Capitol Democrats Attempt to Reverse Property Tax Relief in Douglas County
Conservative officials are standing strong against Democrats' attempts to reverse property tax relief for thousands of homeowners in Douglas County, Colorado. This comes after the county's three Republican commissioners voted to reduce property valuations by 4%, offering much-needed tax relief for residents.
However, state officials, who are controlled by Democrats, are looking to intervene and potentially overturn the county's decision. There are concerns that if this happens, it could set a dangerous precedent for other counties in Colorado and potentially cost homeowners and local governments tens of millions of dollars.
The situation arises just weeks before voters will decide on Proposition HH, a so called 10-year property tax relief plan created by Governor Jared Polis and Democrats in the state legislature. Republicans argue that this initiative does not provide enough relief for homeowners struggling with skyrocketing property values during the pandemic.
In addition, in 2024, Colorado voters will have to consider a more far-reaching property tax measure put forth by a conservative group. Democrats are warning that this initiative could have disastrous consequences for state and local budgets.
The first ‘NO on HH’ video campaign ad. (Common Sense Institute)
The controversy in Douglas County began when the county's commissioners, acting as the board of equalization, voted to reduce property valuations by 4%. This decision was made after home values rose by an average of 48% in 2022, resulting in increased property tax bills for residents.
Commissioner George Teal, a Republican, stated that the reduction was made in the name of tax relief for homeowners.
This caught the attention of the State Board of Equalization, controlled by Democrats, which is tasked with reviewing the county's decision. The concern is the impact the reduction will have on over 300 local districts in the county, which set their own tax rates but will now have to deal with the consequences of the across-the-board valuation reduction.
One of these districts is West Metro Fire Rescue, which operates in both Douglas and Jefferson counties. Chief Don Lomardi expressed his frustration, saying that the county did not consult with his department before making this decision. As his department is already facing increased labor costs and the need for more expensive firefighting equipment, the reduction will only add more strain.
“I don’t have a money-making machine in our basement. I don’t know how they think that we’re going to be able to stomach all of these losses long term because they end up compounding,” Lomardi told the Colorado Sun.
If Proposition HH is passed, local districts will be reimbursed for their revenue reductions, putting an even greater financial burden on the state.
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Denver Democrat State Senator Chris Hansen, a proponent of Proposition HH, has expressed concern over the Douglas County decision, stating that it may be a misuse of power to offer property tax relief.
The fact that the county's decision increases the financial burden for the state is also alarming. Furthermore, the state board is likely to take into account protests from local districts before deciding whether to reverse the reduction.
However, Republican officials in Douglas County maintain that they have acted within the law and have not violated the 5% restriction on property valuations set by the state. Commissioner Teal emphasized that the county may also consider reducing its mill levy rate to offer further relief.
Douglas County Commissioners George Teal and Abe Laydon.
Douglas County's Republican Assessor Toby Damisch defended the 4% reduction, stating that it was based on market conditions at the time of appraisal. He also highlighted that even with the reduction, the average increase in property values in the county was still the highest in the metro area.
Despite these assurances, critics of the reduction are concerned that if successful, it could prompt other counties to follow suit, with potentially disastrous consequences for local government revenues. In their eyes, the county's decision was political and not based on market conditions.
While no other counties have followed suit, Commissioner Teal has received calls from commissioners in other counties expressing interest in replicating what Douglas County has done. Commissioner Abe Laydon has added, “We’re the first county to do it, but hopefully not the last.”
The State Board of Equalization is expected to review the Douglas County valuation reduction in December. Conservative officials are urging them to uphold the decision and provide much-needed relief for homeowners in the county. Time will tell if their pleas will be heard.