San Juan County commissioners notify clerk of intent to consider ballot question tied to recent property-tax cap law

The San Juan County Board of Commissioners voted July 23 to notify the county clerk that it intends to pursue a ballot question in November to preserve flexibility on property-tax revenue after June legislation changed state limits.

Commissioner Willie introduced the topic and said the county faces uncertainty because the new law defines the base year for cap calculations as 2023 and lowers the annual allowable increase from 5.5 percent to 5.25 percent. "If you use 2023 as the base year ... it would put us in a bit of a bind," Willie said.

Why it matters: The change in state law could reduce how much property-tax revenue the county may keep without voter approval, creating a gap between current collections and what the law treats as the allowable increase. Commissioners estimated the county could face several hundred thousand dollars of difference depending on assessment rates and clarified methodological questions remain.

County staff and commissioners discussed technical and legal uncertainties. Staff said guidance from state agencies and DOLA (Department of Local Affairs) is limited and that implementation depends in part on the still-to-be-determined assessment rate. Legal questions include whether temporarily reducing the mill levy to comply with the cap triggers TABOR (the Taxpayer's Bill of Rights) requirements to return to voters for a mill-levy increase; the legislation says counties may temporarily lower the mill levy without a TABOR vote, but staff warned constitutional and statutory tensions could invite legal challenge.

Given the uncertainty and the statutory deadline to notify the clerk if the county intends to place a question on the November ballot, the commissioners voted to send a notice to the clerk as a placeholder while staff seek more precise guidance. A motion to notify the clerk passed on a voice vote: "I'll make the motion ..." "I'll second." "All in favor? Aye." The board did not adopt final ballot language on July 23.

Commissioners said they will continue to seek answers from other counties, DOLA and legal counsel and return with specific ballot language once more information is available. "I think it makes some sense to do what Willie was suggesting and go ahead and notify the clerk," one commissioner said, while also noting the county needs clearer statewide guidance.

Ending: Staff were directed to continue gathering detail and to prepare draft ballot language and budget scenarios for future meetings before any final decision to place a measure on the ballot.