DAY TWO: DEMOCRATS RAID TABOR AND AVOID PROPERTY TAX RELIEF
The second day of Colorado's special legislative session aimed at addressing the state's property tax crisis saw fierce debate and tensions between Democrats and Republicans – with the Democrats pushing through their agenda and avoiding property tax relief.
In the state Senate, Democrats made significant changes to their proposal, which includes increasing the revenue growth rate for local governments to receive state funds to make up for lost property tax revenue – instead of lowering evaluation of properties. This move was met with backlash from Republicans who argue that it would only exacerbate the issue by further burdening taxpayers, instead of directly addressing the high tax bills adversely effecting Coloradan homeowners.
But that didn't stop Democrats from using the tactic of "backfill," which essentially funnels state TABOR refund dollars to local governments that are not able to collect as much in property tax revenue. They even went as far as to add ambulance and emergency services to the list of entities that can receive these funds, despite not being directly affected by the property tax issue, a move that was outside of the scope allowed by the special session.
“House District 47 voted HELL No on Prop HH… Here at the end of the day, I’m representing House District 47 and they gave us a mandate. But right here on this pink paper it says, ‘The bill will reduce TABOR refunds,’” Rep. Ty Winter, (HD47)
Meanwhile, in the House, Democrats pushed through several measures, including House Bill 23B-1008, which provides additional funds to the Department of Treasury to administer a property tax deferral program.
This program allows residential property owners to defer a portion of their property taxes if their taxes have increased above a certain amount. While the program has seen an increase in applicants, it was met with skepticism from Republicans who warned against the dangers of creating temporary government programs.
Further criticism was directed towards the Democrats' proposal to double the Earned Income Tax Credit (EITC) from 25% to 50% of the federal credit for the 2023 tax year.
This move is estimated to cost taxpayers $185 million, which would be funded by the Taxpayer's Bill of Rights surplus. Despite concerns about the cost and breaking promises with voters, Democrats pushed ahead with the bill, claiming that it would help low- to moderate-income individuals and families, especially those disproportionately affected by the current crisis. Again, being outside the scope of the special session, raiding TABOR was just voted down by voters in Prop HH.
Republicans also raised objections to the formation of a task force to find long-term solutions to the property tax issue, arguing that it lacked representation from rural Colorado. Democrats responded by adding a representative from labor to the task force, which only fueled criticism from the GOP.
In the Senate, lawmakers overwhelmingly passed Senate Bill 23B-002, which addresses a federal food and nutrition program. This was the only measure to see bipartisan support, with the rest being met with fierce opposition from Republicans.
This included Senate Bill 23B-001, which aims to provide tax relief for residential and multi-family properties but has faced backlash from the GOP for its funding source and potential consequences.
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Democrats remain determined to pass their liberal agenda and "fix" everything but Colorado's property tax mess.
The special legislative session is set to continue for at least one more day, with both the Senate and the House reconvening on Sunday. As the debates rage on, this issue will remain a highly contentious one for the foreseeable future.