On Oct. 17, the Centennial City Council will vote on whether to formally oppose Proposition HH, a statewide issue on the Nov. 7 ballot.

If passed, Proposition HH would reduce property taxes owed and allow the state to keep additional money that would otherwise be refunded to taxpayers, according to the state ballot information booklet, also called the Blue Book.

“The changes in Proposition HH are in place until 2032, but the measure allows the state legislature to extend them without additional voter approval,” the Blue Book states. 

During an Oct. 3 meeting, the council discussed the ballot measure and whether it should take a position of advocacy on it. 

Deputy City Attorney Christopher Price said the Colorado Municipal League decided to oppose Proposition HH and has asked members to consider adopting a resolution of opposition as well. 

About 270 Colorado cities and towns are members of the Colorado Municipal League, including Centennial, according to the league’s website. 

Price said the municipal league opposed the ballot measure because they believe it reduces local autonomy, it is unnecessarily difficult and complex to implement, and it could result in decreased revenue in the future for local governments. 

Centennial Mayor Stephanie Piko said one of her concerns is that the city relies on special districts for a lot of services. 

“I don’t know what this will do to our special districts, when I think of the fire district, and parks and recs, (and) library,” Piko said. 

Following some discussion, Council Member Mike Sutherland asked the council to vote on whether it wants to consider a resolution opposing Proposition HH. 

The council voted 6-2, meaning six members wanted the council to consider the resolution of opposition and two did not. 

Council Members Christine Sweetland and Marlo Alston voted against the motion. Council Member Candace Moon was absent and did not vote at the meeting.

“The reason why I will not be supporting this motion is because I don’t know how I’m going to vote,” Sweetland said. “So, I’m not going to support a resolution for the city.”

Sweetland said she is undecided because the ballot measure provides property tax relief, allows a portable senior homestead exemption, and she has heard of support from school superintendents. 

She said she can also understand why the Colorado Municipal League is against it, and she has some concerns about what the measure means to firefighters and other special districts. 

Ultimately, on Oct. 17, the council will vote on whether to pass a resolution opposing Proposition HH. A supermajority is needed, meaning that at least seven council members need to support the resolution for it to pass. 

To learn more about the upcoming council meeting, visit: bit.ly/centennialmeet. 

Those interested in contacting council members can find information at: bit.ly/centennialcouncil.

What is Proposition HH?

Proposition HH impacts taxpayers in two ways — lowering the amount they owe in property taxes and changing their TABOR refunds, according to the Blue Book.

Residents can use an online calculation tool to estimate how the combination of the property tax changes and TABOR refund changes would impact them. To access the tool, visit: hhcalc.apps.coleg.gov. 

Those interested in reading the full Blue Book online can visit: bit.ly/23bluebook. 

Lowering property taxes

Proposition HH would lower the assessment rates for residential property and most nonresidential property, according to the Blue Book.

It also would subtract a set amount from most properties’ values before applying the new assessment rates. 

“Lower assessment rates and value reductions are estimated to reduce property taxes owed statewide by $400 million in 2024, $960 million in 2025, and $1,090 million in 2026,” the Blue Book states. 

Proposition HH would allow people aged 65 and older who have previously qualified for the senior homestead exemption to receive the same property tax benefit in any home they purchase and live in as their primary residence starting in 2025, according to the Blue Book. 

The ballot measure also proposes creating a property tax revenue limit for certain local governments, with the exception that school districts and home rule jurisdictions are not subject to the limit. Centennial is a home rule municipality. 

The Blue Book said under this limit, many local governments “cannot collect property tax revenue above the amount they collected in the prior year plus inflation.”

A local government can waive the limit by annually notifying the public, holding a meeting for public comment and adopting an ordinance or resolution. 

“The local government revenue limit may decrease property taxes owed by an additional $510 million in 2024, $470 million in 2025, and $520 million in 2026, depending on how many local governments waive the limit,” the Blue Book states.

TABOR refund impact

The Taxpayer’s Bill of Rights, also called TABOR, limits the amount of money the state government can collect, per the Blue Book. If money is collected above the limit, the excess must be refunded to taxpayers — a TABOR refund.

Proposition HH would create a new cap on the amount of money the state may retain over its revenue limit. This new cap would be higher than the current cap.

The ballot measure would allow the state to retain an estimated $170 million in the state budget year 2023-24 and $360 million in the state budget year 2024-25, per the Blue Book. 

According to the Blue Book, the retained money would be used in the following ways:

• Up to 20% to reimburse eligible local governments for lost property tax revenue
• Up to $20 million each year for rental assistance
• Remaining funds to reimburse school districts for reduced property tax revenue as a result of the measure and for education-related programs, estimated at $125 million in the state budget year 2024-25, and up to $2.16 billion in the state budget year 2031-32.

If voters pass Proposition HH, the 2023 TABOR refunds are estimated to be $898 for single filers and $1,796 for joint filers, per the Blue Book. 

In 2024 and 2025, TABOR refunds would be expected to decrease compared to what they would be under current law.

“The measure’s impact on TABOR refunds over the long term depends on population growth, inflation, and state revenue collections,” the Blue Book states.