Proposition HH: Polis’ Trojan Horse Tax Hike Disguised as TABOR Refunds

In the upcoming election, Colorado residents are being asked to weigh in on Proposition HH. While the ballot language may conveniently omit mentioning the Taxpayer's Bill of Rights (TABOR), it is a crucial factor in this debate.

If passed, Prop. HH would result in increased TABOR refunds for approximately 60% of taxpayers in the 2023 tax year. However, nonpartisan economists predict that in the future, these rebates could decrease and, worse yet, potentially be eliminated altogether, effectively constituting a disguised tax hike.

Let's delve into the numbers. In 2023, Prop. HH would standardize all TABOR refunds at a flat rate of $898. This would lead to modest increases of between $60 and $270 for individuals earning $99,000 or less, while high-income earners would see smaller-than-expected bumps.

Looking ahead, the measure would gradually reduce TABOR refunds in the following two tax years if the state continues collecting surplus revenue. Lower-income earners could experience a decrease of $31, while higher-income brackets might face reduction amounting to $212 annually.

However, the most pressing concern lies in Prop. HH allowing the state to keep up to an additional 1% of tax revenue that would otherwise be returned to voters. Over a decade, this would accumulate to a staggering $2.2 billion per year.

Proponents of the measure argue that this additional revenue would be used to reimburse school districts for lost funding and mitigate property tax cuts' impact on local governments. They also propose allocating up to $20 million annually to provide financial aid for those struggling with rent.

Nevertheless, it is worth considering the motives behind Prop. HH. Senate President Steve Fenberg, a Democrat from Boulder, leads the campaign in support of the measure. He emphasizes the record number of property tax appeals to justify tax cuts.

However, what Fenberg conveniently fails to mention is that the Democratic-controlled legislature has the power to address the property tax crisis directly. They have the authority to fix the mess created when the Gallagher Amendment was repealed, but their focus seems to be on eliminating TABOR rather than finding an effective solution for Colorado tax payers.

Furthermore, Colorado residents should be wary of the long-term implications of Prop. HH. If passed, the legislature could extend its provisions indefinitely, including retaining more tax revenue, without any additional public vote.