Should this amendment be approved by voters during the November 2024 election, it would fundamentally change how property tax revenues are assessed and limited across various districts in Colorado. Specifically, if the revenue generated by a district's current mill levy is projected to exceed the newly established limit, the district must reduce its mill levy accordingly unless voter authorization is granted. This legislative change is expected to provide citizens with more stability regarding tax obligations, especially in communities facing rapid property value increases.
Summary
HCR1006 proposes an amendment to the Colorado Constitution that aims to establish a new limit on annual property tax revenue growth for districts that levy property taxes. The proposed district limit is designed to restrict the growth of property tax revenue, coming into effect for property tax years commencing on or after January 1, 2025. This limit will be calculated based on the previous year's revenue, adjusted for state revenue growth as determined by the Taxpayer's Bill of Rights (TABOR), plus two additional percentage points. Additionally, these districts can adjust their revenue based on any new taxable properties entering the district and factors affecting previous property taxation.
Contention
The proposal has stirred considerable debate among stakeholders. Proponents argue it is essential to curb excessive property tax increases and provide relief for taxpayers, making tax burdens more predictable and manageable. Critics, however, express concern that imposing such a limit may hinder local governments' capabilities to fund essential services and respond to unique community needs effectively. Thus, the debate highlights tensions between the need for taxpayer protection and the need for adequate funding for local infrastructure and services.
Reduce the growth in the assessed value of owner-occupied property, limit increases in certain property tax revenues, revise provisions regarding school district excess tax levies, and revise eligibility requirements for a property tax assessment freeze.
Change the Property Tax Growth Limitation Act and the School District Property Tax Relief Act and change provisions relating to budget limitations, municipal occupation taxes, and property tax statements
Reduce a limit on the annual increases of property tax revenues payable to certain taxing districts, and to subject school districts to a limit on property taxes collected in a year.
Relating to the authority of the Harris County Municipal Utility District No. 405 to exclude territory; validating and confirming all previous acts of the district.