Editor’s note: This column is part of a pro-con about the Proposition HH which will appear on the ballot for the November 7 election. Read the opposing view here.
Another election is just around the corner, and even though we may not be voting for president or senator, we will be voting on a measure that will affect Coloradans for the next decade.
The current housing crisis is being fueled by unprecedented increases in population and a housing inventory that has not been able to keep up with demand. As a result, homes that were worth $250,000 in the suburbs of Denver are now worth close to a million dollars – and property taxes are not exempt from this dramatic increase.
A few months ago, Colorado homeowners, including myself, were shocked to receive their new property tax assessment – it even sparked a movement of homeowners asking their municipality to lower their property tax. This added expense left many homeowners worried about being able to afford to stay in their homes, especially seniors on a fixed income and low-to-middle income families. If we don’t take action now, the impact on rents, housing, and small businesses will be devastating.
Thankfully before the end of the last state legislative session, Gov. Jared Polis and Democratic lawmakers came together to refer Proposition HH to the ballot to avoid a crisis that could hurt vulnerable Coloradans.
Prop. HH is simple. If Colorado votes to pass HH, everyone will benefit from immediate relief – and there’s targeted relief for seniors and low-income families. Prop. HH is also responsible and provides relief without hurting schools, libraries, fire districts, water districts, and other services communities rely on which are funded through property tax revenue.
While Prop. HH would cut the upcoming property tax increase, it would also slightly adjust the TABOR cap by 1% in order to ensure that our schools and other critical local services, like fire halls and libraries, continue receiving the funding they need to continue to serve our growing communities.
Prop. HH cuts the upcoming property tax increase in half and it saves the average homeowner over $1,000 in the next two years, according to a report by the Colorado Fiscal Institute (CFI). The study found it would continue to provide a whopping $1 billion to $1.6 billion in property tax relief every year, saving money for families, businesses, and seniors across the state.
Seniors are particularly vulnerable to property tax increases because they are often on a fixed income. The measure provides targeted savings for seniors by building upon the Senior Homestead Exemption and allowing seniors who were eligible for the Senior Homestead Exemption to move without losing the property tax savings.
The average senior homeowner in Colorado will save $1,065 over the next two years. If a senior was previously eligible for the Senior Homestead Exemption but lost it previously, they will save $2,122 over the next two years.
The sudden, dramatic increase in property taxes could be passed on to renters – making Colorado even more unaffordable. Fortunately, renters also have a lot to gain from Prop HH if it passes. The measure dedicates up to $20 million per year for rental assistance to help offset rent increases as a result of increased property taxes.
Despite these life-changing benefits, far-right special interests are opposing this measure and they are spreading baseless claims about how HH actually interacts with TABOR. If HH passes, all taxpaying Coloradans will receive $850, which means anyone making less than $100,000 per year will see a big increase in their TABOR refund in 2023.
Opponents of this measure also stretch the truth when it comes to talking about a reduction in refunds. The CFI study found, that Proposition HH provides an average homeowner with $600 in tax savings next year while only reducing TABOR refunds by $46. And taxpayers are expected to continue receiving billions in refunds each year, even if Proposition HH passes. The math shows that the tax relief benefits to taxpayers are much higher than any reduction in refunds.
Prop HH is common sense and it’s what needs to be done to avoid a crisis that could push vulnerable Coloradans out of their home. That’s why this is supported by so many groups like the Colorado Professional Firefighters, AFL-CIO, Colorado Concern, Colorado Education Association, and the Bell Policy Center. The future of our state is in our hands and Coloradans should vote yes on HH to secure it.
Bill Ritter served as the 41st Governor of Colorado from 2007 to 2011.
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