Second-home owners will only be eligible for the benefit through 2026. That would then drop to $40,000 in 2024 and through 2032. The measure would also allow homeowners to exempt the first $50,000 of their home’s value from taxation this year. If HH does not pass, the residential assessment rate is set to go up to 7.15% for the 2025 tax year. One is through reducing the residential statewide assessment rate, which currently stands at 6.765%, to 6.7% through the 2032 tax year. Proposition HH seeks to blunt this increase in two ways. That could mean an increase of hundreds or even thousands of dollars in property taxes next year. According to a Colorado Department of Local Affairs database, residential property is up 63% on average compared to 2021. This year, Summit County saw some of the steepest increases in assessed property values of anywhere in the state. That figure is then multiplied by the current statewide assessment rate and by local mill levies, which are set by taxing entities such as school and fire districts. It begins with a property’s assessed value, which is issued by a county assessor’s office every two years based on market data from the past five years. Property taxes are calculated using several factors. “I’m very concerned that this is laying some groundwork to slowly evade TABOR.” How would Proposition HH work? “I would much rather get my TABOR refund and use that money directly,” he said. Yet Proposition HH’s pledge to reduce property taxes could come at other costs, mainly a reduction in tax refunds tied to the Taxpayer’s Bill of Rights, or TABOR, a 1992 voter-approved amendment to the state constitution that sets a limit on government spending in relation to inflation and population growth.įor Tom Castrigno, a 25-year Summit County resident and property owner, the proposal could lead to too many unintended consequences for him to support it. “The saying - ‘You’re land rich and cash poor’ - I think applies to a lot of folks in Summit County, and that’s a difficult situation,” said Commissioner Tamara Pogue. Those include senior residents on fixed incomes who may have purchased their home decades before home values skyrocketed. In Colorado’s High Country especially, record home values and the subsequent boost in property taxes could further hamper lower- to middle-income residents’ movement in the housing market.
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