Colorado legislators should learn from history; one-size-fits-all approaches don't work in a state as economically diverse as Colorado. Local districts are more accountable to local voters.

The Commission on Property Tax was created by the Colorado legislature to study and make recommendations for a property tax structure that protects property owners and residential tenants from rising property taxes while meeting the needs of governments that rely on property tax to pay for local services. Their goal is to balance the needs of homeowners, local government, and businesses.

Balancing the needs of homeowners, government, and businesses is an admirable goal. It is also one that is nearly impossible to mandate with one-size-fits-all state mandates in a state as economically diverse as Colorado. What works for the Eastern Plains might not work for the Central Rockies, and what works for the Front Range might not work for the Western Slope.

There are several inherent flaws with the state meddling with property taxes. We hope the commission will remember the following when making their recommendations:

1. Property taxes are ultimately local decisions...and should remain so. Special districts are reflections of the hopes and dreams residents have for their communities. We encourage the commission to be considerate of the planning and care that goes into these choices. Appropriate elective controls are already in place to manage local taxes, including citizen-initiated options to dissolve districts. Sensible, levelheaded governance is alive and well in Colorado, especially in its rural communities where neighbors are accountable to one another.

2. The current run-up in valuations is a temporary trend. React accordingly, as this too shall pass. None of us could have predicted the massive spike in valuations following the pandemic. And yet, the end of Gallagher did not create the resulting housing marketplace. The timing was coincidental and the run-up in home prices will not continue indefinitely. We are already seeing moderating trends in housing markets. Please don’t create policies that mistakenly conflate the end of Gallagher with rising housing prices, or that assume that the current conditions will persist forever. The recent reassessment cycle was a once-in-a-career event. Please treat it as such.

3. Generic formulas are always incorrect when applied to a state as economically diverse as Colorado. Resist them. It is tempting to create a singular formula to “solve” statewide challenges. But, as we have seen from Gallagher to TABOR to the School Finance Act to the Higher Education Funding Formula, generic plans provide results that miss critically important differences in communities at the tails of the distribution. As residents of communities with the state’s highest home prices, highest health care costs, and highest transportation costs, we urge the Commission to resist common formulas, as they almost always miss the nuances of uncommon communities.

4. Artificial ceilings or “caps” are illogical and harmful. Like formulas, which are typically wrong before the ink dries on the Governor’s signature, artificial revenue caps are nothing more than political gimmicks resulting in unserious—or even harmful—public policy outcomes. It is a fact: no one can predict the hugely varying costs and operational demands among thousands of special districts, be they fire districts, water districts, school districts, and colleges, to name a few. Fiscal accountability from the state is expected and welcomed, but imposing arbitrary limits without first considering operating realities makes about as much sense as planting cut flowers.

We appreciate the commission engaging with the public and seeking input on tax policies. We encourage them to remember that local communities are the place to ensure tax decisions align with community priorities. Statewide formulas and one-size-fits-all Denver-led mandates are certain to negatively impact our special districts and create unintended negative consequences.

Chris Romer is president & CEO of Vail Valley Partnership, the regional chamber of commerce. Learn more at VailValleyPartnership.com.  Special thanks to Colorado Mountain College for originally sharing these themes.