Oct 28, 2021 - Politics

1-minute ballot guide: Proposition 120 would lower some property taxes

Illustration: Brendan Lynch/Axios

Colorado voters will decide on whether Proposition 120 should pass β€” but the courts may decide how far the measure's property tax cut will extend.

State of play: Proposition 120 was designed to lower property tax rates for all residents in the state.

  • But Colorado lawmakers approved a bill to recategorize the tax code so it would only apply to multifamily housing and lodging. It also included a temporary tax cut for residential property owners.

What they're saying: Advocates for the measure β€” Gov. Jared Polis being one of them β€” suggest the legislation was an improper change that will be overturned in court.

  • The lawmakers behind the bill say it was necessary because the original language would have resulted in a billion-dollar loss in tax revenue that would cripple local and state agencies.

The big picture: The back and forth is creating confusion because the nonpartisan description of the measure is different than how it reads.

By the numbers: Multifamily housing would see its assessment rate drop from 7.15% to 6.5% and lodging establishments would be reduced from 29% to 26.4%.

  • It would lead to $46 million in lost tax collections for local governments and require the state to contribute about $13 million more to school districts under the current funding formula.

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