Dear Editor,

In December 2021, many Colorado school districts began raising property taxes to fix a decades’ old practice that reduced local taxes for education based on what has now been determined to be an incorrect interpretation of the Colorado Constitution.

The legislature passed HB 21-1164, requiring the Colorado Department of Education (CDE) implement a mill levy correction plan for districts. The plan must ensure that districts incrementally correct the mill levy by not increasing more than 1 mill a year beginning in the 2021 tax year.

The Mill Levy Correction impacts 118 out of 178 Colorado school districts. Gilpin County School District RE-1 (GCSD) is one of the 118 school districts that has been directed by the State legislature to raise their local property tax mill levy.

GCSD has been directed to raise the total program mill levy to the level approved by voters at the time the GCSD taxpayers voted to de-TABOR in 1996.

In the 1990s and 2000s, many school districts obtained voter approval to retain and spend revenue above the property tax revenue limitation imposed on the district by the Colorado Taxpayer Bill of Rights (TABOR) provision of the Colorado Constitution. TABOR limits the amount of revenue the state can retain and spend.

GCSD will increase the total program mill levy from 4.075 to 5.075 mills in 2021 to be collected in 2022. A $500,000 residential home owner will see a $35.75 property tax increase for GCSD. The GCSD mill levy correction will increase the total program mill levy over the next three years from 4.075 mills to 6.651 mills. The total program mill levy was 6.651 mills when the voters de-TABORed in 1996.

The mill levy correction will not provide more revenue for GCSD. The mill levy correction will shift the revenue source for school districts back to local property tax and reduce the CDE revenue funding local public schools. This change, increasing local property tax for schools, will reduce the CDE per pupil revenue, also called the State share.

The Black Hawk Educational Enhancement Tax (EET) continues to provide revenue for GCSD. The intergovernmental agreement between the City of Black Hawk and GCSD applies when the mill levy exceeds 8 mills and when the increase is required by state or federal law. The EET has been providing 1.5% tax revenue from food, beverage, and lodging from the City of Black Hawk to GCSD since 2008. Today, the annual revenue exceeds $1 million for students and teachers in the classroom.

With the total program correction of 5.075 mills, voter-approved overrides of 2.754 mills, transportation of .364 mills, and the abatement .001 mills, the GCSD 2021 total mill levy is 8.194 mills, leaving the EET in place and enhancing the opportunities GCSD can offer its students.

David MacKenzie

GCSD Superintendent