Proposed Colorado constitution amendment could cap annual property tax increases at 3%
COLORADO SPRINGS, Colo. (KRDO) -- A newly proposed constitutional amendment that's expected to be on the upcoming fall ballots, is designed to cap rising property taxes for both residential and non-residential properties. However, critics argue the amendment would slow the growth of local government revenues throughout the state of Colorado.
The proposal, titled Concerning Property Valuation, would place a 3% cap on rising property tax values for each year over the next decade.
Last week, the Colorado title board approved the ballot initiative's language. A spokesperson for the Colorado Secretary of State's office tells 13 Investigates the ballot initiatives backers can now begin gathering signatures for a petition to get the initiative on the ballot.
According to the El Paso County Assessor's Office, the petition will need to receive around 125,000 signatures to get on the fall ballot. On top of the signatures, it requires 55% of the vote to become law because it is a constitutional amendment.
The original text of the proposed constitutional amendment was filed through the state's title board on March 4 with bi-partisan support. State Democrat Alex Valdez and State Republican Colin Larson signed on to the proposal as its designated representatives.
According to a non-partisan fiscal summary of the proposal conducted by legislative council staff, the amendment would effectively decrease property taxes for homeowners and nonresidential property owners while at the same time increasing the amount of money saved by homeowners. The fiscal summary says businesses will have more money to spend for employees, equipment, or other investments.
In 2021, the El Paso County Assessor Steve Schleiker said, "the average county-wide property value increase in went from 15% to 20%, whereas it was 20% to 25 % in 2019."
Homes in Southeast El Paso County saw increases above 30 percent. The property values increases have certainly helped those looking to sell, but property taxpayers have seen a significant increase.
“We have not seen this type of market in quite some time in El Paso County," Schleiker told KRDO in 2021. "In fact, I don’t think I’ve ever seen it this high.”
However, the summary says local governments across the state of Colorado would lose out on millions of dollars.
"By allowing the value of this property to grow by inflation capped at 3 percent, the measure will decrease
property tax revenue to local governments statewide by up to an estimated $1.3 billion in budget year
2023-24," the fiscal report said.
The report goes on to say the changes would decrease revenue to cities, counties, special districts, and school districts, resulting in lower levels of local government services, including police and fire protection, hospital, transportation, education, and library, among other services.
"The state share of school finance is estimated to increase by a maximum of $360 million in budget year 2023-24, and this state cost will continue to grow in subsequent years," the fiscal report said.
