Residents of El Paso County, who already enjoy one of the lowest property tax rates in Colorado, will see a very slight reduction in 2010.

That’s because the county collected roughly $321,000 more than allowed under the Taxpayer’s Bill of Rights, which amounts to about 83 cents on a $200,000 house.

The 2009 property tax mill levy is currently 7.583 and will drop to 7.531 in 2010. In an intense debate on Thursday, members of the El Paso County Board of County Commissioners discussed whether to keep the difference and list it as mill levy credit on future property tax bills.

Several members of the business community spoke in support of the credit, including representatives from the Greater Colorado Springs Chamber of Commerce and the Colorado Springs Regional Economic Development Corp.

Keeping the credit would provide flexibility for future boards and allow elected officials to maintain basic services.

“There needs to be more serious dialogue in our community on the sustainability of our local governments, critical structure and economic vitality,” said Dave Csintyan of the Chamber of Commerce.

Commissioners Jim Bensberg and Sallie Clark supported the mill levy credit, but commissioners Amy Lathen, Wayne Williams and Dennis Hisey opposed it, saying it would allow future commissioners to raise taxes without a vote of the people.

County attorney William Louis said the mill levy credit has been used before and is legal under TABOR and other laws. Lowering the mill levy, he warned, “will have an impact forever on how much you can grow revenue. The effect is cumulative.”

But commissioner Amy Lathen said the mill levy credit was a “legal loophole.” If the time comes when the county needs to raise taxes, she said, “I would rather have a very upfront conversation with voters.”

Commissioner Sallie Clark was disappointed by the vote. “I feel like the honesty and integrity of the board is being called into question,” she said. “We would not be raising taxes without a vote of the people. The tax rate would not go above what it is today.”

—Call the writer at 476-4825.

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