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<br />e <br /> <br />adjustments to tax rates, mill levies, etc., without prior approval of the voters and requires <br />that any revenues collected in excess of the limits be refunded to taxpayers, unless they <br />approve otherwise in a general election. <br /> <br />With respect to Gallagher, TABOR 205 will accelerale the growing disparity between <br />property taxes paid by business owner and residential owners. For example, if we assume <br />a business with the same value located at the same address as our Aurora home in the <br />, <br />year 2002, when the TABOR 205 reduction is $50, lhe business will pay 360% of the <br />residential property tax. By the year 2004, in this example, the business will pay 410% of <br />the residential property tax. <br /> <br />For many of the smaller special districts, mill levies are relatively small and residential <br />owners likely will soon be paying no tax to the districts while businesses continue to pay. <br />Eventually, unless property values rise very rapidly, even businesses will pay no property <br />tax to small districts with low mill levies. <br /> <br />The next example assumes a business with an actual value of$200,000 in 2000. Under <br />the Gallagher amendment, the assessment ratio remains at 29%. The mill levy is the <br />average levy for the 40 library districts in this study, 2.27 mills. This does not change <br />under the TABOR amendment's prohibition. The only variable changed in the example <br />is the annual rate of increase in the business property's market value. The graph <br />illustrates the property tax bill for this example pro perry after the proposed perpetually <br />increasing tax cuts. <br /> <br />e <br /> <br />Business Property Market Value Growth and TABOR 205 <br /> <br /> $.450 i <br /> , <br />c: , <br />0 $.400 <br />U <br />:::l $J50 <br />"C : <br />., <br />a <br />'" $JOO <br />0 i <br />'" <br />a:: $250 <br />0 <br />OJ <br />-=: $200 <br />l- I <br />~ I <br />~ $150 i <br />OJ $100 <br />)( <br />l'Il <br />I- $5Q ~ <br />... <br /> , <br /> $0 -_....~. . <br /> <br />5% Annual Maticet Value Growth <br />... .. 10% Annual Mar1<et Value Growth <br />-20% Annual Martcel Value Growth <br /> <br /> <br />......."-.... .. .... <br />----- ... - .. .. <br />-- <br /> <br />- .. .. - <br /> <br />.. .. - - "- - - ... - .. .. ~ <br /> <br />o <br />o <br />o <br />N <br /> <br />- <br />o <br />o <br />N <br /> <br />N <br />o <br />o <br />N <br /> <br />~ <br />o <br />o <br />N <br /> <br /> -- <br /> -- <br /> .-- <br />. ~ ~ ... = ~ 0 <br />0 0 0 0 0 0 - <br />0 0 0 0 0 0 0 <br />N N N N N N N <br /> Year <br /> <br />e <br /> <br />Page 6 <br />