2025 CO Legislature TABOR bills

To our members and all the friends of the Taxpayer’s Bill of Rights:

Once again the Colorado legislature is chipping away at our TABOR rights and your TABOR refunds, counting on their ability to do so without the taxpayers of Colorado noticing or objecting. The Committee reviews bills during the legislative session.  We ask you to use this information to object and react according to your interests and abilities.  You may want to, for example:

  •  testify against a bad bill,
  •  write a letter to your community newspaper, or post something to social media,
  •  submit a blog for consideration to be posted to our web site,
  •  bring it up for discussion at a local civic or political club, or to a call-in radio show

The web page for our Bill Tracker will suggest why we think bills are of interest to you and provide a link to the bill on the General Assembly’s web site.

Without full-time paid staff, the TABOR Committee Directors do not have the bandwidth to perform these tasks, but instead leave it up to you, our members, to determine what individual action you want to take.  We only ask that you keep the TABOR Committee informed about your activity.

Proposed legislation that likely is not favorable to TABOR:

  • House Bill 1005.  Increases the giveaways to the movie industry with a refundable tax credit (!) (which means the state may send them a check for more than the tax paid).  It is targeted for moving a film festival to Boulder.  TABOR allows for reductions in taxes paid, but preferences for special interests is not a good way to go about it.
  •  House Bill 1037.  Another refundable income tax credit for teachers for out-of-pocket expenses.  There is no requirement to prove any expenditure.  Unavailable to teachers in private schools.  TABOR allows for reductions in taxes paid, but loading up the tax code with preferences for special interests is not a good way to go about it.
  • House Bill 1044. A municipality or exempt enterprise can impose new taxes, identified improperly as “fees,” to pay for roadway safety enhancements for pedestrians, bicyclists, and other people not inside a vehicle.  You don’t get to vote on the new tax.  It is termed a fee because has a specific purpose of providing direct and indirect benefits to fee payers.
  • House Bill 1128.  Creates a new tax credit for income taxpayers who buy safety devices for their guns.  We like lower taxes but targeting politically favored interests is not the right way to go about it.
  • House Bill 1157.  Extends an expiring tax credit for investors in small businesses that operate in an “advanced industry.”   We like lower taxes but targeting politically favored interests is not the right way to go about it..
  • House Bill 1247.  Counties have been statutorily limited to a lodging tax of 2%.  HB 1247 does not attack TABOR, but it is a potential tax increase of 200%!  The increase in the lodging tax can be to 6% once a county obtains voter approval for the rate increase.  The bill also expands the list of allowable expenditures such as tourism marketing, housing and childcare for those in the tourism workforce. 
  • Senate Bill 13 – Senior Housing Income Tax Credit Extension –  For tax years 2025 and 2026, the bill extends a refundable income tax credit for senior taxpayers with incomes up to $75,000 for single filers and $125,000 for joint filers who have not claimed a homestead property tax exemption.  The cost in the current fiscal year would reduce TABOR refunds by $36 million and by $73.4 million next year.  A property tax exemption already exists, and this just begins a new welfare program paid by taking more money from TABOR refunds.

These bills need more research:

  • House Bill 1012.  Doesn’t the federal government already provide tuition payment for National Guard members as an enhancement to pay?  Is this bill redundant in spending state taxes too?  2nd issue is whether military service members should pay income taxes.  It makes sense that if someone from Colorado is sent to a military base or ship in a different country, then he or she should not have to pay income taxes to our state.  Does this bill also eliminate income taxes for service members who are Colorado residents and based here?
  • House Bill 1021.  At first glance, it appears to provide the same capital gains tax shelter for employee-owned business that other businesses get.  However, it may instead be a special interest tax shelter for preferred types of businesses.  Why would a non-profit, which would not pay income taxes, be included?
  • House Bill 1273 – Damage awards and property sales under TABOR.  TABOR states that fiscal year spending excludes damage awards or property sales. Only the TABOR implementing statutes define those terms.  The bill clarifies that “damage award” includes certain civil penalties imposed by the state and that adds what “property sale” items are included.  The devil is likely in the details.
  • Senate Bill 23 – Local Government Audit Exemption Thresholds.  The bill increases the revenue and expenditure thresholds under which a local government may apply to be exempted from an audit. It doubles the amount that allows local governments to apply for an audit exemption for those districts with revenues or expenditures under $200,000. Also, it would increase by $250,000 an audit exemption prepared by an independent accountant, to $1,000,000.

Good bills that are favorable to TABOR:

  • None

Bills that have died during this 2025 legislative session:

  • House Bill 1048.  Creates an online database managed by the department of revenue that includes information on all qualifying state tax expenditures and state grants.
  • House Bill 1052.  Creates a refundable income tax credit for low-income PERA retirees.
  • House Bill 1071.  Modifies the distribution of money from certain funds so that the money in those funds is distributed to local governments.
  • Senate Bill 56.  Reduce Premium Cigar Excise Tax Rate.  A positive TABOR impact (rebate) while also reducing state revenue to earmarked Prop EE funds. Lower tax rates were predicted to increase cigar consumption, thereby increasing sales tax revenue.

It needs to be restated that TABOR is silent on state spending of taxes.