Last year, Edgewater voters had to navigate through 14 state and county ballot questions. Fortunately, this year there are only two, both referred by the state legislature. Proposition HH is the more important of the two as it will significantly impact property taxes and Taxpayer’s Bill of Rights (TABOR) refunds. TABOR constitutionally limits the amount of money that the state government can collect and spend or save each year. Voter approval is required to retain money above the TABOR limit, or it must be returned to taxpayers.
Proposition HH: Reduce Property Taxes and Retain State Revenue
Proposition HH would reduce property taxes and allow the state to retain and spend excess state revenue. Most of the retained money would go to reimburse schools for the lost property tax; another 20 percent would go to local governments for lost revenue, and $20 million each year would go to rental assistance. The measure also creates a new limit on property tax revenue for most local governments and creates a new cap on state revenue, which has not been increased since Referendum C passed in 2005.
Impact to TABOR refunds: Proposition HH would impact your next TABOR refund. It would give each filer an estimated $898 (joint filers would get twice that). If adopted, filers who earn less than $99,000 a year would see a slight increase but filers with incomes greater than $99,000 would see a decrease. Future TABOR refunds would decrease and be tied to adjusted gross income.
Impact to Property Taxes: Taxes on an average residential property in Edgewater would decrease by about $240 in 2023 and about $340 in 2024 under Proposition HH. The measure would also allow seniors who currently have the homestead exemption to keep it if they purchase and move to a new home starting in 2025.
Calculate Proposition HH’s impact on you: The state developed a calculation tool that you can use to determine how your property tax and TABOR refund in 2023 and 2024 would change if Proposition HH passes (https://hhcalc.apps.coleg.gov/calculators).
Proposition II: Retain Nicotine Tax Revenue
This measure is related to Proposition EE from 2020, which increased taxes on nicotine products to support preschool programs. Since then, $21 million more than originally projected in tax dollars were collected, which is above the revenue limit approved under Proposition EE. Proposition II asks voters if the state can keep and spend that tax revenue on preschool programs rather than return it to nicotine wholesalers and distributors. Also, if the measure passes, nicotine product tax rates will stay the same. If it fails, the nicotine tax rates will be reduced by 11.53 percent.
More information on these propositions can be found in the Ballot Information Booklet (or Blue Book), which is mailed to voters and available online. This year’s election occurs on Tuesday, Nov. 7, and ballots will start to be mailed out on Oct. 16.
Contact Edgewater Mayor John Beltrone at jbeltrone@edgewaterco.com or 720-643-6077.
