As property values surged across Colorado during the pandemic, Proposition HH emerged as a proposed solution to mitigate the resulting spike in property taxes. The measure aimed to limit the annual increase in property taxes for Coloradans over the next decade, offering relief to property owners grappling with soaring property values.
Despite its intentions, Proposition HH faced challenges and failed to pass the 2023 legislation. The bill sought to provide substantial relief by reducing the residential assessment rate from 6.765% to 6.7% in 2023, with the cut persisting through the 2032 tax year. With the bill failing to pass, the residential assessment rate will now go up to 7.15% starting in tax year 2025 once a separate property tax relief measure passed in 2022 expires.
Proposition HH proposed assessment rate reductions through the 2032 tax year for commercial and agricultural properties, potentially leading to significant statewide property tax savings. The assessment ratio on commercial properties will now go from 27.9% to 29% in 2024. With property values increasing anywhere from 30-40% due to property values increasing and a 2-year reappraisal cycle, every bill to help with property tax relief matters.
Proposition HH faced scrutiny despite its potential benefits and did not secure passage. Its impact on state and local budgets and concerns about reducing Taxpayer Bill of Rights refunds over time contributed to its failure. The proposal also included a truth-in-taxation provision, mirroring Utah’s system, aiming to control property tax revenue increases for local taxing authorities. While Proposition HH may not have become law, its consideration sheds light on the ongoing challenges of balancing property tax relief with broader fiscal responsibilities.