Colo. Supreme Court orders disputed mill levy rate remains status quo

Face The State Staff Report

The Colorado Supreme Court denied a motion from the Colorado Department of Education urging the court to speed its decision on the constitutionality of a 2007 mill levy freeze. The court further ordered that the frozen rates be preserved as the status quo until a final decision is issued in the case.

CDE officials were eager for the court's final decision because they are assisting school districts this month with calculating mill levies as applied to the assessed value of property, and the court's decision directly impacts the mill levy rate districts are legally allowed to use. In a news release, Education Commissioner Dwight Jones said in light of court order, the department intends to proceed using the frozen mill levy rates. “Today’s order preserves the status quo and allows the department to work with local school districts in determining the appropriate mill levy collection rate,” he said in the release.

The 2007 School Finance Act, also known as Senate Bill 199, contained a provision that froze the rates. Before the legislation, the rates were rolled back as property values increased to ensure that property taxes remained flat. By freezing the mill levy rates, property tax revenue went up as property values increased. Denver District Judge Christina Habas declared the freeze unconstitutional under the state's Taxpayers Bill of Rights, which requires voter approval of any change in tax policy that results in a net increase of government revenue.

Republicans are fearful that the longer the court delays it decision, the greater the potential impact it will have on the budget. “Most of the property-tax hike money has already been spent, and if the state is forced to return the money that many believe it took unconstitutionally, the impact on our budget could be disastrous,” said House Minority Leader Mike May, R-Parker.

Gov. Bill Ritter championed the statewide change in tax policy. During its first year, the mill levy freeze took an additional $118 million of new revenue from taxpayers; it is predicted to bring in almost $2 billion more over the next decade.

Denver attorney Jason Dunn speculated to Face The State earlier this week that the delay in handing down a decision could be because there are multiple opinions being written or because there is a swing vote on the bench. The Colorado Supreme Court typically delivers its decisions on Mondays and announces which ones are coming up the previous Friday. According to the Colorado Supreme Court's Web site, no announcements are being made in the coming week.