Since it became law in 1992, Democrats have been determined to eliminate the Taxpayer’s Bill of Rights (TABOR) by hook or by crook. Having lost lawsuits and attempts at repeal, they’re now trying the latter strategy with Proposition HH.
Cooked up at the very end of the legislative session ostensibly to reduce skyrocketing property taxes, the proposal, if successful, will finally accomplish Democrats’ long-sought dream — the end of TABOR refunds or at least a significant reduction.
Fortunately, new polling data show that when voters read the fine print, they see the proposition for what it is, and they don’t support it.
While Colorado is a solidly blue state, Coloradans consistently vote to preserve the TABOR tax limits. In addition to requiring voter approval for tax hikes, the Taxpayer’s Bill of Rights places limits on the amount of tax revenue the government can keep and spend. When the state collects more than it is entitled to, it must refund the money to taxpayers. Last year, Coloradans received $750 TABOR refund checks.
Because 2022 was an election year, the legislature voted to issue checks early and rebranded the TABOR refund as the Colorado Cashback, a benevolent gesture from the government. In a cynical about-face, the same legislature voted this year to ask taxpayers on their fall ballots to reduce future refunds. Higher-than-expected property value assessments issued by county assessors provided a never-let-a-serious-crisis-go-to-waste opportunity they couldn’t resist.
In the 2023 valuation, the median house value went up 35% to 47% in the Denver Metro Area and some homeowners in resort towns saw a 60% to 70% increase. Understandably, a record number of property owners statewide have filed appeals. Since most will be denied, property owners across the state are looking at substantially higher property taxes.
To “help,” Democrats passed Senate Bill 303 to put Proposition HH on the upcoming ballot. If voters approve it, the law will provide a tiny reduction in property tax assessment rates and exempt a small portion–around 10% of the average home’s value—from taxation assessment. The state will use funds that are currently returned to taxpayers as TABOR refunds to reimburse local tax authorities and fund other government programs. The law authorizes this scheme for 10 years and the legislature can opt to eliminate TABOR refunds thereafter without voter approval.
I did the math. My home value went up 57%. If Proposition HH passes, I will save a few hundred dollars each year on my property taxes but will lose thousands of dollars in TABOR refunds. No thanks.
When other voters learn that they will forfeit their TABOR refunds for decades if Proposition HH passes, they, too, are less keen to make the uneven trade. The Magellan poll of likely Colorado voters found that support for Proposition HH declined from 54% to 43% when voters learned more about the proposal.
Fortunately, it is likely Colorado property owners will have an opportunity to get real tax relief through another initiative on the ballot. Taxpayer advocacy group Advance Colorado Action is collecting signatures to place Initiative #50 on the ballot. It would require voter approval for statewide increases on property tax revenue over 4% annually. Sign me up.
Meanwhile, an affiliated group, Advance Colorado, multiple counties, voters, and elected officials filed suit against Proposition HH on grounds that the complicated proposal violates the Colorado constitution’s single subject rule. Does it ever? Try reading the authorizing legislation. It reads like a technical engineering manual for an experimental aircraft coffee machine IKEA cabinet. The suit is being heard by the Colorado Supreme Court.
Whether Proposition HH dies in the court or at the ballot box, its demise will provide a lesson for Democrats: you can fool some of the people some of the time but not all of the people all of the time.
Krista L. Kafer is a weekly Denver Post columnist. Follow her on Twitter: @kristakafer.
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