Government Affairs Update:

The 2018 statewide ballot will soon be finalized, and it may again offer a crowded and diverse set of questions for Colorado voters to consider. Possibly 10 total ballot questions will join a large number of candidate races that include U.S. Congress, open gubernatorial and attorney general races, other statewide offices, and critical state legislative contests in the Senate and House.

At this point, Amendments Y and Z, both referred by the General Assembly; Amendment 73, Funding for Public Schools; and Proposition 110, Transportation Funding, are set for the November ballot. Amendments Y and Z, which have been endorsed by CAHB, address how Colorado will draw Congressional and legislative districts in the future, attempting to make that process less politically controlled. Proposition 110, establishing a statewide transportation fund through a sales tax, has also been endorsed by CAHB. Just a reminder that the limited-growth easure will not be on the 2018 ballot since the proponents did not collect signatures.

Amendment 73, which qualified for the ballot with an estimated 130,000 valid signatures, deserves a close look by CAHB members. This measure seeks to amend the state Constitution, meaning that it must receive a super-majority of 55 percent voter support to be enacted. This "hurdle" was put in place by the passage of 2016's Raise the Bar Amendment and should present a challenge to Amendment 73's success. The GAC will determine CAHB's position on this measure in September.

It's important to note that 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 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.

For the property tax provision, Amendment 73 removes public education from the confines of the Gallagher Amendment, a 1982 Constitutional change that sought to simplify property-tax assessment and to maintain a constant ratio between property-tax revenue from residential and from businesses. In practice, it has led to a high assessment rate for commercial property in Colorado.

Additionally, Amendment 73 seeks to raise taxes only on the highest income brackets and then distribute that money to public schools. Some preliminary estimates note that the vast majority of Amendment 73's $1.6 billion increase will come from just 8 percent of Colorado taxpayers. However, since the income tax brackets cover joint filers, it is very likely that many more taxpayers will be hit with a tax increase. 

Transportation measures set for the ballot:

• Proposition 110: (Support) – Would allow a $0.62 state sales and use tax increase, which would raise about $366 million in FY 2018-19 and $766 million in FY 2019-20. The measure would also allow CDOT to bond up to $6 billion over a 20-year term to jump-start statewide transportation projects. The measure includes dedicated revenue for local governments and transit projects.  Proponents submitted about 198,000 signatures.
• Initiative 167: (No position) – Would authorize bonds for transportation projects and direct the General Assembly to use existing revenues to issue $3.5 billion in bonds. This measure, dubbed “Fix Our Damn Roads,” submitted an estimated 150,000 signatures, which will require a high success rate on the signature-validity test to make the ballot. 

Signatures in Review:

Several other campaigns submitted signatures by the Aug. 6 deadline to qualify for the ballot. CAHB will be sure to keep you informed as the Secretary of State’s Office makes its final determination on validity of each set of petitions. Each measure needs 98,492 valid signatures to qualify for the ballot. The following is a brief update on the remaining measures being tracked by CAHB:

• Initiative 97: (Oppose) – Would create a 2,500-foot setbacks for new oil and gas production not on federal land from any structure intended for human occupancy, certain geographic features and any other areas designated by the state or local government and permits state and local governments to require greater setback distances. This statutory measure, which requires just a majority of voters on Election Day, turned in an estimated 171,000 signatures.
• Initiative 108 (No Position Yet) – Would seek just compensation for reduction in fair market value by government law or regulation. Initiative 108 is a Constitutional measure and requires a super-majority of voter support. The GAC is waiting for a presentation from the opposition, led by the Colorado Municipal League, before making a final decision on the measure. Initiative 108’s supporters turned in an estimated 209,000 signatures.

CAHB Member Survey:

Remember, the association is conducting an online survey of its members to help GAC committee members, CAHB staff and the lobbying team prepare for the 2019 legislative session. Many voices and perspectives from within our industry and member companies are valuable. Colorado will have a new governor and administration, attorney general, treasurer, state Senate and House members, and county commissioners, as well as dozens of new regulators who will make up that new administration. We need to be as prepared as possible to educate these new officials and to advocate on your behalf. 

If you have any questions about the survey, please contact CAHB at 303-691-2242 or cahb@hbacolorado.com. We appreciate your time and willingness to complete this survey. To take the survey, please click here. (https://survey.zohopublic.com/zs/pGB3K9) 

 

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