Residential assessments are set to go up by 30% statewide. The total statewide increase in property tax revenue is projected to be almost $4 billion next year. The legislature can provide property tax relief without going to voters. The only reason Prop HH is going to voters is so the state can take away TABOR refunds. At any point this year, the Governor can call a special session to fix the property tax crisis.
Either before or after the defeat of Prop HH, the Governor should call a special session to prevent the upcoming huge spike to property taxes. The long-term solution is to cap future increases in property taxes.
TABOR Refunds
- Under HH, the state will be able to retain and spend $10 billion over the next decade because of a huge change to the TABOR formula – adding 1% beyond inflation plus population growth each year.
- Prop HH is thus projected to end TABOR refunds, as soon as 2027.
- The measure would allow the legislature to continue the Prop HH changes beyond ten years without voter approval.
Prop. HH “Tax Relief”
- The residential assessment rate drops from 6.76% to 6.7%.
- The commercial assessment rate drops from 27.9% to 27.85%.
- To put this in perspective, the residential rate (had the Gallagher Amendment not been repealed) would now be under 5% (29% less than under Prop HH). These changes will save only $300M of the projected $4B increase.
Advance Colorado Fact Checks Governor Jared Polis