Category Archives: Legal Issues

Jan 15

Effort launched to repeal Taxpayer’s Bill of Rights

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Effort launched to repeal Taxpayer’s Bill of Rights; possible ballot issue before the Title Board

 By Sherrie Peif

The Title Board is the first step in putting a citizen-initiated question before voters.

TABOR is a constitutional amendment that was passed by voters in 1992 that requires voter approval to increase taxes or take on new debt.  It also limits the growth of a portion of the state budget to a formula of population growth plus inflation. It has been a controversial topic since its inception, and it’s been debated in the courts numerous times.

Many Democrats say it is a threat to Colorado’s education, transportation and health care funding, while Republicans counter that it is what has allowed the Colorado economy to prosper, as well as allowing Colorado to more easily weather economic downturns than states that lack taxpayer protections such as TABOR.

Many attempts to repeal or tweak portions of the amendment have come before the Title Board. This is the first time, however, that anyone can recall where a full repeal of the amendment has been proposed.

Continue reading →

Dec 28

It’s Not Too Late….

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The World Happiness Report provides data and research used around the world to help shape and inform policy.

Among its findings: giving to others is good for you.  It makes you feel happy.1-8

 Since 1992, the TABOR Foundation protects the Taxpayer’s Bill of Rights.  We educate citizens on why it matters to have a vote on increased taxes and how a formula for predictable growth creates a sound economy.

We are all volunteers.

We give advice and direction to citizens working at their local level to stop TABOR violations. We assist as plaintiffs and “friends of the courts in lawsuits to stop such violations.

The biggest trick of politicians is calling a new tax a “fee” – whether it’s for plastic grocery bags, living in a special district, running a hospital, driving over a bridge, or funding a mandatory family leave program with an insurance “fee.” We’ve responded to inquiries not just in Colorado, but in states like South Dakota, Kansas, Arizona, Alaska and Florida.

Please donate:

  • Help fund our Speaker’s Bureau to educate fellow taxpayers about their rights.
  • Help produce the TABOR 101 series of policy/how-to videos.
  • Help fund the legal fees for amicus briefs.

Please donate.   You – and we – will be happy you did.

Thanks – and Happy New Year!

Your friends at the TABOR Foundation

http://www.facebook.com/coloradoTABOR/

www.theTaborFoundation.org

Continue reading →

Dec 15

Nicolais: An attack on TABOR could leave Colorado Democrats feeling the squeeze

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Nicolais: An attack on TABOR could leave Colorado Democrats feeling the squeeze

A court composed of mostly Hickenlooper appointees turns the governor down cold, setting up a possible legislative showdown

PUBLISHED ONDEC 9, 2018 5:55AM MST

Mario Nicolais@MarioNicolaiEsq

Special to The Colorado Sun

Before walking out the door from the governor’s office, John Hickenlooper took one last shot at a Democratic boogeyman. Last week, the Colorado Supreme Court denied Hickenlooper’s parting attempt to undercut TABOR, the conservative taxpayer’s bill of rights enshrined in the Colorado constitution.

Democrats, have long derided TABOR for the constraints it places on government. Not only does TABOR require a vote of the people to approve tax increases, but several of its provisions work in conjunction with other laws to create a “ratcheting effect” on government spending.


Mario Nicolais

If revenues drop during an economic downturn, they cannot return to prior levels as the economy rebounds. Instead, growth is artificially tied to the down year plus a pittance for inflation.

The ratchet works like boa constrictor wrapped around a person. With every breath out, the snake squeezes a little tighter and the next breathe in is a little shallower.

Eventually, no breath can be drawn, and the person dies. I’m sure it delights TABOR’s progenitor, the eccentric Douglas Bruce, to imagine the government being asphyxiated.

Democrats have a little different view; they see a snake crushing the life from Colorado citizens. Gasping for funds no longer available, state and local services wither and waste away. Continue reading →

Dec 07

TABOR supporters: ‘Sigh of relief’ but threat to taxpayers not over after court ruling

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FILE - CO Gov. John Hickenlooper 2012
Colorado Governor John Hickenlooper (World Economic Forum |Flickr via Creative Commons)

Outgoing Gov. John Hickenlooper asked the state Supreme Court to review the compatibility of two constitutional amendments governing the calculations of taxes to determine if one should be removed. The court rejected his request.

The 1982 Gallagher Amendment and the 1992 Taxpayer’s Bill of Rights (TABOR), designed to protect taxpayers, Hickenlooper wrote, created an “irreconcilable conflict in Colorado’s Constitution.”

The Gallagher Amendment sets the percentage for taxing residential and commercial property owners according to a specific formula that allows the residential assessment rate (RAR) to fluctuate and maintain the ratio to prevent large, unexpected spikes in tax bills.

TABOR prevents local and state governments from increasing taxes without voter approval, including any changes to the Gallagher formula. Continue reading →

Dec 04

State Supreme Court turns down Hickenlooper on Gallagher/TABOR review

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State Supreme Court turns down Hickenlooper on Gallagher/TABOR review

Colorado Supreme Court building
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 Colorado Supreme Court on Monday turned down a request from Gov. John Hickenlooper that sought to resolve what he believes are conflicts between the Taxpayer’s Bill of Rights (TABOR) and the Gallagher Amendment.

The Court did not provide a reason in denying the request.

Hickenlooper submitted “interrogatories” — a series of questions —  on Nov. 20 that asked the Court to look at the conflicts between TABOR, passed by voters in 1992, and Gallagher, adopted by voters in 1982. Critics say the conflict is siphoning off tax revenue for schools and local government services, such as firefighting.

Those conflicts are “preventing local governments from funding even limited essential services,” Hickenlooper’s filing with the court said. “… It has resulted in the steady erosion of the budgets of local governments in communities throughout the state that rely on property taxes.”

The erosion is about to get a lot worse.

Continue reading →

Dec 02

Colorado cities want to tap into online sales revenue. That means the state’s messy sales tax system could get messier.

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Colorado cities want to tap into online sales revenue. That means the state’s messy sales tax system could get messier.

In South Dakota v. Wayfair, Supreme Court ruled online taxes can’t be “burdensome” for interstate sales, but Colorado’s complex system will put the ruling to the test

As state regulators scramble to expand online sales taxes in the wake of a landmark U.S. Supreme Court decision, Colorado’s largest cities could suddenly find themselves missing out on a new funding spigot worth millions of dollars each year.

But if they try to get their piece of a growing tax pie — Denver alone could reap more than $5 million each year — experts say they’re just as likely to find themselves in federal court.

The net result could be a hybrid system unlike any other in the country: one that would effectively require out-of-state businesses to collect some sales taxes but not others.

The U.S. Supreme Court in June overturned a de facto ban on interstate online sales taxes, ruling in South Dakota v. Wayfair that a state can require online retailers to collect and remit sales taxes regardless of whether they have a physical presence there.

The catch: states aren’t allowed to put an excessive burden on interstate businesses. And where South Dakota’s system was designed to be simple and user-friendly, Colorado’s is notoriously complicated and cumbersome — so much so that tax experts across the country believe it’s the most likely test case for the lingering question from the Wayfair case: What exactly constitutes an excessive burden?

The question has complicated Colorado’s efforts to expand online sales taxes to out-of-state retailers. And it has left top policymakers, advocacy groups and business coalitions urging patience. Continue reading →

Nov 26

PLF opposes illegal taxes in Colorado

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PLF opposes illegal taxes in Colorado

The Colorado Secretary of State has been illegally charging businesses millions of dollars in unnecessary filing fees every year. Rather than refund those excess fees, the secretary funneled the money into his general budget, converting the fees into general tax revenue in violation of the state’s Taxpayer’s Bill of Rights. The National Federation of Independent Business sued to stop the unconstitutional fees, and the case is now before the Colorado Supreme Court.

PLF partnered with three other liberty organizations in this friend of the court brief, making two important arguments:

  • First, PLF urged the Colorado Supreme Court to do away with the “beyond a reasonable doubt” standard for unconstitutional laws, because it neuters the court’s ability to strike down unconstitutional laws and allows many unconstitutional laws to remain on the books.
  • Second, PLF argued that the amount of a fee cannot exceed the cost of providing the service or regulation funded by the charge. Here, 90% of the business “fees” fund services and regulations totally unrelated to businesses.

Weekly litigation report: Private property rights and illegal taxation

Sep 10

Hospital Provider lawsuit Sept 2018 development

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The TABOR Foundation may have seen the final task for one of our lawsuits completed last Thursday, at least at the District Court level.  Our supporters will undoubtedly remember that we are suing the State government about how it implemented a new $600 million/year bed tax without first obtaining voter approval, as required by the Taxpayer’s Bill of Rights.  The money is funding the Hospital Provider program.  The Foundation had to enhance the scope of the lawsuit after SB17-267 passed.  That egregiously bad legislation moved the Hospital Provider program off the books, as well as cobbling together transportation plans, changing Medicaid reimbursement, sale & leaseback of state buildings, a net $400 million increase in the fiscal spending cap, increasing State debt by $2 Billion  and more (so much for the single-subject mandate).

 

What happened last week, and where does the lawsuit stand?

 

All written arguments and counter-arguments have been submitted (“the case is fully briefed”) for the Summary Judgment phase.  The Judge still owes a ruling on the Motion to Dismiss made by the State’s attorneys.

 

Although not a standard action in Colorado, we had a formal Hearing last week for both sides to present their arguments for the Summary Judgment.  Each side was given roughly an hour to present its arguments, and there were questions from Judge Buchanan.  Lee Steven, the lead attorney from Cause of Action Institute, was the legal representative from our side there.  The Foundation’s Chairman, Penn Pfiffner, was present to represent the Plaintiffs.

 

Because it is not common to have oral argument for Summary Judgment, no clear Order was issued well in advance and as of just 10 days (+/-) before at least one of the attorneys for the Hospital Association was not sure that the Hearing had indeed been scheduled.  That’s why formal notice came up so soon before the scheduled court date.

 

The important development is that both Plaintiffs and Defendants agreed that the ruling will be on the constitutionality and on interpretation of facts already in evidence.  Therefore, it is more likely than not that the Judge will reverse (“vacate”) his Order for a five-day trial which is now scheduled to start on October 29.  He promised to make this case a high priority.  Given the circumstances, Judge Buchanan likely will release his ruling on the Motion to Dismiss and issue a final ruling on the case without any further action on the part of either Plaintiffs or Defendants.  We can be reasonably certain that the losing side will appeal.

 

At this point, all of us – Defendants, Plaintiffs, attorneys – are set for a waiting game until we learn what Court wants to do about the scheduled trial, and then for the rulings.

Penn

 

 

 

 

 

 

 

 

 

Aug 30

Nonprofit leaders back TABOR ballot issue

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Nonprofit leaders back TABOR ballot issue

County would reap benefits, they say

  • GABRIELLE PORTER
Nonprofit leaders back TABOR ballot issue

Carol Skubic, secretary and treasure, left, and Sharon Raggio, CEO of Mind Springs Health and West Springs Hospital, right, answer questions about the county’s proposed TABOR exemption outside the West Springs Hospital on Tuesday.

Chancey Bush

A ballot measure that would allow Mesa County to accept state grants as a revenue stream outside strict governmental growth limits could open potential funding sources for local projects, ranging from a psychiatric hospital facility to a new space for a nonprofit that services developmentally disabled adults, advocates said at a Tuesday press conference.

Leaders of Mind Springs Health, the Grand Junction Area Chamber of Commerce and other local organizations called the event Tuesday morning, the day after the Mesa County Commission voted to place Issue 1A on the November ballot.

The ballot issue involves Mesa County’s relationship with the Taxpayer’s Bill of Rights, which limits governmental income, including grants, unless an exception is made. Mesa County voters in November will decide whether the county can permanently make that exception for state grants, which are often applied for by nonprofits using the county government as a pass-through agency.

The still-under-construction Mind Springs Health psychiatric hospital project became a case study on the legal tangle last year when the county decided not to apply for a $5 million grant that could have made a major dent in the group’s fundraising goals in anticipation of going over TABOR limits.

“Had we been able to partner with the county as well as other communities in being able to secure some TABOR funds, that would have really put us over the top (of fundraising efforts),” said Mind Springs President and CEO Sharon Raggio at the event outside the facility.

HopeWest President and CEO Christy Whitney said she hopes voters will agree.

“There’s a lot of state money available to make some amazing things happen in Mesa County, but we have just fundamentally not been able to access it because of the really outdated view of the TABOR law,” Whitney said.

Diane Schwenke, president and CEO of the Grand Junction Area Chamber of Commerce, said both her organization and the Grand Junction Economic Partnership are behind the measure, in part because they believe that local nonprofits provide important services that serve the workforce, that the ballot measure is in “the spirit”of TABOR, and that state grants are partially funded by severance taxes that local businesses pay.

“It’s only right that those dollars can come back and help the nonprofits that are doing the good work,” Schwenke said.

http://www.gjsentinel.com/news/western_colorado/nonprofit-leaders-back-tabor-ballot-issue/article_ca9261ce-ab50-11e8-9dbe-10604b9f7e7c.html