By Ed Augden, Guest Columnist
Colorado homeowners all received a property tax assessment in the mail this year, and if your eyes went wide at the estimated increase in taxes, you’re not alone. During the pandemic we saw an exponential increase in home prices in part because we saw many high earners from other states move to Colorado, driving up the prices of single family homes.
Statewide, assessed values of homes are expected to increase by 40 percent in 2023, on average, and assessed value of commercial properties are expected to increase by 20 percent on average in 2023.
Seniors and low-income families will be hit the hardest by the property tax increases. Seniors, who are already on a fixed income, will struggle to afford the drastic raise in property taxes, potentially putting their savings in the crosshairs between their homes and unexpected medical costs. Hard working families who rent their homes may have to choose between groceries for their family or keeping their home.
While the situation may seem dire, there is hope. Proposition HH will save Colorado taxpayers over $1 billion annually in property taxes and provide targeted relief for seniors.
Seniors are particularly vulnerable to property tax increases because they often live on a fixed income. Under HH, the average senior homeowner in Colorado will save $1,065 over the next two years.
HH provides targeted savings for seniors by building upon the Senior Homestead Exemption. The most recent Colorado Futures Center Housing Affordability Update shows that the inflexibility of the Senior Homestead Exemption is exacerbating the housing crisis. Prop HH addresses this by making the Senior Homestead Exemption portable, allowing seniors to downsize without sacrificing the property tax savings. This includes seniors who have already moved! If a senior was previously eligible for the Senior Homestead Exemption but lost it after moving, will immediately become re-eligible and will save $2,122 on average over the next two years. This gives our older population greater flexibility in choosing homes that fit their needs.
It’s no secret that the skyrocketing rise in rent has been contributing to the state’s ongoing housing crisis. Many landlords will factor the 40 percent rise in property taxes into their rent increases next year, leaving many renters liable for paying property taxes on a home they don’t even own. Prop HH takes hardworking families’ concerns into account and will actually dedicate up to $20 million every year to assist renters in paying for a portion of their rent – securing long-term homes for renters and reducing the amount landlords could pass on to their tenants.Â
If Colorado voters fail to pass Prop HH this fall, the alternative would dramatically reduce funding for our schools and valuable community programs that we all rely on. The far right special interests spreading misinformation about HH want you to believe that Initiative 50 is an equal alternative to Proposition HH, but that’s just not true. Prop HH reduces property tax rates responsibly by asking the state to retain more of the revenue it already collects but would otherwise be refunded to taxpayers in order to pay for the property tax cuts – protecting our school budgets, fire districts, libraries and more. Initiative 50 is a short-sighted retaliation that would leave our community programs devastated.
Prop HH is a win-win solution for Colorado homeowners and local governments alike, and Colorado voters have the responsibility to pass the largest property tax reductions in Colorado history. By voting yes, voters will secure over $1 Billion in property tax savings for Colorado families and businesses every year for the next ten years. The average homeowner in Colorado will save $1,078 over the next two years and $3,241 over the next five years if Prop HH passes in November.
Be a good neighbor, look out for your community. Be part of the change that helps seniors, working families, and more while protecting our schools and other critical services that our communities depend on. Vote YES on Proposition HH.
Ed Augden is the President of the Colorado Alliance for Retired Americans.
Who Does Prop. HH Really Benefit? Understandably, property taxes are higher with increased Colorado property values, but this surely would never had happened if the Gallagher Amendment wasn’t repealed, as supported by the same tax and spend special interest groups behind Prop. HH. Prop. HH seems more likely to benefit higher income folks and the Venture Capitalists and private equity entities buying-up single family residences so very few private residents can actually afford a home. Not only is Prop. HH a welfare program for landlords, but many Coloradans will get no relief and lose part of their TABOR rebates (renters, students living on campus, non-head of household dependents, labor in company housing, seniors in care facilities, etc.). Landlords and wealthier property owners will enjoy a disproportional share of everyone’s TABOR rebates as the legislature pushes yet another money grab to benefit corporations and redistribute money to the rich! It is ludicrous to argue Prop. HH would benefit the elderly, working families, or anyone of honest and modest means… it would just embolden the lobbyists and politicians to steal more from the public treasury. I would encourage the voters to ponder if government has ever really reduced taxes for the average taxpayer and what Prop. HH really means.
Guess my censored comments on why HH is not what Mr. Augden claims is not as important as his misleading letter. The censorship is still alive at the Sentinel Blog.