Category Archives: TABOR Refunds

Jul 20

Ballot campaign to suspend Colorado’s TABOR revenue caps ends

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Ed Sealover
ReporterDenver Business Journal

Concerned about ballot fatigue and suffering from a lack of fundraising, organizers of the Colorado Priorities campaign to pass a statewide de-Brucing ballot initiative blunting the impact of the state’s Taxpayer Bill of Rights ended their efforts for the 2016 election on Tuesday.

The proposal would have allowed the state government to keep any revenue it collected above the Taxpayer’s Bill of Rights limit over the next 10 years and put it to prescribed uses — at least 35 percent toward education, at least 35 percent toward transportation and anything else toward mental-health and senior services.

Dan Ritchie, one of the leaders of the Building a Better Colorado initiative, explains the effort to a crowd at a Nov. 16 meeting in Denver.Dan Ritchie, one of the leaders of the Building a Better Colorado initiative, explains… more

ED SEALOVER | DENVER BUSINESS JOURNAL

Doing so would have eliminated the possibility of TABOR refunds that otherwise would go to statewide taxpayers when revenues exceed the caps. Continue reading →

Jul 20

Backers Pull Ballot Measure That Would Have Put TABOR On Pause

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Backers Pull Ballot Measure That Would Have Put TABOR On Pause | CPR

Colorado Priorities, a group backing a ballot measure that would have eased a revenue cap on state government, announced Tuesday that it has suspended its campaign.

The measure would have temporarily suspended refunds to taxpayers, as the Taxpayer Bill of Rights — or TABOR — requires when revenue collection outpaces population growth and inflation. The group says that revenue is needed elsewhere, especially in the state’s school and transportation systems.

Colorado Priorities’ executives cited a crowded ballot in their decision to stop their campaign.

 

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Jul 19

Lesley Smith and Laurie Albright: Sign a petition to de-fang TABOR

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Yup, spend more.
That’s the blueprint for fixing everything.
According to them, more money will solve public education.
Obama’s $870 Billion dollar Stimulus failed because it was too little.
They wanted to spend more, more, more.
Then you looked at the results.
No improvement at all.
But we’re deeper in debt and they are none the wiser.
Thank God for TABOR!
http://www.dailycamera.com/letters/ci_30138392/lesley-smith-and-laurie-albright-sign-petition-de
The Colorado economy is booming now compared to during the recent recession, but because of a 26-year-old tax policy embedded in the Colorado Constitution (informally called the Taxpayer Bill of Rights, or “TABOR”), Colorado cannot invest all of its tax revenue to make up for cuts made during those harder economic times. Instead, the amendment says that all revenue collected above an out-of-date cap must be refunded to Colorado taxpayers. Each taxpayer received a refund of $13 to $41 this year, while our state continued to cut funds for basic infrastructure and services.

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Jun 20

Vote NO on Initiative 117

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FYI, Vote NO on Initiative 117. Spread the word.
 

Initiative #117

State Spending
Proposes amending the Colorado statutes to:
  • allow the state to keep and spend all revenue it collects through June 30, 2026;
  • raise the limit on the amount the state may keep and spend beginning July 1, 2026; and
  • require that any money the state keeps over its existing limit be spent on education, transportation projects, mental health services, and senior services, rather than refunding the money to taxpayers.
initiative 117
http://www.leg.state.co.us/LCS/Initiative%20Referendum/1516initrefr.nsf/b74b3fc5d676cdc987257ad8005bce6a/d87ae53dd844f43a87257fae00744f6f/$FILE/2015-2016%20117v1.pdf
May 24

Two Decades of Colorado’s Taxpayer’s Bill of Rights (TABOR)

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Executive Summary:
Over two decades have passed since Colorado voters adopted The Taxpayer’s Bill of Rights in 1992. TABOR allows government spending to grow each year at the rate of inflation-plus-population. Government can increase faster whenever voters consent. Likewise, tax rates can be increased whenever voters consent. This Issue Paper analyzes TABOR’s effect on state government spending and taxes by examining three decades: The 1983-92 pre-TABOR decade; the first decade of TABOR, 1993-2002; and the second decade, 2003-12. The final decade included the largest tax increase in Colorado history, enacted as Referendum C in 2005. Decade-2 was also marked by increasing efforts to evade TABOR by defining nearly 60% of the state budget as “exempt” from TABOR.

Conclusion:

Tax-and-Spending Limitation Results

The Taxpayer’s Bill of Rights Amendment has worked well to achieve its stated intention to “slow government growth.”  Although government has still continued to grow significantly faster than the rate of population-plus-inflation, the Taxpayer’s Bill of Rights did partially dampen excess government growth.  It did not cut or reduce reasonable government growth.

In terms of economic vitality, Colorado’s Decade-1 was best for Colorado.  Unlike in the pre-TABOR decade, or in TABOR Decade-2 with its record increase in taxes and spending, because of Referendum C, Colorado’s first TABOR decade saw the state economy far outperform the national economy.

http://www.i2i.org/wp-content/uploads/2015/01/IP-4-2016_b.pdf

 

Two Decades of Colorado’s Taxpayer’s Bill of Rights (TABOR)

May 22

GUEST COLUMN: Say “no” to a special session

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GUEST COLUMN: Say “no” to a special session

By: Michael Fields

May 21, 2016

AFP Michael Fields

Not even 48 hours after the legislative session ended, the governor floated the idea of convening a special session to address the hotly debated hospital provider fee.

This drumbeat has continued in the press, with pressure from countless special interest groups who didn’t get their way during the normal 120-day session. And this all comes after the Senate Finance Committee voted down a bill to move the $750 million hospital provider fee into a separate enterprise fund for the second year in a row.

Proponents of this move want you to believe that to fix roads and help schools, this budget gimmick is desperately needed. They have grabbed onto compelling buzzwords, cleverly invoked as rationale to adopt this plan. These messages are used to pull on people’s heart strings and convince them that enterprising the hospital provider fee would somehow fix our transportation and education needs. The fact is creating this enterprise would be an end-run around our Taxpayer’s Bill of Rights (TABOR) and would not fix our long-term funding problems.

To fully understand what has been going on with our state budget, let’s look at a few numbers:

– The state budget has gone from $19 billion to $27 billion in just seven years. Continue reading →

May 22

Partisan posturing trumps a better Colorado

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Perspective

Partisan posturing trumps a better Colorado

By Henry Dubroff and John Huggins
Posted:   05/21/2016 05:00:00 PM MDT

TABOR local leaders discuss changesLocal leaders discuss possible changes to the state’s constitutional initiative process in a small group during the Building a Better Colorado community summit at Northeastern Junior College on Dec. 7. (Sterling Journal-Advocate)

 

The tensions between populism and policymaking that are so evident in this year’s presidential primaries have trickled down to the state level.

In Colorado’s case, major policy reforms — including those that emerged from last fall’s Building a Better Colorado process of town hall meetings — have at times taken a back seat to partisan posturing.

But the Building a Better Colorado reforms remain a key part of the civic agenda, especially in these three areas:

  • Reform or replace the Taxpayer’s Bill of Rights (TABOR), or put in place a “TABOR relief valve” so that the state may keep a bigger share of tax revenue to fund roads, schools and other infrastructure necessary to serve Colorado’s growing population.
  • Reform our primary election process so that the results better reflect the will of voters and also put Colorado where it belongs on the national political map, as the most influential swing state in the Rocky Mountain region.
  • Establish somewhat higher though reachable hurdles for qualifying and approving constitutional amendments, taking into account Colorado’s diverse geographic and demographic interests.

The difficulty in getting TABOR relief approved in the just-finished legislative session underscores how tricky it is to enact reforms in an election year where the Donald Trump and Bernie Sanders insurgencies are having a big impact. In the state Senate, for example, majority Republicans were pushed by the Colorado chapter of the Koch brothers-funded Americans for Prosperity not to tweak the language of the state’s hospital provider fee and exempt it from TABOR limits. The penalty: facing a more conservative primary opponent at the next election.

To read the rest of this Denver Post story about TABOR, click (HERE):

May 13

GOP: Hospital fees under TABOR

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GOP: Hospital fees under TABOR

By Charles Ashby
Tuesday, May 10, 2016

DENVER — Even though it had near universal support outside of the Capitol, Republicans in a Senate committee Tuesday killed a measure that some had hoped would free up money for schools and transportation without raising taxes or fees.

The Senate Finance Committee, on a party-line 3-2 vote, killed a measure to turn the state’s hospital provider fee program, which funds health care programs for the poor, into a state-run government enterprise.

Doing so would free up about $750 million under the revenue caps mandated by the voter-approved Taxpayer’s Bill of Rights, something the 1992 constitutional amendment expressly allows.

But Republicans in the GOP-controlled committee said the idea flies in the face of TABOR’s spending limits, saying it would allow for unlimited growth when it comes to Medicaid spending.

“I do believe it is a major cash transfer, and I believe it was set up accordingly so that it would not come under the strong scrutiny of the voters of Colorado,” said Sen. Tim Neville, R-Littleton, who chairs the committee. “I believe that was not by accident.”

The issue has been a major theme of the 2016 legislative session, which ends today.

It actually started at the end of last year’s session when Gov. John Hickenlooper proposed taking the program out from under TABOR, in part because it’s a fee paid by hospitals and not taxpayers.

or 

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May 13

Call a special session

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Call a special session | GJSentinel.com

Call a special session

By The Daily Sentinel
Wednesday, May 11, 2016

One of the bigger disappointments of the current legislative session, which ends today, is that Senate Republicans dodged taking any action on the contentious hospital provider fee.

The House passed two bills, 1420 and 1450, which would have converted the fee to an enterprise, thereby freeing up space under the revenue cap set by the Taxpayer’s Bill of Rights. Getting the fee out from under TABOR would have allowed $750 million to be directed toward transportation and education and helped backfill some of the $362 million in severance taxes that lawmakers have used to cover spending gaps since 2006.

Senate leaders delayed introducing the bills until Tuesday, thus assuring they wouldn’t get the required number of readings needed to pass before the sessions ends.

Several Republicans broke ranks to support the House measures, so it would have been instructive to hear arguments in the Senate. In an election year, voters deserve to understand the rationale behind fiscal policy positions and who’s taking them.

Early on, some Republicans argued that converting the fee eliminated refunds to taxpayers. But budget negotiations removed that scenario from the equation. In a parallel universe, funding for roads and schools without a tax increase sounds like something the GOP would get behind.

“I don’t quite understand a lot of my fellow Republicans saying, ‘Oh, we have to preserve TABOR,’” John Suthers told The Colorado Independent last week. “The easiest way to preserve TABOR, and not increase taxes, is to remove the provider fee from the calculation. But obviously there’s a group in the Senate that feels differently.”

In 2009, Suthers, who was then Colorado’s Republican attorney general, urged lawmakers to make the new fee an enterprise. The current attorney general, Republican Cynthia Coffman, says converting it now is perfectly legal.

 

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May 13

PLF files brief in Colorado Taxpayer’s Bill of Rights case

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PLF files brief in Colorado Taxpayer’s Bill of Rights case

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The Colorado Department of State requires companies to pay a business and licensing charge for filing various statutorily mandated corporate documents. The Department considers this charge to be a fee. But most of the money raised from the charge is not used to defray the cost of providing the business and licensing services, the classic purpose of a fee. The lion’s share of the business and licensing charges go to the Department’s Cash Fund, and less than 15% of the Fund is used to defray the cost of operating the Business and Licensing Division. Because most of the money raised from the business and licensing charge is used to provide the Department of State’s general services, it has all of the hallmarks of a tax, and should be labeled as such.

Colorado courts examine three factors to determine whether a charge is a tax or fee: (1) the language of the enabling statute; (2) the primary purpose for which the money is raised; and (3) whether the primary purpose of the charge is to defray the cost of services for those who must pay it. The District Court of Denver concluded that while the first two factors support characterizing the business and licensing charge as a fee, the third factor did not because the primary purpose was not to defray the cost of providing business and licensing services. Unfortunately, the court did not explain how it would consider the factors in this balancing test, instead concluding that TABOR did not even apply to the business and licensing charge.

PLF’s brief raises two points. First, we argue that Colorado courts should apply a presumption that TABOR applies to all charges. Colorado voters made it clear that they wanted to limit government growth when they enacted TABOR. Colorado Courts would give effect to the Colorado voters intent by applying a presumption that TABOR applies. Second, we suggest that Colorado courts follow the footsteps of other state courts in conducting the balancing test that determines whether a charge is a tax or fee, by giving stronger consideration to the third factor—whether the charge is meant to defray the cost of providing a service to those who must pay it—and de-emphasizing the first factor which considers the label given to the charge. Indeed, if Colorado courts give too much weight to the government’s characterization, governments will have a perverse incentive to mislabel charges to avoid TABOR’s requirements. Under this test, the business and licensing charge is clearly a tax. Thus, the charge would illegal because it was not submitted to the voters.

PLF files brief in Colorado Taxpayer’s Bill of Rights case