Colorado Proposition 120, Reduce Property Tax Rates and Retain $25 Million in TABOR Surplus Revenue Initiative (2021)

Colorado Proposition 120
Election date November 2, 2021
Topic Taxes
Status d Defeated
Type State statute	Origin Citizens

2021 measures
November 2
Colorado Amendment 78
Colorado Proposition 119
Colorado Proposition 120
Polls
Voter guides
Campaign finance
Signature costs

Colorado Proposition 120, the Reduce Property Tax Rates and Retain $25 Million in TABOR Surplus Revenue Initiative, was on the ballot in Colorado as an initiated state statute on November 2, 2021. It was defeated.

A "yes" vote supported the initiative to:  reduce the residential property tax assessment rate from 7.15% to 6.5% and the non-residential property tax assessment rate from 29% to 26.4%; and authorize the state to retain and spend $25 million in revenue above the state's TABOR spending cap for five years, which it would otherwise be required to refund to taxpayers, to fund reimbursements to local government entities for lost revenue due to homestead exemptions given to qualifying seniors and disabled veterans.

A "no" vote opposed this initiative to reduce residential and non-residential property tax assessment rates and authorize the state to retain and spend $25 million in revenue above the TABOR cap. The legislature passed Senate Bill 293 in June 2021 to make changes to property tax assessment rates.

Supermajority requirement: Senate Bill 293, signed into law in June 2021, amended state law that Proposition 120 was also designed to amend. Because of SB 293, there is disagreement about the effects of Proposition 120's approval.

Election results

Colorado Proposition 120
Result		Votes	Percentage
Yes		652,382	42.96%
No		866,197	57.04%

Results are officially certified.

Source

Overview

Proposition 120 was designed to reduce, beginning on January 1, 2022, the residential and non-residential property tax rates. The residential property tax assessment rate would have been reduced from 7.15% to 6.5% and the non-residential property tax assessment rate would have been reduced from 29% to 26.4%.

The initiative was also designed to also authorize the state to retain and spend $25 million in revenue above the state's TABOR spending cap for five years, which it would have otherwise been required to refund to taxpayers. These funds would have been allocated to local governments for homestead exemptions given to qualifying seniors and disabled veterans. The Colorado Constitution requires the state to reimburse counties and local governments for reduced property tax revenues resulting from the exemption.

How did Senate Bill 293 of 2021 change what Proposition 120 was designed to do?

See also: Senate Bill 293 of 2021

Colorado Senate Bill 293 was sponsored by Sen. Bob Rankin (R) and Sen. Chris Hansen (D), and House Majority Leader Daneya Esgar (D). Senate Bill 293 was signed by Governor Jared Polis (D) on June 23, 2021. The bill created new subclasses of nonresidential property: agricultural property, lodging property, and renewable energy production property. The bill reduced the assessment rate for nonresidential agricultural property and nonresidential property used to produce renewable energy from 29% to 26.40% for the 2022 and 2023 tax years. The law restructured the nonresidential property classifications so that, if the initiative is approved by voters, then the rate reductions proposed in the initiative would only apply to lodging property such as hotels and motels.

The bill was also designed to reduce the assessment rate for multifamily residential property, including duplexes, triplexes, and apartment buildings from 7.15% to 6.80% for the 2022 and 2023 tax years, which took effect since Proposition 120 was rejected by voters was 2021. If the initiative would have been approved, the assessment rate reductions contained in the initiative would not have applied to single-family homes and would have only applied to multi-family residential property.

Senate Bill 293 was also designed to reduce the assessment rate for all other residential property, such as single-family homes, from 7.15% to 6.95% for the 2022 and 2023 tax years.

To read more about the effects of Senate Bill 293 on Proposition 120, click here.

How did approval of Amendment B in 2020 pave the way for changes to Colorado's property tax rates?

See also: Gallagher Amendment repeal of 2020

Amendment B was on the 2020 ballot in Colorado where it was approved in a vote of 57.5% in favor to 42.3% opposed. Amendment B repealed the Gallagher Amendment of 1982, which limited the residential and non-residential property tax assessment rates so that residential property taxes equaled 45% of the total share of state property taxes and non-residential property taxes equaled 55% of the total share of state property taxes. Michael Fields of Colorado Rising Action, the sponsors of Proposition 120, opposed Amendment B, arguing that repealing the Gallagher Amendment would raise property taxes, which were expected to decrease to 5.88% at the reassessment set to occur in 2021 if the Gallagher Amendment was upheld to maintain the 45%-55% split.

To see a comparison of the state's property tax law (1) before the Gallagher Amendment repeal of 2020, (2) after the Gallagher Amendment was repealed, (3) under Senate Bill 293 of 2021, and (4) as proposed by Proposition 120, click here.

Who was behind the campaigns surrounding Proposition 120?

See also: Support, Opposition, and Campaign finance

Cut Property Taxes registered as an issue committee to support the initiative. Michael Fields, Executive Director of Colorado Rising Action, is the initiative's sponsor and the registered agent for the committee. The committee reported $1.55 million in contributions. The largest donors were Unite for Colorado ($875,000), Colorado Rising State Action ($372,000), the Apartment Association of Metro Denver ($241,900), and UDR Inc. ($52,000). The committee reported expenditures totaling $1.51 million. The committee paid $868,728 to Victors Canvassing for signature gathering. Michael Fields said, "What's been happening over the last few years is a huge rise in home values, the assessment rates that people got are a lot higher than they used to be. Our houses are worth more, but that doesn't mean you have more money in your pocket to be able to pay for the property taxes. Seeing the strain this could put on seniors and people on fixed incomes, we wanted to make a move to lower property taxes."

The Colorado Education Association opposed the initiative. Kevin Vick, Vice President of the Colorado Education Association, said, "The state of Colorado is already underfunded our schools by this year it's going to be $572 million. Over the last ten years, it's been about $10 billion altogether. We are already short-funded, and cutting our revenue any further is going to kneecap our kid's futures. ... In addition to schools, you would see police and fire protection be diminished, you would see local mental health services continue to suffer."

How did Proposition 120 get on the ballot?

See also: Colorado Taxpayer's Bill of Rights (TABOR) and Path to the ballot

Measures that can go on the ballot during odd years are limited to topics that concern taxes or state fiscal matters arising under TABOR, the Taxpayer's Bill of Rights (Section 20 of Article X of the Colorado Constitution). This requirement was added to state statute in 1994.

Proponents submitted 192,562 signatures. On August 25, 2021, the Colorado Secretary of State announced that 138,567 were projected to be valid. To qualify, 124,632 valid signatures were required. The sponsoring committee paid $868,728 to Victors Canvassing for signature gathering.

Text of measure

Ballot title

The ballot title for the initiative was as follows:

“

Shall there be a change to the Colorado Revised Statutes concerning property tax reductions, and, in connection therewith, reducing property tax revenue by an estimated $1.03 billion in 2023 and by comparable amounts thereafter by reducing the residential property tax assessment rate from 7.15% to 6.5% and reducing the property tax assessment rate for all other property, excluding producing mines and lands or leaseholds producing oil or gas, from 29% to 26.4% and allowing the state to annually retain and spend up to $25 million of excess state revenue, if any, for state fiscal years 2022-23 through 2026-27 as a voter-approved revenue change to offset lost revenue resulting from the property tax rate reductions and to reimburse local governments for revenue lost due to the homestead exemptions for qualifying seniors and disabled veterans?

”

Full text

The full text of the ballot initiative is below:

Fiscal impact statement

The fiscal impact statement provided in the Colorado Blue Book was follows:

“ This measure decreases local government property tax revenue and increases state spending requirements as described below. Local government impact. Proposition 120 is expected to decrease property tax revenue to local governments statewide by an estimated $45.9 million in 2022, and $50.3 million in 2023. The revenue decrease is expected to be larger in later years, due to a scheduled increase in the assessment rate for multifamily housing in 2024 under current law. Prior to the passage of Senate Bill 21-293, the measure was expected to decrease property tax revenue to local governments by an estimated $1.03 billion, which is why this number appears in the ballot question. The impact will vary among local governments across the state, and the specific impact on each city, county, special district, or school district will depend on several factors, including mill levies and the composition of properties in each jurisdiction. State spending. The measure increases state spending to backfill lost property tax revenue to school districts. If the measure passes, the state share of school finance is estimated to increase by at least $12.8 million in state budget year 2022-23, and $14.1 million in state budget year 2023-24 and subsequent years compared to what would have happened under current law. Additionally, the measure will decrease state spending for the senior and disabled veteran homestead exemption by a minimal amount, and increase workload for the Division of Property Taxation to update forms and training materials and respond to inquiries regarding the changes. For up to five budget years, the measure allows the state to retain $25.0 million in revenue above constitutional spending limits, for the purpose of offsetting lost local government revenue and funding state reimbursements through the homestead exemption. In years when the state collects revenue above its constitutional limit, this provision of the measure effectively has no net impact on state spending or the availability of the homestead exemption. The state’s budget year runs from July 1 through June 30. Taxpayer impacts. The measure lowers property taxes paid by owners of multifamily housing and lodging properties. Table 2 shows the estimated property tax decrease for example property values, assuming the statewide average mill levy (83.537 mills) for the 2020 tax year. The actual impact on an individual property owner will depend on several factors, including the local jurisdictions in which their property is located, actual future mill levies, and the actual value of the property. ”

The full fiscal impact statement with charts and tables provided in the Colorado Blue Book is available here.

Readability score

See also: Ballot measure readability scores, 2021

Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The Colorado Title Board wrote the ballot language for this measure. The FKGL for the ballot title is grade level 54, and the FRE is -74. The word count for the ballot title is 125, and the estimated reading time is 33 seconds.

Support

Cut Property Taxes led the campaign in support of the initiative.

Supporters

Political Parties

• Republican Party of Colorado

Organizations

• Colorado Rising State Action
• Unite for Colorado

Arguments

• Michael Fields, Executive Director of Colorado Rising State Action: "What's been happening over the last few years is a huge rise in home values, the assessment rates that people got are a lot higher than they used to be. Our houses are worth more, but that doesn't mean you have more money in your pocket to be able to pay for the property taxes. Seeing the strain this could put on seniors and people on fixed incomes, we wanted to make a move to lower property taxes. Most years, we fund that but some years we don't. We wanted to give them an incentive. That whole thing is $150 million so this is only $25 million that the legislation could keep instead and spend on Homestead which would help those disabled veterans and seniors. The government will have more money next year than this year because of the high assessment rates. If values go up more than ten percent which might happen, nine percent means the government gets more but it slows the growth."
• Glen Weinberg of Fairview Commercial Lending: "What Gallagher did was balance commercial and residential assessment. Commercial property rates were going up at the time, but residential was going up double if not triple the pace of the commercial property. So what Gallagher did was bring these into balance with the assessment rates. We don't want residential assessment rates to go up higher than the commercial. Amendment B basically came in and said we are getting rid of the Gallagher so now we are going to fix the assessment rate."
• George Brauchler, former district attorney for the 18th Judicial District and fellow with the Common Sense Institute: "Vote for Proposition 120, not just because it is good economic policy and deserved relief, but to send a strong message to the tone-deaf legislators that we will not tolerate their contempt for our will."

Official arguments

The official arguments provided in the Colorado Blue Book were as follows:

• Official Blue Book argument: "The measure provides targeted tax relief for important sectors of Colorado’s economy. Reducing property taxes for most multifamily properties may ease pressure on rents and encourage investment to address Colorado’s housing shortage. In addition, lodging owners may hire and retain more employees and potentially reduce lodging rates, attracting additional visitors."

Opposition

Opponents

Officials

• Chris Hansen (D) -

Political Parties

• Democratic Party of Colorado

Unions

• Colorado Education Association

Organizations

• Bell Policy Center

Individuals

• Scott Wasserman -

Arguments

• Elliot Goldbaum of the Colorado Fiscal Institute: "The ballot measure says taxes should be reduced a $1 billion dollars but it's only going to be $200 million dollars because of what the legislature did [by passing Senate Bill 293]. There is a potential for school districts to see funds reduced, especially in areas of the state that haven't see dramatic increases in property values. If you are a renter, you aren't going to get any tax cuts from this. The only people who are going to get a tax cut from this are those who own property which is about 40 percent of the state. It is not a significant number of people, but at the same time there are a lot of millionaires and billionaires who own very expensive property who are going to get a very large tax cut. The property tax benefit that is already in the constitution gets funded every year, regardless if this gets passed or not. I think it is deceptive that this was put into the ballot measure language, and we actually sued to get it taken out of the ballot measure language. We were unsuccessful, but we will be letting all of the voters know that voting for this doesn't do anything to make sure older Coloradans and disabled veterans get that property tax benefit."
• Kevin Vick, Vice President of the Colorado Education Association: "In March, the Colorado Education Association took a stance to oppose Initiative 27. The state of Colorado is already underfunded our schools by this year it's going to be $572 million. Over the last ten years, it's been about $10 billion altogether. We are already short-funded, and cutting our revenue any further is going to kneecap our kid's futures. ... In addition to schools, you would see police and fire protection be diminished, you would see local mental health services continue to suffer."
• State Senator Chris Hansen (D): "Proposition 120 is a step backward for Colorado and will undermine funding for schools, fire protection and water districts."
• Scott Wasserman of the Bell Policy Center: "It’s not for nothing that every progressive organization and organizations like Club 20 are opposed to Prop. 120. It’s a reckless political stunt funded by the very same interests that are launching attacks against the governor’s leadership. If he thinks he’s somehow achieving ‘peace in our time’ with these folks, I think he’s making a very bad calculation."

Official arguments

The official arguments provided in the Colorado Blue Book were as follows:

• Official Blue Book argument: "Permanently reducing property tax revenue to local governments may result in cuts to important government services. Proposition 120 will pose challenges for special districts, cities, or counties that rely on property tax revenue from multifamily homes or lodging properties to maintain services, such as water, transportation, education, and emergency services. In particular, critical fire protection needs are increasing rapidly, and not all areas of the state are able to generate the funding needed to support these local services."

Media editorials

See also: 2021 ballot measure media endorsements

Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.

Campaign finance

See also: Campaign finance requirements for Colorado ballot measures

The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed, which covered through November 30, 2021.

Cut Property Taxes registered as an issue committee to support the initiative. The committee reported $1.55 million in contributions. The largest donors were Unite for Colorado ($875,000), Colorado Rising State Action ($372,000), the Apartment Association of Metro Denver ($241,900), and UDR Inc. ($52,000). The committee reported expenditures totaling $1.51 million. The committee paid $868,728 to Victors Canvassing for signature gathering.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$1,553,850.00	$0.00	$1,553,850.00	$1,553,850.00	$1,553,850.00
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00
Total	$1,553,850.00	$0.00	$1,553,850.00	$1,553,850.00	$1,553,850.00

Support

The following table includes contribution and expenditure totals for the committee in support of the initiative.

Committees in support of Proposition 120
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Cut Property Taxes	$1,553,850.00	$0.00	$1,553,850.00	$1,553,850.00	$1,553,850.00
Total	$1,553,850.00	$0.00	$1,553,850.00	$1,553,850.00	$1,553,850.00

Donors

Following are donors who gave $50,000 or more to the support committee. The top four donors contributed 95.82% of the funds received by the committee.

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Unite for Colorado	$875,000.00	$0.00	$875,000.00
Colorado Rising State Action	$347,000.00	$0.00	$347,000.00
Apartment Association of Metro Denver	$241,900.00	$0.00	$241,900.00

Opposition

If you are aware of a committee registered to oppose this measure, please send an email with a link to editor@ballotpedia.org.

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Background

Property taxes in Colorado

Property tax revenue in Colorado is collected by local governments and funds county government, public schools, junior colleges, and special districts. Colorado has not had a statewide property tax since 1964. The state sets assessment rates and local governments set the tax rate (mills) that are levied on the assessed value of the property. For example, for a $100,000 home, the 2020 assessment rate of 7.15% means that $7,150 is taxable. The local government's tax rate would apply to the $7,150. For example, a tax rate of 100 mills (equal to mills/1,000) would mean that $715 would be owed for property taxes on the house.

Recent and proposed changes to Colorado property tax law

The following table is a comparison of the state's property tax law (1) before the Gallagher Amendment repeal of 2020, (2) after the Gallagher Amendment was repealed, (3) under Senate Bill 293 of 2021, and (4) as proposed by Proposition 120.

	Text of C.R.S. 39-1-104.2 section (3)(q) Adjustment of residential rate - legislative declaration - definitions.
Law as of 2019	(3) (q) Based on the determination by the administrator that the target percentage is 45.69 percent, the ratio of valuation for assessment for residential real property is 7.15 percent of actual value for property tax years commencing on or after January 1, 2019, until the next property tax year that the general assembly adjusts the ratio of valuation for assessment for residential real property.
Law after passage of 2020 Amendment B and Senate Bill 220	(3) (q) The ratio of valuation for assessment for residential real property is 7.15 percent of actual value for property tax years commencing on or after January 1, 2019, until the next property tax year that the general assembly adjusts the ratio of valuation for assessment for residential real property.
Law under proposed Initiative 120 of 2021	(3) (q) The ratio of valuation for assessment for residential real property is 7.15 percent of actual value for property tax years commencing on or after January 1, 2019 and 6.5 percent of the actual value for property tax commencing January 1, 2022, until the next property tax year that the general assembly adjusts the ratio of valuation for assessment for residential real property.
Law under Senate Bill 293 of 2021	(3) (q) The ratio of valuation for assessment for multi-family residential real property is 7.15 percent of actual value for property tax years commencing on or after January 1, 2019, until the next property tax year that the general assembly adjusts the ratio of valuation for assessment for residential real property.
	Text of C.R.S. 39-1-104 section (1) Valuation for assessment - definitions.
Law as of 2020	(1) The valuation for assessment of all taxable property in the state shall be twenty-nine percent of the actual value thereof as determined by the assessor and the administrator in the manner prescribed by law, and such percentage shall be uniformly applied, without exception, to the actual value, so determined, of the various classes and subclasses of real and personal property located within the territorial limits of the authority levying a property tax, and all property taxes shall be levied against the aggregate valuation for assessment resulting from the application of such percentage. This subsection (1) shall not apply to residential real property, producing mines, and lands or leaseholds producing oil or gas.
Law under proposed Initiative 120 of 2021	(1) Through December 31, 2021 the valuation for assessment of all taxable property in the state shall be twenty-nine percent, and beginning on January 1, 2022 the valuation for assessment of all taxable property in the state shall be twenty-six and four-tenths percent of the actual value thereof as determined by the assessor and the administrator in the manner prescribed by law, and such percentage shall be uniformly applied, without exception, to the actual value, so determined, of the various classes and subclasses of real and personal property located within the territorial limits of the authority levying a property tax, and all property taxes shall be levied against the aggregate valuation for assessment resulting from the application of such percentage. This subsection (1) shall not apply to residential real property, producing mines, and lands or leaseholds producing oil or gas.
Law under Senate Bill 293 of 2021	(1) The valuation for assessment of all taxable property in the state shall be twenty-nine percent of the actual value thereof as determined by the assessor and the administrator in the manner prescribed by law, and such percentage shall be uniformly applied, without exception, to the actual value, so determined, of the real and personal property located within the territorial limits of the authority levying a property tax, and all property taxes shall be levied against the aggregate valuation for assessment resulting from the application of such percentage. This subsection (1) only applies to nonresidential property that is classified as lodging property.

Senate Bill 293 of 2021

On June 23, 2021, Colorado Governor Jared Polis (D) signed Senate Bill 293, which was passed unanimously in the Senate with one Republican member absent on June 7, 2021, and passed in the House by a vote of 42-23 along party lines with Democrats in favor and Republicans opposed on June 8, 2021.

The bill created new subclasses of nonresidential property: agricultural property, lodging property, and renewable energy production property. The bill reduced the assessment rate for agricultural nonresidential property and nonresidential property used to produce renewable energy from 29% to 26.40% for the 2022 and 2023 tax years. The law restructured the nonresidential property classifications so that, if the initiative was approved by voters, the assessment rate reductions proposed by the initiative would only apply to lodging property such as hotels and motels.

The bill was also designed to reduce the assessment rate for multifamily residential property, including duplexes, triplexes, and apartment buildings from 7.15% to 6.80% for the 2022 and 2023 tax years, which was set to take effect if the measure was rejected by voters in 2021. If the initiative was approved, the assessment rate reductions in the initiative were designed to only apply to multi-family residential property. Senate Bill 293 also reduced the assessment rate for all other residential property from 7.15% to 6.95% for the 2022 and 2023 tax years.

The Colorado Legislative Council Staff included the following note in the fiscal statement for SB 293: "If the initiative qualifies for the ballot and is approved by voters, it would reduce assessment rates for residential and nonresidential property. This bill amends the underlying statutes that the initiative proposes to change, such that the assessment rate reductions in the initiative would apply only to lodging, rather than all nonresidential property, and only to multifamily residential property, rather than all residential property."

What did people say about conflicts between Senate Bill 293 and Proposition 120?

Sen. Bob Rankin (R), sponsor of Senate Bill 293, said the bill was "in part, a reaction to [Proposition 120]’s potential," and added that legislators have "a responsibility to respond to these kinds of outside influences if, in fact, they would be injurious." SB 293 sponsor Chris Hansen (D) said, "We are bringing legislation to address an immediate problem: … the rapidly changing and rapidly appreciating property market. We need to act on that this session."

State Sen. Barbara Kirkmeyer (R) said SB 293 was unethical. She said, "We’re at the 11th hour. It feels like we are pulling the rug out from the people with their right to do an initiative."

The Colorado Legislative Council Staff included the following note in the fiscal statement for SB 293: "If the initiative qualifies for the ballot and is approved by voters, it would reduce assessment rates for residential and nonresidential property. This bill amends the underlying statutes that the initiative proposes to change, such that the assessment rate reductions in the initiative would apply only to lodging, rather than all nonresidential property, and only to multifamily residential property, rather than all residential property."

Proposition 120 proponent Michael Fields said Senate Bill 293 was "an attempt to kneecap" the initiative. Fields said, "It says in any case if the legislature doesn’t like something citizens do, they can just change the language in the law at the last second It takes away the initiative process. We have timelines and deadlines we have to meet. I just don’t see how that happens. Our initiative is a $1 billion tax cut. If it doesn’t happen, Democrats can explain to voters why they didn’t get it." Fields said by passing SB 293, "that basically makes our ballot measure moot. Basically, no matter how you vote on our ballot issue in November, they have already preordained the outcome. They said, you're going get the two year two hundred million dollar cut and then it could revert right back up to the old rates, no matter how you vote. So you could have a billion dollar tax cut you're reading on your ballot, you say yes or you say no, the outcome is the same. By changing those definitions last second when we can't make any adjustments to the ballot language, they're saying that their bill is going to trump ours. ... normally, whatever bill is passed later in time is the one that controls." Fields said that courts would have to decide what rates would take effect if Proposition 120 is approved.

Gallagher Amendment repeal of 2020

See also: Colorado Amendment B, Gallagher Amendment Repeal and Property Tax Assessment Rates Measure (2020)

Amendment B was on the 2020 ballot in Colorado where it was approved in a vote of 57.5% in favor to 42.3% opposed.

Amendment B repealed the Gallagher Amendment of 1982, which limited the residential and non-residential property tax assessment rates so that residential property taxes equaled 45% of the total share of state property taxes and non-residential property taxes equaled 55% of the total share of state property taxes.

Non-residential property: Under the Gallagher Amendment, property tax assessment rates were set in the state constitution to be 29% for non-residential property. The rate was fixed at 29% in the state constitution and could only be changed through a constitutional amendment. Amendment B repealed the 29% non-residential assessment rate. Non-residential property includes commercial property and oil and gas property.

Residential property: Under the Gallagher Amendment, the assessment rate for residential property was required to be adjusted before each 2-year reassessment cycle so as to maintain the 45%-55% split between the total share of property taxes paid between the two types of property. The residential assessment rate was initially set as 21% under the Gallagher Amendment but decreased over time to maintain the 45%-55% split. The residential property tax assessment rate for 2019-2020 was 7.15%. As of 2020, residential property in Colorado made up about 80% of the assessed value of all property in the state.

The legislature passed a companion bill, Senate Bill 20-223, which was set to take effect alongside the constitutional amendment after it was approved by voters. Senate Bill 223 created a moratorium on changing property tax assessment rates, which effectively froze the then-current rates of 7.15% for residential property and 29% for non-residential property in state statute. SB 223 allowed the legislature to reduce the assessment rate in state law in the future. Under the Gallagher Amendment, property tax assessment rates were expected to continue to decrease at the reassessment set to occur in 2021 and going forward. Therefore, repealing the Gallagher Amendment and freezing property tax rates at current levels was expected to result in higher residential assessment rates than under the Gallagher Amendment. Due to the Colorado Taxpayer's Bill of Rights (TABOR), the legislature could not increase assessment rates without a statewide vote of the people.

Colorado Rising State Action, the sponsor of Proposition 120, opposed Amendment B of 2020.

Colorado Taxpayer's Bill of Rights (TABOR)

See also: Colorado Taxpayer's Bill of Rights (TABOR)

Measures that can go on the ballot during odd years are limited to topics that concern taxes or state fiscal matters arising under TABOR, the Taxpayer's Bill of Rights (Section 20 of Article X of the Colorado Constitution).

The Colorado Taxpayer's Bill of Rights (TABOR) requires voter approval for all new taxes, tax rate increases, extensions of expiring taxes, mill levy increases, valuation for property assessment increases, or tax policy changes resulting in increased tax revenue. The Colorado Taxpayer's Bill of Rights was passed by voters in 1992 as Initiative 1. The measure was approved by a vote of 53.68% to 46.32%. The measure was sponsored by Colorado activist Douglas Bruce (R).

TABOR limits the amount of money the state of Colorado can take in and spend. It limits the annual increase for some state revenue to inflation plus the percentage change in state population. Any money collected above this limit is refunded to taxpayers unless the voters allow the state to spend it.

Referendum C of 2005

Referendum C, approved by voters in 2005, authorized the state to retain and spend all of the money it collected above the TABOR limit on healthcare, public education, transportation projects, and local fire and police pensions for five years beginning with fiscal year (FY) 2005-06. During these five years, Colorado residents did not receive the refunds they would have otherwise received under TABOR. After the five-year period, referred to as "the timeout period," Referendum C authorized the state to permanently retain and spend revenue up to a cap, referred to as "the Referendum C cap" (equaling FY 2007-08 revenues adjusted by inflation plus population growth), beginning in FY 2010-11.

When state voters approve a tax increase or other revenue change, the resulting revenues are exempt from the TABOR limit on fiscal year spending. Below is a chart by the Colorado Legislative Council Staff detailing revenue limits under TABOR:

TABOR ballot measures

Since 1992, when TABOR was adopted, through 2020, Colorado voters have decided on 22 statewide ballot measures that would have increased revenue for the state, which required voter approval under TABOR.

• Five measures asked voters if the state could retain revenue that would have otherwise been refunded to taxpayers under TABOR;
• Five measures asked voters to adopt a new tax;
• Two measures asked voters to eliminate a tax exemption (thereby raising state revenue);
• Eight measures asked voters to adopt a tax increase;
• One measure asked voters to adopt a tax increase and new tax; and
• One measure asked voters to adopt a tax increase and eliminate a tax exemption.

Six (27%) of the 22 measures were approved while 16 (73%) were defeated.

The six measures that were approved are as follows:

• Colorado Tobacco Tax Increase for Health-Related Purposes, Initiative 35 (2004);
• Colorado State Business Income Tax Deduction Limit, Referendum H (2006);
• Colorado Proposition AA, Taxes on the Sale of Marijuana (2013);
• Colorado Marijuana TABOR Refund Measure, Proposition BB (2015);
• Colorado Proposition DD, Legalize Sports Betting with Tax Revenue for Water Projects Measure (2019); and
• Colorado Proposition EE, Tobacco and E-Cigarette Tax Increase for Health and Education Programs Measure (2020).

In addition to the above measures, Referendum C, approved by voters in 2005, authorized the state to retain and spend all of the money it collected above the TABOR limit on healthcare, public education, transportation projects, and local fire and police pensions for five years beginning with fiscal year (FY) 2005-06.

Path to the ballot

See also: Signature requirements for ballot measures in Colorado and Laws governing the initiative process in Colorado

The state process

In Colorado, the number of signatures required to qualify an initiated state statute for the ballot is equal to 5 percent of the total number of votes cast for the office of Colorado secretary of state in the preceding general election. State law provides that petitioners have six months to collect signatures after the ballot language and title are finalized. State statutes require a completed signature petition to be filed three months and three weeks before the election at which the measure would appear on the ballot. The Constitution, however, states that the petition must be filed three months before the election at which the measure would appear. The secretary of state generally lists a date that is three months before the election as the filing deadline.

The requirements to get an initiated state statute certified for the 2021 ballot:

• Signatures: 124,632 valid signatures
• Deadline: August 2, 2021

The secretary of state is responsible for signature verification. Verification is conducted through a review of petitions regarding correct form and then a 5 percent random sampling verification. If the sampling projects between 90 percent and 110 percent of required valid signatures, a full check of all signatures is required. If the sampling projects more than 110 percent of the required signatures, the initiative is certified. If less than 90 percent, the initiative fails.

Odd-year ballot measures in Colorado

Measures that can go on odd-year election ballots in Colorado include measures proposing:

• new taxes;
• tax increases;
• an extension of taxes;
• tax policy changes resulting in a net tax revenue gain;
• changes to revenue or fiscal obligations,;
• delays in voting on ballot issues; and
• approval for the state to retain and spend state revenues that otherwise would be refunded for exceeding an estimate included in the ballot information booklet.

Details about this initiative

• Suzanne Taheri and Michael Fields of Colorado Rising Action filed three versions of the initiative (#26, #27, and #28) on April 9, 2021. Ballot language was provided for the initiative on April 21, 2021. Version #27 was cleared for signature gathering on May 5, 2021, with signatures due by August 2, 2021.
• On June 8, 2021, the Colorado State Legislature passed Senate Bill 293, which would reduce the property tax assessment rate in the 2022 and 2023 tax years from 7.15% to 6.95% for single-family homes and 6.8% for multi-family homes. For non-residential agricultural property and renewable-energy property, the rates would be reduced from 29% to 26.4%. Michael Fields of Colorado Rising Action, the sponsor of Initiative 27, said the legislature was "trying to kneecap our ballot issue before it’s even voted on," by passing Senate Bill 293.
• Proponents reported submitting over 190,000 signatures on August 2, 2021.
• The Secretary of State announced on August 26 that proponents had submitted 138,567 valid signatures based on a random sample check of 5% of the signatures submitted.

Signature gathering cost

See also: Ballot measures cost per required signatures analysis

Sponsors of the measure hired Victors Canvassing to collect signatures for the petition to qualify this measure for the ballot. A total of $868,727.82 was spent to collect the 124,632 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $6.97.

How to cast a vote

See also: Voting in Colorado

Click "Show" to learn more about voter registration, identification requirements, and poll times in Colorado.

How to cast a vote in Colorado

Poll times In Colorado, polls are open from 7:00 a.m. to 7:00 p.m. local time for those who choose to vote in person rather than by mail. An individual who is in line at the time polls close must be allowed to vote. Registration requirements Check your voter registration status here. In Colorado, an individual can pre-register to vote if they are at least 15 years old. Voters must be at least 18 years old to vote in any election. A voter must be a citizen of the United States and have established residence in Colorado to vote. Colorado voters can register to vote through Election Day. However, in order to automatically receive a absentee/mail-in ballot, a voter must register online, through the mail, at a voter registration agency, or driver's license examination facility at least eight days prior to Election Day. A voter that registers through a voter registration drive must submit their application no later than 22 days before the election to automatically receive an absentee/mail-in ballot. A voter can register online or submit a form in person or by fax, email, or mail. Automatic registration See also: Automatic voter registration Colorado automatically registers eligible individuals to vote through the Department of Motor Vehicles and certain other state agencies. Online registration See also: Online voter registration Colorado has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration See also: Same-day voter registration Colorado allows same-day voter registration for individuals who vote in person. Residency requirements Colorado law requires 22 days of residency in the state before a person may vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Colorado does not require proof of citizenship for voter registration. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury. All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registration The site Go Vote Colorado, run by the Colorado Secretary of State office, allows residents to check their voter registration status online. Voter ID requirements Colorado requires voters to present non-photo identification when voting in person. If voting by mail for the first, a voter may also need to return a photocopy of his or her identification with their mail-in ballot. Click here for more information. The following list of accepted forms of identification was current as of August 2025. Click here for the most current information, sourced directly from the Office of the Colorado Secretary of State. “ The following documents are acceptable forms of identification: A valid Colorado driver’s license or valid identification card issued by the Colorado Department of Revenue. (Note: documents issued to not lawfully present and temporarily lawfully present individuals under Part 5 of Article 2 of Title 42, C.R.S. are not acceptable forms of identification.) A valid U.S. passport. A valid employee identification card with a photograph of the eligible elector issued by any branch, department, agency, or entity of the U.S. government or of Colorado, or by any county, municipality, board, authority, or other political subdivision of Colorado. A valid pilot’s license issued by the federal aviation administration or other authorized agency of the U.S. A valid U.S. military identification card with a photograph of the eligible elector. A copy of a current (within the last 60 days) utility bill, bank statement, government check, paycheck, or other government document that shows the name and address of the elector. A Certificate of Degree of Indian or Alaskan Native Blood. A valid Medicare or Medicaid card issued by the Centers for Medicare and Medicaid Services. A certified copy of a U.S. birth certificate for the elector. Certified documentation of naturalization. A valid student identification card with a photograph of the eligible elector issued by an institute of higher education in Colorado, as defined in section 23-3.1-102(5), C.R.S.. A valid veteran identification card issued by the U.S. department of veterans affairs veterans health administration with a photograph of the eligible elector. A valid identification card issued by a federally recognized tribal government certifying tribal membership. Any form of identification listed above that shows your address must show a Colorado address to qualify as an acceptable form of identification. The following documents are also considered acceptable forms of identification for voting: Verification that a voter is a resident of a group residential facility, as defined in section 1-1-104(18.5), C.R.S. Verification that a voter is a person committed to the department of human services and confined and eligible to register and vote shall be considered sufficient identification of such person for the purposes of section 1-2-210.5, C.R.S. Written correspondence from the county sheriff or his or her designee to the county clerk indicating that a voter is confined in a county jail or detention facility. ” Note: SB 1, signed into law on May 12, 2025, specified that tribal IDs issued by the Bureau of Indian Affairs, the Indian Health Service, or another federal agency were also valid identification.

See also

2021 measures

• 2021 ballot measures
• Taxes on the ballot
• Property on the ballot
• 2021 petition deadlines

Colorado

• Colorado ballot measures
• Colorado initiative laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls
• Ballot measure signature costs

External links

• Initiative #27 full text
• Colorado 2021 State Ballot Information Booklet (Blue Book)
• Colorado Secretary of State: Initiative Filings, Agendas & Results
• Initiatives filed with the Legislative Council Staff

Support

• Colorado Rising State Action website
• Colorado Rising State Action Facebook page
• Colorado Rising State Action Twitter page
• Cut Property Taxes on TRACER campaign finance database

Opposition

Submit links to editor@ballotpedia.org.