DENVER (KDVR) — As inflation hampers spending power and property taxes continue to rise across the state from a booming market, the governor is outlining what lawmakers are doing to put more money back in Coloradans’ pockets.

This comes after Gov. Polis announced an early return on a tax rebate worth $400, thanks to the Taxpayers Bill of Rights.

Lawmakers will introduce a property tax relief package before the session wraps up to the tune of $700 million in relief over two years. One-time funding for this was set aside when Polis signed the long bill.

The property tax savings comes down to roughly $274 per year for homeowners with homes valued at $500,000. The savings would be higher if the home is worth more.

The proposal also includes cuts to commercial property taxes, lowering the rate from 29% to 27.9%. Colorado voters approved repealing the Gallagher Amendment in 2020, which required the state to draw a majority of property tax revenue from businesses over residents.

“This represents the first non-residential assessment drop in Colorado in 40 years,” said CEO of the Denver Metro Chamber of Commerce J.J. Ament. “It allows employers to hire more employees, invest in that growth to continue to field Colorado’s recovery.”

You can watch the announcement on FOX31 NOW in the player above.