Jul 25

HB1311.  New law plunders TABOR refunds.

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

Jul 15

Jefferson County’s commissioners seek elimination of TABOR refunds — again

Boxes of ballots await tabulation in Jefferson County from the Primary Election in June.

Deborah Grigsby/Denver Gazette

 

For the third time in five years, Jefferson County’s elected officials are asking voters to allow the local government to spend all of the revenue that it collects above the Taxpayer’s Bill of Rights limit, thereby eliminating refunds to taxpayers.

For fiscal year 2024, that refund amount is estimated to be $54.4 million.

Last year, the county refunded $39.4 million to roughly 210,000 property taxpayers.

The county’s voters rejected the idea twice — in 2019 and 2022 — but the county’s commissioners this month insisted that, after “engaging” with the public through “both qualitative and quantitative research,” voters need to decide the question again.

“It is the spirit of TABOR to bring questions like this to the voters and let them decide,” Commissioner Andy Kerr said in a statement. “TABOR demands that community members engage with their government to address challenges like this.”

“I have great pride in Jefferson County, but we’re falling behind in essential county services, and that’s where we come in as county fiscal stewards,” Commissioner Lesley Dahlkemper said during the meeting that sent the measure to the November ballot.

Under TABOR, local voters may allow their respective government to “debruce” — that is, permit a county, municipality or school district to eliminate the TABOR spending limit, and then to retain and spend all of the revenue it has collected.

Jefferson County is among a few counties that have not “debruced.” A majority of Colorado’s 64 counties have done so.

Last week, commissioners Kerr, Dahlkemper and Tracy Kraft-Tharp voted to place the debrucing question on the ballot. Continue reading

Jun 25

TABOR Committee Press Statement About RTD Ballot Question

June 25, 2024

 

 

                                                                                                                                Contact: Penn Pfiffner
Phone: 303-233-7731
Email: constecon@hotmail.com

 

FOR IMMEDIATE RELEASE

 

The Regional Transportation District (RTD) is proposing a 2024 ballot measure to permanently eliminate TABOR spending and revenue caps. The RTD has retained hundreds of millions of dollars in taxpayer’s TABOR rebates over recent years. Yet, the RTD Board wants to claim this proposed ballot measure isn’t a tax increase.

The TABOR Committee opposes the RTD ballot measure to permanently eliminate taxpayer’s protections.

  1. The ballot language doesn’t legally comply with TABOR by clearly expressing the amount of the tax increase. The district has retained millions of TABOR rebates, the proposed measure is a tax increase.
  2. TABOR limits waivers to four years, allowing for voter review. The RTD ballot measure permanently eliminates taxpayer protections. It’s a forever tax increase with a blank check.

 

TABOR Committee, board chairman Penn Pfiffner stated: “The Regional Transportation District (RTD) is one of the largest tax collectors in Colorado. RTD wants to use misleading ballot language to eliminate TABOR rebates. This is clearly a tax increase and a blank check to a government district that has failed to deliver on FasTracks campaign promises. Taxpayers would be best served getting their TABOR rebates starting in 2025 to use on a transportation method that fits their lives.”

 

The TABOR Committee was formed in 2009 to protect the Taxpayer’s Bill of Rights (TABOR).
DefendTABOR.com

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Jun 18

A Voter Revolt Grows in California. Gov. Gavin Newsom and Democrats in Sacramento try to block anti-tax and anti-crime initiatives from the November ballot

A Voter Revolt Grows in California

Gov. Gavin Newsom and Democrats in Sacramento try to block anti-tax and anti-crime initiatives from the November ballot.

 

By The Editorial Board

June 16, 2024 3:56 pm ET

California Gov. Gavin Newsom speaks at a rally in support of Freedom to Marry, a ballot measure to remove Proposition 8 from the state Constitution, Friday, June 7, 2024, at Manny’s at 16th and Mission streets in San Francisco. (Jessica Christian/San Francisco Chronicle via AP) PHOTO: JESSICA CHRISTIAN/ASSOCIATED PRESS

We’ve told you about California Gov. Gavin Newsom’s lawsuit to block a citizen initiative from this November’s ballot that would make it harder to raise taxes. Now his Legislature is trying to sabotage another initiative that would toughen penalties for theft and drug crimes. Why do Democrats fear voters?

Law enforcement, businesses and local elected officials across the Golden State are campaigning to roll back parts of Prop. 47. That’s the 2014 initiative that made misdemeanors of drug possession and theft of less than $950 in goods. Supporters including Mr. Newsom said it would save money by reducing incarceration.

The George Soros-backed initiative cut the state prison count, but Californians are paying a high price. Organized criminals exploit the law’s lax penalties. District attorneys say Prop. 47 prevents them from leveraging the penalty of jail time to induce addicts into treatment. Police often don’t arrest thieves or drug users because the crimes go unpunished. Retail theft, vagrancy and open-air drug use have spiked.

Thus the citizen initiative, which would toughen penalties for shoplifters and drug dealers. Someone with two prior convictions for theft could be charged with a felony on the third offense no matter the amount. The value of stolen property from multiple thefts could be combined for a felony charge. Continue reading

Jun 13

Voters will likely be asked to permanently spare RTD from TABOR limits

Voters will likely be asked to permanently spare RTD from TABOR limits

By Nathaniel Minor

  • Jun. 12, 2024, 5:16 pm

 

 

 

 

Kevin J. Beaty/DenveriteAn RTD train slowly approaches the Belleview Avenue station in south Denver. June 6, 2024.

The Regional Transportation District will likely add a question to the November 2024 ballot asking voters to permanently allow it to keep revenue that would otherwise be refunded to taxpayers under the Taxpayer’s Bill of Rights.

An RTD board committee unanimously endorsed the “debrucing” ballot question on Tuesday, a reference to TABOR’s author Douglas Bruce.

RTD’s full board will vote in late June on whether to send the question to voters. The agency currently has two different exemptions from TABOR for different parts of its budget; one expires later this year, the other in 2050. The ballot measure would ask voters to spare RTD’s entire budget from TABOR limits permanently.

Board chair Erik Davidson said if the soon-to-expire exemption were to lapse, RTD might have to refund tens of millions of dollars a year to taxpayers.

He also cited recent polling commissioned by RTD that showed nearly 70 percent support for the ballot measure among respondents.

“To me, it’s an easy answer to say that we proceed,” Davidson told the committee on Tuesday.

Most voters know TABOR as the reason Coloradans vote on taxes. But it does a lot more than that.

The lengthy constitutional amendment voters passed in 1992 also puts restrictions on how much revenue every government in Colorado can collect every year. Any excess revenue beyond a limit set by formulas within TABOR must be refunded to voters. TABOR also contains a “ratchet effect” that can lead to tighter limits and bigger refunds after a recession. Continue reading

May 09

EDITORIAL: Rein in violations of taxpayer’s rights

EDITORIAL: Rein in violations of taxpayer’s rights

    •  Updated 

BIZ-WRK-ACCOUNTING-WORKLIFE-DMT

The 2024 tax and audit season, which generally stretches from mid-January to mid- or late April, hasn’t been quite as challenging as it was in pandemic years, industry experts said.

Government is supposed to be of, by and for the people. That’s why Colorado voters passed the Taxpayer’s Bill of Rights in 1992, forcing the state government and other taxing jurisdictions to obtain voter approval before raising taxes or spending revenues that outpace inflation and population.

Moments after voters passed the law, politicians began routing around it. They began levying and/or raising car registration “fees,” energy production “fees” professional registration “fees,” doing-business “fees,” plastic bag “fees,” phone “fees,” tire “fees,” alcohol “fees” and much more.

Politicians who don’t want to ask for a tax increase — those who think they know what’s best for other peoples’ money — learned early on they could call a “tax” a “fee” and from TABOR become free. Courts, which make up a major component of state and local taxing jurisdictions, have gone along with this ruse.

Boldly flouting federal law, the Colorado Legislature recently passed Senate Bill 184 to impose a “Congestion Impact Fee” on rental vehicles. The money will go to fund passenger rail and other Democratic pet projects marketed as good for the climate.

To continue reading this story, please click (HERE) to at the Denver Gazette.

Apr 05

California Businesses Take On Gavin Newsom Over Tax Hikes

Meanwhile, in the state known for its historic gold rush, a coalition of California businesses gathered enough signatures for a ballot measure that would require two-thirds of voters to approve most local tax increases and roll back some already in place.

 

California Businesses Take On Gavin Newsom Over Tax Hikes

Governor says ballot measure would decimate funding for basic services; backers say it is needed in the high-cost state

By Christine Mai-Duc
April 4, 2024 9:00 pm ET

California Gov. Gavin Newsom was featured in an ad calling the tax measure ‘dangerous, an overreach and irresponsible.’ PHOTO: DAMIAN DOVARGANES/ASSOCIATED PRESS

A coalition of California companies is going to war with Gov. Gavin Newsom and his Democratic allies over taxes it says have grown out of control in the Golden State.

The businesses have gathered enough signatures to put a measure on November’s ballot that would require two-thirds of voters to approve most local tax increases and roll back some recently enacted ones. If passed, it would be one of the most significant changes to the way California funds its government since 1978’s Proposition 13, a voter-approved law that severely limited property tax increases.

Backers say it is necessary to stop continued tax increases that are making it too expensive to operate in California and pushing companies to leave the state. Real estate businesses in Southern California are among the biggest funders, according to state campaign finance records, partly in response to a surcharge on luxury home sales that Los Angeles voters passed in 2022.

Newsom, local officials and labor unions say the proposal would decimate funding for basic services such as trash collection and firefighting and would make budgeting decisions near-impossible.

The companies spent some $16 million to gather signatures to put their proposal before voters and are gearing up for a fight political analysts say could draw tens of millions of dollars in advertising by both sides.

“The business community is fed up, they want to start stepping up to make a positive change. And they recognize that if they don’t do it, nobody will,” said Rob Lapsley, president of the California Business Roundtable, an advocacy group representing some of the state’s biggest businesses and leading the “yes” campaign. Continue reading

Mar 24

Water district subject to TABOR vote requirement

Water district subject to TABOR vote requirement

Water districts are like all other government entities that are subject to the Taxpayer’s Bill of Rights when it comes to voters approving tax increases, the Colorado Appeals Court ruled Thursday.

In a precedent-setting case out of Logan County in the northeast corner of the state, a three-judge panel overturned a lower court’s decision that the Lower South Platte Water Conservancy District that serves four Eastern Plains counties violated TABOR by doubling its mill levy starting in 2019 because it did so without voter approval.

The lower court had ruled in favor of the district, saying its raising of the levy from 0.5 mills to 1 mill did not violate that 1992 constitutional amendment because the water district was formed before TABOR was approved, and is required under the state’s Water Conservancy Act to set a mill levy based on a mandatory and non-discretionary formula.

The water district tried to argue that the Colorado Supreme Court, in Huber v. Colorado Mining Association, allows such mill levy increases because of that formula.

But a three-judge panel said that high court ruling applies to entities that aren’t making a legislative or governmental act for a tax-rate increase, but a non-discretionary duty under pre-TABOR taxing statutes, such as the Colorado Department of Revenue making legally required adjustments to severance taxes. Continue reading

Mar 24

TABOR: The enduring success story empowering Colorado taxpayers

TABOR: The enduring success story empowering Colorado taxpayers

BY BARRY W. POULSON, OPINION CONTRIBUTOR – 03/22/24 7:00 AM ET

AP Photo/David Zalubowski

The dome of the State Capitol shines in the early morning sun Friday, May 28, 2021, in downtown Denver. (AP Photo/David Zalubowski)

 

Even as economists tout a soft landing for the U.S. economy, Americans are facing sticker shock at the grocery store, the gas pump, and fast-food restaurants, among other places.

After a long bout of double-digit inflation, not unlike that of the 1970s. We have learned once again that unconstrained growth in federal spending funded by borrowing and accommodative monetary policy eventually triggers high inflation.

In response to stagflation in the 1970s, Congress enacted statutory fiscal rules designed to balance the budget and stabilize debt. The Federal Reserve also pursued tighter monetary polies to stabilize prices. In the 1990s, a period referred to as “The Great Moderation,” the federal government achieved sustainable debt levels and low rates of inflation.

Unfortunately, over the last two decades, the federal government largely abandoned these fiscal and monetary policies. Federal spending has far outpaced the growth in national income, and federal debt has grown at an unsustainable rate. The statutory fiscal rules designed to constrain federal spending are routinely circumvented and suspended.

The Federal Reserve has again used monetary policy to accommodate these fiscal policies, resulting in wide swings in the rate of inflation. It is difficult to argue that we are experiencing a soft landing and that all is well. A more realistic forecast is that over the next decade we will again experience stagflation.

But there is a bright spot in this gloomy outlook.

In response to stagflation in the 1970s, citizens launched state and local tax revolts. Beginning with property tax limitations in California, citizens began to challenge profligate fiscal policies at the state and local level. Using the initiative and referendum, citizens enacted tax and expenditure limits to constrain fiscal policies. Continue reading

Mar 15

Menten: Open letter to the Colorado Commission on Property Tax

Dear members of the Commission on Property Tax:

The commission was tasked with providing property tax relief options before the temporary tax adjustments expire at the end of 2024.

The obvious  answer is to restore inflation and growth adjustable property tax revenue caps where they’ve been forfeited in prior elections. Good news – that’s already in the Taxpayer’s Bill of Rights (TABOR) but it needs to be reinforced!

If that doesn’t happen, there will be a hard property tax cap on the 2024 ballot. That’s been clearly stated by two of the proponents of property tax caps if there was insufficient actions from the commission.

Taxpayers want tax caps whether they are hard or inflation adjustable. Taxpayers like me understand that government growth should be relative to the size of the local economy. That is rightly answered in the existing property tax limit contained in TABOR, paragraph 7c, which allows for such growth.

Having sat through all the commission meetings, there’s a few moments I want to highlight.

Bring back the tax caps

In this three minute video, the county assessor from Santa Clara, California described where that state sits now under the Proposition 13 property tax caps. His points illustrate why our Colorado TABOR is ideal. The assessor points out that local California governments didn’t appropriately reduce property taxes in 1978, even referring to property taxes as “money machines.” So, California voters used their right to petition to place a hard tax cap on the ballot, which became Proposition 13. Continue reading