KFKA's Oliver misleadingly suggested that because of mill levy rate freeze, "property tax rates cannot go down"

Summary: Referring to the property tax rate freeze the Colorado General Assembly enacted in 2007, Amy Oliver suggested on her January 29 1310 KFKA broadcast that "my property tax rates cannot go down, but only go up" because of the measure, and asserted, "[T]hat's a tax increase." However, the Colorado Legislative Council Staff stated that the bill is expected to decrease property tax revenue in some school districts while increasing it in others, and the agency's January 7 updated projections noted that the measure reduced the mill levy, or tax, in 30 districts.

On her January 29 1310 KFKA broadcast, Amy Oliver misleadingly stated that as a result of the property tax rate freeze enacted in 2007, "my property tax rates cannot go down, but only go up," and concluded of the measure, "[T]hat's a tax increase." In fact, as Colorado Media Matters has noted, the nonpartisan Colorado Legislative Council Staff estimated that the measure Democratic Gov. Bill Ritter proposed and the Colorado legislature enacted as part of Senate Bill 199 to redistribute sources of public school funding is expected to result in decreased property tax revenue in some districts while increasing revenue in others, depending on changes in property valuations.

Oliver had been discussing a proposal by state Sen. Greg Brophy (R-Wray) to amend the state budget resolution for 2008 (Senate Joint Resolution 4) to set aside $117 million -- an amount that corresponds with the increase in property taxes that that the Legislative Council Staff has estimated local school districts will collect in fiscal year 2007-2008 as a result of SB 199. Brophy reportedly had argued that if successful, a lawsuit filed by Independence Institute President Jon Caldara challenging the constitutionality of the rate freeze might obligate the state to refund the $117 million to property owners, later stating, "Wouldn't it be a shame if we had to pay that money back, and we already spent it?"

From the January 29 broadcast of 1310 KFKA's The Amy Oliver Show:

OLIVER: But one of the reasons why I went to Senator Brophy's website is because he put forth a resolution that would essentially allow -- well, it would require that the state, that the legislature, rather than spending everything in the general fund -- I know, sounds crazy -- rather than actually spending it all, that some of that money gets set aside. Because, if you remember, the state is facing a lawsuit over the property tax increase. And yes, it's a tax increase. I don't care if you put lipstick on a pig, it's still a pig. You can say it's not a tax increase, but when you take more money out of taxpayers' pockets, it's a tax increase. When taxpayers have less, and the state has more, and you've taken more from the same taxpayers, that's called a tax increase. Sorry. When my property tax rates cannot go down, but only go up, that's a tax increase. No matter how you slice it.

Oliver did not indicate whether her property tax bill increased or decreased because of the legislation. However, the latest Legislative Council Staff projection of the property tax impact of SB 199, issued on January 7, noted that the bill reduced the levy, or tax, in 30 districts, while 116 districts saw an increase over what would have been the case under prior law:

Property Tax Impact of Senate Bill 07-199 in FY 2007-08

Based on the assessed values and pupil counts available in late December for school district certification of mill levies, the property tax changes in Senate Bill 07-199 increased property tax revenue to school districts by $117.8 million statewide. This figure compares to a projected amount during the legislative session of $48.2 million.

The $117.8 million impact takes into account two requirements of Senate Bill 07-199: first, that any district that received voter approval to exceed the property tax revenue limit in the state constitution impose the mill levy from the prior budget year, instead of allowing the levy to fall to meet the property tax revenue limit in the state constitution, and second, that the maximum levy imposed by school districts is 27 mills. In total, 116 districts certified higher levies than would have been the case under the old law, generating $123.2 million more in property tax revenue. The 27-mill cap reduced the levy in 30 districts for a property tax reduction of $5.4 million. Thus, the $117.8 million is the net impact of the two provisions. In the remaining 32 districts, the law change in Senate Bill 07-199 did not affect district property taxes. This last category includes the three districts -- Cherry Creek, Colorado Springs, and Harrison -- that did not approve a ballot question to override the constitutional property tax revenue limit.

The impact of the law change in each district depends on the district's change in assessed value relative to the sum of inflation plus its percentage change in enrollment. In general, however, the change in the impact from the legislative session to now is the result of assessed values that are $3.8 billion higher than projected in December 2006. [emphases added]

—E.B.