Oct 24

TABOR Foundation vs. RTD

Issue:
Whether the General Assembly can circumvent TABOR by expanding the taxing authority of RTD and SCFD without voter approval.

Plaintiff:
TABOR Foundation

Defendants:
Regional Transportation District, Scientific and Cultural Facilities District, and the Colorado Department of Revenue

Court:
Colorado District Court for Jefferson County, 2013CV31974

In the 2013 legislative session, the Colorado General Assembly enacted HB13-1272, which unlawfully authorizes the Regional Transportation District (“RTD”) and the Scientific and Cultural Facilities District (“SCFD”) to levy new sales and use taxes on food, beverages, cigarettes, advertising materials, and food containers. These new taxes will be levied by RTD and SCFD, beginning January 1, 2014.  Continue reading

Mar 23

Taxation Without Representation

F Line

F Line (Photo credit: paulswansen)

Introduced earlier this week was the following, Colorado House Bill HB 13-1272: RTD & SCFD Sales & Use Tax Base Same As State. This tax increase without voter approval likely got lost in all of the Colorado anti-gun legislation that had moved to the front of the news cycle.

The proposed legislation is set to add more tax revenue to the Regional Transportation District (RTD) here in Denver as well as the Scientific and Cultural Facilities District (SCFD). The bill is sponsored in the Colorado House by House Majority Leader Dickey Lee Hullinghorst. In the Colorado Senate the sponsor is Pat Steadman of Colorado Senate District 31.

The description of the bill is as follows:

Currently, some items that are exempt from the state sales and use tax are subject to the scientific and cultural facilities’ (SCFD) and regional transportation district’s (RTD) sales and use tax, and vice versa. For example, RTD and SCFD may tax the sales of low emitting motor vehicles, but the state may not. The state may tax the sale of candy and soft drinks, but RTD and SCFD may not.

The bill changes RTD and SCFD’s sales and use tax bases to be the same as the state’s sales and use tax base by eliminating some of the districts’ exemptions and creating other new exemptions for them.

In Colorado, we have the Taxpayer’s Bill of Rights (TABOR), so any tax increase in the state must be approved by voters before implementation. Approved in 1992 the constitutional amendment is designed to restrain growth in the Colorado State government. TABOR applies to all levels of government in Colorado including, state government, cities, counties, school districts and special districts. The legislation is the most restrictive tax and spending limitation in the country. Continue reading