Three ballot questions on the state ballot this November could affect the way cities collect and use property and sales tax.
Arvada City Council heard about the potential impacts of Proposition 101 and Amendments 60 and 61 from attorney Dee Wisor of Sherman and Howard at the Monday, May 10 City Council meeting.
The three ballot questions deal with the Taxpayer’s Bill of Rights, or TABOR, which limits government taxation and spending.
The City of Arvada does not have an official position about the ballot questions yet, but City Manager Craig Kocian said if voters approve either Amendment 60 or 61, the city may have to cut about $9 million from its $68 million dollar general fund budget to account for a drop in sales and property tax.
Kocian said special districts such as the Arvada Fire Protection District and the Apex Park and Recreation District rely heavily on funding from property tax. The districts could be “dramatically impacted” if the ballot questions pass, he said.
Amendment 60 would limit property taxes by adding a new section to TABOR, Wisor said.
Amendment 60 would allow people to vote on property tax issues where they own real property, regardless of whether or not the owners live in the area where they own property. Districts would have to allow residents to petition for property tax reductions. Extending expiring property taxes would be considered a tax increase if the amendment passes.
Amendment 61 would prohibit the state from borrowing money and limit most local governments from borrowing without taking the issue to voters.
Proposition 101 would reduce some motor vehicle taxes and fees, reduce the state income tax and reduce some telecommunication fees.
The proposition is aimed at reducing the revenue limits permitted in TABOR, he said.
If Proposition 101 passes, car ownership taxes would total $2 for new vehicles and $1 for old vehicles. All registration, license and title charges combines would total up t $10 per year per vehicle.
Wisor said he calculated that he pays about $275 in ownership taxes annually for his SUV.
Proposition 101 would also establish income tax rates at 4.5 percent, down from the current rate of 4.63 percent, he said. Rates would then decrease until the rate reaches 3.5 percent.
City officials will look into how the ballot questions might specifically affect Arvada, Kocian said.
“Jurisdictions may look nothing like they do today,” he said.
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