Republicans in Colorado’s General Assembly haven’t had much to celebrate over the past few years. With a historic majority in the Colorado House, a supermajority in the Senate, and control of the governorship, in general, Democrats have passed their agenda items and stymied the GOP’s.
On Nov. 7, Coloradans soundly rejected the proposal, known as Proposition HH, in a vote of 60 percent to 40 percent.
The Republican message proved effective.
In response to the public’s rejection of Proposition HH, on Nov. 9, Mr. Polis called for a special legislative session, beginning on Nov. 17.
Defeating Prop HH
“I think it’s clear by a wide margin that voters saw through the deception that was Prop. HH,” Kristi Burton Brown, senior policy advisor for Advance Colorado, told The Epoch Times.Advance Colorado is a non-profit dedicated to educating Coloradans on limited government, free enterprise, lower taxes, an accountable education system, fiscal responsibility, and firm public policy.
Colorado Republican State Rep. Stephanie Luck agrees and told The Epoch Times, “TABOR says, ‘Government, we understand you have a proper role, and that we need to fund that proper role. So, we’re going to give you this much money. We’re going to allow it to expand by this much every year based on population growth and inflation. And if you end up taking more of our property from us than we have given you authority to take, you either have to ask us to keep it or return it.’
“What Prop HH really sought to do was eliminate that—that principled understanding of the role of property. And I think the people of Colorado said ‘No. No, you can’t continue to take from us without permission or any sort of hindrance. We don’t want to be California. We want to have a say in not only how much of our property you take but also why you’re taking it.’”
On the ballot, Prop. HH read, “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?”
Ms. Brown pointed out that “state surplus” is the excess money owed to taxpayers thanks to the TABOR safeguards, but unless a voter knew that before voting, they wouldn’t know they were giving up their TABOR refunds.
Advance Colorado and its allies campaigned against Prop HH.
“I think Governor Polis and the other liberals who put this on the ballot should take the message that Colorado voters are not dumb, and they can see when they’re being lied to,” Ms. Brown said.
She added that the defeat of Prop HH sends the voter message, “Don’t do relief where you’re stealing our TABOR refunds while claiming its property tax relief. Go back to the drawing board and give us real property tax relief.'”
Repealing TABOR
One of the reasons Colorado has seen historic property tax increases is because in the November 2020 election, Colorado voters approved Amendment B, which repealed the Gallagher amendment. Gallagher required that the state’s total property tax burden be divvied up, with 45 percent collected from residential property and 55 percent from commercial property.“When the Gallagher amendment was repealed a couple of years ago, the legislature was the one who put that as a request before the people,” Ms. Luck said. “And the people didn’t really understand the consequence of what they were voting on. But the legislators did, and it was talked about. They understood that we would find ourselves exactly where we are today if Gallagher was repealed, yet they went forward without a solution.
“So, one could reasonably argue that that was because they had hoped to eradicate TABOR through creating this crisis of property tax valuations. And to suggest that somehow, they’re doing a service to the people of Colorado by slightly lowering their property tax values while stealing from other pots of money from the citizenry, I find it unfortunate that that would be the narrative that’s put out in terms of this special session.”
Indeed, during the press conference, Mr. Polis said a “TABOR mechanism” was a possible solution. Speaking on how to backfill lost revenue from property tax relief, Mr. Polis said the legislature in the special session could use “a combination of the 200 million [which was already set aside], a TABOR refund mechanism, or reserves.” He didn’t specify how a TABOR refund mechanism would work.
Like Ms. Luck, Ms. Brown believes the legislature will try to use TABOR refunds in the upcoming session, “I do think legislators are going to attempt to take money from [TABOR] and claim they’re using it for property tax relief.
“I do think they’re going to try it. For them, government always needs to grow. … Their ultimate goal is always to take away that pot of TABOR money that is supposed to go back to the people and to use it for government.”
Property Tax Relief
On Nov. 8, Colorado Democratic State Rep. Lorena Garcia posted on X, previously Twitter, “We heard you loud and clear. HH was not good enough. It did not do enough to support middle and low income households or renters. I know we can do better as policy makers to fund schools and local services adequately while providing targeted tax relief.“If we are to build a truly fair tax system in [C]olorado where the rich pay their fair share, middle and low income earners are not over taxed and the systems we all rely on are funded appropriately, we have to make major reforms to TABOR.”
In response to those posts, Ms. Brown said, “That is proof that you’re not actually listening to the voters and that you didn’t hear the voters. What the voters said was keep your hands off of TABOR. Leave our tax refunds alone. And, simultaneously, give us real property tax relief.”
As for Colorado having the nation’s third lowest property tax rate, Ms. Brown said, “After the recent property tax hike, Colorado went from 48th in the nation to 35 in the nation.
“And after these next rounds of bills and assessed new rates are paid, Colorado will likely be [the 10th highest] in the nation for property taxes.”
“There are senior citizens going into county commission offices crying about property taxes because they don’t think they can afford to stay in the home they’ve been in for years,” Ms. Brown said.
“And in some cases, they’re paid off, but now can’t afford property taxes on it, and it’s hurting working families very deeply in Colorado. You can’t take property taxes and look at them in a silo. You have to look at all the other taxes and fees that have been increased for Colorado families and senior citizens over the last few years. This is one of the reasons Colorado is becoming more and more unaffordable.”
Ms. Luck said she plans to introduce a bill that, if passed, would seek to create a task force with the goal of a “revolutionized tax code.”
“The revolutionized tax code would eliminate all forms of taxes other than a state sales tax. So that would eliminate income tax,” Ms. Luck said. “It would eliminate property taxes; it would eliminate your delivery fees and your gas taxes and every type of tax and fee that the state and its sub-parts—the local jurisdictions, counties, cities, you know, special districts, that they all collect—and create a statewide sales tax.
“And those local municipalities could raise their local rates in the way that they do now to augment their revenue sources, but it would all be through sales tax.”
Ms. Luck acknowledged that her Democratic colleagues likely wouldn’t consider her idea a “progressive” tax and wouldn’t support it.
“From my standpoint, I would like to create that conversation at least to say, ‘What can we do to make our tax code more transparent, accountable, effective, efficient, and fair?’ And do so in a way that eliminates all of these various sources and all these sorts of creations of favoritism in the markets, and restart our economy and have a healthier way moving forward.”
Ms. Luck added that under her proposal, people could genuinely own property, which is not what they enjoy now. “We should allow people, once they own property, to actually own it outright and not have to lease it continually from the government and fear losing it at some point in the future because they can’t pay those taxes.”
Mr. Polis did not respond to The Epoch Times’ request for comment about the special session.
Neither Democrat state Senator and prime sponsor of SB303, Steve Fenberg, nor Democratic state Rep. Chris deGruy Kennedy, also a prime sponsor of SB303, responded to The Epoch Times’ request for comment on the upcoming special session and the defeat of Prop HH.