Mar 11

House Bill 1187: Why should state government get to spend more just because people work more?

A Republican-sponsored bill in the Colorado legislature would likely let state government keep more of your tax money whether it needs it or not.

In 2005, Referendum C suspended Colorado’s constitutional limit on the amount of tax revenues that the state could keep. Called the “TABOR timeout,” the Referendum allowed the state to reset the limit on state revenue collection at the highest amount of annual revenue received between June FY 2005-6 and FY 2009-10. Referendum C was a permanent tax increase. As the table below shows, it has increased Colorado state spending by an estimated $2.6 billion over the last decade. At present, only 38 percent of state spending remains subject to TABOR.

refcNow the tax and spend coalition wants more.

Some state officials are understandably delighted by any measure that relieves them of the drudgery of running the state on a tight budget. It is much less taxing to be a state legislator when revenues are rising than when they are falling. When spending must be cut, difficult choices are required. No one is happy. Continue reading

Mar 03

Case given new life that could throw state’s elections system in flux

Case given new life that could throw state’s elections system in flux

 

The Colorado Court of Appeals on Thursday sent a case back to a lower court that could leave future funding for state and local elections in jeopardy.

The case, filed by the National Federation of Independent Business, claims that businesses carry an unfair burden of the cost of funding state and county elections. The business group hopes to reclaim the revenue, which would potentially throw elections into flux.

The appellate decision is not immediate cause for concern for state officials, as the court is only requiring the lower court to gather more information before making a decision.

“We reverse the summary judgment and remand to the district court with directions to hold further proceedings to determine whether the Business and Licensing charges have been adjusted or increased since the passage of TABOR in 1992, so as to require voter approval for the adjustments,” the Court of Appeals wrote in its decision.

“Depending on the court’s determination, it may need to reach the issue as to whether the Business and Licensing charges constitute a tax or a fee.”

That last statement by the court represents the heart of the case and what could cast uncertainty over elections in Colorado. More broadly, it could throw a curveball to all state departments that are funded by fees.

The question is whether business filings collected by the department qualify as a “fee” or a “tax.”

Continue reading

Mar 03

Tax Payer Bill Of Rights (TABOR) at center of heated debate

Taxpayers Bill of Rights foundation member Penn R. Pfiffner discusses TABOR at the event “Social Perspectives: conversation, debate and understanding.” The event was held by the Denver Post at the Denver Press Club on Feb. 28.
Photo by Taelyn Livingston • tliving4@msudenver.edu

Kristi Hargrove voted for Donald Trump in the last election. From Crested Butte, which she calls a liberal town, she identifies as a proud Republican.

“My daughter came home from school, she was in middle school, complaining about how cold she was at school,” Hargrove said. It was around 2003. “I said to her, well wear more clothes, because you never put on enough clothes.”

However, when Hargrove went to work on a student directory for her P.T.A., she had trouble because her fingers were freezing. After confronting the principle, she found out the school had turned down the utilities.

“We live in a fairly affluent area and I thought that was ridiculous,” she said. “My comment to her was, ‘who’s wasting money?’” Continue reading

Mar 03

TABOR reform measure passes first test with bipartisan support

photo - An effort to reform the Taxpayer's Bill of Rights, or TABOR, passed its first test on Monday with Republican support. File photo.An effort to reform the Taxpayer’s Bill of Rights, or TABOR, passed its first test on Monday with Republican support. File photo.An effort to reform the Taxpayer’s Bill of Rights, or TABOR, passed its first test on Monday with Republican support, though the legislation faces an uphill battle.

Some TABOR observers call it progress that two Republicans are sponsoring the effort to change how the state calculates its spending cap.

The bill received bipartisan support from the House Finance Committee. It heads to appropriations for consideration.

Despite the bipartisan support, Rep. Dan Thurlow of Grand Junction and Sen. Larry Crowder of Alamosa, sponsors of House Bill 1187, are still mavericks on the subject though an evolution appears to be underway.

“Let’s merely take a look at TABOR one more time and see how it’s working over the last 25 years, and if it’s working we leave it alone, and if it’s not working we make an adjustment,” Thurlow said during a well-attended hearing at the Capitol.

Continue reading

Mar 03

Panel Oks bill to ask voters about TABOR change

DENVER (AP) — The Latest on a bill to loosen a Taxpayer’s Bill of Rights limit on Colorado state revenues (all times local):

5:20 p.m. p.m.

 A proposal by two Republican lawmakers to potentially increase how much revenue the state can keep without issuing tax refunds has passed a Colorado House committee.

The Democrat-led House Finance Committee voted 10-3 Monday to refer the bill by Republican Rep. Dan Thurlow and GOP Sen. Larry Crowder to the House Appropriations Committee.

Their bill would ask voters in November to change the way annual state revenue limits are calculated under the Taxpayer’s Bill of Rights.

It could allow the state to keep hundreds of millions of dollars for roads, education and other priorities.

Opponents argued that any proposed change to TABOR, a constitutional amendment passed by voters in 1992, should be in the form of a constitutional amendment — not a statutory change called for by the bill.

Constitutional changes carry tougher ballot qualification and voter passage benchmarks.

___

11:35 a.m.

Two Colorado Republicans want to loosen a constitutional restriction on how much revenue the state can receive without having to issue tax refunds.

Rep. Dan Thurlow and Sen. Larry Crowder say it’s time to have a conversation about those limits 25 years after voters approved them under the Taxpayer’s Bill of Rights.

Republicans long have opposed TABOR tampering, arguing excess revenues belong to taxpayers.

But Thurlow and Crowder say individual refunds would be pocket change when the state faces a $500 million budget deficit.

Their bill would ask voters in November to change the way TABOR’s annual revenue limits are calculated. It would potentially allow the state to keep hundreds of millions of dollars for roads, education and other priorities.

A House committee hears testimony on the bill Monday.

http://www.thechronicle-news.com/news/ap_news/the-latest-panel-oks-bill-to-ask-voters-about-tabor/article_9bc10e21-8358-5db0-b641-368887a6a572.html

Mar 03

Crowder, Thurlow team up to fix TABOR ‘constraint on overdrive’

State Rep. Dan Thurlow, R-Grand Junction, and state Sen. Larry Crowder, R-Alamosa, have introduced a bill to fine tune TABOR.

Two Colorado Republican lawmakers are delivering on their promise from earlier this year to fine-tune TABOR, a 25-year-old constitutional restriction on how much the state can receive — and spend — without triggering tax refunds.

Rep. Dan Thurlow and Sen. Larry Crowder have introduced House Bill 17-1187 that seeks to change the way annual revenue limits set by the 1992 Taxpayer’s Bill of Rights are calculated.

It’s a first step that could allow the state to keep millions of dollars for roads, education and other priorities, starting with an extra $175 million in the 2018-2019 fiscal year, according to legislative analysts.

Thurlow, of Grand Junction, and Crowder, of Alamosa, have asked: What’s the use of individual taxpayer refunds amounting to pocket change when, this year alone, lawmakers must close a $500 million gap to balance the budget that begins July 1?

“I believe our party is the party of solutions and this bill is an example of that,” Thurlow said Monday. Continue reading

Mar 03

What is House Bill 1187?

What is House Bill 1187?

HB1187 would allow the government budgets at all levels to grow much larger each year by changing the current growth formula of the Taxpayer’s Bill of Rights.  The current automatic increase uses the previous year’s budget and adds the growth in population plus inflation.[1]  Under the existing formula, Colorado’s State budget has grown an average of 4.7 percent a year for the past 25 years that TABOR has been in effect.

The new formula would replace the growth rate with the growth in personal income, averaged over five years.  With that substitution, the TABOR limit would soar.

The measure is sponsored by Rep. Dan Thurlow (R-Grand Junction) and Sen. Larry Crowder (R-Alamosa County).

 

A fatal flaw in the proposal.

This bill is a very sneaky effort to avoid the constitutional rules altogether.  The rules say that the state constitution cannot be changed by passing a law.  This proposed measure says it can change a foundational definition in the constitution with a new law.  It does not ask simply for the state to keep the excess of taxes collected for some number of years.  It is a permanent change in how each TABOR limit is set.  That’s a fundamental change to the constitution. Continue reading

Feb 26

After 25 years, TABOR still works for you

Douglas Bruce, author of the state’s Taxpayer’s Bill of Rights, is pictured in 2005 working on the campaign against Referendum C .

By Penn R. Pfiffner and Douglas Bruce | Guest Commentary

PUBLISHED: February 24, 2017 at 1:01 pm

The Taxpayer’s Bill of Rights works for you and its 25th anniversary this year is worth celebrating. Once again in 2017 you need to protect TABOR from the political elite attacking it.

TABOR belongs to you. It is how you set a broad control on government that must answer to you and your fellow citizens. It has succeeded in keeping a better balance between costly government programs and healthy family budgets.

Everyone has to live within a budget. That’s just life. Staying in budget brings stability to your family and helps you choose the most important ways to spend your money. The value of living within a budget applies not just to individuals and families, but also to government. That’s just smart — and fair.

To read the rest of this story, click (HERE):

Jan 11

All the taxes you cannot see

Colorado Capitol Dome

Seeing is believing. So, it’s no wonder many in government prefer to work in the dark.

It’s not just that they don’t want us to know what they’re fully doing. They don’t want us to know what we’re fully paying. The reason for this emotional manipulation is clear. If the cost of government is hidden into the cost of our daily lives, we feel like we’re not paying as much as we really are.

As the state legislative session gears up our governor will try to get you to feel you’re not paying a massive tax called the Hospital Provider Fee. He, in concert with everyone who wants to increase taxes in every conceivable way except actually asking voters first, will pressure the legislature, via the new senate president, to embrace this dark money ploy.

This is nothing new. Colorado is chalk full of schemes to turn your tax money dark.

One of the biggest emotional manipulations is employee withholdings. Why in the world is it our employer’s job to collect our taxes? Imagine how you’d feel about your money going to government if you had to write out a check every month along with your other bills. And you think you gripe about your cable bill?

To read the rest of this story, click (HERE):

 

Jan 01

Colorado Taxpayer Bill of Rights, Initiative 1 (1992)

The Colorado Taxpayer Bill of Rights (TABOR), also known as Initiative 1, was on the November 3, 1992 ballot in Colorado as an initiated constitutional amendment, where it was approved. The famed measure, thought up by Douglas Bruce, requires statewide voter approval of tax increases that exceed an index created by combining inflation and population increases.

 

 

 

 

 

Text of measure

See also: Colorado State Constitution, Article X

The language appeared on the ballot as:[2]

Shall there be an amendment to the Colorado Constitution to require voter approval for certain state and local government tax revenue increases and debt; to restrict property, income, and other taxes; to limit the rate of increase in state and local government spending; to allow additional initiative and referendum elections; and to provide for the mailing of information to registered voters?

Aftermath

Kerr v. Hickenlooper

See also: Kerr v. Hickenlooper

A lawsuit regarding Initiative 1 will likely have far reaching effects for other TABOR laws around the country and direct democracy, in general. A lawsuit was filed with U.S. District Court in Denver, with plaintiffs arguing that the amendment is unconstitutional. The lawsuit was filed during the week of May 27, 2011, by 34 bipartisan plaintiffs, according to reports.

According to Doug Bruce, author of the citizen initiative, if the lawsuit is successful in its efforts, it could allow lawmakers unlimited power, and could be extremely detrimental to citizen initiative efforts in the state of Colorado. Bruce stated: “This isn’t only attacking Colorado. The consequences of a ruling in their favor would invalidate the Constitution in all 50 states, and would also mean no limits on the federal government. We would have anarchy.”

However, one of the attorneys for the plaintiffs, David Skaggs, stated that the measure limits state legislators and conflicts with both the state and United States constitutions. Skaggs also argues that other initiatives have been overturned, but that it did not negatively affect the process. Skaggs commented: “Courts won’t reach beyond the narrow question presented. Yes, we got to this issue by initiative”, but the lawsuit targets TABOR and not citizens’ initiatives.

The case’s impact expanded significantly due to the consideration of a Guarantee Clause argument. In 2012, Colorado District Court Judge William J. Martínez ruled in favor of allowing the case to proceed. However, Martínez’s ruling noted the history of seeing the Guarantee Clause as not justiciable or capable of judicial resolution, and said, “the Court determines that it cannot summarily conclude that Plaintiffs’ Guarantee Clause claim is per se non-justiciable”

The defense appealed the decision to the 10th Circuit Court of Appeals. In March 2014, the court ruled that the case was justiciable. The court further denied a petition for rehearing en banc in July 2014. Some consider the case likely to reach the U.S. Supreme Court.

http://ballotpedia.org/Colorado_Taxpayer_Bill_of_Rights,_Initiative_1_(1992)