Colorado Amendment B, Gallagher Amendment Repeal and Property Tax Assessment Rates Measure (2020)

Colorado Amendment B
Election date November 3, 2020
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin State legislature
List of Colorado measuresColorado Amendment 76Colorado Amendment 77Colorado Amendment BColorado Amendment CColorado Proposition 113Colorado Proposition 114Colorado Proposition 115Colorado Proposition 116Colorado Proposition 117Colorado Proposition 118Colorado Proposition EESubmit

Colorado Amendment B, the Gallagher Amendment Repeal and Property Tax Assessment Rates Measure, was on the ballot in Colorado as a legislatively referred constitutional amendment on November 3, 2020. It was approved.

A "yes" vote supported the following:  repealing the Gallagher Amendment, which set residential and non-residential property tax assessment rates in the state constitution; allowing the Colorado State Legislature to freeze property tax assessment rates at the current rates (7.15% for residential property and 29% for non-residential property);  allowing the state legislature to provide for future property tax assessment rate decreases through state law; and  continuing to require voter approval for rate increases due to TABOR.

A "no" vote supported maintaining the Gallagher Amendment, which requires a residential to non-residential property tax ratio of 45% to 55% and requires the state legislature to adjust the residential assessment rate to maintain the required ratio. Since 1982, the residential property tax assessment rate has dropped from 21% to 7.15% under the Gallagher Amendment.

Supermajority requirement: A simple majority vote was required for the approval of Amendment B.

Election results

Colorado Amendment B
Result		Votes	Percentage
Yes		1,740,395	57.52%
No		1,285,136	42.48%

Results are officially certified.

Source

Overview

What did Amendment B do?

See also: Text of measure and Background

Amendment B repealed the Gallagher Amendment of 1982, which limited the residential and non-residential property tax assessment rates so that residential property taxes equaled 45% of the total share of state property taxes and non-residential property taxes equaled 55% of the total share of state property taxes.

Non-residential property: Under the Gallagher Amendment, property tax assessment rates were set in the state constitution to be 29% for non-residential property. The rate was fixed at 29% in the state constitution and could only be changed through a constitutional amendment. Amendment B repealed the 29% non-residential assessment rate. Non-residential property includes commercial property and oil and gas property.

Residential property: Under the Gallagher Amendment, the assessment rate for residential property was required to be adjusted before each 2-year reassessment cycle so as to maintain the 45%-55% split between the total share of property taxes paid between the two types of property. The residential assessment rate was initially set as 21% under the Gallagher Amendment but decreased over time to maintain the 45%-55% split. The residential property tax assessment rate for 2019-2020 was 7.15%. As of 2020, residential property in Colorado made up about 80% of the assessed value of all property in the state.

What will property tax rates be under Amendment B?

The legislature passed a companion bill, Senate Bill 20-223, which was set to take effect alongside the constitutional amendment. Senate Bill 223 froze the then-current rates of 7.15% for residential property and 29% for non-residential property in state statute. SB 223 allowed the legislature to reduce the assessment rate in state law. Under the Gallagher Amendment, property tax assessment rates were expected to continue to decrease at the reassessment set to occur 2021 and going forward. Therefore, repealing the Gallagher Amendment and freezing property tax rates at current levels was expected to result in higher residential assessment rates than under the Gallagher Amendment. Due to the Colorado Taxpayer's Bill of Rights (TABOR), the legislature could not increase assessment rates without a statewide vote of the people.

Will Amendment B affect education funding?

Colorado has not had a statewide property tax since 1964. Property tax revenue is collected locally and stays within the county funding the county government, public schools, junior colleges, and special districts. The Colorado Legislative Council Staff said Amendment B was expected to result in more property tax revenue for local governments and therefore reduced state aid requirements for school funding.

Who was behind the campaigns surrounding this measure?

See also: Support, Opposition, and Campaign finance

Yes on Amendment B was registered to support the measure. The committee reported $7.85 million in contributions and $7.87 million in expenditures. Kent Thiry (former CEO of DaVita Dialysis) donated $2.1 million and Pat Stryker (founder of the Bohemian Foundation) donated $2.25 million to the support campaign. Legislative sponsor of the measure Rep. Daneya Esgar (D) said, "Colorado’s schools, libraries, firefighters, police officers, and special districts can’t afford the Gallagher Amendment... we’re asking voters to decide whether we do away with a policy that is no longer delivering on its original intent. I’ve worked on this issue for long enough to know first-hand how the Gallagher Amendment is hampering our local governments’ ability to properly fund needed services. It’s time to relegate it to the history books.”

Keep Property Taxes Low was registered to oppose the measure. The committee was created by Michael Fields, executive director of Colorado Rising State Action. The committee reported $722,140 in contributions and $722,140 in expenditures. Protect Our Homes Colorado (also known as No on Amendment B) registered as a small scale issue committee opposing Amendment B and was not required to file campaign finance reports because it did not receive contributions or makes expenditures exceeding $5,000. Michael Fields, executive director of Colorado Rising State Action said, "On top of income taxes, sales taxes, and skyrocketing fees, politicians now want more property taxes too. Enough is enough. Instead of asking for more property tax money, legislators should reform the education funding formula. ... Our economy is obviously in a very fragile position. The upcoming year will have long-term consequences for our state. If we’re smart, we will do all we can to ease the burden on families across the state. Not only do higher property taxes impact homeownership, but they also drive up the cost of renting. When deciding on policies, these 'unintended consequences' should certainly be factored in."

What did supporters and opponents say about the Gallagher Amendment's effect on businesses?

Support for Amendment B:

Colorado GOP Chairman Dick Wadhams said, "Gallagher’s burdened small businesses for many years, but in the midst of COVID-caused shutdown, the one-way ratchet of higher taxes on local job-creators is especially cruel, If Gallagher is not repealed, property taxes will be a nail in the coffin of many small businesses."

State Sen. Rhonda Fields (D) and Aurora City Councilmember Curtis Gardner (R) said, "Right now, small businesses in Colorado pay a property tax rate that is more than four times higher than the rate paid by homeowners. If left to fester, Gallagher will pile even more tax burden on these businesses next year."

Opposition to Amendment B:

Colorado Rising State Action said, "The Gallagher Amendment isn’t perfect, but a full repeal will mean increasing residential property taxes while providing little to no benefit to small businesses. The middle of a recession is not the time to raise property taxes on hardworking families and renters while creating uncertainty about the future."

Former Colorado Representative and Senator Dennis Gallagher said, "Repeal of Gallagher will give large corporations in Colorado millions of dollars in tax decreases. Does Amazon need another tax break? Amazon Corporation did not pay a single dime in federal income taxes last year and now the state of Colorado wants you to vote them another tax break."

Text of measure

Ballot title

The ballot title for Amendment B was as follows:

“

Without increasing property tax rates, to help preserve funding for local districts that provide fire protection, police, ambulance, hospital, kindergarten through twelfth grade education, and other services, and to avoid automatic mill levy increases, shall there be an amendment to the Colorado constitution to repeal the requirement that the general assembly periodically change the residential assessment rate in order to maintain the statewide proportion of residential property as compared to all other taxable property valued for property tax purposes and repeal the nonresidential property tax assessment rate of twenty-nine percent?

”

Summary and analysis

The summary and analysis provided for this measure in the 2020 State Ballot Information Booklet are available on page 8 at this link.

Fiscal impact statement

The fiscal impact statement was as follows:

“ Local revenue and spending. For many local governments, including counties, cities, school districts, and special districts, Amendment B will result in increased property tax revenue. The amount of any increase will depend on what the residential assessment rate would have been in the future without the measure, as well as whether voters have already approved local tax increases to counteract future potential decreases in the residential assessment rate. State spending. To the extent that Amendment B increases property tax revenue to school districts, additional funding will be available for the local share of the state’s system of school finance, reducing the amount the state must pay to make up the difference between local revenue and the school district funding amount identified through a formula in state law. Taxpayer impacts. Maintaining the current residential assessment rate results in higher property taxes for many residential property owners compared to what they would owe if residential assessment rates were lowered in the future. The impact on property owners from holding the residential assessment rate constant in the future will vary based on several factors, including what future decreases in the residential assessment rate would have been required without the measure, the actual value of the property, and the tax rates of the local taxing districts. The measure does not impact the assessment rate for most nonresidential taxpayers. ”

Constitutional changes

See also: Article X, Colorado Constitution

The measure amended Section 3 of Article X of the state constitution. The following underlined text was added and struck-through text was deleted: Note: Use your mouse to scroll over the below text to see the full text.

Section 3. Uniform taxation - exemptions. (1) (b) Residential real property, which shall include all residential dwelling units and the land, as defined by law, on which such units are located, and mobile home parks, but shall not include hotels and motels, shall be valued for assessment. at twenty-one percent of its actual value. For the property tax year commencing January 1, 1985, the general assembly shall determine the percentage of the aggregate statewide valuation for assessment which is attributable to residential real property. For each subsequent year, the general assembly shall again determine the percentage of the aggregate statewide valuation for assessment which is attributable to each class of taxable property, after adding in the increased valuation for assessment attributable to new construction and to increased volume of mineral and oil and gas production. For each year in which there is a change in the level of value used in determining actual value, the general assembly shall adjust the ratio of valuation for assessment for residential real property which is set forth in this paragraph (b) as is necessary to insure that the percentage of the aggregate statewide valuation for assessment which is attributable to residential real property shall remain the same as it was in the year immediately preceding the year in which such change occurs. Such adjusted ratio shall be the ratio of valuation for assessment for residential real property for those years for which such new level of value is used. In determining the adjustment to be made in the ratio of valuation for assessment for residential real property, the aggregate statewide valuation for assessment that is attributable to residential real property shall be calculated as if the full actual value of all owner-occupied primary residences that are partially exempt from taxation pursuant to section 3.5 of this article was subject to taxation. All other taxable property shall be valued for assessment. at twenty-nine percent of its actual value. However The valuation for assessment for producing mines, as defined by law, and lands or leaseholds producing oil or gas, as defined by law, shall be a portion of the actual annual or actual average annual production therefrom, based upon the value of the unprocessed material, according to procedures prescribed by law for different types of minerals. Non-producing unpatented mining claims, which are possessory interests, in real property by virtue of leases from the United States of America, shall be exempt from property taxation.

Readability score

See also: Ballot measure readability scores, 2020

Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The Colorado State Legislature wrote the ballot language for this measure. The FKGL for the ballot title is grade level 43, and the FRE is -55. The word count for the ballot title is 91, and the estimated reading time is 24 seconds.

Support

Yes on Amendment B led the campaign in support of the measure. Yes on Amendment B provided a full list of endorsements, which is available here.

Supporters

Officials

• Colorado Governor Jared Polis (D)
• Colorado State Senator Rhonda Fields (D)
• Colorado State Senator Chris Hansen (D)
• Colorado State Senator Jack Tate (R)
• Colorado State Representative Daneya Esgar (D)
• Colorado State Representative Matt Soper (R)

Former Officials

• Former U.S. Senator Hank Brown
• Former Colorado Governor Bill Ritter (D)
• Former Colorado Governor Roy Romer (D)

Unions

• AFSCME Colorado
• Colorado Education Association

Organizations

• COLOR Action Fund
• Colorado AFL-CIO
• Colorado AFL-CIO
• Colorado Business Roundtable
• Colorado Concern
• Colorado Farm Bureau
• Colorado Women's Chamber of Commerce
• Colorado Wool Growers Association
• Democracy for America
• Denver Metro Chamber of Commerce
• Economic Development Council of Colorado
• Great Education Colorado
• League of Women Voters of Colorado
• National Federation of Independent Business
• New Era Colorado
• Progress Now Colorado
• West Slope Colorado Oil and Gas Association

Individuals

• Dick Wadhams - Colorado GOP chairman

Arguments

• Colorado Rep. Daneya Esgar (D): "Colorado’s schools, libraries, firefighters, police officers, and special districts can’t afford the Gallagher Amendment... we’re asking voters to decide whether we do away with a policy that is no longer delivering on its original intent. I’ve worked on this issue for long enough to know first-hand how the Gallagher Amendment is hampering our local governments’ ability to properly fund needed services. It’s time to relegate it to the history books."
• Colorado Sen. Jack Tate (R): "We go now to the citizens of Colorado with broad, diverse support from the business community, rural Colorado, those districts that are supported by tax revenue — hospital districts, fire districts, law enforcement. Stability is important for everybody, whether it’s the fire district or the business community."
• State Sen. Rhonda Fields (D) and Aurora City Councilmember Curtis Gardner (R): "Right now, small businesses in Colorado pay a property tax rate that is more than four times higher than the rate paid by homeowners. If left to fester, Gallagher will pile even more tax burden on these businesses next year – giving them a rate five times higher than homeowners. Instead of helping our neighborhood restaurants, coffee shops, day cares, auto repair shops, and farms, Gallagher will make it even more expensive for them to stay in business."
• BizWest: "It’s simply not fair, it’s damaging to economic development, and it potentially threatens companies that provide all the jobs in the private sector. ... For commercial real estate, triple-net expenses — which include taxes, maintenance, building insurance, etc. — have soared so much that they can rival the base rent paid for commercial space. The disparity has created an untenable situation for commercial property owners, small businesses and agriculture, which are seeing steep hikes in expenses with every new property-tax valuation."
• Colorado GOP Chairman Dick Wadhams: "Gallagher’s burdened small businesses for many years, but in the midst of COVID-caused shutdown, the one-way ratchet of higher taxes on local job-creators is especially cruel. If Gallagher is not repealed, property taxes will be a nail in the coffin of many small businesses."
• Gov. Jared Polis (D): "I want to stress to voters across Colorado: How we emerge from the pandemic and the recession will depend on how we vote on Amendment B. If Gallagher isn’t repealed, Coloradans and the local businesses that have taken the brunt of the impact this year will experience nearly $300 million in automatic property tax increases next year. The Gallagher Amendment is an unfair and outdated formula that will make it harder for Colorado to bounce back. Our small businesses can’t afford this tax increase now."

Official arguments

• Official Blue Book argument: "1) The Gallagher Amendment is outdated and full of unintended consequences. If the Gallagher Amendment is not repealed, owners of high-end homes in Denver’s wealthiest neighborhoods would get a tax cut next year, while small businesses and farmers would pay a larger share of property taxes. The Gallagher Amendment causes small businesses to be taxed at a rate four times higher than residential property owners, and penalizes rural and low-income communities that lack a significant commercial tax base. 2) Colorado has some of the lowest residential property taxes in the nation, and Amendment B fixes property tax assessment rates at their current levels. Amendment B is not a tax increase. Under Amendment B, the property tax rates homeowners and businesses pay could only be increased by a vote of the people. 3) Amendment B will prevent deep cuts to schools, hospitals, fire protection, and other local services in many areas of the state. Declines in the residential assessment rate caused by the Gallagher Amendment have resulted in significant reductions in vital services provided by local governments, particularly in rural and low-income communities. Amendment B allows local governments to continue providing services that their communities expect."

Opposition

Keep Property Taxes Low and Protect Our Homes Colorado registered to oppose the measure.

Opponents

Former Officials

• Former Colorado State Legislator Dennis Gallagher

Organizations

• Americans for Tax Reform
• Colorado Rising State Action

Arguments

• Michael Fields, executive director of Colorado Rising State Action: "On top of income taxes, sales taxes, and skyrocketing fees, politicians now want more property taxes too. Enough is enough. Instead of asking for more property tax money, legislators should reform the education funding formula. Some wealthy districts are getting unnecessary subsidies from the state, while other districts (especially in rural Colorado) are getting the short end of the stick. Reforming this would ease the pressure on the state budget to back-fill the budgets of school districts, and instead, put our resources where they’re needed most. ... Our economy is obviously in a very fragile position. The upcoming year will have long-term consequences for our state. If we’re smart, we will do all we can to ease the burden on families across the state. Not only do higher property taxes impact home ownership, but they also drive up the cost of renting. When deciding on policies, these 'unintended consequences' should certainly be factored in."
• Former Colorado Speaker of the House Dickey Lee Hullinghorst (D): "If the Gallagher Amendment is repealed, Coloradans can expect a much higher tax bill starting in the next tax cycle. Indirectly, renters will pay for increased property taxes passed on by housing providers. Homeowners may struggle to avoid foreclosure. Economic hardships will likely increase for fixed-income residents and at-risk families. Total housing costs will go up, and mortgages will be less accessible. ... In the current climate, voting “yes” on Amendment B would increase property taxes and the cost of affordable housing, pushing vulnerable families out of their homes and leaving these families with little to no housing options. ... If Gallagher is repealed, the Colorado property tax administrator estimates residential property owners will pay an additional $203.7 million in property tax increases — just in the first year. This could escalate the financial crisis many Coloradans already face from rising unemployment and lost income due to COVID-19. Fear during a recession only creates more uncertainty in everyone’s finances. Now is not the time to raise taxes on Coloradans."
• Colorado Rising State Action: "The Gallagher Amendment isn’t perfect, but a full repeal will mean increasing residential property taxes while providing little to no benefit to small businesses. The middle of a recession is not the time to raise property taxes on hardworking families and renters while creating uncertainty about the future."
• Former Colorado Representative and Senator Dennis Gallagher: "Repeal of Gallagher will give large corporations in Colorado millions of dollars in tax decreases. Does Amazon need another tax break? Amazon Corporation did not pay a single dime in federal income taxes last year and now the state of Colorado wants you to vote them another tax break."
• Protect our Homes Colorado- No on Amendment B: "Businesses want to pay less taxes and have homeowners and renters pay more! Even though Colorado is rated as having the fourth best business environment in the country, businesses still want more. Repealing the Gallagher Amendment will shift $1.02 billion in taxes from businesses to homeowners/renters over the next 5 years."

Official arguments

• Official Blue Book argument: "1) Amendment B results in higher property taxes for homeowners by preventing future drops in the residential assessment rate. Increasing home values have already resulted in higher property taxes for many homeowners. Higher taxes mean that homeowners will have less money to spend or save, and landlords may increase rents, at a time when many are already struggling to make ends meet. 2) The current property tax system keeps residential property taxes low, and prevents special interests from obtaining tax breaks at the expense of homeowners. Amendment B removes an important protection for homeowners from the constitution. Without these protections, homeowners may end up paying an increasing share of property taxes. 3) There are better alternatives to amending the constitution. Local governments can instead ask their voters to raise tax rates or seek other solutions to provide services such as fire protection, schools, and libraries. These alternatives would allow voters in each local jurisdiction to decide for themselves how to best fund services for their community."

Campaign finance

See also: Campaign finance requirements for Colorado ballot measures

The campaign finance information on this page reflects the most recently scheduled reports processed by Ballotpedia, which covered through November 30, 2020.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$7,848,193.00	$519.10	$7,848,712.10	$7,867,877.20	$7,868,396.30
Oppose	$471,042.00	$251,098.10	$722,140.10	$471,042.00	$722,140.10

Yes on Amendment B registered to support the measure. The committee reported $7.84 million in contributions and $7.87 million in expenditures. Kent Thiry (former CEO of DaVita Dialysis) donated $2.1 million and Pat Stryker (founder of the Bohemian Foundation) donated $2.25 million to the support campaign.

Keep Property Taxes Low registered to oppose the measure. The committee was created by Michael Fields, executive director of Colorado Rising State Action. The committee reported $722,140 in contributions and $722,140 in expenditures. The committee was terminated following the reporting period that ended on November 30, 2020. Protect Our Homes Colorado (also known as No on Amendment B) registered as a small-scale issue committee opposing Amendment B and was not required to file campaign finance reports because it did not receive contributions or makes expenditures exceeding $5,000.

Support

The following table includes contribution and expenditure totals for the committee in support of the initiative.

Committees in support of Amendment B
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Yes on Amendment B	$7,848,193.00	$519.10	$7,848,712.10	$7,867,877.20	$7,868,396.30
Total	$7,848,193.00	$519.10	$7,848,712.10	$7,867,877.20	$7,868,396.30

Donors

The following are the top five donors to the support committee.

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Pat Stryker	$2,250,000.00	$0.00	$2,250,000.00
Kent Thiry	$2,125,000.00	$0.00	$2,125,000.00
Gary Community Investments	$1,500,000.00	$0.00	$1,500,000.00
National Education Association Fund for Children and Public Education	$500,000.00	$0.00	$500,000.00

Opposition

The following table includes contribution and expenditure totals for the committee in opposition to the initiative.

Committees in opposition to Amendment B
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Keep Property Taxes Low	$471,042.00	$251,098.10	$722,140.10	$471,042.00	$722,140.10
Total	$471,042.00	$251,098.10	$722,140.10	$471,042.00	$722,140.10

Donors

The following are the top five donors to the opposition committee.

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Apartment Association of Metro Denver	$329,000.00	$0.00	$329,000.00
Equity Residential	$29,872.00	$173,048.19	$202,920.19
Colorado Apartment Association	$45,000.00	$0.00	$45,000.00
Colorado Rising State Action	$0.00	$0.00	$0.00

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Media editorials

See also: 2020 ballot measure media endorsements

Support

• Denver Post Editorial Board: "We understand Colorado taxpayers may feel nervous about ceding a powerful tool that has kept property taxes relatively low in Colorado compared to other states. However, the unintended double whammy on businesses at this juncture in history is untenable. We urge voters to support Amendment B. And we can all take solace and comfort in the fact that lawmakers cannot ever increase the state property tax assessment rate without a vote of the people because the Taxpayer’s Bill of Rights is very much still intact."
• Durango Herald Editorial Board: "Gallagher has turned state and local funding upside down. The state has had to give up some funding for transportation and higher education, for example, while local entities, where citizen confidence is highest, have had to mount special mill levy increase requests. Fire departments should fight fires and libraries loan books, not mount repeated funding campaigns."
• Cortzez Journal Editorial Board: "Vote Yes on Amendment B for the levels of government Colorado can provide for its residents."
• Vail Daily Editorial Board: "The state’s Gallagher Amendment was a good idea when passed by Colorado voters in 1982. The measure has outlived its usefulness, particularly in rural Colorado."
• Grand Junction Daily Sentinel Editorial Board: "This cannot be what Gallagher supporters originally had in mind. The state’s tax policy should consist of three reasonable components: sales tax, income tax and property tax. One of the legs of this three-legged stool is broken. The only way to fix it is to repeal Gallagher. And the repeal does no harm. It just keeps things from getting worse. ... It is a win for schools, a win for small businesses, and a win for property owners whose property tax rates are frozen where they are, never to be raised without a vote of the people."
• Steamboat Pilot & Today Editorial Board: "Amendment B freezes tax assessment rates at the current rate — 7.15% for residential property and 29% for non-residential property — a solution that we believe helps create economic stability during a time of extreme uncertainty for business owners and residents alike."
• Boulder Daily Camera Editorial Board: "In essence, a 'yes' vote on Amendment B would stop the bleeding caused by Gallagher, but it wouldn’t help the patient recover. We’re nervous about what type of treatment the Legislature would prescribe. And it’s odd timing that legislators waited to recommend this change in the middle of a pandemic-driven economic crisis after decades of living with the status quo. That said, we do see a need to fix problems created by Gallagher and think our legislators should have an opportunity to address them. We’re cautiously recommending that residents vote 'yes' on Amendment B on the Nov. 3 ballot."
• Journal-Advocate Editorial Board and Fort Morgan Times Editorial Board: "...in rural areas like ours with a smaller commercial property base, the decreases to residential property tax revenue means fewer dollars for essential services, like emergency responders and education."
• Colorado Springs Indy Editorial Board: "If Gallagher is repealed, property tax assessment rates will remain exactly the same as they are now. State and local governments can only increase assessment rates with voter approval. The Gallagher Amendment is outdated and causes unintended and often unfortunate consequences. ... Today, due to Gallagher, small businesses are taxed at a rate four times higher than residential property owners. Gallagher also penalizes rural and low-income communities that lack significant commercial tax bases. Vote Yes on Amendment B."
• BizWest Editorial Board: "Simply put, Gallagher caps the amount of residential property taxes that the state collects to 45% of the total, with the balance assessed on commercial properties. The result over four decades is that residential property-tax rates have declined, even as commercial properties bear an unfair burden"
• Greeley Tribune Editorial Board: "Amendment B unlocks the Gallagher padlock and allows taxing entities to have a reliable revenue source upon which they can reasonably plan and budget accordingly."
• Boulder Weekly Editorial Board: " Repealing the Gallagher Amendment will allow local communities to better fund their local school and fire districts, taking some of that burden off the state’s general fund, freeing up resources to address other education and transportation funding constrained by TABOR."

Opposition

• Sentinel Colorado Editorial Board: "Passing this measure will only create different problems for Colorado. It won’t fix old ones. To do that, state lawmakers must ask voters to removed Gallagher, TABOR and Amendment 23 from the state Constitution and return control of state finances to elected representatives. Too many far-right lawmakers are unwilling. Too many moderate and liberal lawmakers are too timorous — so far. The mistaken perception created by passing Amendment B only prolongs real, needed changed: going to voters to end TABOR and other deleterious tax problems chiseled into the state Constitution."
• Denver Gazette Editorial Board: "[Amendment B would] shift the residential-business paradigm and ease some of the business community’s property tax pain. Unfortunately, the well-intended proposal overcorrects. It risks channeling too much of that pain back to homeowners in the long run as it sooner or later will result in higher property tax bills for them. That’s why we have to urge a “no” vote on B — even as we appreciate how the amendment, placed on the ballot by the legislature last spring, addresses a very real and serious problem confronting all Coloradans."

Reports and analyses

Note: The inclusion of a report, white page, or study concerning a ballot measure in this article does not indicate that Ballotpedia agrees with the conclusions of that study or that Ballotpedia necessarily considers the study to have a sound methodology, accurate conclusions, or a neutral basis. To read a full explanation of Ballotpedia's policy on the inclusion of reports and analyses, please click here.

Report by National Federation of Independent Business (NFIB), Boulder Chamber of Commerce, Colorado Springs Chamber of Commerce, and Colorado Concern

The National Federation of Independent Business (NFIB), Boulder Chamber of Commerce, Colorado Springs Chamber of Commerce, and Colorado Concern conducted an analysis of Amendment B titled, "Iceberg Ahead: The Hidden Tax Increase Below the Surface of the Gallagher Formula." The executive summary of the report is reproduced below:

“

For almost 40 years, a statewide formula known as the Gallagher Amendment has reduced the housing market’s share of Colorado’s property tax base. Next year, the percentage of the housing market subject to property taxes – known as the residential assessment rate, or RAR – is projected to fall from 7.15% to 5.88%. This is highly unlikely to deliver any real reduction in property taxes, however. In fact, historical data and forecasts prepared by the Colorado Department of Local Affairs indicate a $975.7 million tax increase will occur because of the Gallagher Amendment over the next 1-3 years. While all property owners will be impacted, the vast majority of this tax increase will be paid by businesses, farms, ranches and other non-residential property owners. This is because, starting in 2021, the Gallagher formula will tax business and agricultural property at a rate five times higher than residential property, according to DOLA forecasts. We estimate the Gallagher formula will trigger $811.2 million in new taxes for Colorado businesses, farms, ranches and other job creators across the state. This increase will hit small businesses and other enterprises at an extremely vulnerable time, as they struggle to keep their doors open and keep paying their employees due to the COVID-19 recession.

”

The full analysis is available here.

Polls

See also: Ballotpedia's approach to covering polls and 2020 ballot measure polls

Poll results for the measure are detailed below:

Colorado Amendment B
Poll	Yes	No	Unsure	Margin of error	Sample size
Survey USA poll 10/1/20 - 10/6/20	22.0%	17.0%	61.0%	+/-3.9	1,021
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to [email protected].

Background

Gallagher Amendment of 1982 and property values

See also: Colorado Referendum 1, Property Tax Assessment Rates Gallagher Amendment (1982)

The Gallagher Amendment, also known as Referendum 1, was on the 1982 ballot in Colorado as a legislatively referred constitutional amendment. The measure was approved in a vote of 65.49% to 34.51%.

The Gallagher Amendment was designed to limit the residential and non-residential property tax assessment rates so that non-residential property taxes equal 55% of the total share of state property taxes and residential property taxes equal 45% of the total share of state property taxes.

The non-residential assessment rate was set under the Gallagher Amendment at 29%. To maintain the 45-55% split, the residential property tax rate was adjusted biannually. According to the Department of Local Affairs Division of Property Taxation, the purpose of the Gallagher Amendment was to "stabilize residential real property’s share of the statewide property tax base." The Division of Property Taxation stated, "From 1958 to 1982, the percentage of total assessed value consisting of residential property increased from 29 to 44 percent. This occurred primarily because market value increases to residential property greatly outpaced market value increases to non-residential property."

In 1983, the residential property made up 53% of actual property value in the state, while non-residential property accounted for 47%. As of 2020, residential property in Colorado made up 80% of the actual value of all property in the state, while non-residential property accounted for 20%.

Prior to the Gallagher Amendment, the residential assessment rate was 30% of a home's actual value. Under the Gallagher Amendment, the rate was 21% between 1983 and 1986. The rate continued to decrease, and as of 2020, the residential assessment rate was 7.15%. This means for a house worth $100,000, the taxable value is $7,150. As of 2020, residential assessment rates were expected to decrease further under the Gallagher Amendment. Assuming a hypothetical assessment rate of 21% had the Gallagher Amendment not been enacted, the Gallagher Amendment is estimated to have reduced the amount of taxes residential taxpayers have paid by $35.3 billion from 1987 through 2019.

The following is an excerpt from the 2019 Annual Report by the Colorado Department of Local Affairs Division of Property Taxes. The excerpt shows residential assessment rates from 1983-2020 and the percent share of property tax between residential and non-residential property assessed under the Gallagher Amendment as well as what the amounts would be if valued at actual value (without the Gallagher Amendment).

Property taxes in Colorado

Property tax revenue in Colorado is collected by local governments and funds county government, public schools, junior colleges, and special districts. Colorado has not had a statewide property tax since 1964. The state sets assessment rates and local governments set the tax rate (mills) that are levied on the assessed value of the property. For example, for a $100,000 home, the 2020 assessment rate of 7.15% means that $7,150 is taxable. The local government's tax rate would apply to the $7,150. For example, a tax rate of 100 mills (equal to mills/1,000) would mean that $715 would be owed for property taxes on the house.

Education funding in Colorado

The Colorado Legislative Council Staff said Amendment B was expected to result in more property tax revenue for local governments and therefore reduced state aid requirements for school funding. For fiscal year 2019-2020, the state was expected to provide 61% of the funds for education ($7.6 billion) and local governments were expected to provide 39% ($3 billion). Amendment 23 of 2000 requires the statewide base per-pupil funding level to increase by the rate of inflation each year. For fiscal year 2019-20, the base per-pupil funding amount was $6,951.53.

The following excerpt of the 2020 School Finance in Colorado research publication by the Colorado Legislative Council Staff summarizes education funding in Colorado:

The following chart from the Colorado Legislative Council Staff shows the percentage of the local and state share of education funding from 1983 to 2020.

Colorado Taxpayer's Bill of Rights (TABOR)

See also: Colorado Taxpayer's Bill of Rights (TABOR)

The Colorado State Legislature cannot increase the property tax assessment rate without a statewide vote of the people due to do the Colorado Taxpayer's Bill of Rights (TABOR). TABOR requires voter approval for all new taxes, tax rate increases, extensions of expiring taxes, mill levy increases, valuation for property assessment increases, or tax policy changes resulting in increased tax revenue. The Colorado Taxpayer's Bill of Rights was passed by voters in 1992 as Initiative 1. The measure was approved by a vote of 53.68% to 46.32%. The measure was sponsored by Colorado activist Douglas Bruce (R).

TABOR limits the amount of money the state of Colorado can take in and spend. It limits the annual increase for some state revenue to inflation plus the percentage change in state population. Any money collected above this limit is refunded to taxpayers unless the voters allow the state to spend it.

The Taxpayer's Bill of Rights is located in Section 20 of Article X of the Colorado Constitution.

Referred amendments on the ballot in Colorado, 1999-2019

From 1999 through 2019, the state legislature referred 29 constitutional amendments to the ballot. Voters approved 15 and rejected 14 of the referred amendments. All of the amendments were referred to the ballot for elections during even-numbered election years. The average number of amendments appearing on even-year ballots was between 2 and 3. The approval rate of referred amendments at the ballot box was 51.72 percent during the 20-year period from 1996 through 2016. The rejection rate was 48.28 percent.

Legislatively-referred constitutional amendments, 1999-2019
Total number	Approved	Percent approved	Defeated	Percent defeated	Annual average	Annual median	Annual minimum	Annual maximum
49	31	63.27%	18	36.73%	2.88	3	0	6

Tax policies on the ballot in 2020

See also: Taxes on the ballot

In 2020, voters in 14 states voted on 21 ballot measures addressing tax-related policies. Ten of the measures addressed taxes on properties, three were related to income tax rates, two addressed tobacco taxes, one addressed business-related taxes, one addressed sales tax rates, one addressed fees and surcharges, and one was related to tax-increment financing (TIF).

Click Show to read details about the tax-related measures on statewide ballots in 2020.

Tax-related policy ballot measures in 2020

Income Tax a/ot Arizona Proposition 208: The campaign Invest in Education proposed the ballot initiative to enact a 3.50% income tax, in addition to the existing income tax (4.50% in 2020), on income above $250,000 (single filing) or $500,000 (joint filing). Proposition 208 was designed to distribute the revenue from the 3.50% income tax to teacher and classroom support staff salaries, retention programs, and career and technical education programs. a Colorado Proposition 116: In 1987, the state's income tax was changed from graduated rates to a flat rate. Going into 2020, that flat rate was 4.63%. The ballot initiative reduced the rate from 4.63% to 4.55%. d Illinois Allow for Graduated Income Tax Amendment: The Illinois State Legislature proposed this constitutional amendment to allow the state to enact legislation for a graduated income tax. Going into 2020, the state constitution required that the state personal income tax be a flat rate. Gov. J.B. Pritzker (D), who advocated for a graduated income tax during his gubernatorial campaign, was providing funds to the campaign backing the amendment. Business-Related Taxes d Alaska Ballot Measure 1: The campaign Vote Yes for Alaska's Fair Share proposed the ballot initiative to increase taxes on oil production fields located in Alaska's North Slope that exceeded certain output minimums. According to Robin Brena, chairperson of Vote Yes for Alaska's Fair Share, three oil production fields—Alpine, Kuparuk, and Prudhoe Bay—met those criteria. BP, Conoco Phillips, ExxonMobil, and Hilcorp Energy funded the campaign to defeat Measure 1. a Nebraska Initiative 431: The initiative was designed to impose an annual tax of 20% on gross gambling revenue of licensed gaming operators; distributing 2.5% of tax revenue to the Compulsive Gamblers Assistance Fund, 2.5% to the General Fund, 70% to the Property Tax Credit Cash Fund, and 25% to the counties where gambling is authorized at licensed racetracks. The initiative was one of three initiatives that together were designed to authorize, regulate, and tax gambling at racetracks in Nebraska. Property-Related Taxes d California Proposition 15: The ballot initiative would have amended Proposition 13 (1978), which required that residential, commercial, and industrial properties are taxed based on their purchase price, with an annual adjustment based on inflation or 2%, whichever was lower. Proposition 15 would have required commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value. In California, the proposal to assess taxes on commercial and industrial properties at market value, while continuing to assess taxes on residential properties based on the purchase price, is known as split roll. The state fiscal analyst estimated that Proposition 15 would generate between $6.5 billion and $11.5 billion. Proposition 15 would have required that the revenue be allocated to local governments and schools. a California Proposition 19: The state Legislature proposed the constitutional amendment as a compromise with the California Association of Realtors, which had qualified a different ballot initiative. Proposition 19 was designed to allow tax assessments to be transferred from someone's old home to their new home anywhere in the state and increased the number of times that tax assessments can be transferred from one to three for persons over 55 years old or with severe disabilities. Proposition 19 was also designed to require that inherited homes that are not used as principal residences, such as second homes or rentals, be reassessed at market value when transferred. a Colorado Amendment B: The constitutional amendment repealed the Gallagher Amendment (1982), which required a 45%-55% ratio between residential assessment rates and non-residential assessment rates regarding tax revenue. Therefore, Amendment B permitted the Colorado Legislature to define tax assessment limits without reference to the 45%-55% ratio requirement. In Florida, Georgia, Louisiana, New Jersey, and Virginia, voters also decided eight ballot measures related to exemptions, adjustments, and payments: Florida Amendment 5, Florida Amendment 6, Referendum A, Louisiana Amendment 2, Louisiana Amendment 5, Louisiana Amendment 6, New Jersey Question 2, and Virginia Question 2. Sales Tax a Arkansas Issue 1: The ballot measure continued an existing a 0.5% sales tax, with revenue dedicated to roads, highways, and bridges. Going into 2020, the tax was set to expire in 2023. Issue 1 had the support of Gov. Asa Hutchinson (R), and the campaign behind Issue 1 received financial support from Alice and Jim Walton. Tobacco a Colorado Proposition EE: The ballot measure increased the tax rate on cigarettes from 84 cents per pack to $2.64 per pack and the tax rate on tobacco products from 40% of the manufacturer's list price to 62% of the manufacturer's list price. The ballot measure created a tax on nicotine products, such as e-cigarettes, with scheduled increases over seven years to 62% of the manufacturer's list price. Revenue from the tax increases was dedicated to preschool, education, housing, and the General Fund. a Oregon Measure 108: The ballot measure increased the cigarette tax from $1.33 to $3.33 per pack. The ballot measure also taxed e-cigarettes and other nicotine inhalants at a rate of 65% of the wholesale sales price and cigars at 65% of the wholesale sales price (but not to exceed $1.00 per cigar). Measure 108 dedicated revenue from the tax increases to the Oregon Health Authority. Fees a Colorado Proposition 117: In 1992, the Colorado Taxpayer's Bill of Rights (TABOR) Amendment defined government-owned firms that provide goods or services for a fee as enterprises. Examples of enterprises include state nursing homes, state lotteries, Colorado Correctional Industries, and College Assist. The ballot measure was designed to require voter approval of laws that create new enterprises should the enterprise's projected or actual revenue from fees and surcharges exceed $100 million within the first five years. TIF a Nebraska Amendment 2: The constitutional amendment increased the repayment period for tax increment financing from 15 to 20 years for areas where more than one-half of properties are designated as extremely blighted.

Path to the ballot

See also: Amending the Colorado Constitution

To put a legislatively referred constitutional amendment before voters, a two-thirds (66.67%) vote is required in both the Colorado State Senate and the Colorado House of Representatives.

The amendment was introduced in the Senate on June 1, 2020. The measure's primary sponsors were Senators Jack Tate (R) and Chris Hansen (D) and Representatives Daneya Esgar (D) and Matt Soper (R). The measure was passed by the Senate on June 9 in a vote of 27-7 and was passed by the House in a vote of 51-14 on June 12, 2020.

Vote in the Colorado State Senate June 9, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 24  a
	Yes	No	Not voting
Total	27	7	1
Total percent	77.14%	20.00%	2.86%
Democrat	19	0	0
Republican	8	7	1

Vote in the Colorado House of Representatives June 12, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 44  a
	Yes	No	Not voting
Total	51	14	0
Total percent	78.5%	21.5%	0.00%
Democrat	41	0	0
Republican	10	14	0

How to cast a vote

See also: Voting in Colorado

Click "Show" to learn more about voter registration, identification requirements, and poll times in Colorado.

How to cast a vote in Colorado

The information below covers regular voting policies in the state. Information may have not applied to the election on November 3, 2020, because of temporary changes in response to coronavirus. Click here to read about changes made for the 2020 elections. Poll times In Colorado, polls are open from 7:00 a.m. to 7:00 p.m. local time for those who choose to vote in person rather than by mail. An individual who is in line at the time polls close must be allowed to vote. Registration requirements Check your voter registration status here. In Colorado, an individual can pre-register to vote if they are at least 15 years old. Voters must be at least 18 years old to vote in any election. A voter must be a citizen of the United States and have established residence in Colorado to vote. Colorado voters can register to vote through Election Day. However, in order to automatically receive a absentee/mail-in ballot, a voter must register online, through the mail, at a voter registration agency, or driver's license examination facility at least eight days prior to Election Day. A voter that registers through a voter registration drive must submit their application no later than 22 days before the election to automatically receive an absentee/mail-in ballot. A voter can register online or submit a form in person or by fax, email, or mail. Automatic registration Colorado automatically registers eligible individuals to vote through the Department of Motor Vehicles and certain other state agencies. Online registration See also: Online voter registration Colorado has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration Colorado allows same-day voter registration for individuals who vote in person. Residency requirements Colorado law requires 22 days of residency in the state before a person may vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Colorado does not require proof of citizenship for voter registration. Verifying your registration The site Go Vote Colorado, run by the Colorado Secretary of State office, allows residents to check their voter registration status online. Voter ID requirements Colorado requires voters to present non-photo identification when voting in person. If voting by mail for the first, a voter may also need to return a photocopy of his or her identification with his or her mail-in ballot. Click here for more information. The following list of accepted forms of identification was current as of July 2024. Click here for the most current information, sourced directly from the Office of the Colorado Secretary of State. “ The following documents are acceptable forms of identification: A valid Colorado driver’s license or valid identification card issued by the Colorado Department of Revenue. (Note: documents issued to not lawfully present and temporarily lawfully present individuals under Part 5 of Article 2 of Title 42, C.R.S. are not acceptable forms of identification.) A valid U.S. passport. A valid employee identification card with a photograph of the eligible elector issued by any branch, department, agency, or entity of the U.S. government or of Colorado, or by any county, municipality, board, authority, or other political subdivision of Colorado. A valid pilot’s license issued by the federal aviation administration or other authorized agency of the U.S. A valid U.S. military identification card with a photograph of the eligible elector. A copy of a current (within the last 60 days) utility bill, bank statement, government check, paycheck, or other government document that shows the name and address of the elector. A Certificate of Degree of Indian or Alaskan Native Blood. A valid Medicare or Medicaid card issued by the Centers for Medicare and Medicaid Services. A certified copy of a U.S. birth certificate for the elector. Certified documentation of naturalization. A valid student identification card with a photograph of the eligible elector issued by an institute of higher education in *Colorado, as defined in section 23-3.1-102(5), C.R.S.. A valid veteran identification card issued by the U.S. department of veterans affairs veterans health administration with a photograph of the eligible elector. A valid identification card issued by a federally recognized tribal government certifying tribal membership. Any form of identification listed above that shows your address must show a Colorado address to qualify as an acceptable form of identification. The following documents are also considered acceptable forms of identification for voting: Verification that a voter is a resident of a group residential facility, as defined in section 1-1-104(18.5), C.R.S. Verification that a voter is a person committed to the department of human services and confined and eligible to register and vote shall be considered sufficient identification of such person for the purposes of section 1-2-210.5, C.R.S. Written correspondence from the county sheriff or his or her designee to the county clerk indicating that a voter is confined in a county jail or detention facility. ”

See also

2020 measures

• 2020 ballot measures
• Taxes on the ballot
• Property on the ballot
• 2020 legislative sessions

Colorado

• Colorado ballot measures
• Colorado ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Colorado Senate Concurrent Resolution 20-001
• Colorado Senate Concurrent Resolution 20-001 full text
• Colorado Ballot Information Booklet (Blue Book)

Support

• Yes on Amendment B campaign website
• Yes on Amendment B Facebook page
• Yes on Amendment B Twitter page

Opposition

• No on Amendment B campaign website
• No on Amendment B Facebook page
• No on Amendment B Twitter page