Colorado Springs

Experts weigh in on property tax ballot initiative – Colorado Springs, Colorado

Colorado Springs, Colorado 2021-08-02 23:52:43 –

Colorado Springs — Ballots designed to reduce property taxes are approaching state-wide voting.

Colorado Rising State Action He submitted more than 190,000 signatures to the Secretary of State’s office on Monday.

“What’s happening in the last few years is a huge rise in home prices. People’s valuations are much higher than before. Our homes are more valuable, but it’s you Doesn’t mean you have more money in your pocket so you can pay property taxes. Seeing that this can burden the elderly and property tax people, I We wanted to move to lower property taxes, “said Michael Fields, executive director of Colorado Rising State Action.

under Initiative 27, Housing property tax will drop from 7.15% to 6.95% and non-resident property tax rate will drop from 29% to 26.4%. It will also allow the state to hold and spend $ 25 million on housing exemptions and property tax cuts for seniors and disabled veterans.

“Most years we fund it, but some don’t. We wanted to give them an incentive. All of that is $ 150 million, so the law keeps it instead. And you can spend only $ 25 million on Homestead to help people with disabilities. Veterans and seniors. ” “Because of the high valuation, government funding will be higher next year than this year. If the value goes up by more than 10%, 9% means more government, but growth will slow down,” he said.

In the election last November, voters Gallagher fix This is a state law that typically reduced the property tax valuation rate and maintained a 45-55 property tax-based split between residential and non-residential.

“What Gallagher did was balance commercial and residential valuations. At the time, rates of commercial real estate were rising, but residential real estate wasn’t three times the pace of commercial real estate. So it was doubled, so what Gallagher did was to balance these with the valuation rate. We don’t want the home valuation rate to be higher than the commercial. ” “Modification B basically came in and said it would remove the Gallagher, so I’m going to modify the rating this time.”

In a previous assessment, Weinberg said home prices in El Paso County rose 15 to 30 percent.

“At the next valuation rate, the value is already up 20%. The valuation is done every odd year, so the value currently displayed is from 2018 to 2020. By 2023, another 20%. Why is the property tax going up? It went up in value, Amendment B was passed, and Gallagher was eliminated. “

Colorado General Assembly Law This year, in response to Initiative 27, we will implement various temporary assessment rate reductions over a two-year period, depending on the voter’s decision.

“The ballot says the tax should be cut by $ 1 billion, but what Congress has done will bring it to $ 200 million,” said Elliott Goldbaum of the Colorado Institute for Fiscal Studies. rice field.

Goldbaum believes that ballots have some unintended consequences and does not aim to bail out those who need them most.

“School districts may cut funds, especially in areas of the state where there is no dramatic increase in asset value. If you are a renter, you will not be tax-reduced. You will be tax-reduced. Is only the person who owns about 40% of the state’s assets. Not so many, but at the same time many millionaires and millionaires. Very expensive to receive very significant tax cuts. Real estate. “

He says the ballot language is very deceptive and the Colorado Institute for Fiscal Studies has appealed to change it.

“The property tax benefits already in the Constitution are funded each year, whether or not they pass. I think it’s deceptive to put this in the wording of the voting bill. The wording of the voting bill. We failed, but voting for this does nothing to ensure that older Colorados and disabled veterans benefit from their property taxes. To all voters, “Goldbaum said.

According to accounting notes, $ 100 million in public education funding will be affected by Initiative 27.

“In March, the Colorado Education Association took a position against Initiative 27,” said Kevin Vic, Vice President of the Colorado Education Association. “Colorado is already underfunded for schools by this year and will be $ 527 million. Over the last decade, it will total about $ 10 billion. We are already underfunded. And further reducing revenue is kneeling. The future of our children. “

Vic says property taxes are one of the main sources of public education funding.

“The states are trying to balance their income from local taxes, but the states don’t have the resources to fill the gap if their property taxes are reduced. That results in an overall decline. Probably. Income. “

Education isn’t the only thing affected if the bill is passed, he says.

“In addition to school, you’ll see police and fire protection weaken, you’ll see local mental health services continue to suffer,” Vic said.

Despite concerns, proponents of the bill say it’s the right time for change.

“Government is not the entity that is currently struggling. It is individuals, families, businesses, and this break will help them,” Fields said.

Experts weigh in on property tax ballot initiative Source link Experts weigh in on property tax ballot initiative

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