Proposition HH: Residential Property Tax Cuts and TABOR Rebates
Colorado Families to Receive over $5,000 in Property Tax Savings Over the Next Decade with HH and Still Receive Up to $10,000 in TABOR Rebates
Coloradans will vote on Proposition HH this November to address large increases in their property taxes, which have grown an average of over 40% during the past two years. Struggling Colorado families, still dealing with historic inflation, can’t afford a 40% increase in property taxes. Proposition HH cuts taxes in a responsible way while still preserving funding for the critical local government services that rely on property tax revenue, like our schools.
If Proposition HH passes, the average homeowner in Colorado will get $1,336 over the next three years in property tax savings and still receive $1,690 in TABOR refunds. Netting the property tax savings with expected reductions to state refunds over the whole decade, Proposition HH will result in $2,682 net savings.
CFI modeled two 10-year scenarios to gauge the net benefit of HH, that include the foregone TABOR rebates and property tax savings. One model includes a recession, while the other assumes no recession. Recessions would reduce the revenue over the TABOR cap, thereby reducing TABOR rebates.
Assuming average historical growth rates that include a recession, the average taxpayer in the average valued home in Colorado stands to save $4,455 over the decade from Proposition HH. This includes $4,872 in property tax savings and $417 less in TABOR rebates over the decade. Under a non-recession scenario, which assumes revenues grow consistently throughout the decade, the average taxpayer would receive $4,872 in property tax savings and $2,190 less in TABOR rebates for a net savings of $2,682. In this scenario, taxpayers can still expect to receive $4,950 in TABOR rebates ($9,900 for joint filers) over the decade. Savings will be larger for owners of homes worth more than the average and for homeowners in districts where property tax rates (mills) are above the state average.
If Prop HH passes, taxpayers can still expect between $300 and $1,300 in TABOR rebates a year, with the foregone rebate dollars going to backfill the budgets of critical services, like fire, water, and schools. Overall, Proposition HH provides significant property tax relief while protecting local services and allowing school districts to benefit from expected growth even with these property tax reductions – giving districts nearly $1 billion in additional revenue per year by the end of the decade. Finally, Proposition HH maintains large and growing TABOR refunds for Colorado taxpayers when Colorado’s
economy grows.
