Colorado’s fee-based enterprises skirt TABOR, increase revenue by 3,000%
State-owned enterprises increase fees from 46% of total state spending in 1996 to 71% in 2023
In 1992 voters enacted the Taxpayer’s Bill of Rights to constrain the growth of government by requiring voter approval for tax increases. Since then, the state government has built a new structure to avoid that requirement.
The creation of TABOR-exempt state-owned “enterprises” has allowed government to increase fees from 46% of total state spending in 1996 to 71% of state spending in 2023 without requiring approval from taxpayers, according to a new report released by the Common Sense Institute, a non-partisan research organization “dedicated to the protection and promotion of Colorado’s economy.”
“Fees are a rapidly growing and significant cost for Coloradans,” said Kelly Caufield, Executive Director of the Common Sense Institute. “At the end of the day, it doesn’t matter if we call it a tax or a fee, these costs are driving the cost of living in our state.”