The Colorado Association of Homebuilders’ Government Affairs Committee recently took positions on two additional measures that will be on the statewide ballot. Altogether, there are seven citizen initiatives and six General Assembly referred measures on the November ballot.

Amendment 73: Opposed

Amendment 73 changes the state Constitution, requiring it to receive a super-majority of 55 percent voter support to be enacted. Amendment 73 is a significant tax increase, estimated at $1.6 billion in new revenue in FY2019-20, to fund public education and teacher salaries across Colorado. The measure’s details include:

• Increasing the corporate income tax rate from 4.63 percent to 6 percent.
• Increasing the personal income tax rate, including for joint filers from 4.63 percent to between 5 percent and 8.25 percent for people earning more than $150,000. The highest tax rate would be paid by people earning $500,000 or more.
• Setting the residential property assessment rate at 7 percent for schools, lower than it is now but higher than it is predicted to be in 2019 at 6.11 percent.
• Setting the non-residential property assessment rate at 24 percent for schools, less than the current 29 percent.

The GAC opposed Amendment 73 for several reasons. First, for the property tax provision, Amendment 73 provides property tax relief to public school districts that are lagging behind the statewide average in property tax valuation, but in doing so will cause special districts such as fire and library districts in the same situation to reduce their mill levies to comply with the Gallagher Amendment’s constitutional guarantee that residential property taxes constitute 45% of the property tax burden, and commercial property taxes 55%. The GAC believes that changes to Gallagher should not be done piecemeal and that all local government entities—including the special and metro districts that are critical to development—should be treated equally under Gallagher. 

Second, a $1.6 billion tax increase likely will have a negative impact on Colorado’s economy and hurt individuals and businesses. The income tax rate hikes will especially impact small businesses.  Many Coloradans, including many of our members, form their companies as LLCs and S-corps, pass-through entities that pay their business’ taxes through individual tax returns.  These entities could be faced with paying a higher percentage of their income in taxes than corporations.

Amendment 74: Opposed

Amendment 74, Just Compensation for Reduction in Fair Market Value, would require a super-majority of 55 percent to be enacted. Amendment 74 amends the constitution to prohibit the reduction in fair-market value of private property by law or regulation without compensation from that government. The GAC received a presentation in support earlier in the summer from Chad Vorthman of the Colorado Farm Bureau. Last week, Sam Mamet, executive director of the Colorado Municipal League, provided an opposition presentation.

While 74 applies to all laws and regulations, not just land use decisions, the GAC voted to oppose Amendment 74 because of the potential for unintended consequences in land-use and zoning decisions by local governments and that many local governments may choose inaction and gridlock on land-use decisions because of Amendment 74’s fiscal impacts to communities.

 

The CAHB is preparing a complete voters’ guide for members that will include statewide races and ballot questions, as well as state Senate and House candidates. Please look for that voter guide in October. 

If you have any questions about these endorsements or any parts of CAHB’s Political and Government Affairs processes, please contact CAHB at 303-691-2242 or cahb@hbacolorado.com. 

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