Big compromises and looming ballot measures

One of the most notable themes of the recently completed Colorado legislative session was three significant deals made on sweeping policy topics, driven in large part by competing ballot measures that waited in the wings if the legislature was unable to work things out under the dome. Over the past several sessions, we have seen a growing influence of special interest ballot measures (both right and left) impact legislative negotiations.

The impact of ballot measures on property tax is not new to the Colorado General Assembly. Since the repeal of the Gallagher Amendment in 2020, the state legislature has consistently tinkered with property taxation, and each time was influenced by the threat or reality of ballot measures filed by parties negotiating with the legislature. The potency of the ballot box on this issue became particularly acute when property taxes spiked between the 2021-2023 reassessment cycle.

After Proposition HH failed last year, sparking a special session that offered temporary relief and created a property tax commission, legislators knew they would need to act on meaningful and long-term solutions this session. Meanwhile, two ballot measures that make significant cuts to property taxation with significant implications to the state budget had either already qualified for the 2024 ballot or were working their way through the Title Board process.

Proponents were in negotiations with property tax bill sponsors and other stakeholders, which led to a variety of changes before the bill was introduced, including a reduced commercial property tax assessment rate. The intent of the bill sponsors and proponents was to offer enough relief such that the interests behind the ballot measures would agree to pull their measures from consideration. In the end, proponents did not believe SB24-233 offered enough relief and, to date, have not pulled their measures from consideration.

As with the last session, affordable housing was a stated priority for legislators, the governor, local governments, and business groups. Following the failure of the governor’s landmark legislation last year that sought to give the state more land-use authority, his concepts were divided into several different pieces of legislation. Legislators also sought to empower rental tenants and to address Colorado’s growing construction defects litigation issue that is crippling the middle-income housing market.

This year’s package from the governor was focused on increasing housing density and incentivizing transit-oriented development and included bills that:

• Require certain local governments to allow accessory dwelling units and the state to encourage them. 
• Prohibit local governments that are members of a metropolitan planning organization from enacting or enforcing minimum parking requirements, with certain exceptions such as ADA compliance and minimum parking for bicycles.
• Plan and implement housing density goals, such as around designated transit centers. As introduced, this bill faced immense opposition from local governments, leading to more than 30 adopted amendments, including the removal of a provision that would have allowed the state to withhold highway users' tax funding for noncompliance.

Bipartisan compromises around big issues such as property tax and housing are crucial for addressing community issues effectively. Bipartisanship brings together diverse perspectives, fostering more comprehensive and balanced solutions. By working across party lines, policymakers can ensure that the needs of a broader population are considered.

This collaborative approach reduces polarization and increases trust in government. It is my firm belief that bipartisan efforts are more likely to result in sustainable and widely accepted policies, as they reflect a greater range of interests and values from the various regions in Colorado. Ultimately, bipartisan compromise leads to pragmatic and enduring solutions that benefit the entire state.

Chris Romer is president & CEO of Vail Valley Partnership, the regional chamber of commerce. Learn more at VailValleyPartnership.com