One thing that voters can likely agree on – Proposition HH, designed to reduce property taxes, is complex, a possible hindrance to those who might get tangled up in its 14 pages of Blue Book ballot language.
We like a lot of what Prop. HH offers, providing relief to taxpayers facing historic increases in residential property values. And allowing seniors’ homestead exemption to be portable, meaning they can move and downsize to an easier-to-manage-and-afford property without losing this tax break, is a smart, welcome addition.
Prop. HH’s strategy to better fund school districts by raising the current cap of state revenue by 1% makes good sense. Also, efforts toward housing solutions are appreciated, with up to $20 million for rental assistance. This is where we started this journey – unsustainable housing inflation for both homeowners and renters.
But Prop. HH could very well come at the expense of local fire, school and water districts, where funding is already too lean. We can’t take this risk.
For this reason, we say “no” to Prop. HH. Not because of any concerns about Taxpayer’s Bill of Rights refunds – never a guarantee anyway. We just can’t gamble that La Plata and Montezuma counties would not be made whole with reduced tax revenues and the possibility of being ineligible for backfilled funding.
Local governments cannot count on reimbursement from revenue retained from that newly expanded 1% of the TABOR cap. Revenue that’s badly needed for road and bridge maintenance or fire protection in the tinderbox in which we live. This is our main concern. Populations under 300,000, including La Plata and Montezuma, would not be eligible if the assessed valuation of property were to increase by 20% or more.
At the rate we’re going, especially in La Plata County, we could easily surpass this.
We’d rather a mechanism to keep property tax calculations and assessment rates controlled at local levels.
La Plata County’s minimal 8.50 mill levy that we like so much – fourth lowest in the state – now puts us at risk of being egregiously underfunded within Prop. HH’s formula. The price for this low mill levy is in the reality of reduced critical county services.
Less money for services right as demand goes up, with more and more people moving to the Southwest.
Montezuma County might better weather Prop. HH with its mill levy at 14.27396. Neither county has taken a position on the measure but voiced concerns.
What’s the point of a lower property tax if your house is aflame and the fire department can’t respond in time? Or the county has given up on maintaining some roads, when springtime potholes could potentially grow large enough to swallow a vehicle?
And don’t get us started on any local cuts to public education.
These may seem like exaggerations but they’re not far from the truth. We can’t afford fewer dollars.
Durango Fire Protection District Deputy Chief Randy Black is responsible for the upcoming downtown fire station. Black, who will soon take over as chief, pointed out that construction costs have increased 145% from 2018 to 2023.
Gone shopping for fire trucks lately? In 2022, the price tag increased more than 28% in a 10-month period, Black said. Costs for personnel, fuel, medications, supplies, fire gear, etc., are all “increasing at a much faster pace than inflation or our reduced revenue can keep up with.”
Black said: “SB22-238 created a $600,000-plus loss for DFPD, but it was a two-year adjustment, then the numbers should return to normal. SB23-303/HH was an additional $350,000 loss for the department from the SB22-238 numbers, so it compounds the loss for 10 years. Our loss is around $1 million for 2024, increasing over the 10-year timeline.”
If Prop. HH were to pass, local services could take hits to the degree that counties would have to scramble with voters deciding whether to increase mill levies.
We’re all going to pay, whether it’s higher property taxes or in the lack of local services. The question is what is best for our communities at this time? What can we afford to lose?
Residents tell county commissioners to “do something” about dramatic property tax increases. Yet, La Plata County officials have said Prop. HH could reduce revenue next year by $567,000. So which budget line item should go? Or be tightly squeezed?
Prop. HH is a detailed, thoughtful draft, but not the exacting, inflation-proof formula we need. Return it to the Legislature for reworking.
No room here to outline all of Prop. HH – each detail inspires separate editorials. Take a close look.
Prop. HH relies on long-term economic forecasting, which can play out any number of ways. We need a revised version that keeps intact and protects – or even beefs up – our local special districts. As is, Prop. HH is not the answer.
