Berndt: Proposition HH hits younger Coloradans hard
Colorado voters have started receiving their ballots. One measure – Proposition HH – asks younger Coloradans like me to increase our tax burden in exchange for tax handouts to wealthier property owners.
The proposition would reduce future tax refunds under the Taxpayer’s Bill of Rights (TABOR) in exchange for minimal property tax relief. The benefit to older Coloradans who own homes could be a net positive or negative, depending on their individual circumstances. But for younger, lower-income Coloradans trying to get off the ground in an increasingly expensive state, it’s a clear loser.
If Proposition HH passes, the average household would lose about $5,119 in TABOR refund money over the first 10 years, according to a study by the Common Sense Institute. Meanwhile, a median homeowner’s property tax bill would go up some $706 instead of $936 this year, with similar savings thereafter. These cuts could offset some of the loss in tax refunds for homeowners.
Renters, however, would only get the downside effects of losing TABOR refund money with no direct benefit from property tax changes.
Colorado voters added TABOR to the state constitution in 1992 to limit the growth in state spending to a formula of population growth plus inflation. It requires the state to return surplus collections to taxpayers each year unless voters approve a spending increase. That’s why Prop HH is on the ballot.