Cortez Journal

Citizens should take a hard look at convoluted state tax system

March 14, 2000

Friday was the 66th legislative day...there are 54 days to go! There have been 435 bills introduced to date in the House and 204 bills in the Senate. Only 101 bills have been postponed indefinitely, affectionately known in the legislature as "P.I.'d." What is amazing is that, even with the proclamation by Speaker George (R-Rifle) that a detailed letter demonstrating the dire need for late bill status is needed, many late bills are still being read across the desk. Late bill status means that the member must receive the approval from at least two of the three members of the House leadership, specifically the Speaker, Majority Leader Doug Dean R-Colorado Springs and Minority Leader Ken Gordon D-Denver.

Apparently there are some dire health, safety and welfare issues out there no one has previously identified. And with the new revenue figures exceeding projections, the fervor to whip up some more tax credits is certainly gnawing on those believing they must seek favor from the voters in this election year.

With the new projections in revenue will come the continued demands to fund more programs that have been lacking in state financial support. Colorado is in a booming economy and almost everyone seems to want to remind me. Shame on us legislators for not fixing highways, giving more money to schools, home health, or a number of other worthy needs. I cannot tell you how many times I have explained the Taxpayer Bill of Rights (TABOR) and the Arveschoug/Bird Amendment also known as the 6-percent limitations.

I think it is time that the citizens of Colorado begin taking a very hard look at the TABOR amendment, the 6-percent limitations and the very convoluted tax system that has been promulgated over time. What many voters never realized was that there were already appropriations limits in place when TABOR was approved. State government and the legislature could not then and cannot now appropriate more than 6 percent over last year’s appropriations. TABOR, on the other hand (and this definition is oversimplified) restricts the amount of revenue the state may take in depending on the percentage of growth (or decline) of the population over the previous year, plus or minus the Denver/Boulder Consumer Price Index. The difference between the TABOR limits and the 6-percent limitations has been earmarked for capital development projects and controlled maintenance. I have probably lost many of you by now, but with TABOR this complicated system can only be changed by you the voter!

Even though the 6-percent limitations are statutory, which means that the legislature should be able to change them, the TABOR amendment dictates that ALL tax changes must be approved by the voters. Accordingly, and here's the rub, YOU, the voter, must become involved and educate yourself. The serious implications that overly large tax credits and sales tax reductions will have on you, your family, southwestern Colorado and Colorado as a whole is serious stuff, folks. You voted in TABOR; it will be up to you to help change it.

One last note on TABOR and the 6-percent limitations. As we reduce the amount of money taken in through tax credits or if we have a downturn in the economy, the amount available for capital construction and controlled maintenance will reduce correspondingly. This means that all of the state buildings, including higher education (like Fort Lewis College), prisons, the state hospital and even highways will then begin competing for funding with programs like home health, education, Medicaid, corrections and all the other programs this state funds. And we recently identified that we have a $750-plus million shortfall for controlled maintenance, $350 million over the next five years. How do we do this with the many tax cuts? I don't know.

For those anxious to hear about SB-186 on education reform, the bill cleared the Senate and is on its way to the House. And, as suspected, it is some 20 pages lighter and significantly different in appearance. I have been informing those who called that I would register their concern but would not actively work the bill until the House received it. OK, we've got it now so let’s talk! Find the reengrossed version on the Internet at <http://www.state.co.us/gov_dir/stateleg.htm>. Click on "Senate Bills", then click on the appropriate number range (SB00-150 -SB00-199) and then click on the bill, SB00-186. Or, of course, call me and I will send you a copy.

Capitol number: (303) 866-2914; e-mail: mlarson@sni.net.

Copyright © 2000 the Cortez Journal. All rights reserved.
Write the Editor
Home News Sports Business Obituaries Opinion Classified Ads Subscriptions Links About Us