the mayors of Denver, Aurora and Colorado Springs sent a letter to lawmakers requesting a special session. They said the two initiatives would have unintended consequences across the state and would “defund schools from K-12, deplete public safety resources and impose crippling cuts to local fire districts and special districts.” The mayors wrote, “We cannot overstate the negative impact that passage of these initiatives would have.”

The two initiatives are supported by the business group Colorado Concern and Advance Colorado, a conservative advocacy group. They argue that the sharp rise in property values ​​during and after the pandemic shows why Colorado must drastically change its tax policy to protect property owners. A document obtained by CPR News shows that the groups are willing to spend around $8 million to make their case to voters.

“Our end goal has always been to lower and cap property taxes – and to ensure that we never see another increase like the one we just saw. The legislature still has a small window of time to act. But if they don’t, we’re full steam ahead on both measures,” Advance Colorado’s Michael Fields wrote in a text message to CPR when talk of a special session was first raised.

All of these negotiations follow a bipartisan deal that lawmakers passed at the end of the legislative session to permanently cut property taxes. Although that bill had strong bipartisan support, Advance Colorado and Colorado Concern opposed it as not going far enough.

“We are currently considering very small changes to the framework of Senate Bill 233,” Hansen said. “This shows that the proponents of 50 and 108 obviously do not see themselves as being in a strong position because they are willing to accept very small changes to defeat these popular initiatives.”

But even though Democrats control both houses of the House, getting lawmakers back to the Capitol to pass new legislation may be difficult. Some Democrats have said they don’t want to negotiate with conservative groups over lower taxes and would rather work to defeat the proposals at the ballot box in November.

Special sessions are generally unpredictable. Under the rules, lawmakers must focus on the stated goal of the special session, but have the authority to introduce any bill related to the issue. That means there are many potential tax proposals that could be up for debate. It also means the many outgoing members of the legislature who are leaving either because of term limits, lost primaries, or of their own accord will have one last chance to make their final stand.