Please answer a few quick questions about the Gallagher Amendment to tell us what YOU think is the best path forward.

Gallagher Policy Options

Gallagher Policy Option #1



Do Nothing.



Pros

  • Easiest option.
  • Almost guarantees that our Residential property taxes will continue to decrease.

Cons

  • Will continue to reduce funding for local services, disproportionately adversely impact poorer communities, continue shift in tax burden to business sector, and continue to grow state’s share of K-12 funding


Gallagher Policy Option #2



Repeal Gallagher’s frozen ratio between Residential and Non-Residential property to stop the decline in the Residential Assessment Rate.



Pros

  • Stops erosion of funding for local services, disproportionate adverse impact on poorer communities, shift in tax burden to business sector, and growth of state’s share of K-12 funding.
  • By simply REPEALING language in the constitution, it only requires simple majority to pass.

Cons

  • Stops the continued decrease in the Residential property tax rate.
  • Possibly difficult to sell to voters.


Gallagher Policy Option #3



Reclassify “non-primary residences” and/or “vacation rentals” at a higher assessment rate to slow the growth in value of Residential Property and slow the decline in the Residential Assessment Rate.



Pros

  • SLOWS erosion of funding for local services, shift in tax burden to business sector, and growth of state’s share of K-12 funding.
  • Would likely still allow Residential Assessment Rate to decrease.
  • Possibly easier to sell to voters. (Wouldn’t even need voter approval if legislature reclassified these properties as highest “non-residential” rate of 29%.)

Cons

  • Likely doesn’t stop erosion of funding for local services, disproportionate adverse impact on poorer communities, shift in tax burden to business sector, and growth of state’s share of K-12 funding.


Gallagher Policy Option #4



Replace the STATEWIDE Residential assessment rate with a REGIONAL rate to prevent Hi-growth areas from driving down the Residential assessment rate in LO-growth areas.



Pros

  • Prevents growth in residential values on ONE area of the state (metro) from forcing down the Residential Assessment Rate in OTHER areas where values aren’t growing as fast, thus slowing or stopping erosion of residential property tax base to fund local services.

Cons

  • Creates inequities in Residential Assessment Rates for properties which are adjacent/near established regional boundaries.
  • Could create complexities for taxing districts which span multiple regions.


Gallagher Policy Option #5



De-couple TABOR from the Gallagher Amendment and allow Gallagher to work as it was intended by amending TABOR to allow taxing authorities to automatically increase/decrease their mill levies to sustain a constant revenue stream in response to decreases/increases in the Residential assessment rate.



Pros

  • Stops erosion of funding for local services and growth of state’s share of K-12 funding.

Cons

  • Potentially accelerates the shift of property tax burden from Residential to Non-residential which disproportionately adversely impacts rural communities with less commercial value.


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