Category Archives: TABOR news story

Aug 06

Legal battles continue over Taxpayer Bill of Rights, hospital fees, transportation taxes

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egal battles continue over Taxpayer Bill of Rights, hospital fees, transportation taxes

FILE - Colorado State Capitol
The Colorado State Capitol in Denver, Colorado.

Shutterstock photo

On Nov. 3, 1992, Colorado voters approved a constitutional amendment which stipulates that lawmakers seeking to raise taxes or issue debt must first ask voters for permission.

Called the Taxpayer Bill of Rights, or TABOR, it took effect Dec. 31, 1992, and was designed to serve as another check against the growth of government. It requires that any increase in overall revenue from taxes not exceed the rates of inflation and population growth.

The TABOR Foundation, which was instrumental in advancing the amendment, maintains that it has been a successful measure.

Others maintain it interferes with advancing critical public spending initiatives. Sam Mamet, the executive director of the Colorado Municipal League, opposes TABOR. Mamet argued on the 25th anniversary of TABOR that “iIt is one of the most seriously damaging things the voters of the state have done to themselves in the last 25 years, in my humble opinion.”

Since its inception 26 years ago, many attempts have been made to amend, circumvent and litigate TABOR; the foundation counts at least 80 cases between 1993 and 2017.

Pfiffner said a perfect example of this is the 2015 lawsuit it filed, TABOR Foundation, et al. v. Colorado Department of Health Care Policy & Financing, et al. regarding Colorado’s “hospital provider fee,” which it argues is an unconstitutional tax.

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Jul 31

Colorado expected to see $1 billion in new revenue in 2019; will taxpayers get a rebate?

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FILE - Colorado State Capitol
The Colorado State Capitol in Denver, Colorado.

Shutterstock photo

The Economic and Revenue Forecast presented to the Joint Budget Committee in June showed that the state’s general fund is projected to close out fiscal 2018 with a $1.2 billion surplus.

Since Colorado’s Taxpayer’s Bill of Rights (TABOR) places a cap on annual state tax revenue the state can keep, spend or save, many wonder whether Coloradans will actually see tax refunds in 2020.

 

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Jul 25

Coming up next: three local tax questions

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Coming up next: three local tax questions

  • JIM SPEHAR
“Death, taxes and childbirth! There’s never a convenient time for any of them.”

— Margaret Mitchell

We’ll soon see how far we’ve come as a community…whether the public safety tax and school bond and override successes last fall marked a welcome change in attitudes or were only a temporary aberration.

County residents will likely face in November a ballot question asking if the Mesa County can exclude state grants from revenue limits in the Taxpayer’s Bill of Rights (TABOR). In Grand Junction, voters will likely get two bites at the apple — one a proposal in November to double the city’s lodging tax and another next April to increase the sales tax to fund construction and operation of a community recreation center.

Two of the three, the ones soonest on our ballots, fall easily into the category of “no-brainers” while the third, the community center proposal, will likely generate heated back and forth between now and the city election in April.

It makes no sense, all three county commissioners argued in a public session last week, for Mesa County to not be able to accept state and federal grants for infrastructure and other purposes without busting the TABOR revenue cap but to instead have to turn down such things as a $5 million award for Mind Springs. Ironically, some grants not applied for come from federal severance taxes which flow back through the state and become subject to TABOR when passed on to local governments.

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Jul 25

This is why repair projects in Colorado are stuck waiting for funding

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This is why repair projects in Colorado are stuck waiting for funding

Despite 90-degree temperatures, you could feel the chill in the air as state lawmakers on both sides of the aisle got together to figure out funding for state improvement projects. The number one question from Democrats: Why wasn’t State Treasurer Walker Stapleton there?
Author: Marshall Zelinger
Published: 10:53 AM MDT July 24, 2018

The state Capitol has no air conditioning, yet there was a chilly feel during a Monday morning committee hearing on the funding of state improvement projects.

The Capital Development Committee met with the Deputy Treasurer to find out why funding isn’t in place yet for projects identified as a result of a bill signed into law in 2017.

Democrats on the committee requested that treasurer Walker Stapleton show up to answer questions.

“Why is the state treasurer not here? What does he have going on that is more important than this transaction?” asked State Rep. Chris Hansen, D-Denver.

“Since I’m the one with the details and I’m the one that’s been working on this, I’m the one that volunteered to be here today,” said Deputy Treasurer Ryan Parsell.

“I, for one, am not disappointed that the treasurer is not here. I’m glad that you are here,” said State Sen. John Cooke, R-Greeley.

Stapleton is running for governor against Congressman Jared Polis.

“What I’m hoping we’re not doing here is making this a political football for no apparent reason,” said Rep. Jon Becker, R-Fort Morgan.

To understand the concern with the treasurer’s office and decisions being made, you need to understand the law that created the funding mechanism for the state improvement projects.

In 2017, lawmakers passed SB 267, which removed the Hospital Provider Fee from the state’s general fund and created its own enterprise that does not count against the state’s TABOR limit. The Taxpayer Bill of Rights, which is in the state’s constitution, limits how much government can grow each year and requires the state to refund taxpayer money if it collects too much. Taking the Hospital Provider Fee out of the equation allowed the state to keep more money before hitting the limit.

SB 267 authorized the state to issue certificates of participation (COPs) to fund about $2 billion dollars in road construction projects and pay for other state building improvement projects.

COPs essentially mean the state is selling buildings it owns to get immediate funding, and then they buy the buildings back through a lease-purchase agreement.

A lawsuit challenging the legality of the Hospital Provider Fee, thus the COPs, is going to be heard in Denver District Court in October.

The COPs need to be issued between July 1 and June 30, 2019.

During a political stop last week, Stapleton was asked about not having the COPs issued as of July 1. He was quoted in Westword as saying:

“My paramount concern as the treasurer of Colorado is to make sure we’re not issuing bonds when there is economic uncertainty. Anybody in the capital markets can tell you that from an investment standpoint, when you’re issuing bonds and those bonds are being impacted by pending litigation, which we had nothing to do with, it makes investors skittish. I’m not going to issue bonds when it could negatively impact the credit of Colorado based on hair around the deal resulting from the lawsuit. It would be fiscally irresponsible for me to do so.”

Last week, a spokeswoman for the treasurer’s office told Next with Kyle Clark that the delay was because the office received bad advice from bond counsel, and finally replaced the counsel with a firm that was willing to proceed.

“Bond counsel continued to express uneasiness and discomfort with the pending litigation but asks for more time to research the issue. After that point, discussions largely occurred directly with the Attorney General’s Office and Bond Counsel. During that time, the Attorney General’s office and Treasury began to question whether Bond Counsel’s initial response was correct,” Parsell testified on Monday morning. “It became increasingly clear that bond counsel was not approaching this case with an open mind. Bond counsel was basing their viewpoint off of a 30-year-old case at the expense of precedent that had been set in the interim years. The Attorney General’s Office asked bond counsel to review newer precedent. Bond counsel refused. The Attorney General’s Office also offered Bond Counsel the opportunity to review the state’s defense of the lawsuit. Bond Counsel refused. The Attorney General’s office offered to discuss alternative legal tactics that may give bond counsel comfort. Bond counsel refused.”

List of projects to be funded with 2018-19 COPs:

The treasurer’s office plans to start issuing the COPs on Sept. 26.

‘The legislation gives the treasurer’s office the authority to issue the COPs between July 1 of 2018 and June 30 of 2019. We will meet that deadline with ample time to spare,” said Parsell.

Hansen responded that no one was suggesting the treasurer’s office was breaking the law, just that it was delaying projects 90 days that could cost the state more money.

One of the projects also expecting funding from the issuance of COPs is the widening of Interstate 25 from Castle Rock to Monument.

“Based on the communication that we’ve received from CDOT, the timeline that we have will not interrupt any construction project timing,” said Parsell.

CDOT plans to start the project in November.

What was not answered at the committee hearing was if any of the projects will start later than expected because of the funding delay, or if any of the projects will cost more because of the funding delay.

“It is difficult to ascertain whether any projects were delayed from starting since every funding recipient is aware that funding is contingent on the timing of the COP issuance. The advice I offered was to expect funding in August,” said Kori Donaldson, Legislative Council staffer for the Capital Development Committee. “We don’t have any data about costs associated with the projects starting in October rather than August.”

http://www.9news.com/article/news/local/next/this-is-why-repair-projects-in-colorado-are-stuck-waiting-for-funding/73-577000240

Jul 25

Senate District 22 candidate Tony Sanchez says there is no doubt a vote for him is a vote for the Taxpayer’s Bill of Rights (TABOR).

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Senate District 22 Republican out-raising Democrat in year of race for control

July 24, 2018 By Sherrie Peif

LAKEWOOD — Republican Senate District 22 candidate Tony Sanchez says there is no doubt a vote for him is a vote for the Taxpayer’s Bill of Rights (TABOR).

Sanchez hopes to replace Andy Kerr, who is term limited, representing Ken Caryl, Lakewood and Edgewater. He firmly believes TABOR is the main reason Colorado weathered the recession the way it did.

“I was on the board of the Colorado Union of Taxpayers, so I am somebody who unequivocally supports TABOR,” said Sanchez, whose challenger Democrat Brittany Pettersen while she was representing House District 28 voted to raise taxes and increase dept under Senate Bill 17-267, which some labeled as the biggest betrayal of TABOR since the Constitutional Amendment was passed in 1992. “Some say it’s an impediment, but it’s the only thing that kept the prosperity of Colorado in place.”

Sanchez said the real problem with the state budget is accountability and the confidence voters have in their legislators.

“What kind of confidence do voters have to raise any taxes if they don’t know where their money is going?” he said. “We have to defend TABOR. It’s a good thing for our citizens to have that voice, to be the final judgment when it comes to that as opposed to their legislator.” Continue reading →

Jul 17

Bed tax law suit gets new life

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Bed tax law suit gets new life

DENVER — Ongoing litigation against the Colorado Department of Health Care Policy & Financing, among others, over a 2009 program that raised taxes via a “hospital provider fee,” has new energy after Cause of Action Institute announced earlier this month it would take on the representation of the plaintiffs in the case.

Cause of Action is a Washington D.C.-based 501(c)(3) organization that according to its website advocates for “economic freedom and individual opportunity advanced by honest, accountable, and limited government.”

Plaintiffs, who were originally represented by Mountain States Legal Foundation, had 60 days to find new counsel after Mountain States withdrew for reasons not related to the case or the plaintiffs.

Lee Steven and James Valvo are the lead attorneys. The Colorado-licensed attorney is Michael Francisco, who while working in the Colorado Attorney General’s office helped to write the defense of Colorado’s Taxpayer’s Bill of Rights (TABOR) in Kerr vs. Hickenlooper, which claimed TABOR was a violation of the U.S. Constitution’s guarantee of a republican form of government. That argument lost.

This case was initially filed in 2015. It asserts the state’s Hospital Provider Fee is actually a tax enacted in violation of the TABOR. Continue reading →

Jul 16

Protecting Taxpayers with Supermajority Requirements

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Protecting Taxpayers with Supermajority Requirements

Cartoon workingman reluctantly paying taxes. (Photo: AdobeStock/PPD/Adiano)

CARTOON WORKINGMAN RELUCTANTLY PAYING TAXES. (PHOTO: ADOBESTOCK/PPD/ADIANO)

The best budget rule in the United States is Colorado’s Taxpayer Bill of Rights. Known as TABOR, this provision in the state’s constitution says revenues can’t grow faster than population plus inflation. Any revenue greater than that amount must be returned to taxpayers.

Combined with the state’s requirement for a balanced budget, this means Colorado has a de facto spending cap (similar to what exists in Switzerland and Hong Kong).

The second-best budget rule is probably a requirement that tax increases can’t be imposed without a supermajority vote by the legislature.

The underlying theory is very simple. It won’t be easy for politicians to increase the burden of government spending if they can’t also raise taxes. Particularly since states generally have some form of rule requiring a balanced budget.

Basically a version of “Starve the Beast.”

Anyhow, according to the National Council of State Legislatures, 14 states have some type of supermajority requirements.

And more states are considering this reform.

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Jul 16

High Court decision could send internet sales taxes to Durango

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High Court decision could send internet sales taxes to Durango

New revenue would help, but not solve, city’s long-term budget deficit
By Mary Shinn City & health reporter

Sunday, July 15, 2018 7:30 PM
A U.S. Supreme Court decision on internet sales could bring the city of Durango additional sales tax revenue. But unanswered questions surround the new revenue.

JERRY McBRIDE/Durango Herald file

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Jul 16

Mesa County to host TABOR discussion

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Residents are invited to learn more about the Mesa County Commission’s proposed ballot question to exempt state grants from the revenue and spending limitations of the Taxpayer’s Bill of Rights, or TABOR, at a town hall meeting on Tuesday, from 5:30 p.m. to 6:30 p.m. at the Old County Courthouse, 544 Rood Ave., in the public hearing room on the second floor.

The commissioners are considering a ballot question to exempt state grants from the county’s TABOR cap, without increasing any taxes. Most of the state grants the county receives are for infrastructure projects, “so this actually grows the private sector, not county government, which should be limited,” Mesa County Commissioner Rose Pugliese said.

Pugliese also said, “This would include pass-through grants for our nonprofits like Mind Springs. If we continue to turn away grants, our taxpayer money will continue to go to the state and be used in other communities for their projects.”

http://www.gjsentinel.com/news/western_colorado/county-to-host-tabor-discussion/article_02f2c588-88b3-11e8-bf60-10604b9ffe60.html

Jul 12

Motion to return Grand Lake municipal fee funds narrowly fails

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Motion to return Grand Lake municipal fee funds narrowly fails

Lance Maggart / Sky-Hi News

Grand Lake resident Tom Weydert, who is also Grand County Assessor, addresses the Grand Lake Trustees Monday night to express his support for rescinding the municipal fee approved by the town board late last year.

Grand Lake’s contentious municipal fee, approved last fall by the town’s trustees, was back on the agenda this week as town council members discussed potentially returning the fees already levied by the town.

Monday evening the town board voted four-to-three against a motion by Trustee Tom Goodfellow to fully rescind Grand Lake’s municipal fee and to return funds already received by the town back to the citizens who paid those fees. The vote saw trustee Goodfellow voting in favor of the action along with trustees Cindy Southway and Tom Bruton. Voting against the measure were trustees Phyllis Price, Andy Murphy, Steve Kudron and Mayor Jim Peterson.

The vote came at the end of a public meeting that included public comments and significant discussion of the fee and its history over the past several months. Grand Lake area residents Greg Barnes, Tom Weydert and Mike Tompkins all addressed the board expressing their vehement opposition to the fee.

“I think the money should be returned and fairly quickly,” Barnes said. “I don’t think it is fair to begin with.”

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