Influential business group partners with Republicans in Colorado property tax war

Colorado Concern CEO Dave Davier said it was a reasonable response to the 2023 revaluation that pushed up many claims by more than 30%.

“People can’t afford it. Our initiative is really about the employees,” Davia said. “A 20% increase is difficult for businesses, rather small businesses, and homeowners to face. So we set out to fix that.”

Although Mr. Davier only recently took over as head of Colorado Concern, the group has been working on a similar plan for voting measures of its own for months. The group’s board recently approved working directly with conservative groups.

The new partnership signals the potential for even more heated property tax battles. Democrats are working on their own long-term solutions to property taxes, including through the bipartisan Property Tax Commission. Congress could make direct changes to property taxes this year or introduce legislation that would compete with efforts by the business community and Republicans.

But Davia disputed the idea that his group had switched sides in the property tax battle.

Colorado Concern said it is “very willing to work with the administration to continue the work we’ve done for years,” and the new measures include several that Democrats have supported, such as lowering property tax assessments. It was claimed to contain ideas.

“We spent the last year studying various aspects of what is important to the governor and the Legislature. [our new measure] It’s a model that delivers on that, or a model that encompasses that,” he said.

How the new proposal works

Still, the new measure has drawn criticism from Democrats, who warn of the impact on state and local budgets.

If ultimately approved by voters, the proposed new measure would reduce the taxable value of property across the state and lower property tax rates. This will bring property tax bills back to roughly 2022 levels, Fields said.

Going forward, the measure would also implement a long-term, statewide cap that would constrain property tax revenues. The total amount of property taxes collected by all local governments could not increase by more than 4 percent annually, with some limited exceptions to allow new construction.

If the cap is exceeded, the Legislature must either lower property tax rates or find a way to return the excess amount to taxpayers. Although the bill does not specify how that would be accomplished, Fields expects Congress to find a way to lower property tax rates while mitigating the impact on local areas with slow budget growth. are doing.

Somewhat confusingly, Fields’ group has already secured a ballot spot for a very similar proposal, Initiative #50. Fields said this week that he does not intend to take that step. One of the main differences between the two approaches, he said, is that Initiative #50 is incorporated into the state constitution and is therefore difficult to change, whereas the new proposal has just been enacted into law and is subject to amendments by Congress. It’s easy to accept.

As a result, voters could have multiple property tax options on their ballots this year.

Country may have to pay billions of dollars for ‘backfill’

The new coalition submitted multiple versions of the bill to the state title board. These include requirements for different amounts of state “backfill” amounts (the amount the state pays to local governments to replace the property tax revenue they are losing), but who will use that money? There is no stipulation as to whether the acquisition will be given priority.

“Councils will need to negotiate with local authorities about who receives backfill and how much,” Mr Fields said.

Fields said the new measures are also aimed at preserving funding for schools. It would force state governments to completely reduce the impact on school budgets, effectively replacing local property taxes with state taxes. This would put schools in increased competition with other state spending priorities in the general budget.

Democratic Sen. Chris Hansen estimated that the conservative measure could require the state to pay schools and local governments $2 billion to $3 billion in backfill costs.

“Where does the money come from? You can’t just say, ‘Oh, it magically comes out of the general fund.’ Colorado voters are very smart. They know they can’t get something for free. They know there’s no free lunch here, and I think they’ll pass on those types of offers,” Hansen said.

Hart Van Denberg/CPR News

Democrats similarly propose “backfilling” property tax cuts in their plans, but instead of reining in or cutting government spending in other areas, TABOR refunds paid to Coloradans They hope to cover the costs by reducing the amount of money they receive.

Fields emphasized that under this measure, local governments will still have certain powers regarding property taxes. They may try to persuade voters to raise local property tax rates, but that may be easier in large, liberal cities like Denver than in smaller, more conservative communities. It has been proven. Revenues from such local rate increases do not count toward the statewide cap.

Lawmakers face new pressure to carry out their plans

Scott Wasserman, director of the progressive Bell Policy Center, said the proposal could put pressure on lawmakers and property tax commissions to find their own solutions. He favors an approach that “smooths out” steep rises in taxable prices, and wants to target tax breaks to low-income homeowners without imposing “arbitrary caps.”

“Congress needs to come up with a thoughtful approach to ensure there is no surge, but that will also impact local communities.” [have enough revenue] “This is in response to accumulated needs and increased costs,” he said.

There are still some major hurdles to clear before new corporate conservative measures can appear on voters’ ballots. The bill’s language and title will be subject to review by legislative staff and the Title Committee. In that case, supporters would need about 124,000 signatures from voters to put it on the ballot.

There is no guarantee that it will happen. Davier said his group will also carefully consider options proposed by the Property Tax Commission next month.

“Certainly, if the Tax Commission at any level proposes an idea that stands out and makes better policy, we owe it to our volunteers to seriously consider it. “Aside from that, this is what we think is fair and balanced because it takes into account a lot of different interests,” he said.

The governor’s office said it will consider all proposals regarding property taxes.

“The Governor is committed to reducing property taxes and saving Coloradans money, and I look forward to the work of the bipartisan Property Tax Task Force this spring as we approach the November election. , will consider all ballot measures on the ballot to determine which will best reduce property taxes, which is his normal process,” spokeswoman Shelby Wieman said. wrote in an email.