The plan to permanently lower property taxes has support from some of the state's top politicians from both parties. They are racing to pass a bipartisan plan before Congress adjourns at midnight Wednesday.
With strong support from Democrats and Republicans, passage of this bill seems certain. But this peace treaty in the property tax war is still missing a few key players.
Two influential groups say the lawmakers' plan doesn't go far enough. Colorado Concern represents business interests, while Advance Colorado is a conservative political group.
“No agreement has been reached at this time,” Colorado Concern CEO Dave Davier said in a written statement.
Both Colorado Concern and Advance Colorado are proposing more fundamental and dramatic property tax changes. They are taking the issue directly to voters and moving to put these proposals on this November's election ballot.
Some lawmakers are concerned that if approved, these plans could have a significant impact on the state budget. Then they are forced to make a choice. Will they try to expand their $1 billion tax savings plan with the support of one or both groups, or are they preparing for a new property tax battle this November?
Democratic Rep. Chris DeGruy Kennedy, who is sponsoring the tax bill, doesn't have much hope for a negotiated compromise.
“I'm frustrated that rich people think they can make public policy that goes beyond what elected officials can do. That's not how democracy works,” he said. .
He said Congress could neutralize the threat from outside groups by passing strong legislation that appeals to the public.
“It takes all the wind out of their sails, so they can run wild all they want, but that's not going to be a successful voting vehicle for them,” he says.
Other lawmakers involved in the deal have taken a more conciliatory stance. Sen. Barbara Kirkmeyer, R-S.C., said she knows Colorado Concern is not fully on board with the deal.
“They never represented anything different to me,” she said. “I am grateful that they were willing to speak to me and make their concerns known.”
One of the big disagreements between lawmakers and business groups is that tax cuts in Congress don't apply to education funding, Kirkmeyer said. K-12 schools are typically the largest recipients of property tax bills.
Lawmakers decided not to allow school tax discounts, saying it would hurt school funding. But critics of the deal say it would limit savings for families and business owners, and that states could supplement school tax cuts by providing state funds to schools to cover the changes. claims.
“It's possible. If we can't get a deal, our voting measures will need this type of fair approach,” Josh Penley, an adviser to business and conservative groups, said in a text message. I wrote it in
Sen. Kirkmeyer said it's unlikely that lawmakers will be able to significantly change the deal to benefit businesses or conservative groups.
“I don't think so. I think this is where we need to go,” she said. “We didn't want to waste the budget. … We don't want to hurt education. But at the same time, we want to make sure we provide real property tax relief to taxpayers.”
Colorado Concern, which has long had an influence on the building and its relationships with legislators, stressed that it stands ready to continue the dialogue in these final days.
In a statement, Gov. Polis' office did not directly address whether he supports major changes to the bill.
“Governor Polis is proud of the thoughtful bipartisan discussions that led to this bill and encourages all stakeholders, including those involved, to support this bill,” said spokeswoman Shelby Polis. Wieman wrote.
The property tax bill must be passed by midnight Wednesday. If Colorado Concern and Advance Colorado decide to continue the contest on the ballot, there are several options for how to proceed.
Advance Colorado has already collected enough signatures to put one of its measures, Initiative 50, on the ballot. The measure would place strict limits on property tax revenue across the state, allowing it to increase by only 4% annually. Colorado Concern has indicated it may support the measure.
The two organizations are also collaborating on another policy, Initiative 108. The policy would drastically reduce property taxes, amounting to about $3 billion a year, and states would be forced to replace those lost dollars from their own budgets. Republican Rep. Lisa Frizell warned that this could have dire consequences for state finances. The measure has not yet been approved by voters, so groups will need to collect signatures to put it before voters.
House Speaker Julie McCluskey said a lot could change in the final days of the session.
“Two and a half days in this building is a lifetime,” she said Monday afternoon. “There's a lot that can be accomplished in that time. And I know everyone is sitting around the table talking.”
