Colorado Rising State Action is complaining this week about changes made by the Legislative Council to Blue Book language over Amendment B.

The Legislative Council, an 18-member group of lawmakers — 11 Democrats and seven Republicans — finalized the Blue Book Thursday.

Amendment B, which would require a 50% plus one vote for approval, would repeal the 1982 voter-approved Gallagher Amendment. While constitutional amendments now require 55% voter approval, Amendment B is at the 50% plus one vote requirement because that’s what the law mandated when it passed.

Gallagher froze the ratios for residential and commercial property taxes at 45% for homes and 55% for business properties. Since its passage, home values in Colorado have increased to the point that they make up 80% of the total assessed value of property statewide. As a result, the General Assembly, to maintain that 45/55 ratio, has had to ratchet down the assessment rate for residential properties. In 1982, the assessment rate for residential properties was 21%; in 2020, it’s 7.2% and if Gallagher is not repealed, it will drop even further.

That’s resulted in a shift on just who pays for things like school finance. Back in 1982, property taxes covered 60% of the cost of K-12 and the state provided 40%. Today, it’s the reverse. And if the measure isn’t repealed, the state will have to put more of its general fund budget, already at 49%, into K-12 education, squeezing out or limiting other priorities. Between 1982 and 1992, school districts could make up for the lower assessment rate by increasing their mill rate, but that came to an end with the passage of the Taxpayer’s Bill of Rights (TABOR).

The ballot measure to repeal Gallagher was sent to the voters by the General Assembly on a strong bi-partisan vote from each chamber. 

Thursday, the Legislative Council staff presented the arguments for and against repeal of Gallagher, with three arguments in favor and three against. 

House Majority Leader Alec Garnett of Denver offered an amendment to the Blue Book language that he said would clearly state the complexities of Gallagher, and to better outline the yes/no arguments. Chief among the changes: a new title. Originally, the ballot measure was known as “Modify Property Taxes,” a title created by the Legislative Council staff for the Blue Book draft and is not official. The amendment offered by Garnett changed it to “Repeal Gallagher Amendment.” The title of the original legislation — Senate Concurrent Resolution 20-001 — was “Repeal Property Tax Assessment Rates.” The word “repeal” appears four times in the resolution.

The new title will appear only in the Blue Book and not on the ballot.

Sen. John Cooke, a Greeley Republican, spoke in favor of the change. It will present a clear and full impacts of Amendment B, he said, such as freezing tax rates not just for schools but for hospitals, fire, ambulances and other local services. The amendment passed on a 15-3 vote, with four Republicans voting with the 11 Democrats. 

The amendment was not distributed publicly prior to the hearing and members of the public were not allowed to testify on the amendment prior to the vote. Fields did not testify at the hearing Thursday, but released a statement after. 

He called the change to the title “unprecedented” and said lawmakers have made the Blue Book a “campaign to repeal Gallagher,” which he said should be reported as an in-kind contribution to the repeal campaign.

“Legislators already put their hand on the scale by passing incredibly biased ballot language, and they just overruled nonpartisan legislative staff to disguise a $500 million tax increase. This system is rigged,” Fields complained.

Fields is leading the opposition to Amendment B through the issue committee Keep Property Taxes Low. The committee has yet to report any contributions. Fields is also the chief proponent for Proposition 117, which would require voter approval for fees tied to new state enterprises.

Supporting the measure, Coloradans Coming Together, which also has yet to report any substantial contributions. OnSight Public Affairs and EIS Solutions are managing that campaign.

“The Gallagher Amendment is a quagmire of 40-year-old formulas, tax shifts, contradictions and unintended consequences. State assessments go down, local taxes automatically go-up,” according to a statement from the campaign. “That was largely missed in the staff draft. As was the fact that repealing Gallagher freezes tax rates, and under Amendment B those rates can’t be increased without a vote of the people. Voters rely on the Blue Book to present an accurate picture of ballot issues and we think lawmakers did a good job with amendments that make sure the language is clear and the arguments are fair to both sides.”

The Legislative Council often makes final changes to the Blue Book language and complaints from one side or the other often follow. In 2016, for example, the Denver Post editorial board took the Legislative Council to task for changes to Blue Book language on two ballot measures, both tied to who can vote in presidential and nonpresidential primaries. Both measures passed.