The La Plata County commissioners discussed Proposition HH, the complex tax question on the November ballot, last week before deciding they would not take an official position on the matter.

But that does not mean that they, and other local leaders, have no opinions on the issue.

In discussions over the last week, all three county commissioners, County Assessor Carrie Woodson and fire officials have voiced concerns about the ballot question.

Marketed by statehouse Democrats as mechanism to provide property tax relief in the face of surging property values, Prop. HH presents a convoluted plan.

If passed, it would lower the assessment rate for 10 years, increase the amount of money the state can retain under the Taxpayer’s Bill of Rights by 1% annually (lowering TABOR refunds) and use the surplus funds to compensate some taxing entities for lost revenue and fund education.

Certain golden nuggets in the bill have broad support, such as making the senior homestead exemption transferable. Homeowners 65 and older would be able to move their property tax exemption, which applies to 50% of their home’s value up to $100,000, if they relocate homes. Currently, seniors must own their home for at least 10 years to qualify.

But on the whole, officials are concerned.

La Plata County would likely be eligible for some backfill next year, stemming from lost revenue due to a different property tax relief bill, SB 22-238, which also slashed assessment rates and taxable values.

But given that assessed values have risen on average by more than 20% from 2022 levels, the county would be ineligible for any backfill going forward until assessed values no longer exceed that benchmark.

“I’m just concerned that this is a 10-year decreasing revenue plan from HH,” Commissioner Clyde Church said in the board’s discussion time Wednesday.

The commissioners are caught in a delicate spot. They readily recognize the need for property tax relief, but feel that Prop. HH provides said relief on the backs of counties that cannot afford to saddle that burden.

“It’s a half a million dollars, at least … that will impact La Plata County and services,” Commissioner Matt Salka said, referencing the estimated $567,000 the county is predicted to lose next year if Prop. HH passes. “Half a million may not seem like a whole lot, but its got to be taken away from somewhere.”

The other issue looming is Initiative 50. The question will go before voters in 2024 as a proposed constitutional amendment and would cap property tax revenue increases at 4% and offer new compensation to local jurisdictions.

Some Democrats have acknowledged that Prop. HH is not perfect, but its failure could mean that Initiative 50 is more likely to pass next year.

Commissioner Marsha Porter-Norton called the latter ballot question “a draconian measure” at Wednesday’s discussion and said “it’s meant to bring government to its knees, I think.’

Considering Prop. HH with the backdrop of Initiative 50 gave Porter-Norton pause and informed her thinking that the Board of County Commissioners should not take an officials stance on Prop. HH.

Randy Black, the deputy chief of the Durango Fire Protection District who will take over as chief at the end of the year, said Prop. HH and SB 22-238 combined would cost the department close to $1 million.

“This is a bad bill,” he said at a Durango Chamber of Commerce's Eggs & Issues Forum Thursday. “Bad for us, bad for the county, bad for the state.”

Woodson, whose office would saddle a huge portion of the workload burden if the question passes, joined State Sen. Cleave Simpson in railing against the process by which Prop. HH ended up on the ballot.

Simpson, who has represented La Plata County in the General Assembly since redistricting took effect at the beginning of this year, said the legislation placing HH before voters passed just eight days after it was introduced. The “unconscionable” process left him wondering if he wanted run for the seat again (Simpson said he will appear on the ballot next year).

Woodson said the bill is so confusing that she is unable to answer many questions about its impacts.

Other effects – such as increased tax breaks for primary residences – mean her office would have to accept affidavits from homeowners seeking to take advantage of that program.

“We don’t have the staff,” she said.

The consensus among officials appears to be that other mechanisms for property tax relief exist and can be created without harming local taxing entities or overburdening county staff.

At the conclusion of Wednesday’s board discussion time, the commissioners agreed that the bill could be harmful for their organization but recognized its complexities.

“All I ask is that voters read the blue book and ask questions,” Salka said.

rschafir@durangoherald.com