The proposal would have resulted in a reduction of property taxes for a $500,000 home by $186 to $276, depending on local tax rates.
Colorado voters have rejected a measure aimed at lowering property tax bills for homeowners, despite a significant surge in assessed home values
In exchange, taxpayers would have experienced a decrease in the state’s unique tax refund, which provided $750 per taxpayer last year. This reduction in refunds would have affected individuals across all income levels over the next decade, contingent on state revenue.
Proponents of Proposition HH argued that it would have shielded against substantial property tax hikes, particularly benefiting seniors and working families. However, opponents, including Republican state lawmakers and conservative groups, contended that it could ultimately lead to higher costs for taxpayers compared to the savings on property tax bills.
The measure would have provided more substantial reductions for primary residence owners compared to those with second homes or rental properties
Additionally, it would have allowed senior citizens to carry an existing property tax break with them if they downsized homes. While residents would have initially received an estimated $148 more in a flat taxpayer refund this year, starting in 2024, refunds would have reverted to being determined by income.
This measure, proposed by the Democratic-led Legislature, aimed to slow the increase of property tax bills over the next decade by lowering the statewide assessment rate and exempting a portion of a home’s value from taxation. Despite the surge in residential property values, the ballot measure would have mitigated the increase in property tax bills for the year. In a separate vote, Colorado voters approved diverting additional funds from a tobacco tax towards the state’s new universal preschool program.
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