Breakdown of Prop HH, and Prop II, by League of Women Voters

Proposition HH
Reduce Property Taxes and Retain State Revenue

Proposition HH would relieve property tax bills. It would fund schools and reimburse local governments using the state TABOR surplus up to the new HH revenue cap.
 
====“YES” VOTE MEANS
Proposition HH lowers property taxes owed, allows the state to keep additional revenue that would otherwise be refunded to taxpayers, temporarily changes how taxpayer TABOR refunds are distributed, and creates a new property tax limit for most local governments.
=====“NO” VOTE MEANS
Proposition HH maintains current law for property taxes, TABOR refunds, and state and local government revenue limits.
====IMPACTS of Proposition HH
….Cuts property taxes from current levels.
Additional tax relief for owner-occupied homes and multifamily residences.
….Makes the senior homestead exemption portable when seniors move.
Impacts expire in ten years unless the legislature passes property tax reductions equivalent to Proposition HH.
….Increases revenue the state can retain.
Uses the retained funds for schools, some reimbursement to local governments for lower property tax revenue, and rental assistance.
….Limits property tax revenue growth for most local governments, with a mechanism to waive the limit.
…..Reduces individuals’ TABOR refunds compared to current law.
….Equalizes all taxpayers’ state TABOR  refunds for the 2023 tax year instead of larger refunds for higher incomes.

Referred to the voters by the Colorado Legislature.

Proposition II
Retain Nicotine Tax Revenue in Excess of Blue Book Estimate

Proposition II would use over $20 million already collected in nicotine and tobacco taxes for preschool programs, rather than this revenue being refunded to nicotine and tobacco wholesalers and distributors.

====“YES” VOTE MEANS
A “yes” vote on Proposition II allows the state to keep and spend over $20 million in tax revenue that has already been collected from the sale of cigarettes, tobacco products, and nicotine products, including interest, and to maintain the current tax rates on cigarettes, tobacco products, and nicotine products. The tax revenue will be spent on preschool programs.
==== “NO” VOTE MEANS
A “no” vote on Proposition II means that over $20 million will be refunded to wholesalers and distributors of cigarettes, tobacco products, and nicotine products, and tax rates on cigarettes, tobacco products, and nicotine products will be reduced.
=====  
IMPACTS of Proposition II
….Proposition II would allow the state to maintain the current tax rates that apply to tobacco and nicotine products. And send over $20 million more to the state’s preschool program.
….In 2020, voters approved taxing nicotine and tobacco products to fund free preschool for Colorado children.
….First-year tax collections exceeded the Legislative Council’s Blue Book projected revenue by more than $20 million.
…..Article X of Colorado’s Constitution (TABOR – Taxpayers Bill of Rights amendment) requires the state to refund the overage to the tobacco and nicotine wholesalers and distributors, and reduce the future tax rate.
….Proposition II would allow the state to retain and spend the already collected revenue, and keep the voter-approved tax rates.

Referred to the voters by the Colorado Legislature.

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