Replacing Lakewood's Charter Property Tax Cap

Section 12.12 of the Lakewood Home Rule Charter, enacted in 1985, says the City Council "shall not levy an ad valorem tax on taxable property in the City that provides revenue from such levy in an amount greater than was levied in the preceding year plus seven percent," except for payments on city securities payable from property taxes, contracts voters approved, and, up to the district's last levy, services the city takes over from a special district. Added value from annexation and new construction does not count toward the 7%.

The council may ask voters to go above the limit for any one year. If a majority approves, the council may raise the levy for that year by the amount voters allow.

Ordinance O-2026-27, adopted on August 10, 2026, places Question 2I on the ballot. Its recitals say the Taxpayer's Bill of Rights, in effect since December 31, 1992, overrides the parts of Section 12.12 that allow up to a 7% increase without a vote. They say the section "is no longer enforceable," and that it has been cited as the basis for claiming the council may not enact a temporary tax reduction.

In 2024 the city asked voters, as Ballot Issue 2A, to let it collect, retain and spend all city taxes and other revenue from 2026 on, above the revenue and spending limits of the Taxpayer's Bill of Rights, with the excess split among parks, public safety and streets. The council urged a yes vote by 9 to 1. Voters approved it, 51,365 to 31,686, according to Jefferson County's statement of votes cast.

The Taxpayer's Bill of Rights still requires voter approval before any tax increase, as the council's ordinance notes.

In 2024 Lakewood voters let the city keep revenue above TABOR's revenue and spending limits from 2026 on. Question 2I would repeal Section 12.12's separate wording on a 7% annual property-tax revenue cap.

If Question 2I passes, a new Section 12.12 takes effect January 1, 2027. It says property tax "revenues, mill levies, and any increases thereof shall not exceed limits established under the Colorado Constitution unless approved by the registered electors of the City." It also lets the council reduce property tax mills temporarily by ordinance, for one fiscal year unless the ordinance states a longer period, and later return to the rate voters approved. It does not limit levies for voter-approved debt or contractual obligations, and it lets the city levy for services it takes over from a special district as permitted by law, subject to any required voter approval.

A no vote leaves Section 12.12 as it reads today. The question sets no tax rate, dollar amount or end date.