Kelly Caufield: The real price for Proposition HH

Proposition HH is one of the most complicated ballot measures ever presented to voters. It pulls multiple levers in tax laws, increases state spending, and has costly impacts for homeowners and renters. 

To help voters understand the impact of Prop HH on their own finances, CSI issued Proposition HH: The Taxpayer Dilemma, an in-depth analysis of the measure.

In a nutshell, Prop HH would take your TABOR refund to pay down a small amount of your property tax. I say small because even if Prop HH passes, property taxes in Arapahoe county will escalate more than 25%. 

The economic impact of higher property tax revenue growth under Prop HH will result in a personal income loss of $425 per household and cost Colorado more than 14,000 jobs. 

CSI analysis has identified several key components of the measure:

• Renters are the biggest losers. 768,000 or 33% of all Colorado households that are renters would not directly receive a property tax reduction, yet joint filers would lose $5,119 in future TABOR refunds. If landlords choose to pass on property taxes as is usually the case, renters are likely to see an increase in rents over time as well.

• The average homeowner would face a net tax increase of $478 through 2032. While they would see $4,641 in property tax savings, they would have a $5,119 increase in state taxes paid for by loss of TABOR refunds.

• Where does the funding go? 

>> Over 80% of additional money retained from Proposition HH would go to education with no accountability measures or spending guidelines.

>> Up to 20% of the tax increase would go to reimburse local governments for lost property tax revenue, though it is likely much less than that will be needed as local government assessed value surpasses the backfill threshold.

>> Up to $20 million annually for rental assistance. 

If Not Prop HH Then What? Prop HH will be the only measure on property taxes voters see on the 2023 ballot, and the only policy, barring a special session called by Governor Polis, that could impact their 2023 taxes. However, there remains numerous other policy options that could be adopted by the legislature or voters that provide greater relief for taxpayers. 

To see exactly how much your property taxes will go up and how much of your TABOR refund is at risk, please check out our household calculator where you can input your address and get a specific cost. Don’t take it from me, please check out our website today to learn the impact on your pocketbook.  Visit www.MyPropertyTaxCO.com.

Visit www.commonsenseinstituteco.org for resources and information to help you make an informed choice on the issues that matter most.  

Kelly Caufield is the Executive Director of Common Sense Institute.