TABOR Foundation v. Regional Transportation District

The Regional Transportation District and the Scientific and Cultural Facilities District were funded by a broad sales tax with a few exemptions. Over time, Colorado lawmakers added and removed exemptions. As the exemptions for the State and the Districts gradually diverged, tax collection became increasingly complicated for both vendors and the revenue department. To make it easier for everyone, the General Assembly passed House Bill 13-1272, adding and removing exemptions on the Districts’ taxes to realign them with the State’s, which yielded a projected net increase in the Districts’ annual tax revenue. When the Districts began collecting the altered sales tax without holding a vote, the TABOR Foundation sued, arguing the Bill created a “new tax” or effected a “tax policy change” and therefore required voter approval under Colorado’s Taxpayer Bill of Rights. The trial court granted the Districts summary judgment on stipulated facts, and a division of the court of appeals affirmed. Through this opinion, the Colorado Supreme Court clarified that legislation causing only an incidental and de minimis tax-revenue increase does not amount to a “new tax” or a “tax policy change.” The Court held H.B. 13-1272 was such a bill: serving to simplify tax collection and ease administrative burdens. The Bill “only incidentally increases the Districts’ tax revenues by a de minimis amount.” Accordingly, the Court concluded H.B. 13-1272 did not violate the Colorado Constitution, and affirmed the court of appeals. View "TABOR Foundation v. Regional Transportation District" on Justia Law