A state constitutional amendment that has gradually shifted the property tax burden from homeowners to businesses should be repealed based on an unscientific poll of small-business owners attending a Durango Chamber of Commerce electoral forum.
The forum, held Wednesday on Zoom, examined Amendment B, repeal of the Gallagher Amendment.
It also examined Proposition 113, a vote on whether the state should join a national compact to elect the president by popular vote; and Proposition 118, adopting a Paid Family and Medical Leave Insurance Program in Colorado.
After examining the three ballot measures, Zoom attendees were polled on whether they supported or opposed the measures.
The Amendment B poll of the small business owners attending showed 64% backed repeal of the Gallagher Amendment, 18% opposed repeal and 18% were undecided.
The forum brought in supporters and opponents of each of the three ballot measures to make their pitches. All three measures go before voters Nov. 3
Speaking in favor of Amendment B, Simon Lomax, a senior adviser with EIS Solutions, told attendees if Amendment B fails it is estimated small businesses in the state would pay between $250 million to $270 million more annually in property taxes.
The Gallagher Amendment sets total property taxes collected in Colorado at 45% from residential properties and 55% from nonresidential properties, largely commercial and industrial property.
Because the value of residential property is rising faster than the value of commercial and industrial property, only 7.15% of the market rate of a home’s value is assessed for property taxes while 29% of a business’ market value is assessed for property taxes.
“We’re taxing residential property like we’re the state of Wyoming and we’re taxing commercial property like we’re New Jersey,” Lomax said.
Speaking against Amendment B, Alex Lemmel with the League of Women Voters said the Gallagher Amendment provides homeowners with gradually decreasing property tax bills over time.
If Amendment B is approved, the owner of a home worth $350,000 would pay $951 in property taxes in 2021 compared with $876 if the amendment is rejected.
Lemmel, who is personally for repeal of the Gallagher Amendment but argued against the repeal in the forum, said renters also stand to lose with repeal of the Gallagher Amendment because a heavier reliance on residential property taxes would be passed on to renters. Lemmel said the League of Women Voters also supports repeal of Gallagher.
Debra Brown, executive director of Good Business Colorado, argued for passage of Proposition 118.
“Paid Family and Medical Leave would provide the time off with compensation for employees in the midst of life-changing events to return as a highly productive employee,” Brown said.
The proposal would create a Family and Medical Leave Insurance Program administered by a new state agency that would provide up to $1,100 a week in wages for 12 to 16 weeks for employees dealing with serious health issues or life-changing events, such as having a baby or dealing with a dying parent.
The program would be financed by a 0.9% tax paid by both an employee and employer on an employee’s wages. Taxes would begin being paid in January 2023, and benefits to employees would start in January 2024.
Brown said businesses that already provide family and medical leave outperform competitors, but the private market has not been able to provide the needed monetary benefits or the adequate time off needed by employees going through a major illness or a life-changing event.
Kristi Pollard with Catalyst Public Affairs argued against Proposition 118.
“This would be a lavish new program that would create a giant new state agency,” Pollard said.
She noted the Colorado Women’s Chamber of Commerce opposes Proposition 118.
She said the proposal amounts to a $1.3 billion tax increase per year.
In addition, she estimated if 6.2% of state residents used the program for 9½ weeks in its second year of operation, in 2025, it would bankrupt the program.
“The reality is: We as a state and a nation are struggling in the COVID-19 economy. Four thousand restaurants across the state have gone out of business,” she said. “Is now the time to add a $1.3 billion tax on employees and employers who are still struggling?”
The Durango Chamber of Commerce poll taken of attendees showed 75% were opposed to Proposition 118, 12% were for it and 14% were undecided.
Gov. Jared Polis signed a bill in March 2019 joining Colorado with 14 other states pledging to adhere to the National Popular Vote Interstate Compact. The compact pledges states to commit all their Electoral College votes for president to the winner of the national popular vote and not to the state’s popular vote winner.
So far, states with 196 Electoral College votes have signed the compact, but under Proposition 113, Colorado voters have the opportunity to withdraw from the compact. Colorado has nine Electoral College votes.
The compact goes into effect only if states with 270 Electoral College votes agree to it.
Jill Patton with the League of Women Voters argued for Proposition 113.
“Some states are reliably red or blue and are ignored by presidential candidates,” Patton said.
Patton said Colorado is viewed as a safe Democratic state, which means few visits to the state by presidential contenders and less presidential campaign attention and spending in the state.
Rose Pugliese, a Republican Mesa County commissioner, said she did not believe candidates consider the state reliably Democratic.
But more importantly, she said, it is important that Coloradans keep control of the state’s Electoral College votes and not cede them to the national vote.
“I think it’s important that Coloradans determine how our Electoral College votes,” she said. “We’re not a direct democracy. We’re a representative democracy, a republic.”
The poll showed a tight race for Proposition 113 with 33% of attendees against Proposition 113, 31% for it and 36% undecided.
parmijo@durangoherald.com
