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In debate on Prop HH, Gov. Polis does not share backup plan, commit to special session if it fails [1]
['Sara Wilson', 'More From Author', '- October']
Date: 2023-10
With two weeks until Election Day, Colorado Gov. Jared Polis is trying to shore up support for the property tax ballot measure that is backed by Democrats as Republicans argue that it erodes benefits for the state’s taxpayers.
Polis and conservative economist Arthur Laffer faced Michael Fields, the president of right-leaning Advance Colorado Action, and Republican state Rep. Rose Pugliese of Colorado Springs in a Monday night debate over the ballot measure. The event was sponsored by the Denver Gazette, Colorado Politics and 9News. The full debate is available to stream on YouTube.
“The immediate crisis is, people face — without Proposition HH passing — a 40% increase in their property tax bills. HH solves that in multiple ways” Polis said. “It obviously depends on the price of your home, but everyone saves a lot.”
He said the state is a “victim of its own success,” with housing prices going up as the state grows.
Proposition HH was referred to the ballot by Democratic lawmakers during the legislative session earlier this year as a way to soften the spike in property taxes expected as home values increase in the state. It would reduce the property tax rate — taxes would still go up, just not as much — for 10 years and exempt part of a home’s value from being used in the tax calculation.
“It’ll prevent us from ever again having this kind of huge hike that people face,” Polis said. “I think it’s better not to tax money from people in the first place rather than over-collect and refund via TABOR. It’s better to simply cut taxes on the outset. This cuts the rates and saves people money.
To make up lost tax revenue for schools and local governments under Proposition HH, the measure asks voters if the state can keep surplus tax revenue under the Taxpayer’s Bill of Rights for 10 years. That money would go to local governments, schools and a rental assistance fund. Because the state would keep more money, taxpayers would receive less in their individual TABOR refunds, which are required in years when the state exceeds a certain revenue cap.
Opponents argue that legislators could have passed a property tax reduction bill in the Capitol without involving TABOR.
“The Legislature, along with the governor, could have cut your property tax state assessment rate in April. We did not need to go to the ballot. We did not have to use a property tax crisis and use it to take your TABOR refund. TABOR has nothing to do with the property tax issue — and we should have addressed it in April, as good leaders, but we didn’t,” Pugliese, who serves as the House assistant minority leader, said.
Fields said that Polis should call a special legislative session if Proposition HH does not pass so lawmakers could pass their own solution. When pressed by moderator Marshall Zelinger of 9News on what a Republican-backed property tax plan would look like, Pugliese offered few details but said it would involve conversations with local governments, since they are the entities affected by property tax revenue.
Polis said he doubts the Legislature can pass something with the impact of Proposition HH and did not commit to calling for a special session. He did not say what his backup plan is if Proposition HH fails.
One of Republicans’ other main objections to the measure is that it would decrease TABOR refunds without, in their view, providing a huge relief on property taxes, essentially growing state government without a clear benefit.
“You’ll pay 30% more in property taxes and you’ll eventually lose your TABOR refund checks forever,” Fields said.
The state’s Blue Book, which provides nonpartisan information about statewide ballot measures, estimates that a single filer making between $52,000 and $103,000 will see a $42 reduction in their 2024 refund and a $90 reduction in their 2025 refund. It notes that through 2032, TABOR refunds will decrease and “could be eliminated for all taxpayers.”
“Whether it’s in January or whether it’s in November or December and whether Prop HH passes or not, I’m all for you guys working on property tax relief,” Polis said. “I don’t think you’re going to see anything close to the size of a $13 billion property tax cut over 10 years. I trust the people to pass HH and hopefully you’ll be able to build on that next legislative session.”
If the proposition passes, all Colorado taxpayers will receive an equal TABOR refund check no matter their income. Opponents have argued that tying that refund mechanism to the success of Proposition HH is unfair, and Polis did not directly answer a question about why Democrats are using the prospect of an equal check to incentivize a favorable vote, instead saying it was something the Legislature wanted to do.
“These are political games that are being played,” Fields said. “I think ultimately this is them trying to get votes but are also a distraction from the fact that you’re going to lose more and more of your TABOR refunds every year.”
Colorado voters have until Nov. 7 to return their ballots.
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