Category Archives: Taxes

Mar 13

Letter to the Editor: Facts about TABOR

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Facts about TABOR

Editor:

The Taxpayer’s Bill of Rights (TABOR) was approved by voters in 1992. Colorado voters approved a measure which amended Article X of the Colorado Constitution that restricts revenues for all levels of government (state, local and schools).

Under TABOR, state and local governments cannot raise tax rates without voter approval and cannot spend revenues collected under existing tax rates without voter approval. Revenue in excess of the TABOR limit, must be refunded to taxpayers. Under TABOR, the state has returned more than $2 billion to taxpayers.

For 32 years Colorado citizens have received a TABOR check with no conditional requirements. Last year, taxpayers received an $800 check for one qualifying taxpayer or $1,600 for two qualifying taxpayers filing jointly.

Today’s Colorado Department of Revenue’s web page states:

“Attention, please remember that you must claim the state sales tax refund (TABOR refund) when filing your state income tax return or Property Tax/Rent/Heat Rebate (PTC) Application. If you claimed a 2024 refund, the TABOR refund will be combined and issued with your tax refund. Unlike the 2022 Colorado cashback, no separate check will be issued.”

Now you, the taxpayer, must opt in your “Modified Adjusted Gross Income” from your Federal Tax Report to determine your TABOR refund. If you do not fill in lines 31 to 34 on your state 2024 Colorado individual income tax return form DR 0104, you will not receive a refund. No $800 or $1,600 checks this year. Continue reading →

Mar 08

Citizen watchdogs needed for Arapahoe County 1A tax windfall

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In the November, 2024 general election, Arapahoe County voters approved ballot issue 1A, removing spending limits imposed by the Taxpayer’s Bill of Rights (TABOR).  Moving forward, this means county government gets to keep and spend over-collected tax revenue that would have otherwise been refunded to taxpayers.

In other words, voters gave county commissioners what amounts to a tax hike, and now it’s time to keep them accountable for it.

As part of the ballot language, a provision was included that mandates all spending of this tax revenue windfall be transparently reported.  Specifically, it requires that the new spending be included in the county’s annual independent audit, published on the county website and that it be monitored and reviewed by a “resident advisory committee.”  That’s where you come in.

The county pushed ballot measure 1A as a way to fund existing services that they claimed were potentially going to be cut due to budget shortfalls. And while I understand the need for transparency of how this massive influx of money should be spent, we must also make sure the advisory committee is up to the task and doesn’t just become a rubber stamp for political agendas and new pet projects.

According to the county website, the job of the committee is to ensure that 1A funds “are being used in alignment with their intended purpose, advocating for proper stewardship of these resources.”

If you think you’re up to that task, you should consider applying.  It’s a great opportunity to get involved in your community, while also holding your elected officials accountable to the taxpayers.

There are ten committee slots to be filled, with at least one from each county commission district.  Members serve three-year terms, with a two-term maximum.  And if you’ve ever thought about running for public office, this is a great way to get some local government experience under your belt first.

Arapahoe County voters gave up their TABOR refunds in perpetuity, now it’s time to ensure county commissioner honor that sacrifice and hold up their end of the bargain.

 

Kathleen Chandler is an Arapahoe County resident and directs the Citizen Involvement Project at the Independence Institute, a free market think tank in Denver. She can be reached by email at Kathleen@i2i.org.

Citizen watchdogs needed for Arapahoe County 1A tax windfall – Complete Colorado

Mar 03

What is TABOR: The Taxpayer’s Bill of Rights? – Advance Colorado Rundown

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Advance Colorado Executive Vice President Kristi Burton Brown gives a brief history and explanation of Colorado’s unique taxpayer protection: the Taxpayer’s Bill of Rights. This revenue cap limits the state government’s ability to spend taxpayer dollars and requires refunds to be sent to Coloradans when the government collects beyond the limit.

What is TABOR: The Taxpayer’s Bill of Rights? – Advance Colorado Rundown – Advance Colorado Rundown – Omny.fm

Feb 16

A New Property Tax Revolt

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February 15, 2025

A New Property Tax Revolt

By Barry W. Poulson

It has been half a century since Howard Jarvis launched the first property tax revolt with Prop 13 in California. Since then, forty-six states and the District of Columbia have enacted some form of property tax limitation. Some of these measures have proven to be effective, but others are poorly designed and ineffective.

It is not surprising that a new property tax revolt has been launched. Many property owners had sticker shock this year when they got their property tax bills. I am one of the unfortunate sods in Colorado who have seen the property tax on their homes more than double in recent years. Many less fortunate souls on fixed incomes have literally been taxed out of their homes.

The explanation for the discontinuous increase in property taxes today is the same as that during the first property tax revolt in the 1970s. In those years double-digit inflation was accompanied by discontinuous increases in property taxes. Inflation rates recently peaked at 9 percent and have remained well above the target inflation rates set by the Federal Reserve. Increased housing costs are one of the major contributors to this higher rate of inflation. Higher home prices today also reflect the expensive and time-consuming regulations imposed by state and local governments on home construction.

Even in a state such as Colorado, with an effective tax and expenditure limit, homeowners have not been protected from the ravages of inflation. Colorado has experienced one of the highest rates of increase in home prices in the nation. Colorado’s Taxpayer Bill of Rights (TABOR) limits the amount of property tax revenue that local governments can keep and spend. TABOR also requires voter approval for any new tax or increase in tax rates; but it does not cap the amount of property taxes that individual homeowners must pay. TABOR has not shielded homeowners from increased property taxes due to rising property values and other state and local measures designed to increase collections. The Colorado Legislature will hold a special session this year to address the problem of higher property tax burdens.

Click (HERE) to continue reading this story.

 

Jan 28

Coloradans must opt in for TABOR refunds when filing taxes

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DENVER (KDVR) — Monday marked the first day the IRS could start accepting and processing your tax return.

Colorado filers need to keep an eye out for one key step to make sure they get all the money they are eligible for back in their wallets.

Coloradans are set to get TABOR refunds after they file their taxes this year, but the state is reminding residents that they have to opt in.

The Colorado Department of Revenue is hoping to help taxpayers make sure they get as much money back as they can when they file their taxes this year.

“Unfortunately, if you didn’t check that box for your taxes you filed in 2024 for tax year 2023, you did miss out on your tabor refund,” said Elisabeth Kosar, communications director for the Colorado Department of Revenue. “TABOR is something you need to opt into so please, please check that box or again have whoever is preparing your taxes check that box.” Continue reading →

Jan 20

Herman: Colorado’s over-spending problem explained

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Herman: Colorado’s over-spending problem explained

January 19, 2025 By Nash Herman

Colorado legislators are discovering first-hand the impossibility of having their cake and eating it too.

The Joint Budget Committee continues to meet with dozens of departments to reconcile an approximately $750 million budget shortfall in 2025, with some absurdly claiming that deficit is purely a result of the Taxpayer’s Bill of Rights (TABOR) at work.

Granted, it does sounds bizarre that the state must make budget cuts in a year that it is still expected to collect a surplus of revenue beyond what is allowed by TABOR. But by looking at the facts, anyone can come to see how the so-called budget “crisis” is actually a self-inflicted wound from the legislature’s relentless over-spending.

Having their cake 

Due to the Covid-19 pandemic, Colorado received a windfall of federal funds to prop up the state economy and boost recovery.  To fund that massive stimulus, the federal government printed money, causing an increased supply of dollars chasing the same number of goods.  This in turn lead to the dollar being worth less, also known as inflation. Continue reading →