Colorado property taxes ‘expect heavy increase’ despite tax relief referendum, analysis says
Colorado property tax rates are expected to continue to increase next year, regardless whether Proposition HH is approved to provide property tax relief, according to a Common Sense Institute analysis.
HH is a referendum on the ballot during November’s general election. Voters are being asked whether to use the Taxpayer’s Bill of Rights surplus revenue – normally money refunded to taxpayers – to reduce property taxes, fund school districts, water districts, fire districts, ambulance or hospital districts and other local governments.
If passed, HH could save the average homeowner more than $1,200 over the next three years, according to the Colorado Fiscal Institute.
Because of money being allocated from TABOR, refunds from it would be reduced over 10 years, or maybe more than that.
Refund reductions are also a result of increases in the state spending limit.
“Under uniform distributions, a household with two (tax) filers could see a reduction in future TABOR refunds of $5,119 and a single filer could see a reduction of $2,559,” Common Sense Institute officials said.
Battle for votes over Colorado's Proposition HH rages on
Denver’s median home price of $681,243 pays $2,968 in property taxes in 2022, and $3,815 in 2023, according to numbers provided by Common Sense Institute. Numbers show that if Proposition HH were approved, that number would be $3,580 – still a 21% increase from 2022 – instead of 29%.
The Common Sense Institute is joined with several other organizations either opposing or clarifying HH implications.
Despite money saved through property tax relief, the overall average household will still see their property tax increase by nearly $620, Common Sense Institute said in their release. Assuming the increase is accurate, it would be a 26% increase despite HH relief.
“This is the largest property tax reduction in Colorado history, while still preserving funding for critical services, like our schools, fire districts, and libraries”, Gov. Jared Polis said on HH.