Miller: Amendment 73 property tax changes detrimental to non-school district taxing authorities
Amendment 73 would increase annual income taxes in Colorado by $1.6 Billion. Those tax dollars would go into a separate fund exempt from limits on state spending set by the Taxpayer’s Bill of Rights (TABOR)- and they would not be available for any purpose other than PreK-12 education.
There would be four additional income tax brackets on top of the current 4.63 percent single rate for individual filers, with a top rate of 8.25 percent, along with a 30 percent increase in the corporate income tax.
To stabilize school district property tax revenues, the writers of the amendment went into the property tax laws and did some embellishing there, too. They should have stopped with the income tax.
The Gallagher Amendment, passed in 1982, is the foundation of our property tax system. Gallagher specifies that 45 percent of all property taxes paid statewide are paid on residential properties and that 55 percent are paid on nonresidential properties. That 45:55 proportion is the “Gallagher ratio”.