The Taxpayers’ Bill of Rights (TABOR) amendment requires voter approval for tax policy changes that increase state revenues. It also limits annual growth in state revenues to the sum of the rates of inflation plus population. Revenues that exceed the TABOR limit are rebated to taxpayers.
Without increasing tax rates, HB 19-1257 and HB 19-1258 request voters’ approval to keep and invest revenues over the TABOR limit for education and transportation. These revenues must be spent as follows:
- 1/3 of these revenues must be used for public schools;
- 1/3 must be used for higher education; and
- 1/3 must be used for roads, bridges, and transit.
The bills require an independent audit to ensure these revenues are used for those purposes.
Without raising tax rates, these bills would ensure revenues above the TABOR limit are used for education and transportation. We support 1257 and 1258 because nonprofits rely on the quality of our education system for a strong homegrown workforce. Without a sufficient transportation system, it’s very difficult for nonprofits to procure needed goods, travel within the state, and ensure daily commutes to work are not burdensome for employees.
Voters would ultimately decide if TABOR rebates should be used for these public services and retain the right to vote on any future tax rate increases.
1257 and 1258 have passed the House and Senate and will next be sent to the Governor's desk.