Colorado Court of Appeals rejects challenge under Taxpayer’s Bill of Rights – Lexology
In a case decided on June 30, 2016, the Colorado Court of Appeals considered whether the Regional Transportation District and the Scientific and Cultural Facilities District violated the Taxpayer’s Bill of Rights (“TABOR”). The Court of Appeals’ decision reflects, courts are reluctant to invalidate legislation on TABOR grounds. The decision also makes it more difficult to challenge TABOR.
TABOR requires advance voter approval before a district may collect any new tax, increase a tax rate, or change a tax policy that causes a net tax revenue gain. Under Colorado law, the Regional Transportation District and the Scientific and Cultural Facilities District (the “Districts”), along with the state, are granted taxing power.
In 2009, the legislature removed the state sales tax exemption for cigarettes, but the exemption remained in place for the Districts. In other words, the state could collect sales tax on cigarettes starting in 2009, but the Districts could not. The legislature also removed exemptions for direct mail advertising materials, candy, soda, and food containers in 2010, but these exemptions remained in place for the Districts.