Coloradans will head to the polls on Nov. 7 (Tuesday) to vote on Proposition HH, which if approved, could significantly change property taxes for Colorado homeowners for at least 10 years. However, knowing whether these changes are beneficial can be confusing and might depend on who you are.
A "yes" vote on Proposition HH would essentially limit property tax increases and lower property taxes owed. However, according to the Colorado Legislative Council, the measure would also “allow the state to keep additional money that would otherwise be refunded to taxpayers.” In other words, Proposition HH could lower property taxes across the state, but could also reduce popular TABOR (Taxpayer Bill of Rights) refunds.
So, will save more money by voting “yes” or by voting “no”? Here’s some information that might help you decide.
Proposition HH Colorado pros and cons
Proposition HH has a 10-year expiration date, but if Colorado voters approve the measure this year, state lawmakers could extend this date. (And they wouldn’t need voter approval to do so.) So, the outcome of the Nov. 7 state elections could have a long-term impact on current and future homeowners in Colorado.
If you’re uncertain which way to vote on Proposition HH, here is some information that might help you decide.
- Your property tax increase would be reduced. (However, it’s important to note that your property taxes might still go up, just less than they would otherwise.)
- The Colorado senior property tax exemption for eligible homeowners 65 and older could be transferred to new homes after a move.
- Some local governments would have a limit to how much revenue they can collect.
- Because Colorado would be able to keep more tax revenue (increase the state’s property tax cap), TABOR refunds could be reduced and even eliminated for some people. (Currently, TABOR refunds are sent to taxpayers when the state collects more revenue than it can lawfully keep.)
Even if voters approve Proposition HH, there wouldn't be a change in TABOR refunds next year. However, after 2024, there would be an overall reduction in TABOR refunds, with higher earners experiencing the most impact.
Calculate potential savings. To help understand the impact Proposition HH would have on your property taxes, you can use Colorado’s Proposition HH Calculation Tool. However, the tool only provides estimated impacts. Actual results will vary and are based on individual circumstances.
Colorado property tax alternatives
State lawmakers seem to agree that without a change to Colorado’s current property tax law, homeowners could see the taxable values of their properties increase, by some estimates, nearly 40%. So, without Preparation HH (or an alternative measure), homeowners could expect to pay higher property taxes next year.
However, not all Colorado lawmakers support Proposition HH. And although voters are headed to the polls, some Republican legislators have called for a special session to discuss alternatives to combating increasing property taxes.
However, it is unclear if Colorado Gov. Jared Polis will call a special session. And even if he does, state Democrats, who support Proposition HH, hold the majority in both chambers. So, there are no guarantees that other legislative property tax alternatives would gain bipartisan support.
