Douglas County, Colorado

DougCo joins lawsuit vs. property tax relief measure

2023-05-24

By Mike McKibbin / NewsBreak Denver / May 24, 2023

[DOUGLAS COUNTY, COLO.] — The Douglas County Commissioners have joined a lawsuit challenging the legality of a property tax relief measure passed by Democratic state lawmakers in the last days of the state legislative session.

Commissioners Abe Laydon, George Teal and Lora Thomas — all Republicans — and the county want Senate Bill 23-303 to be declared “void and unconstitutional, precluding its implementation and enforcement; or, as an alternative, that the ballot title should be corrected to provide a clear, detailed and politically neutral explanation of its contents,” according to a Wednesday news release.

According to a story on the Ballotpedia website, a non-partisan political and elections site, Advance Colorado, a conservative non-profit, and an Englewood City Council member filed a lawsuit on May 15 in Denver County District Court, challenging the property tax measure — Proposition HH — placed on Colorado’s November general election ballot.

The lawsuit alleges the measure violates the state’s single-subject rule, which requires ballot measures to address a single subject. It also claims the ballot language is misleading.

Advance Colorado is focused on “fiscal responsibility and transparency, limited government, free enterprise, lower taxes, strong public safety, and an accountable education system,” according to its website.

Measure addresses tax rates, revenue

The Ballotpedia story states the measure would make several changes to state property taxes and revenue limits by:

• reducing property tax rates;
• allowing the retention and spending of state revenues that would otherwise be refunded to residents under Colorado’s Taxpayer’s Bill of Rights;
• allocating money to local governments to compensate for decreased tax revenues
• limiting local government property tax revenue; and
• establishing a new cap on state revenue.

“Any way you slice it, SB23-303 and Proposition HH do not prevent residential property owners in Douglas County from experiencing what will be the largest property tax increase in state history,” Laydon said in the release.

“Selling this ballot item as ‘property tax relief’ while sending your TABOR refunds to fund state government instead of to you; making long-term changes to the TABOR formula and failing to specify that the state surplus is being used to unnecessarily backfill local taxing authorities is misleading,” Teal stated in the release.

“SB23-303 and Proposition HH — foisted upon us at the 11th hour of the legislative session without the contribution or approval of the local governments it directly affects — not only fails to fix the enormous property tax hikes resulting from the repeal of the Gallagher Amendment but confiscates taxpayers’ last remaining bit of tax relief — their TABOR refunds,” Thomas said in the release.

The 1982 Gallagher Amendment shifted the property tax burden from residential to commercial property owners. It was repealed by state voters in 2020, a move some claim helped lead to recent concern about significant statewide homeowner property tax hikes in 2024.

Property valuations focus of town hall meeting

The commissioners also claim the measure needs to be clarified because it needs to provide the actual rates for property tax changes or projections for reductions in revenue.

Specifically, they said the bill and ballot titles fail to include any numbers concerning the property tax assessment rates and do not clearly inform voters that the reduction of the property tax assessment is minimal.

The county release came on the same day a live town hall was scheduled to be held Wednesday evening, focused on recent property valuation notices and next year’s property taxes.

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