• Reduces Prop Tax Rates for All

    HH reduces assessment rates for all properties–residential, commercial, agriculture, etc. Residential goes from 7.2% to 6.7% and commercial goes from 29% to 25.9%. It also provides a $50,000 deduction for homeowners in the first year and $40,000 each year thereafter.

  • Targets Help for Seniors & Renters

    HH allows seniors who are eligible for the senior homestead exemption to move and continue receiving the same savings.

    In addition to avoiding the tax increases that their landlord will pass onto them in the form of increased rent, HH also dedicates $20 million each year for rental assistance.

  • Caps Future Tax Increases

    HH implements a property tax growth cap, which limits future property tax increases. If revenues are projected to exceed the rate of inflation, the district must reduce its tax rates. If they want to retain any of the surplus revenue, they must conduct a public process to do so.

Proposition HH

A Balanced Approach To Property Tax Relief

Proposition HH is a referred measure that will appear on the November ballot. The historic package will provide the largest property tax reductions in Colorado history, while still preserving funding for the critical services that rely on property tax revenue, like our schools.

By voting yes, voters will secure nearly $1 billion in property tax savings for Colorado families and businesses every year for the next ten years.

The average homeowner in Colorado will save $1,078 over the next two years and $3,241 over the next five years if Prop HH passes in November. The measure also asks voters to use a tiny portion of the tax revenue the state already collects to help make sure critical services that rely on property tax revenue, like our schools, don’t see their budgets cut.

The problem

Colorado is a popular place to live and a lot of people are moving here. That means home values have increased dramatically over the past several years.

As a result, Coloradans across the state are seeing their property taxes go up by hundreds and even thousands of dollars. In many communities, home values have risen 30-50 percent over the past two years and some communities have seen even larger increases.

The solution

Proposition HH will reduce property taxes for Colorado families, seniors, and businesses.

The measure decreases the residential assessment rate for homes and businesses and reduces the portion of a home that is taxed by $50,000 in 2023 and $40,000 moving forward. These reductions will save the average homeowner $1,078 over the next two years and over $3,241 over the next five years. The measure will also allow more seniors to stay in their homes or downsize by allowing Coloradans 65 years or older who have owned a home here for 10 years to reduce the assessed value of their home by $150,000 in 2023 and $140,000 moving forward.  

But we know that we can’t just cut property taxes without making sure that the critical services that are funded by property taxes, like our schools, aren’t harmed. So the measure asks voters to allow the state to retain more of the revenue it already collects but would otherwise be refunded to taxpayersin order to pay for the property tax cuts. This will ensure that school budgets aren’t cut, that fire districts can continue to keep their communities safe, and libraries remain open.

FAQs

  • Proposition HH is a result of Governor Polis, the legislature, and a bipartisan coalition of teachers, business leaders, and community leaders coming together to provide tax relief in a responsible manner that doesn’t harm schools and communities.

  • Property values in Colorado have gone up significantly in a short period of time. Because property taxes are generally a percentage of your home value, that means the amount we’re paying in taxes is going up as well. Proposition HH reduces the tax RATE, so that you get to keep the value gains of your home, but will pay less taxes on it.

  • Under Proposition HH, taxpayers will receive an increased TABOR refund of $898 in 2023. In 2024, the impact to the average taxpayer’s TABOR refund will be only $48—much less than the average $600 savings in property taxes.

    Taxpayers are expected to continue receiving $1 billion in refunds each year, even if Proposition HH passes. The math shows that the tax relief benefits to taxpayers are much higher than any reduction in refunds.

  • Proposition HH is a responsible tax cut that is fully paid for and therefore ensures schools, which rely on property tax for funding, will be made whole.

    Any reduction in revenue that school districts experience as a result of the tax cutes will be backfilled by the state. Additionally, any remaining revenue from the 1% TABOR change will be deposited into the State Education Fund, which is required to fund local school districts. In 2032 alone, the additional retained revenue is estimated to be $2.2 billion dollars.

    Colorado’s per-pupil funding has been among the worst in the nation, ranking as low as 47th at times. Proposition HH will help Colorado get up closer to the national average in school funding.

  • If we don’t take action, property taxes are expected to skyrocket by 40% in Colorado. Increased property taxes are passed onto renters directly through rent increases, so preventing steep increases will help renters afford to stay where they live. In addition, the measure dedicates up to $20M every year to assist renters in paying for a portion of their rent.

  • A far-right group has filed ballot measures that would place a hard property tax cap–with no accounting for population growth or the diverse needs of different regions of the state. This proposal, similar to Prop 13 in California, would have absolutely devastating impacts to our state, forcing schools to close, fire districts to eliminate services, and the state budget to be further, and more aggressively constrained than it already is.

 How Proposition HH Impacts…

  • Proposition HH provides ALL residential property owners with a reduced assessment rate of 6.7% and reduces the amount of an owner-occupied home that is taxed by $50,000 in 2023 and $40,000 in all future years.

    The average homeowner will save at least $600 per year over the next 10 years.

  • Businesses are assessed at a much higher rate (29%) than residential properties (7%). Proposition HH will reduce commercial property assessment rates down to 25.9%, resulting in saving hundreds of millions every year. Over the decade, Prop HH will save commercial property owners an estimated $4.5 billion.

  • If we don’t take action, property taxes are expected to skyrocket by 40% in Colorado. Increased property taxes are passed onto renters directly through rent increases, so preventing steep increases will help renters afford to stay where they live. In addition, the measure dedicates up to $20M every year to assist renters in paying for a portion of their rent.

  • Proposition HH allows seniors who were eligible for the Senior Homestead Exemption to move without losing the property tax savings. In addition to the reduced assessment rate of 6.7%, Coloradans who are over the age of 65 and have owned a home in Colorado for ten years will be eligible for an assessed value reduction of $150,000 in 2023 and $140,000 in future years, regardless of if they have moved residences.

  • Proposition HH is a responsible tax cut that is fully paid for and therefore ensures schools, which rely on property tax for funding, will be made whole.

    Any reduction in revenue that school districts experience as a result of the tax cutes will be backfilled by the state. Additionally, any remaining revenue from the 1% TABOR change will be deposited into the State Education Fund, which is required to fund local school districts. In 2032 alone, the additional retained revenue is estimated to be $2.2 billion dollars.

    Colorado’s per-pupil funding has been among the worst in the nation, ranking as low as 47th at times. Proposition HH will help Colorado get up closer to the national average in school funding.

  • Proposition HH ensures that counties and local services like schools, libraries, fire districts, and hospital districts don’t receive any budget cuts as a result of the tax cuts. The state is required to backfill these districts until and if their revenues grow by more than 20% from property taxes. This means that the high growth areas will easily be able to sustain themselves without state support, but rural and slower-growth areas will continue to be made whole.

  • Proposition HH maintains TABOR refunds and the right to vote on new taxes. And it only slightly modifies the TABOR formula by 1%. This 1% adjustment is a minor change to TABOR that ensures the tax cuts are done responsibly and 100% paid for with money from the state surplus.

    Under Proposition HH, the vast majority of taxpayers will receive an increased TABOR refund of $820 in 2023. In 2024, the impact to the average taxpayer’s TABOR refund will be only $46—much less than the average $600 savings in property taxes.

    Taxpayers are expected to continue receiving $1 billion in refunds each year, even if Proposition HH passes. The math shows that the tax relief benefits to taxpayers are much higher than any reduction in refunds.

    Additionally, unlike other tax cuts that reduce funding for schools in order to pay for tax cuts for the rich, Proposition HH directs targeted relief to seniors, working families, and the middle class. And this tax relief is fully paid for by adjusting the TABOR cap by just 1%, not by cutting funding for schools. Without modest adjustments to the TABOR cap, the only way to reduce property taxes is by cutting funding for schools and other services like fire districts.