Complete Colorado

Boulder voters to see so-called ‘vacant’ homes tax on ballot

BOULDER–Voters in the City of Boulder will decide this November on a measure to adopt an estimated $6 million tax increase on residential properties deemed mostly unoccupied.

The measure, titled Ballot Issue 2J, proposes an excise tax of at least $4,000 per year on “vacant” residential properties, defined as “homes that are occupied for 183 days or less per year.” The tax would be tied to the consumer price index for the Denver-Aurora-Lakewood metro area and capped at $7,000 annually.

Boulder City Council referred the measure to the ballot, giving final approval on Aug. 6.

Exempting revenue limits

According to the measure’s ballot language, the vacancy excise tax amounts to an estimated $6 million annual tax increase “for the purpose of supporting City services, including: police and fire protection; parks and recreation; transportation and maintenance; and other general services important to the quality of life in the City.”

The group Vacancy to Vitality pushed a citizen-led version of the measure that pegged the residential tax at $7,000 annually and included commercial properties as well, but backed off after City Council signaled it would refer its own vacancy tax, according to the Boulder Reporting Lab. Vacancy to Vitality now backs Ballot Issue 2J.

Since the measure proposes a tax increase, voters must consent to it under the Taxpayer’s Bill of Rights (TABOR), the state’s constitutional taxpayer protection amendment passed in 1992. Ballot Issue 2J includes a clause asking voters to exempt all money collected from the revenue limits imposed by TABOR, meaning the city could keep and spend any overcollected dollars that would otherwise be refunded to taxpayers, a process known as de-TABORing.

“Shall the revenues from such taxes and any related earnings be collected, retained, and spent as a voter-approved revenue change without limitation and an exception to the revenue and spending limits of Article X, Section 20 of the Colorado Constitution [TABOR],” the ballot language states.

Boulder’s priorities questioned

Nash Herman, a policy analyst with the free-market think tank Independence Institute,* told Complete Colorado that taxpayers should question the city’s priorities, since it already retains property tax revenue.

“While $6 million might not sound significant compared with Boulder’s half-billion-dollar budget, the city already ‘de-TABORed’ its general property tax funds in 2008, meaning it has collected millions of dollars that would otherwise have been returned to taxpayers,” he said. “So, before approving 2J, voters should ask why the city isn’t already prioritizing $6 million from its budget for the specified needs if they are so necessary.”

“Additionally, even if the vacancy excise tax did increase inventory by incentivizing homeowners to rent or sell their properties, property rights matter,” Herman added. “Voters should reject measures that try to influence what they do with their own property, regardless of marketed benefits that are not guaranteed.”

As Complete Colorado previously reported, Democratic House lawmakers during the last session introduced legislation allowing local governments, particularly in mountain towns, to tax owners of “vacant” houses, with revenue going toward “affordable, attainable, or workforce housing.”

House Bill 26-1036, which also would have allowed multiple local governments to form housing authorities, failed to advance past the House Finance Committee.

Boulder voters will also decide Ballot Issue 2K, which proposes increasing the city’s debt by $400 million and taxes by $32.5 million to pay for recreation and capital projects. Another measure, Ballot Question 2M, changes the city’s charter so that more debt could be issued. Ballot Question 2L embeds collective bargaining rights for firefighters in the city charter.

Colorado’s general election is Nov. 3.

*Independence Institute is publisher of Complete Colorado.

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