The Ralph L. Carr Colorado Judicial Center in downtown Denver is the home of the Colorado Supreme Court, the state Court of Appeals and the office of the state attorney general.
(istock/getty images)
The National Federation of Independent Business said its state Supreme Court case has exposed licensing fees for what they are: Taxes.
And as taxes, they should be covered by the state constitutional Taxpayer’s Bill of Rights, meaning the government can’t raise them without a vote of the people.
Colorado taxpayers could get a potential TABOR refund worth hundreds of dollars over the next three years — or not.
How much the state returns to taxpayers depends on two major questions, one that Democratic leaders will answer and another that voters will decide.
The two combine to form a political puzzle for Democrats and a test case for critics who want to weaken the Taxpayer’s Bill of Rights, the state’s only-in-the-nation limits on government spending.
The first question is whether Democratic Gov. Jared Polis and top lawmakers will call a special legislative session to raise the TABOR revenue cap. Democratic leaders acknowledged Wednesday that it’s an option being discussed, and if it happens, it could substantially reduce projected taxpayer refunds for 2020.
Want to repeal TABOR? We do too, but here’s some realistic advice
We’ve always thought a repeal of the Taxpayer’s Bill of Rights would be prudent. We now know, thanks to a Colorado Supreme Court ruling, that it’s possible; all that remains to be known is if it’s plausible.
Common lore and a dismal record of voter approval for tax increases would indicate that voters in fact like TABOR. When asked to raise taxes, as required under TABOR, voters have said no, consistently.
And lawmakers have been reticent to ask to keep TABOR-required tax refunds in recent years, instead, coming up with complicated schemes to keep the money without voter approval — in theory because they know what voters would say.
This summer, the conversation is going to heat up around TABOR, especially given that taxpayer refunds are in the forecast. We have some advice for how opponents of the rigid and restrictive amendment should frame the conversation.
First, we are no longer convinced that the state needs more revenue for the general fund. The state’s economy is booming, and thanks to the Tax Cuts and Jobs Act, revenue from state income tax filings has spiked in Colorado.
Members of No on CC, including, from left, Colorado House Republican leader Patrick Neville, Colorado Regent At-Large Heidi Ganahl, 18th Judicial District Attorney George Brauchler and U.S. Rep. Ken Buck.
(Courtesy, Associated Press, and Gazette/Colorado Politics file photos)
A group made up of some of the Colorado Republican Party’s biggest names has formed to fight Proposition CC on the November ballot. The measure would allow the state to keep future refunds allowed by the Taxpayer’s Bill of Rights to go for schools and transportation.
The group, called No on CC, includes former Gov. Bill Owens, former U.S. Sen. Hank Brown, U.S. Rep. Ken Buck and Colorado House Republican leader Patrick Neville.
The leadership is strong and well-known in GOP circles, as well. The co-chairs are University of Colorado Regent At-Large Heidi Ganahl, 18th Judicial District Attorney George Brauchler, and former state treasurers Walker Stapleton and Mark Hillman.
Tampering with TABOR is expected to be a partisan brawl, since Republicans contend it keeps taxes and the size of government in check. They point to Colorado’s booming economy as proof balancing taxes and government works.
Colorado groups cry foul over misleading information about TABOR
By Bethany Blankley | The Center Square
The Colorado State Capitol in Denver, Colorado.
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Voters will decide on Nov. 3 whether the state can keep excess revenues instead of refunding them to the taxpayer, and prevent voters from deciding on the matter in the future.
The legislatively referred state statute passed by a majority Democratic legislature and has the support of Democratic Gov. Jared Polis.
Among other things, the Taxpayer’s Bill of Rights (TABOR) requires the state to refund excess revenue to taxpayers.
The lead sponsor of the amendment, Democratic Rep. K.C. Becker, says that Colorado’s strong economy gives the impression that “the state itself can make more investments, more improvements,” without raising taxes. But, she says, “We can’t because the state constitution prohibits the budget from growing with the economy.”
DENVER– According to the Secretary of State, two measures referred to voters in the 2019 Colorado legislative session–one aimed squarely at taxpayer refunds and another to implement sports betting– will appear on the November 5 state-wide ballot as Propositions CC and DD, respectively.
Proposition CC is the more contentious of the two, asking Coloradans to permanently give up any future tax refunds under the Taxpayer’s Bill of Rights, or TABOR.
TABOR is a constitutional amendment passed in 1992 that, among other things, limits the annual growth of a portion of the state budget to a formula of population growth plus inflation. The state is obligated to refund revenue in excess of that formula back to taxpayers, or get voter consent to keep and spend it temporarily.
So-called “enterprise” revenue is exempt from TABOR limits, and thus is already off limits for refunds. Enterprises are essentially government-owned entities that provide goods or services and are funded through fees, and which have grown dramatically in Colorado. According to the Legislative Council Staff, “Revenue to enterprises has grown significantly since the passage of TABOR, from $742 million in FY 1993-94, the first year TABOR was in effect, to $17.9billion in FY2017-18, the most recent year for which financial data are available.”
File photo – Todd Shepherd
But if approved by voters, Prop CC would eliminate what’s left of the TABOR limit, allowing the state to keep and spend any and all excess revenues that would otherwise be refunded back to taxpayers in perpetuity.
The U.S. Supreme Court in 2018 struck down a federal law restricting commercial sports betting in the states to only Nevada, thus opening the door for Prop DD. If passed, the measure would allow sports betting through licensed casinos in Colorado, as well as enact a 10 percent tax on the profits to “fund implementation of the state’s water plan and other public purposes.”
The propositions are statutory changes, meaning that they need 50 percent plus one of the vote to pass, and that lawmakers can later amend the measures if enacted, as with any other state law.
Colorado Democrats were successful in passing legislation this session that could chip away at the Taxpayer’s Bill of Rights (TABOR) if voters give the majority party what they want.
TABOR is a constitutional amendment that requires voters to approve all tax increases. In addition to being a check on tax and spending increases, TABOR requires voter approval of debt increases. The amendment also ensures taxpayers receive refunds when the government’s revenue increases faster than population growth plus inflation.
It’s also one of the most contentious and partisan issues at the Colorado capitol.
TABOR means that anytime legislators want to raise taxes, they have to seek voter approval at the ballot box. But referendums become expensive and require significant political capital, especially given Coloradans’ recent history of voting down tax increase proposals.
