Colorado residents will vote this fall on three ballot initiatives that if approved by the voters will slash both income and property taxes.
These ballot measures are known as Colorado’s Amendments 60 and 61.
Amendment 60 would make school districts cut property tax rates in half by 2020 and force the state to make up the difference for those cuts. It would also make state enterprises such as universities pay property taxes. It is estimated that Amendment 60 would cut local property taxes by more than $1 billion and require the state to make up the difference.
Amendment 61 would also have an effect on property taxes because it would severely limit the amount of debt that local governments could take on.
Obviously, school districts in Colorado feel especially threatened by both of these initiatives. Education funding across the state has already absorbed $260 million in cuts this year alone to balance the state budget. That makes it unclear how the state will make up the additional $1 billion in funding required by Amendment 60.
Other school district officials are concerned about the borrowing restrictions required by Amendment 61. For example, school districts in Colorado typically borrow money from the state in the fall to pay teachers in advance of property tax receipts in the spring. Amendment 61 might also have a significant impact on major capital improvement projects such as schools and local government infrastructure.
These ballot initiatives are being voted on at time when there is widespread anti-incumbent sentiment and frustration over high taxes during the current recession. Given this current environment of government distrust, some feel that now is the right time for voters to address these issues.
At the same time, other committees in the state government are considering options to address the huge shortfalls in revenue that both the state of Colorado and its local governments are experiencing. One of the options being considered is a statewide property tax which is directly counter to the intent of these two ballot initiatives.
Regardless of which side of these issues you find yourself on, there is no doubt that it is going to be an interesting fall in Colorado!
