Its your money Colorados TAXPAYERS BILL OF RIGHTS

It’s your money. Colorado’s TAXPAYER’S BILL OF RIGHTS www. the. TABORfoundation. org © The TABOR Committee 2018

“…this nation, under God, shall have a new birth of freedom; and government of the people, for the people, by the people shall not perish from the earth. ” Abraham Lincoln Gettysburg, PA 1863

Some of the Taxes You Pay #1 Air Transportation Taxes #2 Biodiesel Fuel Taxes #3 Building Permit Taxes #4 Business Registration Fees #5 Capital Gains Taxes #6 Cigarette Taxes #7 Court Fines #8 Disposal Fees #9 Dog License Taxes #10 Drivers License Fees #11 Employer Health Insurance Mandate Tax #12 Employer Medicare Taxes #13 Employer Social Security Taxes #14 Environmental Fees #15 Estate Taxes #16 Excise Taxes On Comprehensive Health Insurance Plans #17 Federal Corporate Taxes #18 Federal Income Taxes #19 Federal Unemployment Taxes #20 Fishing License Taxes #21 Flush Taxes #22 Food And Beverage License Fees #23 Franchise Business Taxes #24 Garbage Taxes #25 Gasoline Taxes #26 Gift Taxes #27 Gun Ownership Permits #28 Hazardous Material Disposal Fees #29 Highway Access Fees #30 Hotel Taxes #31 Hunting License Taxes #32 Import Taxes #33 Individual Health Insurance Mandate Taxes #34 Inheritance Taxes #35 Insect Control Hazardous Materials Licenses #36 Inspection Fees #37 Insurance Premium Taxes #38 Interstate User Diesel Fuel Taxes #39 Inventory Taxes # 40 IRA Early Withdrawal Taxes #41 IRS Interest Charges (tax on top of tax) #42 IRS Penalties (tax on top of tax) #43 Library Taxes #44 License Plate Fees #45 Liquor Taxes #46 Local Corporate Taxes #47 Local Income Taxes #48 Local School Taxes #49 Local Unemployment Taxes #50 Luxury Taxes #51 Marriage License Taxes #52 Medicare Taxes #53 Medicare Tax Surcharge On High Earning Americans Under Obamacare #54 Obamacare Individual Mandate Excise Tax #55 Obamacare Surtax On Investment Income (a new 3. 8% surtax on investment income) #56 Parking Meters #57 Passport Fees #58 Professional Licenses And Fees #59 Property Taxes #60 Real Estate Taxes #61 Recreational Vehicle Taxes #62 Registration Fees For New Businesses #63 Toll Booth Taxes #64 Sales Taxes #65 Self-Employment Taxes #66 Sewer & Water Taxes #67 School Taxes #68 Septic Permit Taxes #69 Service Charge Taxes #70 Social Security Taxes #71 Special Assessments For Road Repairs Or Construction #72 Sports Stadium Taxes #73 State Corporate Taxes #74 State Income Taxes #75 State Park Entrance Fees #76 State Unemployment Taxes (SUTA) #77 Tanning Taxes #78 Telephone 911 Service Taxes #79 Telephone Federal Excise Taxes #80 Telephone Federal Universal Service Fee Taxes #81 Telephone Minimum Usage Surcharge Taxes #82 Telephone State And Local Taxes #83 Telephone Universal Access Taxes #84 The Alternative Minimum Tax #85 Tire Recycling Fees #86 Tire Taxes #87 Tolls #88 Traffic Fines #89 Use Taxes #90 Utility Taxes #91 Vehicle Registration Taxes #92 Waste Management Taxes #93 Water Rights Fees #94 Watercraft Registration & Licensing Fees #95 Well Permit Fees #96 Workers Compensation Taxes #97 Zoning Permit Fees

“The only reason Colorado is ranked so high (in economic success and opportunity) is the presence of a Taxpayer’s Bill of Rights. ” Rich States, Poor States by Laffer, Moore and Williams

The intent behind the Taxpayer’s Bill of Rights Limit the growth of government and voters choose how much tax you pay – and how much long-term debt we assume.

TABOR limits government’s annual budget: prior year’s budget + increases in population + inflation

TABOR is Flexible and Reasonable § Adjusts school district budgets by inflation plus enrollment § Adjusts city and county budgets by inflation plus increased values as a result of new construction

TAXPAYER’S BILL OF RIGHTS § TABOR allows automatic annual increases to the budget § TABOR is silent on HOW tax money should be spent – that’s up to legislators & voters

TAXPAYER’S BILL OF RIGHTS When politicians want to raise the budget above the TABOR limit, Voters get to choose: § new taxes § higher tax rates § continuing a tax scheduled to end § new long-term debt

Other Important Provisions: § Returns excess revenues to taxpayers § Creates an emergency reserve fund and directs when it can be accessed § Mandates when tax elections may be held § Puts no limit on fees that may be imposed

There were no TABOR rebates during the recession. Government still grew, even if your household income didn’t.

TABOR forces politicians to ask the voters What do you want most for your tax money? rather than promises based on What do you want?

Colorado State Budget annual growth rate ± 6%/yr

Colorado doesn’t have a revenue problem, it has a spending problem! § Over-spending in one area crowds-out monies for other government services. § Government can only spend more money when it takes it from someone.

Attacks on TABOR § Kerr vs Hickenlooper - Lawsuit claiming that any restriction on the legislature is a violation of a republican form of government § Call taxes a fee – Legislators installed new taxes without a vote by just calling them “fees” (FASTER & Vehicle Registration programs, Hospital bed tax, Aspen bag tax, Bridge Safety tax) § Redefine a welfare program as a “government business” in order to hide the program off the books § SB 2017 -267 –Ignore constitutional requirement to recalculate the base when moving a program off the books, thereby raising taxes $400 MM without a vote § Creative Work-Arounds - Set up Certificates of Participation to avoid voting on long-term debt

Consequences § Many times ballot language – often for Special Districts – says that there will be no more tax refunds when revenues exceed the budget revenue cap. So government just keeps collecting more and more. § Voters passed Referendum C and gave the State a 5 -year “time-out” from refunding excess revenues. That increased the budget baseline, which has led to a forever tax increase.

Why TABOR Matters § Predictable taxes encourage business growth, more jobs, and a more secure economic future for you, your family, seniors on a fixed income, and the next generation § Controls on government budgets are more fair for those who pay taxes § PERA, the Public Employees Retirement Association is about $32 billion underfunded in Colorado. TABOR restricts the ability of legislators to bail out the retirement fund – without a vote by taxpayers. Who’s paying for your retirement?

Life in Colorado without TABOR § No limit on how much you will be taxed hurts your family budget, savings, and investments § No say in the amount you will be taxed disrespects your rights as an American citizen § Unlimited public debt passed onto our children and future generations § More control over your life by politicians, government regulators, and special interests.

Protect Your Rights! Protect Your Future! Protect TABOR! § Discuss TABOR with your friends § Schedule a speaker § Give a tax-deductible donation to the TABOR Foundation to help us spread the word www. TABORfoundation. org/donate

The TABOR Foundation Working to protect the families of Colorado www. the. TABORfoundation. org Info: 303. 747. 7460