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Jan
10
Category Archives: TABOR news story
Jan
09
With first Senate bill, Cadman takes aim at TABOR rebates
By John Frank
The Denver Post
The first batch of state Senate bills popped into the online queue Wednesday, hours after session ended. But one was missing at first: Senate Bill 1, reserved for President Bill Cadman.
Now it’s online, and it’s a big one. The measure would change how the state awards refunds under the state’s Taxpayer’s Bill of Rights — essentially shifting who gets the most money back when the state exceeds its TABOR revenue cap.
It’s a complicated topic, but the analysts at the Colorado Fiscal Institute broke it down. (Spoiler alert: The left-leaning policy organization actually likes the bill.)
To read the rest of this article, click the following link:
http://blogs.denverpost.com/thespot/2015/01/08/cadman-tabor-rebates/116112/
Jan
09
Lawmakers open 2015 session agreeing on education funding, but not on TABOR
Audio: CPR’s Megan Verlee reports on the Legislature’s start
Economic opportunity, education funding, business development: Whatever issues you care about, there’s a good chance the 70th Colorado General Assembly will try to do something about them in the coming months.
The lawmakers convened Wednesday with Democrats still in the majority in the House. But the Senate is now under Republican control, for the first time in a decade. Compromise will be key to getting bills passed.
Jan
08
First day of Colorado legislative session targets gun control, abortion laws
DENVER – After a year of bitter contention over stricter gun laws, Colorado Republicans proposed bills on Wednesday that seek to repeal controversial legislation that was passed by Democrats in 2013.
The laws, which bans the possession of large-capacity (more than 15 rounds) magazines and require background checks for all private gun sales, triggered at least one lawsuit against the state and played a part in recall elections that put two southern Colorado lawmakers out of office.
HB 15-1009 would repeal the law banning possession and sale of large-capacity magazines. HB 15-1050, brought forward by Colorado Springs Republican Rep. Janak Joshi of House District 16, aims to repeal the background checks for the transfer of guns from non-licensed carriers.
Wednesday’s opening day of the Colorado legislative session included more than the anticipated repeal of gun laws.
Jan
08
Lawmakers open 2015 session agreeing on education funding, but not on TABOR
Senators and their guests bow their heads during a prayer as the Colorado Legislature kicks off its 2015 session on Wednesday, Jan. 7, 2015.
(Photo: CPR/Megan Verlee)
Economic opportunity, education funding, business development: Whatever issues you care about, there’s a good chance the 70th Colorado General Assembly will try to do something about them in the coming months.
The lawmakers convened Wednesday with Democrats still in the majority in the House. But the Senate is now under Republican control, for the first time in a decade. Compromise will be key to getting bills passed.
The parties do seem to be on the same page in at least a few big areas, including boosting school funding and expanding workforce development programs.
However, Senate President Bill Cadman brought an agenda that also includes more polarizing ideas, like cutting regulations on business.
“Rolling back costly, useless regulations will make us more competitive. And if we are not sharpening our competitive edge in every place we can, we are losing it in every place we don’t,” said, while also warning of coming fights over what the state should do with its growing state tax revenue.
“We are about to face one of the best problems we have had in this legislature in a long time. It’s called prosperity,” Cadman said.
As soon as this year, Colorado may start sending money back to residents, as required by the Taxpayers Bill of Rights. Senate Republicans have said those refunds must go out. But Some Democrats want to ask voters to instead put the money into full-day kindergarten.
In the House, Speaker Dickey Lee Hullinghorst warned that too few Coloradans are benefiting from the growing economy.
Dec
31
Governor Hickenlooper unveils next year’s Colorado budget & taxpayer refunds
Governor Hickenlooper unveils next year’s Colorado budget & taxpayer refunds
by Lisa Cyriacks
For the first time in many years, Colorado government finds itself in a position of having to refund tax revenue to voters. The refunds are required when state revenue exceeds the combined rate of inflation and population growth.
Taxpayer rebates totaling $167.2 million are mandated by Colorado Taxpayer’s Bill of Rights (TABOR), assuming current law and the accuracy of the September forecast by the Office of State Planning and Budget.
A $30.5 million rebate for new marijuana taxes is coming. Total state marijuana revenue was different than what was projected in the election blue book. (In November 2013, Colorado voters approved Proposition AA, which allowed a 10% retail sales tax and a 15% excise tax.) Because the estimated revenue subject to TABOR was underestimated, under TABOR the state must refund the money being collected or ask voters again to keep it for additional state spending.
According to Governor Hickenlooper, it will be important to engage the legislature when the session begins on the issue of marijuana sales tax revenue rebates. At the time he presented the proposed budget he advised that it would be unwise for the state to plan to spend any of those funds in advance of that discussion. Continue reading
Dec
25
EDITORIAL: Colorado tax ‘refunds’ will cost taxpayers dearly
The insult to injury of the TABOR Amendment is back: Colorado must refund hundreds of millions of dollars in taxes to state residents, despite the widespread public needs
As hopeless as it might seem, Colorado must revisit the argument over its ludicrous state tax “refunds” that hurt the state and all of us much more than any individual actually benefits.
If you’re new to these parts, Colorado suffers under a unwieldy and complicated set of restrictive budget laws dubbed the Taxpayer’s Bill of Rights, or TABOR.
The measure was a product of Colorado’s notorious anti-tax crusader Douglas Bruce and misguided state voters who approved the state constitutional amendment in 1992. As it was sold to voters, the measure capped state taxes by requiring that tax increases be approved by voters. But the convoluted and labyrinthine measure does so much more. It not only caps taxes, but it caps spending. Part of the amendment sets government services at a baseline, so that when budgets decrease in lean tax years, a new, lower baseline is set, creating the so-called, dreaded ratchet-down effect.
Dec
25
TABOR rears its ugly head
City Sage
Maybe not, because it’s TABOR time. When Colorado tax revenues increase too rapidly, the Taxpayer’s Bill of Rights and its arcane provisions authored by Douglas Bruce kick in, forcing the state to refund “surplus” tax revenues or ask voters for permission to retain them.
The state constitutional amendment may have seemed simple, transparent and commonsensical to the voters who approved it in 1992, but it isn’t. Sold as a measure that took away the power to raise taxes from spendthrift elected officials, the measure was far more complex.
Bruce wrote every word of the lengthy amendment, explicitly designed to shrink, hobble and defund Colorado governments at every level.
TABOR limits government revenue increases to an annual figure determined by population growth plus inflation. That may sound reasonable, but Bruce’s simplistic formula doesn’t work. It has forced the state to make continual service cuts and defer infrastructure maintenance and construction, because the world Bruce envisioned bears little resemblance to the world we live in.
In the real world, tax revenues may vary sharply during any multi-year period. If revenues are flat for years before rebounding sharply, too bad! The revenue cap starts from zero every fiscal year. The 2005 passage of Referendum C mitigated TABOR’s effects for a few years, and the recession made it irrelevant for a few more. But now it’s back with a vengeance.
Dec
24
Economists: Colorado tax refunds could come year early
Colorado Capitol Dome (Denver Post file photo)
Colorado lawmakers may have to refund money to taxpayers sooner than they initially expected.
Refunds are a sign of Colorado’s booming economy. But they also mean lawmakers will be restricted in how much money they’ll be able to keep and spend under Colorado’s Taxpayer’s Bill of Rights, also known as TABOR. It requires refunds when revenue exceeds the combined rate of inflation and population growth.
State economists giving lawmakers a quarterly revenue forecast Monday gave conflicting estimates about whether refunds are required in the 2015 tax year. Legislative economists say no but warn that the possibility exists.
Gov. John Hickenlooper’s economists predict, however, that the state needs to refund $196.8 million next year because of revenue increases in the current budget year. Lawmakers weren’t expecting refunds until the 2016 tax year, and Hickenlooper’s budget request sets aside nearly $137 million for those.
But the latest predictions by the governor’s economists have increasing revenue collections in cash funds and severance taxes, hence their predictions for sooner-than-expected refunds. Henry Sobanet, Hickenlooper’s budget director, said the state has a revenue cushion to cover most of the $196.8 million that needs to be refunded. Still, about $73 million of that was already budgeted, so the governor’s office will present lawmakers with an adjusted spending plan by Jan. 2 to account for that amount. Continue reading
Dec
22
Colorado budget forecast shows continued growth but TABOR worries ahead
Colorado’s economy keeps getting better, and it continues to be reflected in the amount of money the state takes in from taxes.
That’s the conclusion from the latest estimates from state officials that show overall tax collections continue to improve in the state, coinciding with the continuing improvement in the state’s economy.
Revenue forecasts released Monday from the Office of State Planning and Budgeting (OSPB) and the nonpartisan Legislative Council both showed increases in forecasted revenues. The forecasts are used to set budget priorities for the state government for the remainder of the current fiscal year, which ends on July 1.
The more conservative forecast, from OSPB, suggests that general-fund revenues in the 2015-2016 fiscal year will be $53.6 million more than previously forecast just three months ago, when forecasters agreed that about $1 billion more in revenue would be available to lawmakers for spending on state programs in the coming fiscal year.
Forecasters continue to predict, however, that lawmakers will have to set aside as much as $120 million of the increased revenue to pay refunds to taxpayers mandated by the Taxpayer’s Bill of Rights, which limits the amount of increased revenues the state can take in and how much lawmakers can spend each year. Continue reading