A bill for the three-day special session beginning Monday, August 26, includes a constitutional amendment asking voters to block further statewide ballot measures that would restrict property tax revenue.
The measure has not gone down well in some quarters, with several sources warning that the measure could disrupt an agreement negotiated during a special session between lawmakers, Gov. Jared Polis and supporters of two property tax cut bills that still need to be approved by voters in November.
The concurrent resolution is currently being discussed by Mike Weissman (D-Aurora), who is running to replace Democratic Senator Rhonda Fields in November. Senator Chris Hansen (D-Denver) would be the primary sponsor in the Senate.
The idea is not new; former state Rep. and Secretary of State Bernie Buescher and Ann Terry of the Special District Association have floated an idea for a constitutional ballot measure in 2022. Initiative 55 states that any voter initiative affecting the property taxes of a local government – be it a city, county, school or special district – can only be decided in a local election by those eligible to vote in that election.
The measure never made it to the petition stage and supporters eventually withdrew it.
Weissman told Colorado Politics that the premise is based on local control of local taxation. When the state gets involved in property taxes, he explained, it’s not state money. Property taxes are local dollars. Why should Douglas County voters have a say in property taxes in the San Luis Valley, for example?
An Aug. 18 draft obtained by Colorado Politics states that the resolution’s ballot proposal would be placed on the November 2024 ballot.
The bill states that starting January 1, 2025, the right of initiative reserved for the people of Colorado will no longer include the power to propose statewide initiatives to set a property tax cap, whether a constitutional amendment or a law.
The accompanying resolution also states that citizens in cities and towns would have the right to propose laws to limit the revenue local governments receive from property taxes.
The draft resolution only affects initiatives initiated outside the state Capitol, meaning the General Assembly would still have the authority to limit property taxes under its existing process.
Because it’s a constitutional issue, the concurrent resolution would need a two-thirds majority in both chambers. That’s 44 votes in the House, which is controlled by Democrats 46-19. The resolution could face its biggest hurdle in the Senate. Democrats hold 23 seats, but a Republican would need to vote for it to reach the magic number of 24.
Senate Minority Leader Paul Lundeen of Monument said his caucus is not taking a position, but he will vigorously oppose the proposed resolution and encourages his colleagues on both sides of the aisle to do the same.
Sen. Barbara Kirkmeyer (R-Brighton) said she believes the resolution violates constitutional rights. If citizens could do this locally, it would lead to different tax rates across the state. People are concerned and angry about property taxes. Her mortgage payments on her home increased by $800 a month due to increased property values and property taxes. “That’s what people are focused on,” she said.
One of the big questions is how it fits – or doesn’t – into the deal negotiated by lawmakers, the governor and supporters of Propositions 50 and 108 that led to the special session.
This does not go down well with supporters of both proposals.
Spokeswoman Karen Crummy, representing the Alliance for Citizens’ Tax Cut and speaking on behalf of Colorado Concern, said Tuesday, “Supporters of 108 and 50 are at the negotiating table in good faith and believe a meaningful agreement is possible. The governor and a majority of lawmakers from both parties are working earnestly to provide real relief to Coloradans, but some politicians in the state Capitol want to keep every penny of revenue raised by the largest property tax increase ever, even as it crushes families and small businesses.”
“If these few can derail the negotiations, Colorado voters will pass the measures,” she added.
Commenting on the Weissman/Hansen measure, Crummy said, “A constitutional amendment that prohibits a statewide tax cut but allows the legislature to increase property taxes by reclassifying property types is so dishonest that it could only have come from the same politicians who created this property tax mess in the first place.”
“This is a deal-breaker,” Kirkmeyer told Colorado Politics.
When asked about the Weissman/Hansen resolution, Polis spokesman Shelby Wieman said, “Governor Polis is committed to the agreed-upon framework to end the property tax war, which would save Coloradans money, provide certainty, and remove the risky ballot proposals 108 and 50 that would jeopardize critical funding for Colorado’s schools and other services. He looks forward to signing legislation that will reduce property taxes once the ballot initiatives are withdrawn and secure funding for our schools and local government.”
Advance Colorado and Colorado Concern, the backers of the two proposals, have agreed as part of the agreement to withdraw them. The deadline for that withdrawal is Friday, September 6, just over a week after the end of the special session. The ballots must be certified by the following Monday, September 9.
Proposition 108 would reduce assessment rates to 5.7% for residential properties and 24% for commercial properties. Proposition 50, a constitutional amendment, would cap tax revenue growth at 4% and require voter approval for local governments to retain amounts above that limit.
The two groups have announced an agreement:
• Reduces the effective property tax rate for residential properties to 6.3% or 6.4%, depending on valuation growth
• Reduces the trade tax rate to 25%
• Limits growth to 5.25% for local governments and 6% or inflation growth, whichever is higher, for school districts
• Provides “clear and unbiased voting language” in the required popular vote to deviate from the local cap
According to the two groups, the deal, along with legislation passed earlier this year, will result in annual tax savings of nearly $1.6 billion.
“If the agreed-upon bill becomes law, the groups will withdraw their two-initiative package from the November ballot,” the two groups said in an Aug. 15 press release. “Because the agreement provides a permanent solution to Colorado’s property tax crisis, Advance Colorado and Colorado Concern will not introduce similar ballot measures in the future – assuming the legislative, executive or judicial branches do not back away from the agreement’s provisions in the coming years.”
Deborah Grigsby of the Denver Gazette contributed to this report.
