- Colorado Politics
- Luige Del Puerto luige.delpuerto@coloradopolitics.com and Marianne Goodland marianne.goodland@coloradopolitics.com
- Updated
Bill Owens Sen. Barbara Kirkmeyer introduces former Governor Bill Ownes to give a speech during the “No On HH - Advance Colorado election night watch party” on Tuesday, Nov. 7, 2023, at JJ's Place in Aurora, Colo. (Timothy Hurst/Denver Gazette)
A business group is pushing a ballot measure to roll back home and business property valuations to 2020 levels, announcing its aim on the eve of a special session in which Gov. Jared Polis is asking lawmakers to figure out a way to provide Coloradans relief from soaring property taxes.
Colorado Concern, a politically active alliance of top business executives, said its proposal, which it is filing on Thursday, would cap the growth of property value to avoid "runaway property tax bills." The values would only reset upon the sale or major improvements. The group said that would establish a "true market rate" for tax calculation purposes.
“Homeowners and businesses should not be penalized with a massive tax hike as the result of a hot economic environment that sent prices soaring," said Mike Kopp, president and CEO of Colorado Concern. "It is imperative to protect taxpayers from the kinds of painful price shocks they now face, and will face again in the future if the system is not changed."
He added: "This problem erodes the budgets of Colorado families and small businesses. Our measure will roll back property tax valuations to their 2020 level which will provide dramatic and direct relief, while permitting for modest annual growth that would allow local governments to provide necessary services.”
The governor's call for a special session asked for short-term property tax relief that would apply only to the 2023 assessment year, along with a laundry list of other requests dealing with TABOR tax refunds and rental assistance.
Already, some dividing lines have emerged: Republicans don't want a solution that includes tapping TABOR dollars, which was the core component of Proposition HH.
Democrats, meanwhile, are leaning in on some of the elements of Proposition HH, including redirecting TABOR dollars to local governments, which would see their anticipated revenues slashed under proposals that both of the sides of the aisle are contemplating.
Business leaders earlier pointed out that voters already emphatically said "no" to redirecting TABOR money for property tax relief.
In a news release, Colorado Concern noted that property taxes will skyrocket at levels that far outpace wage growth. This year, the group said, the average homeowner saw a 40% valuation increase, with some jurisdictions facing more than 70%.
High taxes result from "runaway" valuations, the group said, adding what's needed are "broad structural changes."
The group also said that its proposal would provide business owners a highly "transparent and simplified tax assessment system." The group added that taxpayers and assessors are encumbered by a "5,000 page handbook" that is "nearly impenetrable to all but a handful of insiders."
“Our filing today represents the beginning, not the end of the process,“ Kopp said. “We look forward to working with leaders in the state Capitol and, more importantly, civic and business leaders outside of the legislative arena, to implement a plan that protects the taxpayers of this state.”
The Colorado Association of Realtors took a dim view of the proposal.
Jason Hopfer, the association's lobbyist, said the ballot proposal will dis-incentivize Colorado residents from selling or "right-sizing" their properties — because the tax rate will reset upon sale of their existing homes and a higher tax rate would apply to the new residence.