Category Archives: Colorado Legislature

Nov 10

More Evidence for the TABOR Spending Cap

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November 9, 2024 by Dan Mitchell

Last April, I shared some data showing that Colorado’s Taxpayer Bill of Rights had forced politicians in the Centennial State to return $8.2 billion of tax revenue.

The state’s politicians did not want to return the money. But TABOR is a spending cap and the rules require that any extra tax revenue (above and beyond what would finance allowed levels of spending) has to be returned to taxpayers.

This spending cap has been good news for the state’s economy, as illustrated by the chart.

But I now need to update the benefits of TABOR.

That’s because we have another year of data. And, as explained in this report from Center Square, taxpayers are getting another refund. This time, their savings will be more than $1 billion. Continue reading →

Nov 01

Article X, Section 20. The Taxpayer’s Bill of Rights

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If you see this on your ballot, you are voting for a TAX INCREASE!

“Ballot titles for tax or bonded debt increases shall begin, “SHALL (DISTRICT) TAXES BE INCREASED (first, or if phased in, final, full fiscal year dollar increase) ANNUALLY…?” or “SHALL (DISTRICT) DEBT BE INCREASED (principal amount), WITH A REPAYMENT COST OF (maximum total district cost), …?”

https://www.sos.state.co.us/pubs/info_center/laws/COConstitution/ArticleXSection20.html 

Oct 15

Colorado owes taxpayers $1.7 billion in TABOR refunds

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ColoradoStateCapitolBuilding01.jpg
FILE PHOTO: The Colorado Capitol’s gold dome gleams in the sun in Denver.The Denver Gazette

The Colorado state government owes taxpayers a total of $1.7 billion in refunds mandated under the Taxpayer’s Bill of Rights.

The state collected roughly $1.4 billion more in revenue during the 2024 Fiscal Year than allowed under TABOR, according to a state audit. The state already has roughly $290 million in outstanding TABOR refund liability at the beginning of the fiscal year, bringing the total refund amount to about $1.66 billion.

Passed by voters in 1992, TABOR limits the annual growth in revenue to the inflation rate, plus population change. Any amount raised above the limit must be returned to taxpayers.

Click (HERE) to continue reading this story.

Vote NO On 1A

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Property tax caps have been restored in Colorado. That’s thanks to the pressure from the Citizens’ Tax Cap, compelling state politicians to address the property tax crisis in an August 2024 Legislative Special Session because local governments didn’t lower the property tax mill levies and alleviate the problem.

The property tax crisis was created because voters in local elections in the past has unwittingly voted to forfeit caps in our constitutional Taxpayer’s Bill of Rights (TABOR) and statutory 5.5% Annual Property Tax Cap, recognizing later it was a big mistake. State politicians had mixed feelings about the 2024 Special Session, fiscally conservative legislators thought that HB 24B-1001 didn’t provide enough assurance that residents would not be taxed out of homes. Some “progressive” elected officials thought it was horrible to provide property tax relief in response to a citizen initiative, calling it a “fecal sandwich”.

Jefferson County, like Arapahoe and Weld, has maintained tax caps for over 30 years due to vigilant citizens rejecting misleading ballot issues, such as 1A in 2019 and 2022. However, this is at risk again with a new version of 1A on the 2024 ballot. This version, like before, uses deceptive language and aims to permanently remove these caps.

The key is to share this information quickly and widely. Remind your friends and networks to vote NO on 1A to preserve the caps. Ballots will arrive around October 14-15.

The recent legislative special session caused by the Citizen’s Tax Cap implemented two key changes:

  1. Local taxing agencies (e.g. county or special district) now face a 5.25% cap on property tax increases (6% for schools).
  2. Any ballot measure after November 5, 2024, to remove these limits must clearly state, “Shall the _______ (name of government) waive the 5.25% property tax limit for…” and specify the duration.

Jefferson County’s 1A, being set before this date, skirts these new transparency rules.

Governments often use tax dollars for public persuasion campaigns and exploit legal loopholes during election seasons to get away with it. I recently discussed this in an interview with Free State Colorado, which you can watch here.

The past proponents of Jeffco 1A tax hikes even resorted to tainting our local TABOR notice booklet in 2019. The shenanigans didn’t stop there.

Our current county commissioners Andy Kerr, Lesley Dahlkemper, and Tracy Kraft-Tharp, have stepped up the attack on taxpayers’ wallets using a $340,000 taxpayer-funded political strategist, and continue to push their intentionally misleading ballot language to eliminate the caps.

Voters must reject this behavior. Vote NO on Jefferson County 1A to keep tax caps in place.

– Property owners: Vote no to avoid excessively higher property taxes year after year.

– Renters: Rising property taxes will be passed on as rent increases, making housing less affordable.

– Consumers: Higher business property taxes will raise prices for goods and services.

 

Vote NO on 1A to protect yourself from excessively increasing costs. If you can’t afford more at the grocery store, gas pump, insurance bill, or rent – you sure can’t afford removing property tax caps forever. Even if you can afford excessive taxes, can your neighbor on a fixed income handle it or your grandkids?

If you’d like to find out more information, please join these informative meetings hosted by taxpayer advocacy non-profits:

  • Arvada Library, 7525 W. 57th Avenue, Arvada
    October 7, 5:30 – 7:30 pm
  • Columbine Library, 7706 W. Bowles Avenue, Littleton
    October 12, 10 am – 12 pm
Aug 31

Colorado’s fee-based enterprises skirt TABOR, increase revenue by 3,000%

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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.”

Continue reading →

Aug 30

Menten: Weighing in on local TABOR measures for the 2024 ballot

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2024 Election, Elections, Natalie Menten, TABOR, Uncategorized

Menten: Weighing in on local TABOR measures for the 2024 ballot

August 29, 2024 By Natalie Menten

 

One great, though lesser-known benefit provided in the Colorado Taxpayer’s Bill of Rights (TABOR) is the local ballot issue notice. This guide is sent by mail at least 30-days before the election to all households with one or more registered voters.

The notice includes details about upcoming local ballot measures that increase taxes, add debt, or suspend TABOR revenue limits. It includes a section where registered voters have the opportunity to submit FOR or AGAINST comments, up to 500 words each.

You should know that there are actually two types of TABOR ballot issue notices. One notice is for the statewide measures and commonly referred to as the “Blue Book.” The notice discussed here is for elections held by local governments such as a city, town, school district, or special taxing district. It’s important to know the difference as you could potentially get more than one of these notices in the mail.

Several years back, it was discovered that out that of some 300 local tax issues throughout the state, only 15 had the taxpayer’s voice printed in a ballot issue notice.  That’s only 5 percent!  You can make a big difference and amplify your voice by being an author of the next ballot issue notice where you live.  Considering that you reach thousands of voters, submitting comments in the TABOR notice costs almost nothing and takes relatively little time and energy.

What follows is an explanation of how to participate in the local ballot issue comment process. As in so much of government bureaucracy, instructions must be followed with no room for alteration.  The deadline for this year is Friday, September 20 no later than noon to have your comments included in the local TABOR notice. Continue reading →

Aug 10

Study finds special interest tax deals eating up Coloradans’ TABOR refunds

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Study finds special interest tax deals eating up Coloradans’ TABOR refunds

August 9, 2024 By Savana Kascak

 

DENVER–Governor Jared Polis has consistently said he wants to lower the Colorado income tax, even claiming that legislation passed earlier this year would deliver on that promise.  But new research shows that billions of dollars in special interest tax breaks also passed this year in all likelihood means broad-based income tax relief is off the table for the foreseeable future.

Earlier this year, Governor Polis signed Senate Bill 24-228, temporarily lowering the state income tax rate, on a sliding scale, as a refund mechanism when surplus revenue under the Taxpayer’s Bill of Rights (TABOR) is more than $300 million in a given fiscal year, with the maximum rate reduction (from 4.40% to 4.25%) kicking in at a $1.5 billion surplus.

TABOR is a constitutional amendment that requires, among other things, state revenues collected in excess of of a formula of population growth plus inflation be refunded back to taxpayers, unless voters consent to forgo those refunds at the ballot box.  An income tax rate reduction is but one potential refund mechanism available to the state. Continue reading →

Aug 07

TABOR Media Statement About HD24-1311

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MEDIA RELEASE

Contact:

            Penn Pfiffner

TABOR Committee Chairman

303-233-7731 or 303-747-7460

constecon@hotmail.com

 or info@TheTaborCommittee.com

August 8, 2024

Today the TABOR Committee relinquished hope that people would be able to vote on saving their TABOR refunds.  “There were simply not enough time and resources to collect the signatures in time for a citizen’s veto,” said Committee Director Rebecca Sopkin, who filed the ballot measure to repeal the 2024 law.

A new law establishes a new income redistribution program using about half of everyone’s TABOR refund.

TABOR was never meant to be an instrument to redistribute income.  Tax rates were to be adjusted downward to eliminate any permanent over-collections.  Refunds are legally a return of state sales taxes.    “The constitution specifically calls for returning over-collected taxes to those who pay the taxes.  You can’t tell me that someone making $15,000 a year bought $110,000 of taxable goods,” observed Committee chairman Penn Pfiffner.  The State does not impose sales taxes on purchase of housing, food or medicine.

 

The Committee explained that the income redistribution only happens if there is a TABOR refund and so why, if this program is so important to proponents, did legislators fail to place it under the general fund budget?

 

The measure, HD24-1311, diverts $684 million in the first year, using planned TABOR refunds to impose again the federal COVID program of subsidies to low-income families with children, but using new taxpayer funds at the state level.

The program will send money to recipients even beyond the taxes that the person pays.  Eligible people do not have to be taxpayers.  They do not have to be citizens!  They do not even have to reside in the state all year!

Legislators are ignoring a very important message by citizens in the landslide vote last fall against Proposition HH.  With a roar, they told the government to leave the TABOR rebates alone so that taxes over-collected by the state would be returned to the taxpayers.

Jul 30

EDITORIAL: Salute our state’s constitution this Colorado Day

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EDITORIAL: Salute our state’s constitution this Colorado Day

  • The Gazette editorial board

On Thursday, the state of Colorado turns 148 — and Coloradans no doubt can think of many good reasons to celebrate.

Among them of course are the Centennial State’s unmatched natural wonders. There’s also the state’s exquisite climate; its vast, wide-open spaces, and its abundant resources — from oil and gas underground to the wind and sunshine all around — that heat our homes, power our automobiles and light the way.

One blessing that’s more directly connected to the advent of Colorado’s statehood itself is our founding charter — our state’s constitution — which shares the same birthday. Drafted in March of 1876 and approved by territorial voters on July 1 of the same year, the Colorado Constitution formally took effect Aug. 1, 1876, when Colorado was admitted to the union.

There’s good reason to celebrate the state’s constitution, as well, on Colorado Day.

Like any constitution, ours isn’t without foibles. At times it has left itself wide open to interpretation, and activist courts have been happy to oblige. Yet, on the balance, Colorado’s constitution has served its citizens pretty well — including by way of some well-timed and well-placed amendments to the document over the generations. Continue reading →

Jul 25

HB1311.  New law plunders TABOR refunds.

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HB1311.  New law plunders TABOR refunds.

During the legislative session just ended, legislators passed and the governor signed a new law that establishes a new income redistribution program.
Your expected TABOR rebate from the state government over-collecting taxes was reduced and got cut nearly in half.

The new law is known as House Bill 1311, which sponsors call the Family Affordability Tax Credit (FATC).

The measure diverts $684 million in the first year, using planned TABOR refunds to give subsidies to low-income families with children.
There are formulas for how households will be treated differently, depending on the age of the child and the amount of income earned by the parent.

How did the General Assembly get away with a costly new program that you did not get to vote on?
After all, the Taxpayer’s Bill of Rights requires that voters must approve the retention of taxes above the TABOR limits.
Proponents claim the scheme is a method to return the surplus.

The act creates a new refundable tax credit.  Refundable means that the State will rebate to the welfare recipient money above any taxes that person owes.

This is a clear violation, as TABOR is to rebate over-collected taxes to those who paid and should be proportional when identifiable.

Income taxes are clearly identifiable.
There is no reasonable explanation that the State cannot identify who paid how much income tax and how much of a TABOR rebate that taxpayer should get.

The new law, HB1311 says:

  • Eligible people are “residents.”
  • They do not have to be taxpayers.
  • They do not have to be citizens!
  • They do not even have to reside in the state all year!

The TABOR Committee explored how to overturn HB1311 on this fall’s ballot.
Is there enough interest and funding to reverse the new law?
Action must be taken immediately and the effort is costly.

Arguments against the HB1311 program:

  • Note that HB 1311 is in addition to the “Earned” Income Tax Credit bill and the Child Care Tax Credit, which also reduce our general TABOR rebates.
  • While subsidizing families is arguably a government goal, it is done properly through welfare programs.  In Colorado with TABOR in place, that would mean funding the program under the TABOR spending limits.  It would require prioritizing the welfare subsidies within the budget imposed by the citizens.  Instead, this bill establishes a new welfare program completely reliant on state TABOR surpluses.
  • TABOR was never meant to become an instrument to redistribute income.  The concept was that tax rates would be adjusted downward to eliminate any permanent over-collections.

If this program is so important to proponents, then why restrict it to TABOR refund years?

Legislators are ignoring a very important message by citizens in the landslide negative vote last fall against Proposition HH.
With a roar, they told the government to leave the TABOR rebates alone so that taxes over-collected by the state would be returned to the taxpayers.

A philosophic core of the Progressives, who control the current Colorado General Assembly, is the leveling of income.
This bill, HB1311, is a mechanism to redistribute income through the TABOR tax rebates.

We need to overturn this horrendous bill at the ballot box.

Will you join us in trying to do so and restore your TABOR surplus refunds?

#ColoradoRejectedPropHH
#ItsYourMoneyNotTheirs
#DontBeFooled
#VoteOnTaxesAndFees
#FeesAreTaxes
#TABOR
#FollowTheMoney
#FollowTheLaw
#ThankGodForTABOR