Democrats Push Through Tax Hike on Senior Citizens; Republicans Object

Amid GOP objections, House Democrats today granted final approval to a bill that would leave less money in senior citizens’ pockets.

Assistant Republican Leader David Balmer, R-Centennial, led the fight against the measure.

“Our state budget should not be balanced on the backs of senior citizens who are struggling to survive on fixed incomes,” Balmer said. “Senior citizens living on fixed incomes are already going to be hit hard with higher car registration fees, and now they will have to absorb higher property taxes as well.”

The proposal, Senate Bill 276, would suspend the senior homestead property tax exemption for three years, effectively increasing taxes on over 154,000 senior citizens throughout Colorado.

“In 2007 and 2008, House Republicans repeatedly warned Governor Ritter to scale back state spending to prepare for the looming recession,” Balmer said. “Instead, he ignored our warnings and grew government by adding over 1300 new state jobs. Now, Governor Ritter is asking senior citizens to bear the cost of his excessive spending.”

Passed in 2000 by Colorado voters, the exemption offers qualified citizens a 50 percent exemption on the first $200,000 of value of eligible homes. If this exemption is set aside, many senior citizens will see a dramatic increase in their property tax bills.

“While going door to door in my district, I have listened to thousands of seniors explain to me the challenges they confront in this economy,” Balmer said. “Many of Colorado’s senior citizens are living on tight budgets, and use this extra money to buy their medication and pay their bills.”

House Republican Leader Mike May, R-Parker, contends that there are other options that would not hit Colorado’s seniors. May argued for a 2 year suspension of theColorado Conservation Easement program that allows land owners to agree to conserve land in exchange for a tax credit. An estimate by legislative staff shows that the state could collect $98 million a year by suspending the program.

“It is crazy that Colorado’s seniors will be hit with higher property taxes while a few wealthy individuals and corporations are enjoying this special earmark program,” May said. “There is just not enough development going on right now to justify this program.”