{"id":470,"date":"2023-10-17T11:01:16","date_gmt":"2023-10-17T11:01:16","guid":{"rendered":"http:\/\/www.seyyahizcilik.com\/?p=470"},"modified":"2023-10-17T11:57:13","modified_gmt":"2023-10-17T11:57:13","slug":"endorsement-the-denver-posts-position-on-proposition-hh","status":"publish","type":"post","link":"http:\/\/www.seyyahizcilik.com\/index.php\/2023\/10\/17\/endorsement-the-denver-posts-position-on-proposition-hh\/","title":{"rendered":"Endorsement: The Denver Post\u2019s position on Proposition HH"},"content":{"rendered":"

Editor\u2019s note:<\/strong> This represents the opinion of The Denver Post editorial board<\/a>, which is separate from the paper\u2019s news operation.\u00a0<\/em><\/p>\n

\n

The Denver Post is supporting Proposition HH<\/a> this November as a critical compromise.<\/p>\n

The ballot question will provide significant relief from the unsustainable property tax increases driven by the skyrocketing inflation in home values while also assuring that our public schools, predominately funded by local property tax, still receive the anticipated and much-needed boost in local revenue.<\/p>\n

Opponents of Proposition HH have sent out fliers incorrectly claiming that the measure will eliminate TABOR refunds (income tax returns mandated by the Taxpayer\u2019s Bill of Rights).<\/p>\n

In reality, economic forecasts say the ballot measure will reduce TABOR refunds by a small margin, meaning taxpayers will still get back some of what they pay toward Colorado\u2019s (comparatively low) flat-income tax rate of 4.4%. The TABOR refund dollars retained by the state will be used to back-fill school districts, cities, counties, and special districts for some of the money they lose from the massive state-wide property tax cut provided in Proposition HH.<\/p>\n

The trade-off made in Proposition HH \u2014 a small income tax increase for a larger break in property taxes \u2014 is not simple but it is essential.<\/p>\n

Looking at the measure holistically, we have found \u2013 without question \u2013 that the significant reduction in the pending property tax increases, which are due in March, outweighs the slight increase in income taxes<\/a> that will occur when the state retains an additional 1% of the revenue collected through income taxes every year under the TABOR formula.<\/p>\n

Proposition HH will reduce property taxes paid in 2024 by about $400 million, while the increase in income tax revenue will only be $133 million for fiscal year 2023-24.\u00a0The property tax reduction will grow in 2025 to almost $1 billion and the increase in income taxes collected by the state will be $444 million in fiscal year 2024-25.<\/p>\n

\u201cThere\u2019s also targeted relief for those who need it most. If your property taxes are going up 40% that is because the value of your home increased. For a lot of people, that is good news. They can stomach the property tax increase. They are happy their value went up. They are now a wealthier person,\u201d Senate President Steve Fenberg told us alongside Gov. Jared Polis in an interview with The Post about the effects of HH. \u201cBut if you\u2019re a senior on a fixed income, if you\u2019re a working family going paycheck to paycheck, that increase is devastating.\u201d<\/p>\n

Fenberg said the legislation they passed does provide relief to all property owners, but more modest homes will see a larger reduction in their property taxes (as a percent of the value) than more expensive homes. Seniors get an extra reduction with an increase in the Senior Homestead Exemption which will also be made portable (meaning seniors won\u2019t be penalized for downsizing their home).<\/p>\n

The complex formula regrettably does create winners and losers, as we noted in May when Democrats had finished crafting the legislation behind closed doors<\/a> and unveiled the measure to the public with only a few days remaining in the legislative session.<\/p>\n

The clear winners will be lower-income property owners (especially seniors) in high-property tax areas. This group will see the largest reduction in their forecasted property tax bill while also getting a small increase in TABOR refunds under Proposition HH in the first year, and then likely smaller refunds in future years.<\/p>\n

The clear losers will be high-income renters who will lose out on property tax savings and see a substantial reduction in income tax refunds, especially in the first year and less so in future years.<\/p>\n

TABOR tax refunds will be paid out in the first year on a per-capita basis equally (about $800 per taxpayer) rather than based on the amount of taxes paid, continuing the Colorado Cashback model that helps make Colorado\u2019s flat income tax less regressive<\/a>. In subsequent years it will be paid out using a complex tiered formula that aims to be proportional to the amount of taxes paid.<\/p>\n

But\u00a0Proposition HH also creates a $20 million fund to assist low-income renters who are facing eviction or financial hardships that result in missed rent payments. We would hope if voters approve HH, during the next legislative session, the state would prioritize finding money from the general fund to increase that investment in housing stabilization for renters.<\/p>\n