State Supreme Court allows property tax revenue measure to be on November ballot

COLORADO, USA (KRDO) - A ballot question to decrease property taxes through state tabor refunds is moving forward after the Colorado State Supreme Court shot down a challenge for the measure on Monday, August 21. 

At its very core, the measure would decrease property taxes for homeowners and commercial properties. The "Reduce property taxes and voter-approved revenue change" was signed by Governor Polis back on May 24.

"It locks in property tax savings for literally everybody and guarantees that - and provides targeted relief to people who need it the most, like seniors and working families." explained Steve Fenberg, the President of the Colorado Senate, a Democrat who represents Boulder and District 18.

The ballot question reads as follows: "SHALL THE STATE REDUCE PROPERTY TAXES FOR HOMES AND BUSINESSES, INCLUDING EXPANDING PROPERTY TAX RELIEF FOR SENIORS, AND BACKFILL COUNTIES, WATER DISTRICTS, FIRE DISTRICTS, AMBULANCE AND HOSPITAL DISTRICTS, AND OTHER LOCAL GOVERNMENTS AND FUND SCHOOL DISTRICTS BY USING A PORTION OF THE STATE SURPLUS UP TO THE PROPOSITION HH CAP AS DEFINED IN THIS MEASURE?"

Since May, 12 counties -- including El Paso County - as well as some individuals and the Advance Colorado Institute, filed suit to keep this measure off of the ballot, claiming it violated the state constitution's single subject rule.

However on Monday, August 21, the states highest court said it cannot make a ruling on the question unless Proposition HH becomes a real law, and so it's now moving forward to voters in November.

"I don't think that it should be where we have to vote on something that might or might not be constitutional. I think that that should be decided before it goes to voters in front of them." said Michael Fields, President of the Advance Colorado Institute, and central plaintiff in the suit struck down by the State Supreme Court.

If passed the bill would be in effect for 10 years, and it would lower residential property valuations by 50,000 dollars this year, and lower commercial property values by just .05%,

By the end of the decade that figure would become nearly 3% lower than current values for commercial properties. You can view a full chart of those valuations and percentage changes, here.

"Is not only constitutional, but in our opinion, is the only way to provide immediate tax relief to people, especially those who really are already maybe on the brink and can't afford the increased cost of living." said Fenberg.

Property taxes are what fund local government operations like public schools, fire and police departments. In order to make up those funds that would be lost by the proposed tax breaks -- Proposition HH would take a small portion of your state tabor refund, to help pay those local departments.

Opponents of the law, however, still maintain the measure is unconstitutional for including more than one change to Colorado policies. They also believe the measure won't do what it say's it will do for homeowners wallets. 

"We don't think this provides a very much property tax relief at all. We're still going to have the highest increase in property taxes ever, even if it passes. And it wasn't clear [in the ballot language] that it's coming from TABOR refunds -- that we're going to have to give up our TABOR refunds in if a Prop HH passes." argued Fields.

Conversley, Fenberg says, that the average loss to a Coloradan's TABOR refund would only be around $33.

The proposition is now at the mercy of Colorado voters, when they head to the polls on November 7th later this year.