Proposition HH: The Taxpayer Dilemma
As the title suggests, Proposition HH is a complex proposal. It modifies or reduces taxation rates and exemptions for multiple types of property while at the same time increases taxes by allowing the state to retain more tax revenue. It would distribute excess revenue to school districts and other government entities without new stipulations.
Proposition HH gives Coloradans a choice; trade some property tax relief, for a long-term increase in state taxes. Though any revenue forecast is uncertain, under normal economic conditions taxpayers would bear the full tax increases under Proposition HH even if the economy faced a sizeable downturn. While all Coloradoans benefit from TABOR refunds, only property owners would see direct benefits of the property tax decrease.
After voters repealed the Gallagher Amendment in 2020, which had moderated growth in residential property taxes for more than 30 years, the state legislature made temporary changes to the state assessment rate in 2021 and 2022 SB21-293 and SB22-238 but has not implemented a long-term solution to rising property taxes.