Politics
Gracia Voters Freeze Property Tax Assessments Through 2028
The November ballot measure would hold residential property tax assessments at current levels through 2028, directly limiting annual bills for Gracia homeowners and renters.
How we reported this
The Gracia City Council has placed a referendum on the November 2026 ballot that would freeze property tax assessments for all residential parcels at their 2025 values for two years. The measure applies to single-family homes, apartments and condominiums across the city’s 12 districts and would prevent reassessments tied to recent market value increases.
Local housing costs have risen steadily since 2023, with the Gracia Housing Authority reporting an average 11 percent jump in assessed values for properties sold in the central district last year. The freeze proposal emerged after the city’s 2025 fiscal year budget showed property taxes supplying 38 percent of general fund revenue, up from 34 percent in 2022.
For a household in the Elmwood neighborhood paying the current median tax bill of $4,180, the measure would prevent an expected $380 increase next year. Renters in buildings where landlords pass through tax costs could also see smaller annual rent adjustments, according to the city’s rent stabilization ordinance.
Revenue and service implications
The Gracia Finance Department’s March 2026 projection estimates the freeze would reduce property tax collections by $9.4 million over the two-year period. City documents list those funds as supporting street maintenance crews, library hours and the municipal water utility subsidy program that currently offsets $22 per month for 18,000 low-income accounts.
Advocates for the measure point to the Productivity Commission’s 2025 regional report, which found that Gracia households in the bottom income quartile spend 28 percent of after-tax income on housing-related costs. Opponents note the same report identified a $14 million backlog in deferred road repairs that relies partly on property tax growth.
Ballots will be mailed to registered voters on 15 October. In-person voting runs from 7 a.m. to 8 p.m. on 3 November at 47 polling sites, with results expected the following morning from the Gracia Elections Office. If approved, the freeze takes effect with the January 2027 tax bills.