Mar
18
Category Archives: TABOR news story
Mar
18
New Real Estate Transfer Taxes Are Not Allowed
New Real Estate Transfer Taxes Are Not Allowed
The Taxpayer’s Bill of Rights includes provisions beyond the required citizen vote on new or higher taxes.
Real estate purchases have much higher values than purchases of consumables. Purchasers of consumables such as household goods and of durable goods such as appliances and cars must pay a sales tax. Governments have looked hungrily at real estate purchases as possible sources of taxation, salivating over taking a portion of the value each time there is a sale.
That’s a bad idea.
Our Colorado Taxpayer’s Bill of Rights is comprehensive enough to prevent any government (“district”) from even proposing to add this type of tax. Because TABOR is written into the state constitution, any government would first have to initiate a statewide vote to overturn this provision before a new tax scheme could even be considered.
There are just a few existing real estate transfer taxes, which were “grandfathered in” upon the 1992 passage of TABOR. There is a trivially small (.0001) statewide tax, mislabeled a “document fee,” for each sale. It was initially imposed just to provide an indication of sale price. There are 12 municipalities that have long-standing transfer taxes, all in the mountains and on the Western Slope. In addition to a prohibition of new transfer taxes, no rate increase is allowed for any existing transfer tax. For more detailed information, follow this link: http://thetaborfoundation.org/colorado-real-estate-transfer-taxes/
Colorado constitution (Article X, Section 20), paragraph 8(a) states: “New or increased transfer tax rates on real property are prohibited.”
The provision was included within the Taxpayer’s Bill of Rights as an additional protection for citizens. A specific real estate sale might go forward in Colorado, when it otherwise might not quite reach the buyer’s threshold with the additional burden of an onerous transfer tax.
Mar
16
Denver, Colorado Sales Taxes Increased Without Voter Consent
- March 12, 2021
- Ben Murrey
Denver’s 2021 budget reveals that the city expects to collect $14 million in new sales tax revenues this year by taking advantage of a 2018 United States Supreme Court ruling for the first time. The State of Colorado began collecting new sales tax revenues under the same scheme in 2019.
These tax increases have come without voter consent, raising the question of whether sales tax rates should be lowered to offset the increases.
Key Takeaways
- A 2018 U.S. Supreme Court ruling allows states and local governments to mandate that out-of-state retailers collect sales taxes from residents when selling online.
- Denver and the State of Colorado have both created a substantial tax windfalls for themselves after promulgating new tax rules to take advantage of the ruling.
- The state brought in $80 million in new sales tax revenue in FY 2019-20 as a result of the new rules. Denver projects a $14 million increase in sales tax revenue this year as a result of its changes.
- Both Denver and the state skirted TABOR. The burden of the new taxes falls on residents, but the changes did not appear on the ballot for voter approval.
- The new rules effected a tax revenue increase by expanding the sales tax base. Denver should consider offsetting this base increase by decreasing its sales tax rate.
To continue reading this story, please click (HERE):
Mar
12
Colorado’s Competitiveness: The Challenge of Economic Recovery Under More than $1.8 Billion in New Regulations, Taxes and Fees
Prior to 2020 and the global economic and cultural upheaval caused by the COVID-19 pandemic, Colorado stood out for having strong economic growth and offering a desirable lifestyle. Coloradans had created the #1 state economy and enjoyed competitive advantages in attracting business growth and an educated workforce. In fact, in late 2019, US News World Report ranked Colorado’s business climate as one of the best in the nation.
However, after two periods of negative economic shocks in 2020, in both late spring and through the holidays, the state of business in Colorado remains under duress.
- There were 150,000 fewer jobs in Colorado in December 2020 relative to the start of the years, representing a 5.4% cut.[i] While the statewide reduction is significant, it masks the disproportionate impacts across industries, as the leisure and hospitality industry was down 90,900 jobs by end of 2020, whereas professional and business services was up 7,100 jobs.[ii]
- State taxable sales were down $8.9B, or -1.35%, in 2020 relative to 2019.[iii] Small business suffered, especially. As of February 10th, small business revenue was down 29.5% from January 2020 levels.[iv]
- Colorado’s unemployment rate increased by the 2nd-most among all states, from 2.5% to 8.5%. The Colorado state unemployment ranking went from near first (4th) to almost last (48th).[v]
To continue reading this story, please click (HERE):
Mar
05
Fee-funded water enterprise will now go to voters if passed by legislature
A new enterprise fund proposed by Republican Sen. Don Coram will go to the voters if it makes it way out of the state legislature.
The bill, that would provide financing to water providers for myriad things, lacked support by some who would otherwise embrace an idea for more revenue to fund water storage in Colorado.
The biggest issue with Senate Bill 21-034, brought by the southwestern Colorado senator, was it proposes a new enterprise fund, funded by a new fee on water that detractors saw as being in conflict with the Taxpayer’s Bill of Rights (TABOR) if it did not go to the public for a vote.
To continue reading the rest of this story, please click (HERE):
Feb
27
New fee-funded water enterprise bill raises eyebrows; detractors see a disregard for voter consent
DENVER — A bill being sponsored by Republican Sen. Don Coram that would provide financing to water providers for myriad things, lacks support by some who would otherwise support an idea for more revenue to fund water storage in Colorado.
The biggest issue with Senate Bill 21-034, brought by the southwestern Colorado senator, is it proposes a new enterprise fund, funded by a new fee that detractors see as being in conflict with the Taxpayer’s Bill of Rights (TABOR).
TABOR is amendment to the Colorado Constitution that, among other things, requires voter approval for new or increased taxes, as well as limiting growth of a portion of the state’s budget to a formula of population growth plus inflation.
“We haven’t had a chance to look at the bill yet, so our board hasn’t taken a formal position yet,” said Marty Neilson of the Colorado Union of Taxpayers, whose primary goal is to support and protect TABOR. “But just hearing the first sentence, I can tell you it is not something we will support.”
That first sentence in the summary reads: “Concerning the creation of an enterprise that is exempt from the requirements of section 20 of article X of the state constitution to administer a fee-based water resources financing program.”
Section 20 article X is the guiding structure behind TABOR. Continue reading
Feb
23
Americans for Prosperity: Poll finds little support for paying more for gas
The legislature could pass a fee of some sort, but lawmakers would have to refer a tax hike to the ballot, because of the state’s Taxpayer’s Bill of Rights.
#TABOR
#ItsYourMoneyNotTheirs
#ThankGodForTABOR
#VoteOnTaxesAndFees
#TABOROn
Click (HERE) to read this story about TABOR
Feb
12
Petition For Writ Of Certiorari To The Colorado Supreme Court
In regards to the lawsuit we filed to overturn the Hospital Provider tax and the subsequent abomination of SB267, we are in the phase of appealing to the Colorado Supreme Court.
The motions the Court is considering from the Court of Appeals ruling is that none of us has standing to bring these matters before legal review. That means that discussion of the facts of the dispute are not being addressed. Unlike the appellate level, the Supreme Court does not have to accept the case for review.
Our attorneys at Cause of Action filed the petition on time, as we are the petitioners.
The Respondents (The State of Colorado, Colorado Department of Health Care Financing, Colorado Healthcare Affordability and Sustainability Enterprise, Kim Bimestefer, Colorado Department of the Treasury, and Dave Young) filed a Reply brief on January 28th arguing that since none of us pay the bed tax (not true) that the Supreme Court should not take up the case (or any of the substantive issues including $400 million of new taxing authority).
The last action was Lee Steven writing a reply with his reasoned, thorough, and direct arguments, that we certainly have standing for all the other issues which Defendants ignored, and also that we have standing on the tax vs. fee question that started it all.
I believe that we are indeed fortunate to have such an excellent, skilled professional working on our behalf.
All three written arguments referenced in the preceding paragraph are attached for your perusal, as well as posted on the TABOR website (http://thetaborfoundation.org/lega…/hospital-provider-tax/).
Finally, here’s a response from our local legal counsel, William Banta:
“There should be no more replies, responses, or rebuttals.
The next step should be the Supreme Court’s decision, either granting or denying our request for certiorari (reconsideration of the Court of Appeals decision).”
Penn Pfiffner,
Chairman of the Board of Directors, TABOR Foundation
Feb
09
Mallory: Beware end-run around voters on gas tax hike
Colorado voters in November emphatically endorsed tougher rules to keep our state’s politicians from violating the spirit of the Taxpayer’s Bill of Rights, or TABOR.
Now, on ly a little over two months later, those politicians are cooking up a new plan to create an end run around TABOR that would cost the state’s drivers millions.
The lack of respect for the people who elected them is breathtaking.
Proposals for what supporters are calling a “gas fee” — it’s an increase in the gas tax, don’t be fooled — would be a blatant violation of TABOR, and particularly insulting in light of the expansion of taxpayer protections approved in November and votes to reject two other road-funding proposals in 2018.
The message this sends to every Coloradan who voted to strengthen TABOR and to oppose the 2018 initiatives is that the politicians in Denver don’t seem to care what you say, no matter how often you say it. So we’ll just have to say it again, even louder.for what supporters are calling a “gas fee” — it’s an increase in the gas tax, don’t be fooled — would be a blatant violation of TABOR, and particularly insulting in light of the expansion of taxpayer protections approved in November and votes to reject two other road-funding proposals in 2018.
If the message sent by politicians is “we don’t care what you think,” our message to them has been and continues to be, “stop wasting our money, set priorities, and make better use of the money we are already sending you.”
This new fee — whose cost has yet to be determined — would be in addition to the state’s 22-cents per gallon gas tax (which is in addition to the federal 18.4 cents per gallon tax).
To continue reading this story, please click (HERE):
Feb
07