Category Archives: TABOR Refunds

Nov 10

More Evidence for the TABOR Spending Cap

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November 9, 2024 by Dan Mitchell

Last April, I shared some data showing that Colorado’s Taxpayer Bill of Rights had forced politicians in the Centennial State to return $8.2 billion of tax revenue.

The state’s politicians did not want to return the money. But TABOR is a spending cap and the rules require that any extra tax revenue (above and beyond what would finance allowed levels of spending) has to be returned to taxpayers.

This spending cap has been good news for the state’s economy, as illustrated by the chart.

But I now need to update the benefits of TABOR.

That’s because we have another year of data. And, as explained in this report from Center Square, taxpayers are getting another refund. This time, their savings will be more than $1 billion. Continue reading →

Nov 01

Article X, Section 20. The Taxpayer’s Bill of Rights

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If you see this on your ballot, you are voting for a TAX INCREASE!

“Ballot titles for tax or bonded debt increases shall begin, “SHALL (DISTRICT) TAXES BE INCREASED (first, or if phased in, final, full fiscal year dollar increase) ANNUALLY…?” or “SHALL (DISTRICT) DEBT BE INCREASED (principal amount), WITH A REPAYMENT COST OF (maximum total district cost), …?”

https://www.sos.state.co.us/pubs/info_center/laws/COConstitution/ArticleXSection20.html 

Poudre Schools Ballot Question Violates TABOR & Colorado Law

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Colorado’s TABOR Committee & TABOR Foundation @colorado_tabor replied with:
“The Poudre School District R-1 ballot title violates TABOR Section 20 (3) (c). The answer to Hi Kid’s question is “No, the District’s ballot title is not okay.”


Hi Kid @HiKidHey asked this on X (Twitter):  “So what does that mean for voters? Who is ultimately responsible for the TABOR violation? The local county clerk or the district’s designated election official? Genuinely curious.”

Colorado’s TABOR Committee & TABOR Foundation @colorado_tabor replied with:
“We recommend retaining an attorney to quickly file for a temporary restraining order and an injunction in Larimer District Court.  If any increased taxes are collected, then they must be repaid to the taxpayers with interest. The County Treasurer makes repayment to taxpayers including the added interest required by the Colorado Constitution.”
Oct 15

Colorado owes taxpayers $1.7 billion in TABOR refunds

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ColoradoStateCapitolBuilding01.jpg
FILE PHOTO: The Colorado Capitol’s gold dome gleams in the sun in Denver.The Denver Gazette

The Colorado state government owes taxpayers a total of $1.7 billion in refunds mandated under the Taxpayer’s Bill of Rights.

The state collected roughly $1.4 billion more in revenue during the 2024 Fiscal Year than allowed under TABOR, according to a state audit. The state already has roughly $290 million in outstanding TABOR refund liability at the beginning of the fiscal year, bringing the total refund amount to about $1.66 billion.

Passed by voters in 1992, TABOR limits the annual growth in revenue to the inflation rate, plus population change. Any amount raised above the limit must be returned to taxpayers.

Click (HERE) to continue reading this story.

Vote NO On 1A

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Property tax caps have been restored in Colorado. That’s thanks to the pressure from the Citizens’ Tax Cap, compelling state politicians to address the property tax crisis in an August 2024 Legislative Special Session because local governments didn’t lower the property tax mill levies and alleviate the problem.

The property tax crisis was created because voters in local elections in the past has unwittingly voted to forfeit caps in our constitutional Taxpayer’s Bill of Rights (TABOR) and statutory 5.5% Annual Property Tax Cap, recognizing later it was a big mistake. State politicians had mixed feelings about the 2024 Special Session, fiscally conservative legislators thought that HB 24B-1001 didn’t provide enough assurance that residents would not be taxed out of homes. Some “progressive” elected officials thought it was horrible to provide property tax relief in response to a citizen initiative, calling it a “fecal sandwich”.

Jefferson County, like Arapahoe and Weld, has maintained tax caps for over 30 years due to vigilant citizens rejecting misleading ballot issues, such as 1A in 2019 and 2022. However, this is at risk again with a new version of 1A on the 2024 ballot. This version, like before, uses deceptive language and aims to permanently remove these caps.

The key is to share this information quickly and widely. Remind your friends and networks to vote NO on 1A to preserve the caps. Ballots will arrive around October 14-15.

The recent legislative special session caused by the Citizen’s Tax Cap implemented two key changes:

  1. Local taxing agencies (e.g. county or special district) now face a 5.25% cap on property tax increases (6% for schools).
  2. Any ballot measure after November 5, 2024, to remove these limits must clearly state, “Shall the _______ (name of government) waive the 5.25% property tax limit for…” and specify the duration.

Jefferson County’s 1A, being set before this date, skirts these new transparency rules.

Governments often use tax dollars for public persuasion campaigns and exploit legal loopholes during election seasons to get away with it. I recently discussed this in an interview with Free State Colorado, which you can watch here.

The past proponents of Jeffco 1A tax hikes even resorted to tainting our local TABOR notice booklet in 2019. The shenanigans didn’t stop there.

Our current county commissioners Andy Kerr, Lesley Dahlkemper, and Tracy Kraft-Tharp, have stepped up the attack on taxpayers’ wallets using a $340,000 taxpayer-funded political strategist, and continue to push their intentionally misleading ballot language to eliminate the caps.

Voters must reject this behavior. Vote NO on Jefferson County 1A to keep tax caps in place.

– Property owners: Vote no to avoid excessively higher property taxes year after year.

– Renters: Rising property taxes will be passed on as rent increases, making housing less affordable.

– Consumers: Higher business property taxes will raise prices for goods and services.

 

Vote NO on 1A to protect yourself from excessively increasing costs. If you can’t afford more at the grocery store, gas pump, insurance bill, or rent – you sure can’t afford removing property tax caps forever. Even if you can afford excessive taxes, can your neighbor on a fixed income handle it or your grandkids?

If you’d like to find out more information, please join these informative meetings hosted by taxpayer advocacy non-profits:

  • Arvada Library, 7525 W. 57th Avenue, Arvada
    October 7, 5:30 – 7:30 pm
  • Columbine Library, 7706 W. Bowles Avenue, Littleton
    October 12, 10 am – 12 pm
Oct 04

TABOR Wins: Colorado Supreme Court Declines to Review Taxpayer Victory Against Water Conservancy District

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TABOR Wins: Colorado Supreme Court Declines to Review Taxpayer Victory Against Water Conservancy District

October 01, 2024

Taxpayers in Colorado’s Lower South Platte Water Conservancy will receive refunds from an illegally doubled property tax after the Colorado Supreme Court denied review of a previous decision in favor of James Aranci and taxpayers Monday. 

The District doubled its property tax in 2019 without holding a public approval vote as required by Colorado’s Constitution.

The decision is a win for Colorado taxpayers statewide and will strengthen Colorado’s Taxpayer Bill of Rights (TABOR). The National Taxpayers Union Foundation (NTUF)’s Taxpayer Defense Center, in conjunction with Advance Colorado, represented Aranci and other taxpayers in the case.

“TABOR means what it says, and so a local government cannot double the property tax rate without a vote of the people,” NTUF Senior Attorney Tyler Martinez said. “We’re glad the Colorado Supreme Court declined to review this case further and left in place the unanimous decision by the Court of Appeals.”

NTUF’s Taxpayer Defense Center advocates for taxpayers’ rights across the country. The organization’s in-house team of attorneys challenge overzealous and unfair tax administration. Because of lawsuits brought by the Taxpayer Defense Center, individuals and businesses nationwide have benefitted from fair, equitable policy and victories worth tens of millions of dollars.

“We are grateful for the Taxpayer Defense Center taking up the case,” Chuck Miller, one of the plaintiffs in the case, said. “We wanted to stand up for all taxpayers in the district and protect our TABOR rights.”

For more information on the Taxpayer Defense Center’s victory for taxpayers in Colorado or to discuss the case with NTUF’s legal team, please contact NTUF Marketing Director Courtney Manley at courtney.manley@ntu.org.

https://www.ntu.org/foundation/detail/tabor-wins-colorado-supreme-court-declines-to-review-taxpayer-victory-against-water-conservancy-district

Sep 18

OPPOSITION STATEMENT TO 2024 RTD TAX MEASURE

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OPPOSITION STATEMENT TO 2024 RTD TAX MEASURE

Even the strongest supporter of mass transit must rethink this tax.  It’s not a good idea nor is it the right time.  Vote NO on the measure.

–      Ridership is way down.  It dropped to only 65.2 million “boardings” in 2023, when it had been 103.2 million boardings in 2019.  That’s a huge drop.  RTD wants this for ongoing operations, but that level of spending no longer matches the ridership.

  • Management has not kept riders safe. Many people avoid using buses and light rail due to the dirty needles, assaults, open drug use, filth and crime.
  • Management does not operate intelligently. How many times have long stretches of the rail system been shut down?  Poor maintenance has left some rail routes going no faster than 10 miles per hour, keeping commuters from getting to work on time.  Bus routes suffer reliability issues.

Lifting the TABOR budget limits would be a FOREVER tax.  No sunset date.  No revisiting it later.

Having no limit on budgets paid off construction debt of $779 million over the past 25 years.  The project was built and paid off.  The old tax scheme has ended.  This extension is a tax increase by keeping what otherwise would be returned to you.  If it were not a Taxpayer’s Bill of Rights requirement to vote on renewed taxes, it would not have to go to the ballot.  When politicians mislead you to get your vote, it should be a red flag.

There is no plan to use this renewed tax plan for new bonds, and the revenue would just get dumped into the general fund.  Vote down this tax extension and give RTD the opportunity to come back with specific ideas and costs, instead of a blank check for who-knows-what.

The state legislature has been seriously considering  removal of an elected Board of Directors.  We don’t even know who will be controlling the tax increase in a few years!

RTD charges you sales tax on a vast majority of goods, taking money out of your pocket when you buy toilet paper, school supplies, clothing, and groceries. It adds up, the average taxpayer gives up a few hundred dollars to RTD each year in sales tax. Have you gotten your money’s worth?

The system needs to be fixed first.  Taxpayers should demand some accountability.  RTD must first use current dollars to reverse ridership decline and move to a transit system that is not inefficient, inconvenient and even dangerous.  Giving RTD this money does not necessarily mean that light rail will go faster than 10 miles an hour or clean up the stations, buses and trains.  Just having a bigger budget does not guarantee reforms.  Don’t throw good money after bad.

Vote NO and keep your RTD TABOR refund.

 

Aug 31

Colorado’s fee-based enterprises skirt TABOR, increase revenue by 3,000%

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Colorado’s fee-based enterprises skirt TABOR, increase revenue by 3,000%

State-owned enterprises increase fees from 46% of total state spending in 1996 to 71% in 2023

In 1992 voters enacted the Taxpayer’s Bill of Rights to constrain the growth of government by requiring voter approval for tax increases. Since then, the state government has built a new structure to avoid that requirement.

The creation of TABOR-exempt state-owned “enterprises” has allowed government to increase fees from 46% of total state spending in 1996 to 71% of state spending in 2023 without requiring approval from taxpayers, according to a new report released by the Common Sense Institute, a non-partisan research organization “dedicated to the protection and promotion of Colorado’s economy.”

“Fees are a rapidly growing and significant cost for Coloradans,” said Kelly Caufield, Executive Director of the Common Sense Institute. “At the end of the day, it doesn’t matter if we call it a tax or a fee, these costs are driving the cost of living in our state.”

Continue reading →

Aug 10

Study finds special interest tax deals eating up Coloradans’ TABOR refunds

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Study finds special interest tax deals eating up Coloradans’ TABOR refunds

August 9, 2024 By Savana Kascak

 

DENVER–Governor Jared Polis has consistently said he wants to lower the Colorado income tax, even claiming that legislation passed earlier this year would deliver on that promise.  But new research shows that billions of dollars in special interest tax breaks also passed this year in all likelihood means broad-based income tax relief is off the table for the foreseeable future.

Earlier this year, Governor Polis signed Senate Bill 24-228, temporarily lowering the state income tax rate, on a sliding scale, as a refund mechanism when surplus revenue under the Taxpayer’s Bill of Rights (TABOR) is more than $300 million in a given fiscal year, with the maximum rate reduction (from 4.40% to 4.25%) kicking in at a $1.5 billion surplus.

TABOR is a constitutional amendment that requires, among other things, state revenues collected in excess of of a formula of population growth plus inflation be refunded back to taxpayers, unless voters consent to forgo those refunds at the ballot box.  An income tax rate reduction is but one potential refund mechanism available to the state. Continue reading →