Category Archives: TABOR Blog

Apr 18

The Colorado Title Board & TABOR

Posted on by

The April 20th Title Board Hearing has a notable 60 proposals on the agenda because it’s the last chance to get title set for the 2022 ballot. Although the list of potential ballot issues is long, many are variations with a slight tweak.  After title setting, the proponents must do the hard (or expensive) work of getting enough signatures.

Nearly a 1/3 of the proposals pertain to alcohol licensing, sales, and delivery.

Property taxes are another hot topic. Pro-taxpayer advocates are presenting relief in the form of a 2%-3% cap on property taxes.

Bigger government advocates propose a new tax on “Luxury Residential Real Property,” defined as $2 million or more. New revenues would be turned over to government to address affordable housing.  On that same theme, there’s a proposal to increase the income tax rate which would be spent on government-overseen affordable housing.

Another group wants to increase taxes from income tax by reducing deductions, putting increased taxation towards free school lunches for certain public schools – an expenditure of $60 – $140 million dollars a year.

Protecting the Taxpayer’s Bill of Rights begins before a ballot issue hits the street. The public can testify at the title setting meeting to get transparent language about the financial effects. If you’ve been around Colorado long enough you know that proponents of tax increases will actually try to have the question read, “without raising taxes” if they can get away with it. As we know, if you end up with less money in your pocket because of a tax policy change, that’s a tax increase.

Currently, there’s a legal battle just filed with the Supreme Court over initiatives #62-65, called Additional Revenue to State Education Fund.  Proponents are attempting to claim the measures are not a tax increase. Any of the four variations would reduce or completely eliminate our expected rebates from the Taxpayer’s Bill of Rights over the next two years. Since there is no sunset, we would give up a substantial amount of our future refunds if #62-65 moves forward.

You can find the ballot proposals at the Colorado Secretary of State website under Elections & Voting and Initiatives & Title Board. You’re looking for the section titled Awaiting Initial Hearing.

You can testify remotely. The meeting is Wednesday, April 20 starting at 9 am. https://attendee.gotowebinar.com/register/3996912106274902539

Email the Title Setting Board at initiatives@coloradosos.gov. Emails should be sent by Tuesday midday at the latest. Otherwise, listen in remotely and chime in when it’s time. It’s going to be a long meeting.

 

Natalie Menten
TABOR Board Member

Apr 07

Kerr vs. Polis Lawsuit Update

Posted on by

There was excellent news last month.  It appears the Plaintiffs have decided not to move forward with the existential threat to TABOR, ending the Kerr vs. Polis lawsuit!

The TABOR Foundation has been coordinating a national coalition of 19 freedom organizations that were ready to submit a friend-of-the-court brief to the US Supreme Court.  We won’t have to write it after all.

When the 10th Circuit Court of Appeals (sitting en banc) issued its ruling last December that was favorable to our position, you could have bet your bottom dollar that the Plaintiffs would continue the lawsuit.  Many left-of-center people and organizations have been pushing this case for over a decade.

The next step in the process would have been for Plaintiffs to petition the Supreme Court for a writ of certiorari asking the Court to take up the case (for a second time).  Such a petition had to have been filed by a March 14 deadline, but was not.

The Judgment dismissed the case for failing to state a claim upon which the Court could grant relief for the remaining Plaintiffs, who consisted of a few school districts and other political subdivisions of the State of Colorado.  Originally the Plaintiffs also included individual legislators and citizens.  The individual legislators had been denied standing to sue because they only alleged institutional injuries to the government and none to themselves as legislators.  And the individual citizens did not even allege whether or how TABOR injured them personally.

With respect to the school districts and other political subdivisions, the Court ruled that the US Constitution does not provide political subdivisions with rights against their parent states.  Moreover, none of the Plaintiffs identified any other law providing them with a claim for relief to challenge TABOR.

The Court of Appeal’s dismissal was “without prejudice,” so the Plaintiffs could try a new filing.  We’ll keep watch just in case.

The heart of the Plaintiffs’ legal theory, that citizens are prohibited from placing restrictions on certain legislative powers, was extremely dangerous to the fundamental principles of limited government.

Friends of the Taxpayer’s Bill of Rights can breathe a sigh of relief and celebrate, for now.

 

Mar 01

Update on Colorado’s Legislative Council Staff and Proposition 116

Posted on by

In 2020, Colorado voters approved Proposition 116, which reduced the state’s income tax rate from 4.63 to 4.55 percent. Due to the state’s application of certain provisions of TABOR, however, taxpayers will effectively lose out on the rate reduction for the first several years.

Naturally, voters expected that Proposition 116 would allow them to keep more of their own money. A close look at documents maintained by Legislative Council Staff (LCS), however, reveals that things did not work out how voters expected. Tax rates went down, but constitutionally mandated tax refunds — known as “TABOR refunds” — fell by the exact same amount, negating taxpayer savings from the voter-approved tax cut.

It’s a bit complicated, but here’s how it works.

Article X of the state constitution — commonly known as the Taxpayer’s Bill of Rights, or TABOR — sets limits on the amount of tax revenue the state can collect each year. If revenues, including income-tax collections, surpass the TABOR limit, the excess gets refunded back to voters.

Picture state coffers as a silo and revenues as grain filling it up. In a good year, there may be more bounty than what the silo can hold. In that case, the overflow goes back to the people.

Each year, the limit — or the size of the silo — increases based on population growth and inflation, allowing government spending to grow automatically. If the state wants to collect or keep tax monies at a level higher than automatic growth permits, it must win voter consent at the ballot.

When voters reduced revenues last year, they voted to decrease the amount of grain put into the silo by a specified amount. In executing the will of the people, the state reduced the amount of grain but put it in the same, larger silo. At the lower income-tax rates, the harvest (i.e. revenues) would have to be exceptionally good to fill up the same silo and trigger a refund.

Incidentally, state revenue forecasts show very bountiful times ahead and refunds for at least four consecutive years despite all this. That means that for at least this year and the next three, smaller refunds will offset the voter-approved tax cuts unless additional reforms are adopted.

Read plainly, TABOR appears to guard against this outcome by requiring the limit to be “adjusted for revenue changes approved by voters.” LCS evidently has a different interpretation—one which has effectively stripped voters of their tax cut.

Governor Jared Polis has lauded the income tax cut on multiple occasions and even said that he supports eliminating the state income tax entirely. He can demonstrate fidelity to his own rhetoric and to the state constitution by directing the Colorado Department of Revenue to adjust the TABOR limit for the “revenue changes approved by voters” with Proposition 116.  Alternatively, the General Assembly could set a new, lower TABOR limit to reflect the new tax rate. Either solution would cause voters to receive their full refunds and benefit from the income tax reduction they adopted in 2020.

Ben Murrey, Fiscal Policy Center Director with the Independence Institute

 

 

Aug 22

Menten: How to weigh in on local TABOR ballot measures

Posted on by

Menten: How to weigh in on local TABOR ballot measures

 By 

One great, though lesser-known benefit provided in the Colorado Taxpayer’s Bill of Rights (TABOR) is the local ballot issue notice. This guide is sent by mail at least 30-days before the election to all households with one or more registered voters.

The TABOR ballot issue notice includes content and details about upcoming local ballot measures which increase taxes, add debt, or suspend government revenue limits. It includes a section where registered electors have the opportunity to submit FOR or AGAINST comments, up to 500 words each.

You should know that there are two types of TABOR ballot issue notices. One notice is for the statewide elections and commonly referred to as the “Blue Book.” The notice discussed here is for elections held by local governments such as a city, town, school district, or special taxing district. You could potentially get more than one of these notices in the mail.

Several years back, it was discovered that out that of some 300 local tax issues throughout the state during a ballot year, only 15 had the taxpayer’s voice printed in a ballot issue notice.  That’s only 5 percent!  You can make a big difference and amplify your voice by being an author of the next ballot issue notice where you live.  Considering that you reach thousands of voters, being able to submit comments in the TABOR notice costs almost nothing and takes relatively little time & energy.

Click (HERE) to continue reading the rest of this story:

Aug 11

Submitting FOR or AGAINST statements in your local TABOR ballot issue notice

Posted on by

 Submitting FOR or AGAINST statements in your local TABOR ballot issue notice

One great though lesser-known benefit provided in the Colorado Taxpayer’s Bill of Rights (TABOR) is the local ballot issue notice. This guide is sent by mail at least 30-days before the election to all households with one or more registered voters.

The TABOR ballot issue notice includes content and details about upcoming ballot issues which increase taxes, add debt, or suspend government revenue limits. It includes a section where registered electors have the opportunity to submit FOR or AGAINST comments, up to 500 words each.

You should know that there are two types of TABOR ballot issue notices. One notice is for the statewide elections and commonly referred to as the “Blue Book.” The other notice is for elections held by local governments such as a town, school district, or special district. You could potentially get more than one of these in the mail.

Several years back, Dennis Polhill challenged the Colorado Union of Taxpayers by pointing out that of some 300 tax issues statewide during a ballot year, only 15 had the taxpayer’s voice printed in a ballot issue notice.  That’s only 5 percent!  You can make a big difference and amplify your voice by being an author of the next ballot issue notice submittal.  May we count on you please to participate?    Considering that you reach thousands of voters, being able to submit comments in the TABOR notice costs almost nothing and takes relatively little time & energy.

Continue reading →

Jul 24

2021 Colorado legislature’s new taxes bypass TABOR

Posted on by

2021 Colorado legislature’s new taxes bypass TABOR by Kevin Lundberg

 

Taxes and TABOR

As a part of my deeper dive into the 2021 bills that are now law, this week’s bills affecting taxes and TABOR are examined. In general, the bills which passed this year increased taxes and established new enterprises without calling for any constitutionally required votes from the people of Colorado.

This is far too predictable for the majority party. They use every trick in their playbook to wiggle around the clear intent of TABOR to require the people to vote on these significant new burdens on all citizens of Colorado.

However, there was one small bright spot I found.  SB-227 created the State Emergency Reserve Cash Fund, finally putting actual cash into the TABOR-required emergency fund. Since TABOR was created, nearly thirty years ago, the TABOR emergency reserve has been essentially ignored. Instead of actually setting aside cash as a reserve the legislature creatively designated assets, such as buildings as the “reserve” for emergencies. Finally, in this year, when the state coffers are full of federal debt dollars, they found some money to actually make a viable fund.

But the rest of the laws headed in the opposite direction Continue reading →